Management 2: Business Issues and Context of Human Resources Report

This report examines business issues within the context of human resources. It analyzes internal forces shaping the HR agenda, including labor markets, supply and demand, employment law, and competition. The report also summarizes various external factors impacting organizations, such as political, economic, social, technological, legal, and environmental factors, using PESTLE analysis. It compares environmental analytical tools like SWOT and PESTLE. The report outlines the key stages of strategy formulation, HR's role in business ethics, and methods for measuring business performance. Finally, it addresses the use of internal and external data in planning and the importance of stakeholder expectations in HR management.

Management 1
Business Issues and the context of human resources

Management 2
Contents
Introduction......................................................................................................................................3
Analysis of internal forces used to shape the HR agenda................................................................4
Summary of different external factors.............................................................................................6
Comparing of environmental analytical tools..................................................................................9
Summary of key stages of strategy formulation............................................................................12
Different ways which is measured in the organization for different purposes..............................15
Internal and External Data used in planning..................................................................................17
Conclusion.....................................................................................................................................19
References......................................................................................................................................21

Management 3
Introduction
This report is made in regards to analyse the business issues in the overall process. The several
aspects related to the human resources in the business will be described in this report. The HR
role in the business will be analyzed in this report. The HR include several forces that used to
improve the business strategies and the business issues. There are various factors and external
factors included in the HRM process and this process manage the overall business. The
description of environment analytical tools will also be described in this report. The HR agenda
is one of the important agenda of the business and this process needs to be used in the business
for the different process. The HR strategy formulation and implementation are important for the
business issues and the summary of these aspects will be included in this report. The strategic
objectives and stakeholder expectations are included in this report.
The business performance is measured in the organization for different purposes and this can de
defines in this report. The various role of HR in the accountability will be briefly described in
this report. The planning of data is also necessary in the business aspects and this planning will
be briefly described in the report. The HR resources are too effective and important in the
business planning that is briefly described in this report.

Management 4
Analysis of internal forces used to shape the HR agenda
The internal forces are too important for the overall process of the business and these forces are
used to shape the future of the HR agenda and make the HR process proper in the overall
business planning. There are several internal and external forces that currently used in shaping
the HR agenda. The main internal forces used to shape the HR agenda includes the labor market,
supply and demand, skill shortages, employment law and competition.
HR department of the business need to adopt these forces to maintain the overall activities of the
human resources and manages the employees working currently in the organization [1]. HR
should anticipate these strategies and the applied the change management strategies. The
increased competition implies the uncertainty and unpredictability in the organization and it
manage the different aspects of the business. The different policies and practices are used in the
business to improve the overall disadvantages occurred due to the increasing in competition [2].
Th several approaches are used to analyse the internal forces that shape the HR agenda. The
labor market affect HR practices and manage the overall agenda of HR, supply and demand is
also necessary in managing the HR practices, law of employment is also necessary for the
management of HR and competition affect the HR practices.
For example, the structure of HR function is used to define the internal forces of the HR
business. HR structure needs to analyse the overall internal forces that shape the HR agenda. All
the internal forces are used to analyse by the HR structures In the HR structure the person
includes HR director, recruitment manager, development manager and several other process [3].
Apart from the HR structure and function, several HR strategies are also use the internal forces
1 Tarique, I., Briscoe, D.R. and Schuler, R.S., International human resource management:
Policies and practices for multinational enterprises. 2015.Routledge.
2 Gannon JM, Roper A, Doherty L. Strategic human resource management: Insights from the
international hotel industry. International Journal of Hospitality Management. 2015. May
1;47:65-75.
3 Hollenbeck JR, Jamieson BB. Human capital, social capital, and social network analysis:
Implications for strategic human resource management. Academy of Management Perspectives.
2015. Aug;29(3):370-85.

Management 5
to analyse the different aspects of the HR function. Mainly the HR strategies are of two types
that is general strategies and specific strategies. The general strategies include high performance
working and the specific strategies include various aspects used in the HR management process
like learning and development. The HR strategies are also used the internal forces to manage the
various features of the HR management. The human resource strategy maintains the overall plan
for managing the human capital to align with its business activities [4].
The several strategic objectives of HR are also used in the analysis of internal forces that are
used to shape the future of the HR agenda. The common strategic objectives of human resource
are to ensure the workforce of the business which is capable to meet the needs of the employees.
The human resources are need to maintain the objectives of HR. As HR planning is one of the
main objectives of the business and the strategic objectives of HR need to manage the overall
planning of the business. The other important example related to the analysis of the internal
forces includes the stakeholder expectations [5].
The expectations of stakeholder are important for the growth of the business and it also included
in the HR management practices. There is a proper process that manages the stakeholders which
includes the activity of communicating with stakeholders and manage their needs and
expectations. This process is responsible for addressing the issues, resolve conflict situations and
needs to achieving the overall goals of the project. The stakeholder’s expectations also play an
important role in the internal analysis of forces that shape the agenda of the HR practices.
4 Pareek U, Rao TV. Designing And Managing Human Resource Systems, 3/E. Oxford and IBH
publishing; 2015. Jun 30.
5Jiang K, Lepak DP, Hu J, Baer JC. How does human resource management influence
organizational outcomes? A meta-analytic investigation of mediating mechanisms. Academy of
management Journal. 2012. Dec;55(6):1264-94.

