Summative Assessment: Business Issues and the Contexts of HR - Report

This report provides a comprehensive analysis of business issues and the context of Human Resources (HR). It begins by comparing tools for analyzing the business environment, specifically PESTLE analysis and Porter's Five Forces. The report identifies factors impacting organizations and their HR functions, examining political, economic, social, and technological influences. It further analyzes forces shaping HR and the HR agenda, particularly increased competition and technological advancements. The report then explores the key stages of business strategy formulation, implementation, and the potential role of HR in each stage. It also determines the contribution of HR to business ethics and accountability. The report discusses ways to evaluate business performance and the role of HR in ongoing business planning and change management. Finally, it outlines different sources of business data, providing examples of how each can inform business planning. This report aims to provide a detailed understanding of the challenges and opportunities facing HR in today's dynamic business environment.

Summative Assessment for Business Issue
and the Contexts of HR
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Comparison of two different tools for analysing organisations business environment...............3
Identifying four different factors which impact on the organization’s business and its HR
function........................................................................................................................................5
Analysing two forces currently shaping HR and HR agenda......................................................6
Discuss about different key stages of business strategy formulation, implementation and
potential role of HR in each of these...........................................................................................7
Determine the contribution of HR that can make business ethics, accountability....................10
Ways in which business performance can be evaluated and role of HR in ongoing business
planning and change management.............................................................................................11
Discuss about three different sources of business data with examples, how each can be used to
inform business planning...........................................................................................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
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INTRODUCTION
Evolving the role of HR in contemporary business world to drive the achievement of
organization’s success. HRM touches every aspects of enterprise in context of growth and
development. This report is mainly focused CIPD branch to lead a discussion at the event or
program. This report will discuss about the business issues and context of human resource by
identifying different key contemporary problem. It will describe the main external factors
affecting the entire organization and how will impact on HR. This documentation will explain
the organizational, HR strategies and other practices, which are developed or shaped. It will
determine the responding changes in current business environment or culture.
MAIN BODY
Comparison of two different tools for analysing organisations business environment
There are several tools with help of which organisations can analyse their environment.
Analysis of business environment involves identifying different environmental factors and their
impact on the business and its activities. Different tools are used by organisations in order to
analyse their internal and external environment (Perera, 2017). This means that Pestle analysis is
used to analyse external environment, McKinsey’s 7s framework is used to analyse internal
environment of the organisation. Porter’s five forces are used to analyse competitive
environment of the organisation. Comparison of Porter’s five forces and Pestle analysis is as
follows-
Pestle analysis is a tool with help of which organisations can analyse their external macro
environment. Macro environment of the organisation is the one which cannot be controlled by
organisation and its impact also extends to all organisations operating under an economy. Main
factors that are involved in macro environment of the business involve factors like political,
economical, social, technological, legal and environmental. With help of Pestle analysis, these
factors of macro environment can be analysed. Pestle analysis help in analysing impact of these
factors on the organisation and its functioning. With help of pestle analysis organisations can
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analyse changes in external market and what decisions does organisation needs to take in order
to cope up with the changes in external environment. Pestle analysis also allows companies to
examine factors while making decisions about products and services of the company. This means
that with help of social factor analysis company can identify changes in customer taste and
preference and design their product accordingly. Other than this, by analysing technological
factors and its analysis companies can identify and analyse technological development affecting
their effectiveness and efficiency.
Contrary to this Porter’s five forces model is a tool which help companies in undertaking
analysis of factors that are there in their competitive environment. This involve identification and
analysis of the factors in one industry, this means that these are limited to one industry. This is
opposite to pestle analysis which helps in analysis of economy as whole rather than limiting to
one specific industry (Lewis, 2017). This means that with help of this companies can identify
and analyse different factors that exist in competitive environment. These factors are threat of
new entrants, threat of substitute, and bargaining power of suppliers, bargaining power of buyers
or customers and competitive rivalry. These are certain factors that are involved in competitive
environment of the company and company can analyse their influence on their competitive
position and their competitive power. Analysis of these factors also helps organisations in
understanding how attractive the industry is for the organisation. This attractiveness of the
industry also differentiates on the basis of position of industry. This means that for an existing
organisation high barrier to entry and low threat of new entrants is attractive but for a company
that is entering into the industry high barrier to entry reduce attractiveness of the industry
(Lozano, 2020).
