The Evolving Role of HR: Shaping Strategies for Business Performance

This report analyzes the evolving role of Human Resource Management (HRM) in the contemporary business world, addressing challenges like globalization and technological advancements. It examines various HR models, including the matching model, Harvard model, contextual model, and David Ulrich’s model, emphasizing the strategic importance of HRM in achieving organizational goals. The report discusses Strategic HRM and its key dimensions, such as people, organization, culture, and HR framework, highlighting its impact on business performance, particularly in the banking sector (pension funds) in the UAE. It explores HR insights that drive a compelling work brand and improve employee performance, and discusses HR solutions for enhancing business outcomes through collaboration with key leaders. Furthermore, the report emphasizes the importance of business ethics and accountability in fostering a value-based culture and ensuring responsible behavior. It compares tools for analyzing the business environment, including SWOT, PESTLE, and Porter’s 5 Forces, assessing their strengths and weaknesses in strategic decision-making. Finally, it identifies factors affecting an organization’s business or HR function, such as government regulations and globalization, and outlines key stages in strategy formulation and evaluation of business performance.

The Evolving Role of
Human Resource
Management
Role of human resource in the
contemporary business world

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Table of Contents
Introduction................................................................................................................................2
Models of HR.............................................................................................................................2
Types of models of HRM.......................................................................................................3
Strategic HRM...........................................................................................................................4
HR Insights.................................................................................................................................5
HR Solutions for Business.........................................................................................................6
Business Ethics...........................................................................................................................6
Accountability............................................................................................................................8
Comparison of Tools for Analysing Business Environment......................................................9
Swot........................................................................................................................................9
PESTLE................................................................................................................................10
Porter’s 5 Forces..................................................................................................................11
Comparison..........................................................................................................................13
Factors That Affect the Organization’s Business or HR Function..........................................14
Key Stages in the Formulation of Strategy..............................................................................15
Models for Strategy Formulation and Implementation............................................................17
Evaluation of Business Performance.......................................................................................17
Assessment of Different Sources of Data................................................................................18
Conclusion................................................................................................................................19
Bibliography.............................................................................................................................21

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Introduction
There have been a number of challenges in the present business environment. For examples:
growing globalization, fast innovative change, organizational changes, such as new ways of
assigning work, new structures and packing orders. Inside these organizations, there is a
requirement for (and the open door for) human asset/resource to predict a basic job in serving
the organization to explore through these problems. So as to assume this job, in any case, HR
will have to expand its real and recognize value (May, 2019).
With the change in business environment, the job of human resource has been developing for
quite a while. The move from "workforce" to "HR," is the thing of the development (May,
2019).
This report would evaluate the business issues, the impact of HR on the business operations,
shapes of HR agenda, compatibility in the tools of the business environment, HR functions in
relation to Life Assurance Industry (pension fund) UAE.
Models of HR
The human resource has a bright future in the event that is overseen and structured in a
strategic way. The targets of the human resource spin around the successful usage of the HR,
an ideal dimension of working connections among the representatives (Preeti, 2017).

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Types of models of HRM
(Taylor, 2014)
Some of them are briefly explained below:
The matching model of HRM
In 1984, Fombrun et al suggest the 'matching model', which showed that HR frameworks and
the association design ought to be overseen in a way that is harmonious with the authoritative
strategy (Taylor, 2014).
The Harvard model of HRM
In 1984, Beer et al suggested the ‘Harvard framework’. They started with the proposal that:
Human asset management (HRM) includes all association choices and activities that affect
the idea of the relation between the association and representatives – its HR (Taylor, 2014).
The contextual model of HRM
Th e m atch in g m o d e l o f H R M
Th e H arvard m o d e l p f H R M
C o n te xtu a l m o d e l o f H R M
Th e 5 -P m o de l o f H R M
E uro p e an m o d e l o f H R M
H ard an d sp ft m o d e l o f H R M
D av id U lrich’s M o d e l o f H R M

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The relevant model of HRM significance of ecological elements by including factors, for
example, the effect of social, institutional and political powers, which are highlighted in
various models (Taylor, 2014).
David Ulrich’s model of HRM
David Ulrich conveyed the incredibly famous Ulrich model or the 3 legged stool models. He
defines 4 essential HR jobs that are the reason for a successful association. This model is
utilized even in the current situation because, it is a unique model, yet it provides a
satisfactory remark point to the human resource system. This is on the grounds that this
model characterizes an unmistakable job of the HR and makes a structure for the expansion
of significant worth for the association (Shingal, 2019).
Strategic HRM
Strategic HRM is a way to deal with choices on the goals and plans of the organization in the
state of the arrangements, policies, and works on taking care of the business relationship,
learning, and development, the performance of management, reward, and worker relations
(Cristina, 2018).
A combination of actions of the organization, individual as well as systems so that the
organization can accomplish its companies objectives, are known as HR strategy (Weena
Yancey M Momin, 2014).
The HR procedure has four key measurements, for example, individuals, association, culture,
and the HR framework. The association includes the activity jobs, and the progression
structures present in the association. This way of life comprises of the beliefs, standards,
values and the administration style of the association. The HR frameworks comprise of the

