HRM Report: Analysis of Aviva's HRM in Global Business Environment

This report examines the global business environment of Aviva, a multinational insurance company. It begins with an introduction to the organization, its services, and its selection for the analysis, emphasizing its expansion into international markets. The main body delves into the impact of rules and regulations on Aviva's HR practices, including the influence of trade unions and international labor laws. It then explores the performance management techniques used by Aviva, such as Key Performance Indicators (KPIs) and 360-degree feedback. The report also identifies future challenges Aviva may face in its global operations, including managing diverse workforces and adapting to varying international regulations. The conclusion summarizes the key findings, highlighting the importance of strategic HRM in navigating the complexities of the global business landscape. The report underscores the need for organizations like Aviva to adapt their HR practices to ensure compliance, employee satisfaction, and sustained business success.

HRM Global business environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Introduction of organisation and reasons to select the company.................................................3
Impact of rules and regulations on HR practices.........................................................................4
Performance management techniques used by organisation.......................................................5
Future issues face by organisation...............................................................................................7
CONCLUSION................................................................................................................................8
REFRENCES...................................................................................................................................9

INTRODUCTION
Global business environment refers to the environment in different countries, it helps in
influencing decision making on use of resources and capabilities. Every organisation expands it
business by providing its services in other countries or in international market (Lin, 2021). When
a company builds good image in its host country then they start selling goods or services in other
countries. it is important to expand business in international market as it will help in generating
more profit.
MAIN BODY
Introduction of organisation and reasons to select the company
Aviva is a public limited company which was founded in 2000. The company provide
financial services to customers such as, life insurance pensions, general insurance all over the
world. Its headquarters are in London, England, UK. Key people of Aviva organisation is George
Culmer (Chairman) and Amanda Blanc(CEO). It is having 31000 employees and it is one of the
best organisation. Aviva company is providing good services to customers in its host country and
employees are maintaining good relationship with customers (Farndale and et.al., 2017). The aim
of organisation is to generate profit by providing good quality products and services to
consumers. Initially, they face some challenges to set their business but later they create good
reputation in market. The company provides life insurance pensions and general insurance for
safety of customers.
It has approximately 33 million customers across 16 countries all over the world. In United
Kingdom it is one of the leading insurance company and its employees are satisfied because
environment of organisation is safe and healthy. They serves many countries like, Europe, Asia ,
China and South East Asia. Aviva insurance company is second largest general insurance
company in Canada. They are providing services in 16 countries and it is one of the leading
organisation across the world. There are many competitors of Aviva insurance company but it
provides good services to consumers and people are giving good feedback or reviews. Managers
of organisation are making plans or strategies to expand their business. This organisation is being
taken for this report because it is best company which provides good services in UK and when it
expand its business in other countries then also it is leading organisation (Agarwal and Al
Qouyatahi, 2018). They face many challenges while doing business in international market

because it is not easy to run a company in other country. Different countries are having various
rules and regulations, it is difficult to make policies and procedures according to countries in
which they are doing business.
Impact of rules and regulations on HR practices
HR plays an important role in every organisation because they are having many roles and
responsibilities and they have to manage day to day activities of a company. Human
resource department manages all the activities in an organisation. HR department is
responsible for recruiting and selecting best candidate for company, training and
development sessions are provided to employees so that they can complete their work on
time. It is the responsibility of HR managers to measure performance of every individual
worker and rewards or punishments are given according to that. HR practices include,
setting mission and goals of the company (Lee, 2020).
It is important to set targets or standards for employees which they have to achieve
because if goals are not defined then it will be difficult for workers to focus on their work.
HR is responsible for making plans, organising day to day activities and managing daily
activities so that workers can do their work smoothly and they will not face any problem.
They are measuring effects of programs means performance of every employee is being
evaluated and managers compare it with standards that are set. conducting motivational
programs and developing talent and future leadership (Dubey and Gupta, 2018).
Rules and regulations are important in every company because it helps in
maintaining healthy and safe environment at the workplace. It has negative impact on HR
practices because if managers want to expand their business in international market then
they have to make new rules and regulations according to the country. They have to make
plans or strategies that can be applied in other country. People are having different
behaviour, culture and language, so it is difficult to understand what they want to convey.
It affect HR practices as they have to organise all employees and they have to make new
policies and procedures if they are expanding their business.
Trade union is a group of workers and an organisation who come together to
accomplish goals and objectives. This is made to achieve some goals such as, improving
safety standards, increase wages, protecting integrity of their trade, they want vacation,
they require good working conditions (Stahl and et.al., 2020). Trade unions have negative

