Analysis of Internal and External Contexts of Trufflebags: A Case Study

This project analyzes the contemporary issues and key theories of HRM, strategic HRM approaches, and internal and external context analysis of Trufflebags, a long-established family business in the UK. The project also includes proposed solutions for business problems.

Analysis the internal and
external contexts of the
organisation based on
case study

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Analysing the contemporary issues as well as key theories of HRM that demonstrate
awareness of the implications for practices.................................................................................1
Assessing the strategic HRM approaches in practices within a given context............................2
Analysing the internal and external context of an organisation using appropriate analytical
tools demonstrating an awareness of the impact of various contextual factors on the
development of the role of HR, HR strategies and practices.......................................................3
Proposed solutions for a specified business problems.................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Human resource management refers to a strategic approach that help companies to
manage their people effectively and efficiently in order to gain competitive advantages
(Armstrong and Taylor, 2020). The project is based on a case study of Trufflebags, which is long
established family business in UK. The company has a factory in the Midlands where it
manufactures confectionery products which includes fudge, chocolates, toffees, ice creams and
soft drinks. The following project covers contemporary issues as well as key theories relating to
HRM. It further analyses the strategic HRM approaches along with the internal and external
context of an organisation. It also includes proposed solutions to solve business problems.
MAIN BODY
Analysing the contemporary issues as well as key theories of HRM that demonstrate awareness
of the implications for practices.
Human resource management mainly used in dealing the various issues of the
organisation such as managing performance, compensation, development of the organisation,
wellness, safety, employee motivation, benefits, training and many more (Banfield, Kay and
Royles, 2018). In context of Trufflebags, the issues faced by its HR department are described
below:
Diversity and Harmony issues- Diverse workforce that work in harmony can help in
building the stronger teams, provide better ideas as well as make effective customer satisfaction
in the organisation. If HR department of Trufflebags does not harmony in its workforce, they
become unproductive and its also impacts on their growth.
Recruiting and Retaining top talent- Top talent employees are more productive as well
as help company to achieve their goals in effective manner. Because of the high competition in
the market HR department of Trufflebags found difficulties in order to recruit and retain top
talent in better manner.
Changing Regulatory issues- The laws and rules regarding labour law are changing
constantly or any time in order to protect the rights of labour. This will also makes problems for
HR department of Trufflebags to manage their employees with changing regulation.
Innovation and Automation- The technology are developing as well as many
innovation are also happen in the organisation which makes company to provide proper training
1

to their employees in order to make them perform effectively in the organisation. This also
makes difficulties for the HR department of Trufflebags to manage their employees according to
the latest innovation and automation.
Key theories in Human Resource Management-
Human resource management theories describes certain strategies, objectives and tactics
that help company and its HR managers in administrating the procedures as well as policies
related to their employees (Carbery and Cross, 2018). The HRM theories that help HR manager
of Trufflebags are described below:
Organisational life-cycle theory- It refers to the first theory of human resource
management that observed organisation similar to the living organisms according to their life-
cycle. This will help HR manager of Trufflebags to understand and analyse the internal as well
as external factors in order to make organisational growth and development more effective.
Strategic Contingency Theory- This theory describes that a leader plays a main role in
the organisation because of its unique skills in order to solve their biggest challenges related to
HR. This will also help HR manager of Trufflebags to develop various skills that are needed to
manage the people in the organisation.
Resource based theory- The theory describes that the employees in the organisation are
rare resources, valuable as well as unchallengeable which makes company to provide proper
training and development in order to make them to perform more effectively in the organisation.
This theory also help HR manager of Trufflebags for managing their people in order to gain
competitive advantages by supporting proper training and performance in the organisation.
Assessing the strategic HRM approaches in practices within a given context
Strategic human resource management helps company make connection in between their
human resources along with their strategies, goals and objectives (Chelladurai and Kerwin,
2018). In respect of Trufflebags, the strategic HRM approaches that helps in managing the their
Human resources are described below:
Develop a thorough understanding of company's objectives- This makes important for
the HR manager of Trufflebags to properly understand their goals, objectives and strategies in
order to make their employees to give their best in order to achieve them in effective manner.
Evaluate capability of their human resources- In order to make employees to give
their best in their performance, it make important for the HR manager of Trufflebags to analyse
2

the skills and knowledge of their employees properly. This will help in assigning the particular
job to right people for getting effective outcomes from it.
Analysing the current HR capacity in achieving their goals- In order to achieve their
goals in effective manner, it is important for the HR manager of Trufflebags to analyse the
capacity of their human resources (Legge, 2020). This will helps in understanding that which
employees need training in order to complete the task in better manner.
Estimate company's future HR requirements- The company who is making effective
success in the market their workload also increase which makes company to analyse the
requirement of employees for their future in order to complete the future task in proper manner.
This will also help company to achieve their goals in more effective manner.
Determine the tools that required for employees for completing the task- For
achieving the goals, it should be important for the Trufflebags to complete their task on time. For
completing the task on time, it is also important for them to provide proper tools to their
employees so, they complete their task in better manner.
Analysing the internal and external context of an organisation using appropriate analytical tools
demonstrating an awareness of the impact of various contextual factors on the development
of the role of HR, HR strategies and practices
The role of HR, HR strategies as well as practices are certain important factors for every
organisation that help company to achieve their organisational goals in effective manner
(Pattanayak, 2020). In the context of Trufflebags, the factors of internal and external
environment of their business that affects on the development of the role of HR, HR strategies
and practices are described below:
Internal environment-
Level of Growth- This implies that if Trufflebags experiencing the aggressive growth as
well as rapid expansion makes its HR department to focus on more recruitment and staffing in
order to make their operation more smooth and effective. This makes their HR managers to
develop more effective strategies and practices that help in motivating the employees in better
manner.
Use of Technology- This factors makes Trufflebags to use more effective technology
such as online benefits management, in which their employees make changes in their benefits
3

