The Strategic Context of Human Resource Management - Desklib Case Study Course Work
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This report analyses the STEEPLE analysis of Coolco, identifying 3 socio-cultural and 3 socio-economic factors that impact HRM interventions. It evaluates stakeholder interest and recommends HRM activities to solve business issues. Course code, name, and university not mentioned.
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The strategic context of human resource management
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Table of Contents INTRODUCTION...........................................................................................................................3 MAIN BODY..................................................................................................................................3 STEEPLE analysis which established drivers for organisational changes..................................3 3 socio cultural and three socio-economic factors from the analysis that impact on HRM interventions................................................................................................................................6 Evaluation of stakeholder interest and recommendations of HRM activitieswhich help organisation to solve business issues...........................................................................................9 CONCLUSION................................................................................................................................9 REFERENCES..............................................................................................................................11 Books and Journals:...................................................................................................................11
INTRODUCTION This report aims to analyse internal and external context of an organisation which influences on the business operations weather special reference to the case study company i.e. Coolco. It is UK-based organisation which operates in food retailing sector and established in 1978. It is dealing in prepared foods with low priced and good quality. This report is analysing the understanding of strategic human resource management theories and practices which is applicable in order to deal with the business issues(Collins, 2021). It will cover STEEPLE analysis and identifying 3 socio cultural and 3 social economic factors. In addition to this, report will also cover the evolution of stakeholder interest and the recommendations of human resource management activities which help to solve the issues. MAIN BODY STEEPLE analysis which established drivers for organisational changes Coolco is found within the organisation that already faced many complications in the businesses. It is important to note that company needs to take necessary course of action in order to grow their business. Coolco has already faced many problems in their business in 2012 where the market was fall. Due to this, the founder of company took a step in order to get their original position in the market(Armstrong, 2019). They announced a scheme which is known as graduate trainee scheme. It is the scheme in which a plan is developed in order to get a new generation of knowledgeable, talented people who are able to understand the core business, customer base and market of an organisation. Graduates are selected on the basis of their qualifications with the strong contingent of MBA graduates who possess all the qualities of business savvy. It is very important for the applicants of graduate trainee position at Coolco that should possess all the understanding of the influence of history of an organisation and also able to use their knowledge in order to protect from external conditions of company. This is the reason that the need to do a STEEPLE analysis which helps them to establish key drivers for organisational change. Steeple analysis is discussed in below points: STEEPLE analysis
It is found to be a planning tool which is used for marketing strategies in order to measure the macro environment external factors. It is the acronym of social, technological, economic, environmental, political, legal and ethical. It provides a practical insight of each factor which affects a business(Cooke, Xiao and Xiao, 2020). It is the extension of PEST analysis. This analysis is very helpful in order to check the validity and reasonableness of overriding of business targets. In the case of Coolco, it is an important tool for them as company already faced many problems in their history. It is found that Coolco’s market was declined due to the external forces. This is the reason that employees of Coolco should understand the influence of external factors. All the factors of STEEPLE analysis are mentioned below: Social factor Socialfactorisconcernedwiththeculturalchangesandmarketresearchinan organisation which should be considered. It is found that there is a continuous change in trends and tastes of customers. It is important for employees that they should understand the behaviour of customers so that they are able to provide solution accordingly. In the case of Coolco, it is found that companies commit between internal and external pressure in 2000. Due to this, they lost their sight of its core business. One of the important reasons for their market share declined was the insecurities of employees which impacts on the productivity. That's why it is very important for employees to understand an external force which includes social factors. Technological factor Technological factor is concerned with advanced production methods which are rapidly increasing in the market. It is important to note for employees that they should understand the nature of technological business world(Sareen, 2018). Every day the new opportunities are offering in the market which helps to improve profit margin of an enterprise. But it is not easy for an organisation to adopt any technology in the business as it may be provide an adverse impact on the efficiency and productivity of employees. Sometimes it is found that changes are not accepted by employees as they are resistant to change. This can be better understood with the help of Coolco’s history. Their employees were felt insecure because of the new board of directors. The reason behind this was resistance of changes. That's why company needs to choose only to those technologies which they are able to convince employees for accepting change.