This means that Pestle analysis helps in analysing impact of economy whereas Porter’s five
forces help in analysing impact of an industry in which organisation is operating.
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Identifying four different factors which impact on the organization’s business and its HR
function.
A recognised tool is basically used to help for defining range of different factors that can
impact on the organizations business and human resource functions.
Political Factor: - Almarai Company is governed by changes that are introduced by
government. In Saudi Arabia, trade union and bodies which regulates the sector of business. At
that time, HR department is responsible for ensuring all essential compliant, changing regulation
(Aguirre, 2019). Within “Almarai”, Human resource helps for creating or developing an
effective political environment for different stakeholders such as distributors, suppliers. This will
help for increasing overall business production and sales in global marketplace.
Economic Condition: - it is another important factor that has a big impact on how “Almarai”
operating in Saudi Arabia. It can be identified rate of interest, employment level, inflation and
demand of general.
On the other hand, globalization has considered as important aspects which increasing the
competition between different organizations (Jenkins, Toledo and Oyarzo, 2020). It had to cut
price/cost and outsource much of their work to overseas as employee cost become lower. At that
time, HR would assist for concerned about the “Almarai” business operational management
system, which is being aware of current market situation or condition. Sometimes, it being
prepared to cope with change in economy.
Social Factor: - this type of factor is consider as integral part in current workforce of “Almarai”
retailer. An ageing population, changing the structure, layout and immigrant employees. They
are not just some of contemporary issues regarding income, unemployment, lack of security
aspects. Within “Almarai” retailer, Human resource management needs to address such type of
issues and taking into account how to easily attract new people and retain existing staff members.
Technological Advancement Factor: - “Almarai” retailer is mainly focused on the
implementing an innovation of modern technology that have a continuously effect on the
external business environment. Nowadays, Almarai is evolving new system, machinery that can
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improve the entire performance of business in global marketplace. This type of innovation is also
supporting the business in term of eliminating contemporary issues regarding workforce,
employment regulation and so on. Advanced technology can help to increase downsizing the
workforce, doing save money and increase profitability of “Almarai” retailer. HR implications of
Almarai firm that always support for assisting in the technological process by looking at where
redundancies would be occurred or made.
Analysing two forces currently shaping HR and HR agenda
In radically, transformed the business environment, traditional enterprise model may not
ensure the proper sustainability of organization. HR can identify the challenges such as climate
change, globalization, high competition, technology enhancement, demographics and social
inequality. These are commonly used contemporary issue that needs to be evolve through human
resource functions in the organizations (Atkinson, Beck and Duberley, 2020). In some situation,
organizations need to be aware of both environment as well as social responsibilities, ensure
their all essential resources is sustainable.
Human resource should anticipate different changes and devise appropriate change
management strategies that support in better delivery of organizational goal. HR strategy and
practices are aligned with business and their important stakeholders. HR will be considered all
expectations of stakeholders such as shareholder, manager and staff members.
CIPD branch can focus on the HR practices that provide the right environment for people
to learn, grow and develop them through innovative learning approach. It help for recognising
people and their contribution towards business success. By investing right candidate, CIPD
branch was provided the best customer service through all channels. HR proposed to offer the
best service of their employee in term of informal culture, encouraging innovative idea, helping
staff member where they can find the real truth.
Increased competition means unpredictability and uncertainty- HR unable to make an
effective plan and go beyond 3-4 years, previously, they could develop a strategically plan for 10
years. Organizations have increased to become more agile and regular basis to change their
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business process, downsizing, outsourcing and mergers, acquisitions (Bizzi, 2020). Various
policies and practices of organizations need to effective so that it able to response more rapidly
than its competitors. It will be changing the circumstances in business environment in order to
meet expectation level of multiple stakeholders in organization.
Central HR practices is flexible in term and condition of employment- Short term contracts
are most common that avoid making any redundancies at the time of change. It is increasing the
sub-contract, self-employed and agency worker. It has changed the way of HR in traditionally
employed people on permanent and concern on the contracts related full time (Jenkins, Toledo
and Oyarzo, 2020). Human resources are rapidly increasingly associated with different
approaches of management in term or development and growth. This is the reason for adopting
high commitment towards “working practices”.