plans in their own. This will their HR department to make effective strategies and practices in the
organisation in order to make employees to work more effectively in the organisation.
External environment-
Available labour pool- This describes that the HR department of Trufflebags found
difficulties in order to identify and attract most suitable candidates when the labour market is
affected by the larger number of unemployment rates as well as limited number of qualified
workers.
Government regulations- The laws and regulation of the country regrading training,
hiring, compensating and disciplining the workers will also affects the role of HR and their
strategies and practices in Trufflebags. This makes important for the company to make
modification in their HR strategies and practices according to the changing law and regulations.
Proposed solutions for a specified business problems
STEEPLE analysis-
STEEPLE analysis refers to a planning tool that help company to measure its macro-
environmental external factors which includes Social, Technological, Economic, Environmental,
Political, Legal and Ethical (Pucik, Evans and Björkman, 2017). In case of Trufflebags, these
factors of company that helps them to solve its business problems are described below:
Social- The increasing growth of population, attitude of the consumer, cultural standard
and diversity as well as competition are some factors of social factors that affects the business
environment of Trufflebags.
Technological- The advancement and trends in technologies, research and development
activities and automation are some technological factors that affects the Human resource
management of Trufflebags.
Economic- The economic factors that affects the Human resource department of
Trufflebags are unemployment level, inflation rate as well as interest and exchange rates.
Environmental- The factors like management of wastes and their disposal, air and water
pollution as well as energy efficient technologies are some factors that affects the business
environment of Trufflebags.
Political- The tax policies and laws for employment are some political factors that affects
the HR department of Trufflebags.
4

Legal- Health and safety policies related to employees, legal restriction and regulation as
well as minority protection act are legal factors that affects the HR department of Trufflebags
effectively.
Ethical- Behaviour of employees, morality, duties, integrity as well as value and culture
of people are some ethical factors that affects the HR management of Trufflebags.
Identification of socio cultural and socio economic factors that impacts on the choice of
HRM interventions-
Socio-cultural factors-
 Expectation of the society from organisation is the socio-cultural factors that affects the
human resource management of Trufflebags. This makes human resources of the
company to give their best in order to meet the expectation of the society in better
manner.
 The other factors of socio-cultural is views towards the social status of jobs which make
company to analyse that labour market in order to recruit highly talented people for the
organisation (Stone, Cox and Gavin, 2020). The views towards the achievement of work are the other factor that affects the Human
resource management of Trufflebags. This makes its HR manager to manage their
employees properly in order to make them effective for achieving the goals in better
manner.
Socio-economic factors-
 The population and workforce influence are socio-economic factors that affects the
Human resource management of Trufflebags in order to supply of external human
resources in effective manner.
 Workforce market condition also affects the human resource management of Trufflbags
because it shows the demand and supply of workforce in the economy which help
company to recruit and select highly skilled workforce in the organisation.
 Inflationary pressures in the economy also affects the Human resource management of
Trufflbags which makes them to provide proper allowances to their employees in order to
help them to survive in inflation period in better manner.
Evaluating Stakeholder interest-
5

Stakeholders refers to those person who has more interest in a business venture along
with the their decisions. Employees, customers, investors, leaders, government, communities as
well as suppliers and vendors are different types of stakeholders for a company. The stakeholder
interest has direct impacts on Human resource department of a company in order to help
company to achieve their goals in better manner (Stewart and Brown, 2019). The employees of
Trufflebags is also their stakeholders which makes them to provide better working environment
to them in order to make them to work effectively in the organisation and help company to
achieve their goals in better manner. If the employees are manage effectively in the which also
helps company in making customers more satisfied. They are also helps in maintaining the
interest of other employees in better manner in order to make effective success in the market.
Recommendations-
According to the above discussion, it is recommended to the HR manager of Trufflebags
to provide healthy and safest working environment to their employees in order to make them to
give their best in their performance that help company to achieve their goals in better manner.
They can also provides effective allowances to their employees that helps them to survive in
inflation period as well as feel motivated in order to work in the organisation in effective
manner. The company can also uses effective technology that help employees to work more
efficiently in the organisation and help company to achieve their goals on time.
CONCLUSION
From the above mentioned project, it is concluded that Human resource management is
important factors for very organisation that helps in managing the human resources in order to
achieve organisational goals in better manner. Diversity and Harmony issues, Recruiting and
Retaining top talent, Changing Regulatory issues as well as Innovation and Automation are some
contemporary issues that are faced by the Human resource department of the organisation.
Organisational life-cycle theory, Strategic Contingency Theory and Resource based theory are
some important human resource management theories that help company to manage their team in
better manner.
6

REFERENCES
Books and Journals:
Armstrong, M. and Taylor, S., 2020. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Banfield, P., Kay, R. and Royles, D., 2018. Introduction to human resource management.
Oxford University Press.
Carbery, R. and Cross, C. eds., 2018. Human resource management. Macmillan International
Higher Education.
Chelladurai, P. and Kerwin, S., 2018. Human resource management in sport and recreation.
Human Kinetics.
Legge, K., 2020. Human resource management: Rhetorics and realities. Bloomsbury Publishing.
Pattanayak, B., 2020. Human resource management. PHI Learning Pvt. Ltd..
Pucik, V., Evans, P. and Björkman, I., 2017. The global challenge: International human
resource management.
Stewart, G.L. and Brown, K.G., 2019. Human resource management. John Wiley & Sons.
Stone, R.J., Cox, A. and Gavin, M., 2020. Human resource management. John Wiley & Sons.
7