Analyzing HR's Impact on Business Transformation and Risk Management

This report examines the crucial role of Human Resources (HR) in facilitating business transformation, emphasizing strategic HR practices. It explores how organizations can leverage HR to attract and retain employees, streamline recruitment processes, and utilize technology to enhance HR functions. The report also addresses the risks associated with managing employees, including difficulties in maintaining organizational standards, motivation issues, staff behavior, and teamwork deficiencies. Furthermore, it highlights the importance of HR in shaping the future of the organization by formulating strategies, managing compensation, facilitating training and development, ensuring employee satisfaction, and overseeing recruitment processes. The benefits of strategic HR are discussed, including policy formulation, team building, performance monitoring, and legal compliance. The report concludes by emphasizing that organizations can achieve success by attracting and retaining staff, and by being able to absorb change.

CASE SOLUTIONS
ANSWER 1: -
The case described that change is happening continuously in offices of all over the world, which
brings freedom and opportunity for business transformation. If the organizations want to make
their offices cost effective than office space should be managed in an efficient manner. The
opportunity for change should not be missed by the organizations because competitive advantage
and the future of the organization linked with the change opportunities. Effective leadership
skills should be utilized by the organization for effective implementation of new technology.
STRATEGIC HR:-
Strategic HR is the practice of attracting, retaining, developing and rewarding the employees for
the mutual benefit of both the whole organization and the employees as individuals. HR
departments do not work independently; they interact with other departments of the organization
to understand their goals and then frame strategies that linked with those goals. Goals of the HR
department represents overall goals of all departments. (Reilly, 2016) Strategic human resource
management considers an important tool for the organization. Strategic human resource
management utilizes the opportunities and the talent within the department of human resources
for make all other departments effective and stronger. When an HR department of the
organization frame their plans and policies strategically, it is ensuring a huge chance of
organizational success in future. Strategic HR focuses more on actions which differentiate the
organizations from its available competitors.
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ROLE OF HR:-
1. The role of HR in attracting and retaining employees: - The most difficult task for the
HR and its teams, attracts, engage and retain employees in the organization. Following
steps can be taken by the HR for retaining and attract potential employees:-
 Compete for talent more intelligently: - Organizations need highly skilled or
intelligent employees for operating the industry. But many time HR team have
insufficient data and lack the ability to use data efficiently, to find talented
peoples and hire them. HR should spend a time to understand and measure what
type of skills they will require in future. (Reilly,2016)
 Streamline the recruiting process: - HR should realign resources for recruitment
so that HR can speeding-up process of hiring. (Middlekauff,2015)
 HR should not base rewards on competitors: - It is necessary for HR, that
employee's rewards should not be based on reward policy of competitors, but it
should be based on the performance of employees. All this derived high
satisfaction to employees, and they want to be the member of the organization for
a long time.
2. The role of technology in HR practices: - Technology has changed the world of
business completely. Use of computers and the internet completely changed the work
practices of the organizations. Many business houses cannot function in the absence of
computer technology. Technology has a significant impact on following HR practices:-
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 Recruiting: - One area where human resources have been impacted by technology is
recruiting. Technology has made the functions of recruitment very effective and efficient.
 Training: - Today, information technology makes very easy for the HR professionals to
train the new staff members in a very effective manner. Through virtual classes, it is very
easy for the HR manager to train a large number of employees in a less time.
As it is described in the case that organizations are going to look certain key areas to gain
competitive advantage. In this case the main aspect of the organization is to be achieved more
satisfied and productive employees, so the environment of the organization has to be adequate
and suitable for effective work. Strategic HR helps the organization in achieving all their goals.
ANSWER 2:-
As everyone knows that future is uncertain, it cannot be measured in an effective manner. There
are various problems facing the management in managing its employees. In this case, following
risk was involved in managing people:-
 Difficulty in managing standards of the organization: - If the organization wants to
survive for a long time in the market than it is necessary that it should maintain its
standards. Appropriate working standards help the organization in gaining a competitive
advantage over its competitors. Organization should maintain its safety standards so that
it can provide a safe environment to their employees. It is also compulsory for every
organization to provide better health services to their employees, this helps the
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organization in winning the confidence of their employees. It also enables the
organizations to retain their employees for a long time. (Amarakoon,2013)
 Risk related to motivation: - Motivation problems arises performance issues in the
business which cost an organization huge losses every year. Lack of motivation leads to
delays in employee's completion of the task. Due to lack of motivation employees are not
able to use their full potential. Low motivation arises following issues:-
 Low self-confidence
 Lack of interest in subject matter
 Low expectations of success
 Fear of failure
 Risk related to staff attitude and behavior: - Every individual is different from others.