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choice of the representatives, preparing, interchanges, professional advancement, vocations,
and others. Every one of these variables mutually adds to the definition of the HR procedure
(Luxembourg, 2010).
The HR procedure is a dream of the association. The HR strategies require the investment of
the whole employees. The HR strategies ought to be defined after the appraisal of the present
business practice just as the HR practice (Jonathan Crawshaw, 2017).
Effect of human resource management (HRM) practices on association’s performance in
the banking area (pension fund) in the United Arab Emirates (UAE) showed that
association’s change fully conciliates HRM-association production link. Moreover, with
the presence of creative strategy, HRM conciliates the connection in innovation master
plan and association’s innovation (Sherine Farouk, 2016).
HR Insights
The human asset work brings the change in process of no. of organizations towards high
results, connected with, suitable modify and extremely able organizations. The HR work has
changed from an operational job to an inside administration job. The HR division additionally
tries to drive a convincing brand of work, better the exhibitions of the representatives and to
touch off the education and advancement process. Three HR bits of knowledge that will
propel the working environment culture (Richmond, 2017).

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(Richmond, 2017)
HR Solutions for Business
The human asset capacities assume an urgent job in business exhibitions. The HR faculty
ought to have a running association with all the key association’s leaders. The HR can
include the association leaders of the association in the arranging forms and the
administration (Mayhew, 2019).
These business bits of knowledge help the business chiefs for better basic leadership. The
usage of the right HR methods of insight ought to be done as such that the workers can add to
business achievement (Mayhew, 2019).
Business Ethics
The business morals involve all the diverse parts of business leaders, deals procedures,
accounting practices, meeting room techniques, and others. The business entity ought to take
Lineup, or realign, your workers to your association's identity
Employee appointment surveys are still functional and practical .
Educate and learn

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at exclusive expectations of business, which depends on the moral standards and corporate
duty programs. The codes, programs, preparing, backing, and others should support a moral
culture. The morals and HR capacities should recognize their individual jobs in the
association. The great relations between the morals group and the HR office help the
association to accomplish a value-based culture.
The HR group ought to stress on the moral conduct of the workers. The organization
environment should not undergo unethical conduct of the workers and ought to severe detail
rules for dishonest activities (Grace College Online Education, 2017).
HR plays a vital role in ensuring how ethical values are embedded in the organization.
(Alexandr Artemov, 2019)

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Accountability
Accountability in the association is basic, as the standards morals of administrators.
Responsibility is likewise an administrative procedure that guarantees representatives answer
to their predominant for their activities and that administrators carry on capably too.
Accountability tends to both the organization desire for the agents and the worker's desire for
the organization. Responsible workers help to expand the implementation of business in
general and to keep up a good association culture, sights, and morals (Boundless
Management, 2019).
Accountability on a global scale, especially on account of NGOs, is complicated by the way
that different nations have been shifting management points of view with regards to authority
(Boundless Management, 2019).
(Grace College Online Education, 2017)

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The workers ought to satisfy their individual accountabilities so that there is a successful
human asset the board rehearses in the association.
(Employee Benefit Trends, 2016).
Comparison of Tools for Analysing Business Environment
Swot
SWOT is a brilliant strategy for understanding the shortcoming and qualities of an
association. The dangers can likewise be killed by the correct investigation of the SWOT
(Mind Tools, 2019).
SWOT investigation is a structure used to evaluate an organization's focused location and to
create essential arranging. SWOT presents strengths, weaknesses, opportunities, and threats.
SWOT study evaluates inward and outside factors, just as current and later potential.

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(Bafna, 2008)
PESTLE
PESTLE its full meaning means P for Political, E for Economic, S for Social, T for
Technological, L for Legal and E for Environmental. It gives high-level thinking in all
circumstances from a broad variety of boundary that one needs to control while ruling over
on a particular plan (PESTLE Analysis, 2019).

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(Ashley Rohan, 2018).
Porter’s 5 Forces
His theory is an amazing asset for understanding the area of intensity in a business situation.
It speaks to the quality of the present focused position of an association. The five powers that
impact the association are provider control, purchaser control, and focused competition, the
risk of the new section, the danger of substitution and others (Jurevicius, 2013).