Management 6
Summary of different external factors
To analyse the various external factors that impact the overall performance of the organization
and also impact the HR function of the organization. To analyse the externa factors, the pestle
analysis is sued which defines all the factors that impact the organizational performance in a
large manner.
Pestle Analysis is described below-
 Political Factors
The externa political factors impact the overall organization and their activities in a proper
manner. Organization are governed by the changes that are introduced by the government, the
European Union and other bodies. The government intervention affects the overall performance
of the organization and also impact the HR function of the business [6]. The HR department of
business is also impacted by the changing regulations of the business. The involvement of
political parties in the business affect the performance of the business and the HR practices.
 Economic Factors
The overall economy of the country also affects the performance of the organization and also
impacts the HR function of the business. The economic climate gives the big impact on the
several operations of an organization. It determines the inflation rate, exchange rate, levels of
employment and several other. By the economic interest the overall performance of the
organization gets affected and also affect the HR functions in the business [7]. The globalization
in the business increases the competition and it affect the overall work and also affect the current
market. The economic changes can be managed by the organization.
6 Buller PF, McEvoy GM. Strategy, human resource management and performance: Sharpening
line of sight. Human resource management review. 2012. Mar 1;22(1):43-56.
7 Jiang K, Lepak DP, Han K, Hong Y, Kim A, Winkler AL. Clarifying the construct of human
resource systems: Relating human resource management to employee performance. Human
resource management review. 2012. Jun 1;22(2):73-85.

Management 7
 Social Factors
The societal factors also affect the performance of the business and also impact the HR functions
in the business. The social factors play an essential role in the process of the workforce. An
aging population, immigrant workers and family structures are main issues that affect the HR
function of the business and these processes also retail the employees of the business. Some of
the factors of the society are used to attract new candidates in the different aspect of the business
[8]. The performance of the organization gets affected by the social aspects and it also impact the
HR planning.
 Technological Factors
The technology developments are also improving the overall performance of the organization as
the work becomes easier by implementing the various technologies in the business process. The
development of technology continuously affects the organizations and create many opportunities
for the business. The HR functions also becomes easier by using the technological factors. The
implement of new system and machinery also improve the overall performance of the business
[9]. By using the technology, the profit can also increase and it manages the growth of the
business. HR functions also becomes easier by adopting the technological advancements.
 Legal Factors
The different laws and regulations are also used to manage the overall performance of the
business. Organizations must comply with the rules and regulations to affect the HR functions
and other aspects of the business. The laws and rules apply in the HR process and also manage
the performance of the organization. The rules and regulations affect the different aspects of the
HR and the whole business process [10]. Heavy fines get be imposed if the companies not follow
8 Hendry C. Human resource management. Routledge; 2012. Sep 10.
9 Ehnert I, Harry W. Recent developments and future prospects on sustainable human resource
management: Introduction to the special issue. Management revue. 2012. Jan 1:221-38.
10 Pieper R, editor. Human resource management: An international comparison. Walter de
Gruyter; 2012. Oct 25.

Management 8
the regulations. The legal factors sometimes create the negative effects on the employee
performance and create many problems.
 Environmental Factors
The environmental factors need to be sustainable and ethical. As the environment factors are
also responsible for the managing the organizational performance. The HR practices gets
impacted by the environmental factors as due to the environmental factors the nature of
employees also get distracted [11]. The environmental factors include in this process is the
recycling of products, climate change and disposal of industrial waste. The changes in the
environment affect the performance of the organization and maintains the HR function
planning in the different process of the business. All the factors create many affects on the
HR and other employment activities.
11 Wang CH, Chen KY, Chen SC. Total quality management, market orientation and hotel
performance: The moderating effects of external environmental factors. International journal of
hospitality management. 2012. Mar 1;31(1):119-29.