Wider Megatrend Shaping HR agenda
Basically, trends innovative digital technologies that help for shaping economies,
societies and entire world of work. It is directly impact on HR professional in term of who they
includes and how does. For Example- “Almarai” retailer is focused on the milestone of
development through HR techniques. Just before CIPD was founded. It must ensure all
management principles include by Human resources, response to demand of mass production of
goods and services. Since, advanced economies have undergoes a process of increasing demand.
Discuss about different key stages of business strategy formulation, implementation and potential
role of HR in each of these.
Human resource management works in partnership with management. All enterprise units’
individual HR head who have reported to director. It is to make sure that all department focus on
the delivering high level of performance.
Rational approach or Classical Approach- This type of approach is based on the business
environment to be predictable and design a proper rational, logical approach, which help for
enabling enterprise to achieve desirable goal and objective. HR uses this approach for purpose of
planning through pestle analysis. But at certain level, it has been representation of limitations
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regarding uncertainty of event or program. It may occur in macro environment that may render
approach as obsolete. Classical approach will be using in formulation of strategy, relies on the
ability of HR to secure a goal of profitability (Cooke, Dickmann and Parry, 2020). Human
resource department believes on the evolution of nature in cost benefit analysis, manage or
control entire business performance.
Strategy formulation is that when organization identify it is now, where it want to be in
future. An effective strategy will support for enterprise to set up realistic objectives that allows
for better flexibility.
Corporate strategy- this type of strategy is based on the purpose, scope of organization, which
help for meeting the expectation level of stakeholders within organization. HR can use this
strategy to create or maintain an effective working environment or culture. By using this
strategy, it will act as wireframe in which help for decision-making and improve business
activities.
Competitive Strategy- this strategy will help for representing current position of business in
marketplace. Afterwards, it can implement and compete successfully, gaining more competitive
advantage in their marketplace (Engle Sr Zaharie and Poór, 2020). HR can use this strategy for
establishing the stability while implementing innovative idea for increasing the presence in
competitive environment. this will help for increasing production and sales.
Operational Strategy- this type of strategy is different from business work because it help for
delivery corporate, business unit strategies. It is not only setting a plan for use of staff members,
processes and other resources.
For Example of strategies-
Companies may wish to pursue to gain more competitive advantage in form of vertical as
well as horizontal integration. In context of vertical, HR can acquire upstream or downstream
business from existing current marketplace. On the other hand, horizontal integration is that
when organizations merger with other one in similar market. These are two different way to
implement strategies according to need or requirement. Human resource management have
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decided that what strategies implementing within business. Thus, it will increasing overall
business performance in term of growth and development.
There are different key stages of business strategy formulation and implementation.
Vision and mission- it is consider as foundation upon which strategy will be developed. These
are being as core value, purpose of business development. Human resource management have
been developed an appropriate vision, mission that can help for clear realistic goal and objective
of organization.
Carry out an environmental scan- In this process, HR would assist for performing the internal
analysis through SWOT, in order to assess internal strength, weakness, threat and opportunities
of organization in global marketplace.
Review, update strategic goals- In this phase, when updating the strategic goal that need to
perform gap analysis and identifying gap between future environment as well as current strategy.
In this way, it become easier for evaluation of current business environment that must be carried
out the determination and successful implementation of great strategy goal.
Establish strategic objectives- when implementing a strategic objective that needs to consider
for formulating the functional strategy that always support for HR to achieve desirable goals
(Jenkins, Toledo and Oyarzo, 2020). In order to gain more competitive advantage in
marketplace.
Develop an annual action plan and finalize- by using actionable strategic plan and then
achieving desirable result. HR would concern about all essential resources, equipment’s that
require for identifying appropriate result or outcome (Jenkins, Toledo and Oyarzo, 2020). In this
plan, it is basically involves tasks such as resource planning, organizational structure design,
change management techniques.
Executive Review- it is last phase that can monitor at different level such as feasibility,
acceptability and suitability. Implementation needs to be tracked or monitored where essential
revised or new approaches developed in proper manner.