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Economical factor Economic is one of the big factors which influence organisational operations and functions in the market. It is concerned with the understanding of inflation level, international trade, unemployment and rate of growth(Ridder and Baluch, 2017). The current period of economic is support from the impact of COVID-19 pandemic. This gives a great impact on the purchasing power of potential customers and that’s why company should make a strategy of their pricing of products in such a way which motivates customers to buy their products. Coolco is provided low price products and not compromise with the quality which gives a reason to the customers to buy their products even in adverse economic conditions. Environmental factor Today's business environment is focused on environmental friendly business activities. The reason behind this is company’s products provided a negative impact on the environment as it created many waste and pollution in the environment. Due to this, company needs to reduce or manage waste which helps to reduce air and water pollution in the environment. In this factor, employees of an organisation should understand their sustainable duties which reduce the environmental pollution in the market. It is found in Coolco that their employees are producing less waste in the production process which is a positive factor for company. Political factor Political factors are playing a very important role in the success and growth of an organisation. Company need to run their business the compliance of all policies which are formulated by government. It includes tax policies, regulations on environment, employment laws, restriction on trade and tariffs, trade agreements, interference of state, etc. These all factors should be considered by every organisation in the business operation so that they are not negatively impacted. It is found that Coolco is the organisation which is currently running their business in UK so they have less impact of political factors. If company is expanding their business in other countries then they will face complications as it increases policies and laws of different governments. Legal factor
Legal factors are deals with the official complications which is mandatory to comply by companies. It is important for an organisation that they should comply all minority protection act, legal restaurant and regulations, competition law, safety and health policies of employees, etc. This factor should be considered by Coolco in order to run their business successfully. Ethical factor Ethicalfactorsareconcernedwithsocialvalueswhichisanintegralpartofan organisation that governs behaviour of employees(Zeller, 2019). It is necessary to consider ethical elements by employees of Coolco in order to determine that what is correct and what is not. Ethical elements include value of the culture, tendency of people, integrity, behaviour and duties of employees towards society. These are the important elements of steeple analysis which should be considered by an organisation in order to grow their business. Coolco has already faced many complications in their history because of the combination of internal and external factors. That was the learning for company to understand that employees get training in such a way which helps them to understand the influences of external factors on operations and business. All the factors included in STEEPLE analysis should be understand by an organisation in an effective way a and also enables them to take right decisions instead of feeling insecurity. There are many situation come in the organisation where employees needs to focus on betterment of organisation and society. For that purpose, they may be face problems in the company. But in that situation they should get well training which helps them to take the right decisions. 3 socio cultural and three socio-economic factors from the analysis that impact on HRM interventions HRM interventions are concerned with the improvement and enhancement of overall organisational performance which can be possible by improving the performances of groups and individuals within an organisation. It is also concerned with the way of managing people in an efficientandeffectiveway(AkinladeandShalack,2017).Humanresourcemanagement interventionsaretargetedatintegrating,developingandsupportingemployeesinan organisation. Important HRM interventionsare including developing talent and managing workforce diversity, performance management and wellbeing. It is found that using of HRM
interventions in an organisation is not easy as it get influences or impacted by socio cultural and economic factors. There is a discussion of social culture and economic factors which is identified from the STEEPLE analysis that affected on HRM interventions: 3 social cultural factors Level of education It is very important for an organisation that they should understand the level of education of their employees as it provides a great impact on choosing HRM interventions. It is found that HRM interventions are focusing on the development and improvement in performances of employees which provides overall improvement in organisational performance. When companies are using any HRM interventions such as performance management and it should know the level of education of their employees so that they cannot fail in their practices. It is very important to know that level of education should we match with the standards of HRM intervention so that any deviation cannot occur or company is not able to match the performances of employees. If any differences in the measurement tool of performances are found then it becomes tough for Coolco to improve the performances of employees. Cross cultural differences Every day the workforce diversity is increasing in the organisation and it makes up pressure on employees that they should adapt the diversity culture of an organisation. It is necessary for employees to understand the workforce diversity but it sometimes it becomes impossible for them as they are resistant to change(Beaven, 2019). In addition to this, it is very tough for employees to understand the different religion and languages of other employees which are come from different nations or other religions. This will increases the problems of conflicts due to cross cultural differences. That's why it is crucial for an organisation to understand this factor and able to make a solution which has to reduce the negative impact of cross cultural differences. Customer preferences An organisation is always customer-centric and they want to satisfy their customers with the help of understanding their taste and preferences. But it is not easy to understand the
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customer's preferences as it is daily change with the changes in trends. This is the reason that Coolco needs to understand taste and preferences of customers which helps them to produce goods and services accordingly. It is found that food is the basic necessity and that's why people were not able to afford expensive food materials. So this preference should be understand by an organisation in an effective way which assists them to take right decision. It is found that Coolco successfully understands the preference of customers and that's why they provided low-priced food products with no compromise in the quality. This is really helpful for them to increase the market share and customer base in the market. 3 socio economic factors Income level It is very important for an organisation to understand the target customers on the basis of their income level because it effects on their purchasing power. If target customers are earning a good income than it is automatically increases the purchasing power of their potential buyers. Cooclo is targeted to lower level and middle level people as they produces goods at lower price and also so not compromise with the quality of products and services. So that’s why if organisation is using any HRM intervention then they should know the income level of their employees which it is affordable or not for them. Global poverty It is found that global poverty is one of the important socio-economic factors which should be considered by an organisation(Ding and Cai, 2018). In the HRM intervention, Coolco should understand this factor so that they a measure and improve the performances of employees with the consideration of global poverty. State of the environment HRM intervention is used for the purpose of success in growth of an organisation as it improves the performances of employees. It is necessary for an organisation to consider the state of environment which impacts on the HRM intervention. It is crucial for company to analyse this factor as it is found that it provides a great impact on choice of HRM interventions.