Management 9
Comparing of environmental analytical tools
The environmental analytical tools are used to analyse the environmental factors that impact the
overall organizational performance. The environmental analytics tools are of several types which
includes swot analysis, pestle analysis and porters five forces. This comparison affects the
overall process of the business and the other HR functions [12]. This process gives several aspects
related to the analysis of environment. The Swot and Pestle analysis are used to do the
comparison of the environmental analytical tools. Both are used to analyse the environmental
aspects related to the business performance and the HR functions. The SWOT and Pestle both
tools are used to analyse the business environment but it is important for the business to decide
the difference between both the tools as per the perspectives of the organization [13]. The
important strategic decisions are easily taken by the business by using these tools. The
comparison among these two processes are discussed below-
SWOT Analysis PESTEL Analysis
 SWOT analysis is used to analysis the
strengths, weakness, opportunities and
threats of the business.
 SWOT is used to evaluate the internal
environment of the company by
identifying the strengths and weakness
and also the external environment by
analyzing the opportunities and
threats.
 The organization achieves the proper
 PESTEL analysis is used to analyse
the external factors of the business
that impact the different activities of
the business.
 The PESTEL is only used to analyse
the external environment of the
business.
 The different factors of PESTEL used
to analyse the different factors that
impact the overall business
12 Vanderstraeten J, Matthyssens P. Service-based differentiation strategies for business
incubators: Exploring external and internal alignment. Technovation. 2012. Dec 1;32(12):656-
70.
13 Garavan TN, Carbery R, Rock A, Kucherov D, Zavyalova E. HRD practices and talent
management in the companies with the employer brand. European Journal of training and
Development. 2012. Jan 27.

Management 10
development by analyzing the
strengths and the factors that recue the
weakness of the organization.
 The risks included in the business is
also analyzed by the proper
identification of threats that affect the
business environment.
 The company expanded its business in
the market by identifying the
opportunities in the market [14]. The
opportunities provide several benefits
to the business.
 SWOT is used to evaluate the internal
and external environments that gives
the large impact on the business.
 SWOT analysis is also used to analyze
the current market position of the
company.
 SWOT is used to interpret the internal
and external evaluations related to the
business activities.
performance.
 Political factors express the impact of
the political parties on the business
and other political factors that
influence the various business
operations.
 Economic factors create the several
changes like change in the inflation
rates, interest rate and arising the
competition in the overall business
environment. The changes in the
foreign currency rates directly impact
the business imports and exports.
 All the factors included in PESTEL
analysis is depend on the externa
factors itself.
 Social factors affect the perceptions of
customers that gives positive and
negative impact on the organization.
All the customer preferences changes
as per the time. It affects the overall
social factors of the business [15].
 Technological factors include the
various effects of the business
achieved by the technology and use of
14 Virakul B. Global challenges, sustainable development, and their implications for
organizational performance. European Business Review. 2015. Jun 8.
15 Adeleke¹ AQ, Bahaudin AY, Kamaruddeen AM. A partial least square structural equation
modeling (PLS SEM) preliminary analysis on organizational internal and external factors
influencing effective construction risk management among Nigerian construction industries.
Rev. Téc. Ing. Univ. Zulia. 2015. 38(143):143-55.

Management 11
advanced technologies in the business.
 PESTEL analysis is used to analyse
the impact of the external factors on
the business operations [16].
 The effect of external factors in
expanding the business operations are
also done by the Pestle analysis [17].
16 Mu J. Marketing capability, organizational adaptation and new product development
performance. Industrial Marketing Management. 2015. Aug 1;49:151-66.
17 Noe RA, Hollenbeck JR, Gerhart B, Wright PM. Human resource management. Gaining a
Competitive. 2015. Jul 13.

Management 12
Summary of key stages of strategy formulation
The strategic management is one of the important process in the organization and it is used to
manage the strategies formulation and implementation. There are various stages that are used in
the strategy formulation and strategy implementation [18]. With the formulation of strategies, the
implementation is also important. The various stages of the strategy formulation and
implementation includes:
 Clarify the vision
The strategy is used to analyse the vision for the business. In this process, the short and
long-term objectives are included, process to complete the objectives and customize the
process of staff are included. These process helps to analyse the vision of the business.
 Collect the important information
Analysis of the information is a key stage that impact the business strategies. In this the
proper information will be gained that gives the information related to the further two
stages. The data collected in this stage is used to shape the vision of the business [19].
The several needs of the business entity will also be included in the
 Formulate a strategy
This is the stage used to formulate a strategy by the information collected in the above
stage. The different goals and objectives of the strategic management is included in this
stage. The different issues faced by the company are prioritized for achieving the success
[20].
18 Úbeda R, Alsua C, Carrasco N. Purchasing models and organizational performance: a study of
key strategic tools. Journal of Business Research. 2015. Feb 1;68(2):177-88.
19 Cascio WF. Managing human resources. New York: McGraw-Hill; 2015. Jan 23.
20 Fred M, Kinange U. Overview of HR Analytics to maximize Human capital investment.
International Journal of Advance Research and Innovative Ideas in Education. 2015. 1(4):118-
22.