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Potential role of HR in strategy-
 Assisting the senior management to develop or formulate and implement change
management in business process.
 By conducting research and development, it can be identified strength, weakness and
other parameter benchmark against its current competitors.
 Organizing a strong team that will carry out analysis of problems and identification for
necessary training and development requirement.
 Building a healthy working environment or culture of employee so that adopting a better
change and increase level of engagement in business activities.
Determine the contribution of HR that can make business ethics, accountability.
Human resource management could follow code of professional ethics, which are based on
the different principles. It can be identified the way in which staff members, brand personality
that describe employees which are supposed to perceive. Usually, HR can implement three
approaches of ethics in business.
 Absolutism- it refer to ethics that are underpinned by core values which applied in the
societies to handle all situation or condition.
 Relativism- this concept is depending on particular situation and relevant on the cultural,
which become more prevalent at particular place, time.
Traditionally, organizations are expected to be focused on the bottom line of business. It will be
consider as corporate social responsibilities practices (Liu and et.al., 2020). Organizations have
started report to the triple bottom line and then adopting ethical policies to comply with both
social expectation as well as legal aspects.
HR devise, implement and monitor all ethical policies and procedures that help for
promoting an effective business culture or environment (Verdugo and Ponce, 2020). It is a
moral value of HR to improve ethical culture that help for establishing a strong coordination
between employees.
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Rule and regulation, legislation affects HR contribution in term of ethics by imposing
legal responsibilities and duties where they are expected to act like ethical value. It does not
means to force legislation but can inspire or motivate to follow themselves. In this way, it can
handle staff member personal information. Basically, HR can use data protection regulation 2016
for maintaining ethical practices. Furthermore, human resource can restrict illegal activities
within business premises.
In additional, there are common issues surrounding in business related gender inequality,
which raise as biggest question about ethics and accountability for HR (Roztocki, Soja and
Weistroffer, 2019).
Legal compliance
According to equality act 2010, human resource has been prohibits discrimination
between women or men in context of payment. In particularly, term and condition of
employment. In some situation, organizations are complying with proper regulation but it could
held the accountability. For Example- removing gender pay gap.
A statutory compliance in Human resource policies are basically referred as legal
framework in which business entity adhere in different regulations.
 In case of where employee is less than 10 so that applicable shop act intimation.
 According to this compliance, it enabling ESIC where monthly salary will increases.
By using these legal compliance, it will improve ethical, moral duties to provide the better right
for everyone. In order to maintain ethical environment or culture.
A merger and acquisition is also increasing as hurdle for human resource within organization. In
this way, HR must ensure that they have to meet all legal obligation which beyond duties of
treatment in both employees, stakeholder. It aligned with moral and ethical value of enterprises.
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Ways in which business performance can be evaluated and role of HR in ongoing business
planning and change management
It is extremely important for organization to evaluate their overall business performance.
There are various kinds of models that can be used for evaluation of business performance.
Business performance evaluation can be done with the help of Benchmarking and Balanced
Scorecard.
Benchmarking is one of the most famous business planning tools that can be used by
organizations for evaluating their business performance against: leading organization within
same industry, recognized best practises that can be used in operations, and against leading
organizations in different sector or industry (Verdugo and Ponce, 2020). Benchmarking helps in
reviewing all the main and important business operations. For evaluation of overall business
performance, benchmarking can be applied to business processes, operations and strategies.
Another method of analysing business performance is using Balanced score card. It
consists of combination of qualitative and quantitative performance indicators that helps in
providing a comprehensive view of organizational competitiveness. Balanced scorecard helps in
measuring business performance in four main areas: financial, customer, internal business
process, learning and growth.
HR plays a vital role in ongoing business planning and change management. HR is
involved at initial phase of a project where they provide required training to leaders and
employees for successful completion of project and for supporting organizational change
successfully. HR also focus upon assessing overall impact of external business environment on
organization and stakeholders (Verdugo and Ponce, 2020). HR plays a vital role in management
of effective communication that as been affected by change management. They are also
responsible for management of effective working processes and practises that has been affected
by changes. But most importantly HR plays a vital role in management of change within
organization successfully. Change management within an organization can be explained with the
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