Every employee has a variety of personalities, attitude and work behavior. Employee's
characteristics affect their way of working. Organization hires employees with the
expectation that they have certain knowledge, skills, and abilities. But, it can be possible
that these employees affected the profitability of the organization. So, it is necessary for
the HR manager to understand the demands and characteristics of every employee.
 Risk related to lack teamwork: - Lack of teamwork considered a most important problem
in front of the management. Lack of teamwork can occur. The main important reason
behind it is occurring mistakes during the formation of the team. (Amarakoon,
2013)Another reason behind it is that organizations emphasized more on results and not
focus enough on the needs of the team. It is necessary for all the organizations to focus
on the needs of the team so that organization can provide satisfaction to them. This leads
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the overall growth of the organization. By satisfying team, the organization also attract
talented employees in future.
All these risks associated with the case should be removed by HR by taking suitable actions.
Risk management is very important because it determines the growth of the organization in
future. As per the case risk management should be necessary for organization effectiveness
which is depends on:
 Personal, professional occupation choice.
 Mobility and flexibility
ANSWER 3:-
Human resources play an important role in the success of the organization. HR is responsible for
building the future of the organization.
ROLE OF HR IN SHAPING FUTURE OF THE ORGANISATION:-
1. Strategy: - HR formulates the strategy for the functioning of the organizations. The
strategy should be formulated with a predetermined process so that it can give accurate
result. HR improves the position of the organization by using its knowledge.
2. Compensation: - HR compensation specialists develop the compensation structure of the
organization. Compensation structure of the organization should be such that set
competitive wages of the organization in comparison to another business houses which
are engaged in the same industry. It is necessary for the HR to conduct wage and salary
survey so that they can maintain costs of the compensation.
3. Training and development: - Training and development are the important role of the
HR in an organization. Through training and development HR train their new or existing
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employees that support the organization fair employment practices. Employee
development leads to prepare future leaders of the organization for roles of management.
(Brown,2015)
4. Employee satisfaction: - HR helps the organizations in achieve high performance,
enhance the moral and satisfaction level of employees. HR is responsible for building a
strong relationship between management and the employees. HR receive employee’s
feedback and then measures satisfaction level of the employee.
5. Recruitment: - HR is responsible for recruiting the potential employees for the
organization. HR is responsible for conducting the recruitment process. HR should
determine the efficient methods for identifying the talented employees from a pool of the
employees.
BENEFITS OF HR:-
1. Helps in formulating HR policies: - HR helps the whole organization in framing plans
and policies. It helps the organization in preparing in advance so that any mistake can be
avoided in future. HR policies should be determined by evaluating all the necessary
facts. This helps the organization to work in a systematic manner.( Middlekauff,2015)
2. Team-building: - HR also helps to foster a sense of team spirit. The main important
benefit of the HR is that they build a team for performing works. There can be various
types of conflicts can arise between the members of the team. It is the responsibility of
the human resources to resolve all these issues and bring coordination among members of
the team.
3. Helps in monitor progress: - the Main role of the HR is to measure the performance of
the organization continuously. This helps in identifying whether the firm is able to
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achieve its objective in the future or not. Most of the strategic plans depend on the
support and cooperation of the employees and individual departments. It is the
responsibility of the HR to examine the progress of the organization continuously.
( Brown,2015)
4. Keeps the organization legal: - Most important advantage of the HR is in keeping the
organization legal. Every task should be performed under legal circumstances. Laws and
policies can be different for different business houses. It is the key role of the HR that all
tasks should be completed by focusing all the legal aspects.
In this case it is mentioned that opportunities are there to be maximized, and for those
organizations and management take advantage. Organizations can be successful if:-
 It attract and retain staff.
 Ability to absorb change.
.
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REFERENCES:-
Reilly, P., & Williams, T. (2016). Strategic HR: Building the capability to deliver. CRC Press.
Amarakoon, U., Weerawardena, J., & Verreynne, M. L. (2013). Theorising about the role of HR
innovation in the competitive advantage of firms. InAustralian Centre for Entrepreneurship
Research Exchange Conference 2013. Australian Centre for Entrepreneurship Research
Exchange.
Brown, M., Kulik, C. T., Cregan, C., & Metz, I. (2015). Understanding the change-cynicism
cycle: The role of HR. Human Resource Management.
Reason, J. (2016). Managing the risks of organizational accidents. Routledge.
Middlekauff, H. R. (2015). COUNTERPOINT: does the risk of electronic cigarettes exceed
potential benefits? No. CHEST Journal, 148(3), 582-584.
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