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(Porter's Five Forces, 2013)
The five powers are-
Supplier power;
Buyer power;
Competitive rivalry;
The threat of substitution; and,
The threat of new entry.
Rule, charge appraisal, and trade plans make administration the sixth power for certain
organizations (Jurevicius, 2013).

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Comparison
The PEST analysis is appropriate for the organizations that desire to direct statistical
surveying on the business and the items. Porter's Five Forces is appropriate for surveying
competition inside the market and inspecting its relationship with productivity. PEST analysis
enables the specialists to look at a wide variety of variables, which is useful during the time
spent on basic leadership. SWOT method is helpful in breaking down the current state of the
business and to imagine the future worries of the associations (Woodruff, 2019).
SWOT instrument reveals the chances and understands the possible shortcoming of the
business. The SWOT apparatus additionally gives bits of knowledge about the organization's
great attributes and the shortcomings of the organization. It is al important to decide the
upsides of the association, special selling suggestion, most minimum cost assets, nature of the
labor, and nature of the items to stay in front of the challenge (Woodruff, 2019).
The large scale condition of an association is broke down through PESTLE analysis. This
examination gives a plan to the chiefs with respect to the current circumstance of the
association and the future position of the association. The outcomes from PEST help the
organization to get ready for its future. SWOT display is less strong than the PESTLE
examination. This is on the grounds that the PESTLE gives the general examination of the
full-scale condition that influences the smooth working of the specific association. Porter's
five powers are one of a kind model that causes the association to play out a focused
appraisal. It encourages the association to evaluate the feasibility of a specific administration,
item or future development. The SWOT investigation, then again, is a general evaluation of
the association (Woodruff, 2019).

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Factors That Affect the Organization’s Business or HR Function
There are different interior as well as outside elements that affects the working of an
association and mainly the HR work:
Government Regulation- There is new law making framed at an ordinary interval, which
affect the working of the HR division, for instance, enrollment, preparing, end, salary, HR
strategies, and others. For example, the association must fulfill the standards of terminating a
worker; else if not followed then they will force substantial fines, and it is unfavorable to the
association’s picture. This is one of the outside components looked by the organizations
(Thakur, 2017).
Technological advancements- The innovation is an outside element that is quickly changing,
and it is forcing a huge level of impact on the associations. For instance, the HR division
takes part in terminating of the current representatives as a lot of work is finished by the new
innovation that is installed (Satav, 2019).
Economic conditions- The biggest outer variables that impact an association are the
profitable condition of the nation and the global at the large. It influences the contracting
choices of the associations For example, in the middle of economic downturn, the
associations take part in lower enrollment drives, so as to cut down the price.
Workforce demographics- This is very important amongst the most critical inner components
that influence the working of an association (Dike, 2019).
This factor manages the resigning working environment populace and the employing
techniques selected by the associations. For example, a dominant sector of the staff

ROLE OF HUMAN RESOURCE MANAGEMENT 15
population near the resigning age gives their suggestion that the association needs to chase
for new representatives at a rapid pace (Grace College Online Education, 2017).
Key Stages in the Formulation of Strategy
The human asset technique incorporates a few stages that should be pursued:
Determining the association's goal;
Evaluation of the authoritative condition;
Setting up of the quantitative standards;
Coordination with the divisional plans;
Review of execution and execute hole examination;
The choice of an appropriate system;
The growth of an authoritative structure for actualizing the system effectively;
Disbursement of adequate assets to the indispensable exercises;
Creation of approaches that are in accordance with the techniques;
Employment of best projects and arrangements with the end goal of consistent improvement;
The making of linkages between remuneration structure and the achievement of results; and,

ROLE OF HUMAN RESOURCE MANAGEMENT 16
Efficient use of key administration (Bhasin, 2018).
The technical definition and the usage of the methodology are the two most critical elements
of the HR group. The phase of the methodology plan manages the assessment of the
association between the key decisions and the vital factors by the ranking directors. The
procedure usage manages the different instruments just as methods that are used by the
directors to execute their defined methodologies (Bhasin, 2018).
(Source: By Author).
The key stages in the detailing of a system are vital decision, corporate, business and
functional. The key decision manages the choice of a particular alternative for the
development of the association. The important job of HR is to select between a few choices,
which are advantageous for both the association and the representatives (Peter Boxall, 2008).
The corporate dimension system contains the overall direction of the association and the
logic of the association towards the development of the association. The business level
Strategy
Formulation
Strategic
Choice
Functional
Strategy
Implementation
Leadership
Control
System