EvaluationofstakeholderinterestandrecommendationsofHRMactivitieswhichhelp organisation to solve business issues Stakeholdersareplayingaveryimportantroleinthesuccessingrowthofany organisation. It is identified that company needs to understand the importance of stakeholders so that they can able to satisfy their stakeholders in an effective and efficient way(Kim and Torneo, 2021). It is very important for Coolco to evaluate the interest of stakeholders so that they are able to deliver high quality products. It is crucial to identify and assess important people, institutions or groups which helps them to satisfy the needs and wants of their stakeholders with the effective planning. There are some recommendations which are mentioned below about the human resource management activities which help in organisation to move forward without any conflicts: ï‚·Every person has a different mindset which needs to be understood by company in order to satisfy employees. It is important to note that companies should make up plan for their human resource management activities so that they can reduce the conflicts in an organisation(Fadhil, 2019). For example, workforce diversity is increasing and that's why human resource manager of Coolco need to understand that every person has different perception. This is the reason that company needs to provide training in such a way which makes a culture of diversity. ï‚·Human resource management activities also included the performance management and performance appraisal of employees. It is found that it provides a great impact on the productivity and performances of all employees. This is the reason that company needs to understand the needs and wants of employees. In addition to this, performances should be appraised according to the productivity and performances of employees which needs to be measured. CONCLUSION It can be concluded from the above discussion that external conditions are increasing in the market which provides a great impact on the organisational operations. It is crucial for every organisation that they should understand the importance of employees and take necessary steps
accordingly.ThisreportcoveredsteepleanalysisandtheirimpactonchoiceofHRM interventions. This report also covered evaluation of stakeholder interest and recommendations.
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REFERENCES Books and Journals: Akinlade,D. and Shalack, R., 2017. Strategichuman resource managementin nonprofit organizations: A case for mission-driven human resource practices.Global Journal of Management and Marketing,1(1), pp.121-146. Armstrong, M., 2019.Strategic human resource management. pdf drive. com. Beaven, K., 2019.Strategic Human Resource Management: An HR Professional's Toolkit. Kogan Page Publishers. Collins, C.J., 2021. Expanding the resource based view model of strategic human resource management.The International Journal of Human Resource Management,32(2), pp.331- 358. Cooke, F.L., Xiao, Q. and Xiao, M., 2020. Extending the frontier of research on (strategic) human resource management in China: A review of David Lepak and colleagues’ influence and future research direction.The International Journal of Human Resource Management,32(1), pp.183-224. Ding, J. and Cai, X., 2018. Study on the Impact of Strategic Human Resource Management on EnterprisePerformance.InternationalJournalofHumanResourceStudies,8(3), pp.6068-6068. Fadhil, A.S.H., 2019.Strategic human resource management and organisational performance: an empirical examination of the relationship between high-performance work systems andcustomersatisfactioninthesultanateofOman(Doctoraldissertation,Brunel University London). Kim, M.Y. and Torneo, A., 2021. The Roles of Strategic Human Resource Management and Person–Environment Fit On Nonprofit Public Service Motivation.Public Integrity,23(1), pp.33-51. Ridder, H.G. and Baluch, A.M., 2017. Strategic human resource management. InThe Nonprofit Human Resource Management Handbook(pp. 69-86). Routledge. Sareen,D.,2018.Relationshipbetweenstrategichumanresourcemanagementandjob satisfaction.International Journal of Current Research in Life Sciences,7(03), pp.1229- 1233. Zeller, D., 2019. Strategic human resource management in the hybrid (virtual offsite/traditional ‘brick and mortar’) organization.From doi. org/10.5281/zenodo,2671809.