impact on HR practices because they want their need to be fulfilled and they should get all
the benefits. Trade union is made by workers so that they can achieve goals and objectives.
If trade unions are present within the organisation then it can change policies and
procedures. If managers will not make rules and policies according to workers then may be
they leave the organisation which is not good for company. So, HR managers should make
rules and policies after analysing situation they should take decisions which is beneficial
for organisation as well as for employees. If managers will make policies and rules which
is beneficial for workers then they will not create any issue and work efficiently to achieve
goals and objectives of company.
International Labour Organisation means that it promotes social justice and recognise
human and labour rights (Ziebell and et.al., 2019). This law protects rights of labours and
they can use it for their benefit. It affects HR practices because if managers make wrong
plans or strategies which is not beneficial for labours. So, they can take help of laws that
are made and can force managers to change rules or policies. ILO is a Nation agency
which is responsible for handling employment related issues all over the world. It helps
employees in fighting for their rights.
Performance management techniques used by organisation
In every organisation it is important to measure performance of each employee so that
managers can know which worker is not performing well and training can be provided to
improve performance. Rewards are given to employees who are doing well and punishments are
given to workers who are doing work below standards. Managers set standards for every
employee according to capacity and after work is completed they measure performance of every
employee (Campbell and et.al., 2017).
Managers of Aviva company is one of the best organisation because they set standards for
employees and after completing the work managers evaluate performance of every employee.
There are many tools and techniques available to measure that how much work is done by an
individual. In host country manager are applying key performance indicators to identify that
which employee has work good and in which area training is required so that workers can
improve their performance and next time they will give their best in achieving goals and
objectives of company.
Key performance indicator

Key performance indicator can be defined as technique which is used by managers to
measure work done by an individual employee. It helps managers in determining that
whether workers are doing their work properly or not. If all employees are having problem
in a particular field then training is provided to employees so that they can improve their
performance and contribute in achieving goals and objectives of company. Managers of
Aviva insurance uses KPI to determine company’s financial and operational achievements.
It helps in making future plans for growth of organisation. There are four types of
performance indicators such as, customer satisfaction, financial performance index,
internal process quality and employee satisfaction (Narkunienė and Ulbinaitė, 2018). It is a
technique which is used by managers to increase overall productivity of company and also
help in generating more profit. This help organisation in making good plans which will
help in future growth of company. This technique is used by managers of Aviva company
in their origin country and this is the reason why it is one of the leading company. Key
performance indicator helps in measuring work done by employees and in which area
training is required.
360 degree feedback
360 degree feedback is a technique for measuring performance of employees which is
used by many organisations. Managers of Aviva insurance company collect feedback from
all the people who are working in the organisation. 360 degree feedback refers to a system
of collecting feedback from all members about an individual person. It is a technique
which is used by most of the companies to identify that whether employees are performing
well or not. In this technique a manager gathers information about an employee by asking
all the members who are present in the company like, seniors, juniors, colleagues, and
other people in surrounding (Zondo, 2018). This method of performance management is
used by managers in host country because it helps in getting relevant details about an
employee and it is easy for managers to take decisions because they are having accurate
information which will help them in determining which employee is performing well and
how much workers need training. In other countries they will have to manage all the
activities so they should take necessary steps for benefit of company.

Future issues face by organisation
When a company decides to expand its business or want to do business in international
market, there are many challenges that is faced by managers because in different country rules
and regulations are different. People will have issue related to language, culture and behaviour
because employees are recruited from various places so it is difficult to manage. In managing
staff managers face many problems because in starting workers are not interacting with each
other, they are not understanding behaviour and it creates conflicts or misunderstanding at the
workplace which affects working of company. Doing business in other country is not easy as
managers have to make new rules, regulations, policies and procedures which is followed in that
country. They have to manage staff by motivating them to focus on work and set standards for
every employee which they have to achieve (Silvester, Sarip and Hassan, 2019.). Managers
should try to handle all the situation because if employees will not satisfy or they will not do
their work properly then goals and objectives of company will not be accomplished.
To handle all activities managers should take some necessary steps which are beneficial for
organisation as well as for employees. They should provide training to all employees so that they
can work efficiently. Task should be given in groups so that workers can interact with each other
and this will help them in understanding behaviour. It will help managers in handling all the
activities and if employees will communicate with each other then it will reduce confusion and
hence less conflict will arise. This will increase overall productivity of company and it will
reduce absenteeism among employees because they will enjoy working in the organisation
(Horwitz, 2017). Managing staff is not an easy task because workers are recruited from different
places and they will need time to adjust with situation.
Managers should evaluate performance of every employee so that it can be determined that
which worker is not performing well and need training. More work should be given in groups
because it will help in building good relationship among employees and it will help in creating
good image in market. So, managers should make proper plans before expanding business
because there are many problems or challenges that is faced by company (Kahya and Çemrek,
2017).

CONCLUSION
Form the above discussion it can be concluded that, rules and regulations have impact on
HR practices because it is important for managers to make rules which is to be followed by
everyone at the workplace. Trade unions and international labour organisations also has impact
on HR practices as managers has to fulfil needs of employees so that goals and objectives of
company can be achieved. Further, performance management technique has been discussed and
issues that are faced by managers of Aviva insurance company while expanding their business.

REFRENCES
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Online

Lin. H., 2021. Global Business Environment. [Online]. Available Through:<
https://www.reference.com/science/definition-global-environment-486f800613dd2fed>
[Accessed On May 7, 2021].