ROLE OF HUMAN RESOURCE MANAGEMENT 17
procedure manages the activities and choices in connection with the specialty units. The HR
plays a key job here by the execution of a reasonable HR technique after the determination of
an appropriate aggressive system.
The useful dimension methodology worries with the major practical activities inside the
specialty unit. HR takes a key part by boosting the efficiency of the assets in the association
(Peter Boxall, 2008).
Models for Strategy Formulation and Implementation
There are 2 kinds of models that define the plan and execution of HR systems. They are –
Control based models and Resource-based models. The first arrangements with the way that
the association always screens and assesses the execution of the workers. It depends on the
level of working environment control just as the conduct of the supervisors. The asset put
together model is based with respect to the worker business trade and depends on the
representative practices. These two models structure the reason for the HR system
(Muhammad Shujahat, 2017).
Evaluation of Business Performance
Human resource workforce plays a pivotal role in the framing of business strategy. HR
should frame suitable skills for upbringing new skills and device suitable recruitment plans
that would fulfill the organizational objectives. The best method of recruitment is finalized,
and the hiring ideas are implemented by the human resource department. HR is accountable
for the optimum utilization of inside and outside data.
HR encourages the change the executives in the association by the usage of selected
approaches, which applies to all representatives of the association (Heeselok Lee, 2007). For

ROLE OF HUMAN RESOURCE MANAGEMENT 18
example, HR is responsible for executing 360-degree working appraisal in the organization.
The business performance should be decided by traditional and modern indicators.
The customary pointers ascertain the aftereffects of the representatives with reference to the
affiliations objectives. These markers show just normal outcomes. The cutting edge pointers
consider every single action of the representatives associated with different business forms. It
relies upon the esteem based administration, which incorporates the methodologies,
framework, forms, investigation and the social objectives of the organization. The case of
customary markers incorporates the assessing of one's execution with the business objectives.
The case of the cutting edge marker incorporates the 360-degree execution evaluation
frameworks (Heeselok Lee, 2007).
Assessment of Different Sources of Data
There are different kinds of information, which is utilized by the HR chiefs. There is
subjective information just as quantitative information sources. The decent scorecard is
utilized by the HR to adjust the association exercises to the vital objectives of the association,
better the dimensions of correspondence and assess the hierarchical execution. This scorecard
was given by Norton and Kaplan. This is a standout amongst the most mainstream execution
the board techniques.
The AMO-Black box demonstrate is additionally utilized for surveying the execution of the
representatives. The AMO implies the Ability, Motivation, and Opportunity. There is a
requirement for the execution estimation of these parameters in an association. The black box
connotes the connection of the HR and the execution of the board in an association. It
portrays the interceding instrument by the excellence of which the HR impacts the execution
of the workers (Human Resource Management, 2013).

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The HR supervisors additionally utilize the Cotter's stage show for evaluating the change the
boarding procedure in the association (Mooney, 2016). The different stages are made
desperation, the arrangement of the incredible alliance, making of a persuasive vision,
imparting the vision, evacuation of obstructions, formation of transient achievement, develop
on the genuine execution of the alterations in the companies culture (Human Resource
Management, 2013).
HR utilizes a wide wellspring of data to plan. The HR utilizes the different wellsprings of
inside information with the end goal of the definition of systems and the basic leadership. The
worker's databases, organization execution, achievement information of different strategies,
deal information, money related information, promoting information and others are utilized
by the HR office. The outside information is likewise used by the HR division like aggressive
data, government information, natural investigation, mechanical headways, and others. The
HR uses essential data origin from both interior sources just as the confided in outside
sources, with the end goal of easy working (Human Resource Management, 2013).
Conclusion
A business condition is a dynamic place where is the concurrence of the inner factors just as
outside components. HR plays a dynamic role in adjusting the impact of the outer
components. The HR is required to arrange with the business procedures and actualize
appropriate strategies that are advantageous to the association in general. This report would
be advantageous for understanding the HR methodologies and the hierarchical systems. This
report would help the administrators by reacting successfully to the progressions of an outer
condition. HR improvement should encompass a significantly more broad dispatch than
getting ready and should address problems, for example, business structures and master

ROLE OF HUMAN RESOURCE MANAGEMENT 20
development. HRM not easily responsible for HR organizing and essential capability.
Through enlistment, getting ready and improvement HRM takes best agents for affiliation,
which expect its business to achieve essential targets. Through HRM execution assessment
which makes a connecting progressively compelling. It does not easily focus on the overall
key goal of affiliation, but also manage its human resource in like manner helps in keep eye
on globalization and the effects or points of interest. The HR office must not easily pull in,
select, trained, and develop the employees yet likewise helps in checking through different
methodologies.
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