Human Resource Management Report on Global Environment and Leadership

This report delves into Human Resource Management (HRM) within a global context, analyzing the impact of environmental changes on organizations like Microsoft and IBM. It explores HR strategies, policies, and practices, emphasizing stakeholder analysis and environmental audits. The report further examines leadership theories, HR leadership strategies for managing change, and ethical strategies for HRM and HRD. It also addresses self-development needs and learning styles. The analysis covers crucial aspects of HRM, including the influence of global factors on organizational performance, the importance of stakeholder engagement, and the role of ethical considerations in HR practices, providing a comprehensive overview of contemporary HRM principles and applications.

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Human Resource Management
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Table of Contents
Task 1:.............................................................................................................................................2
1.1 Changes in the global environment and HR strategies..........................................................2
Identification and evaluation of the impact of changes in the global environment.................2
HR strategies, policies and practices of selected organizations..............................................4
1.2 Stakeholder Analysis and Environmental Audit of the selected organizations.....................5
Role of HR professional during stakeholder analysis and environmental audit........................10
Task 2:...........................................................................................................................................10
2.1(a) Contribution of leadership theories towards organizational strategy and goals..............10
2.1(b) HR leadership strategies for the management of change................................................13
2.2 Ethical strategies for HRM and HRD in selected organizations.........................................14
2.3 Self-development needs and learning styles........................................................................16
References......................................................................................................................................17

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Task 1:
1.1 Changes in the global environment and HR strategies
Identification and evaluation of the impact of changes in the global environment
The goals that act as primary objectives for many multinational companies are
profitability and brand identity. Among such companies are Microsoft and IBM. The influence
of global changes in the environment of Microsoft influences the macro and the remote setting of
the firms (Kah Chon, 2019). Microsoft’s investment and performance have increased due to the
opportunities created by the political stability of the market forces. The increasing support of the
government for the automation gives opportunities to Microsoft to enhance its computer
technology through government clients. The increment in international trade has developed a
macro environment, which has benefited the sales of Microsoft. The economic stability and high
growth of many developed countries create opportunities for Microsoft to boost its business
(Rothaermel, 2016). Due to the growth of the disposable income of middle-class crested
opportunity for Microsoft to increase its revenues. The growing attitude of the customer towards
leisure products creates opportunities for the company to develop such products that meet the
expectations of the customers. Increased cultural diversity has affected the environment of the
company because its product satisfies only the biggest groups.
The technological changes in the global environment is like a rapid increase in mobile
technology, online transactions, and increase business opportunities in the automation sector
gives a stable environment to Microsoft to increase its business. However, these changes also act
as threats to the company. The competitors take these as an opportunity to enter the market.

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Growing demand for sustainable products in the global market creates a chance for the company
to develop environment-friendly products and introduce green energy in business operations.
Nowadays, there is an increasing demand for the recycle products in the global market,
Microsoft should use those materials that can be recycled, in its hardware and software products
as well as in the packaging of the products (LIU, 2017). The changes in the global market give
plenty of growth opportunities for the company to achieve a competitive growth. Some of the
legal factors in the worldwide environment like patent laws, electronic waste disposable
regulation and energy consumption act as an opportunity as well as a threat to the company.
However, these regulations impose additional costs in fulfilling the environmental factors of the
business environment. At the same time, the improved patent laws facilitated Microsoft’s
development by eliminating several problems, for example, software piracy. Microsoft can adapt
diversification for its business to increase its potential growth. The company can achieve this by
increasing its hardware products to increase its revenues (Nguyen, 2017).
International Business Machine (IBM) continues to grow its business despite the changes
in the global environment through its organizational capabilities. IBM has succeeded in the
market by its developing competencies and by exploiting the opportunities and overcoming the
threats in the global environment. The movement of the government sector towards digitalization
has created a chance for IBM to bargain such material expertise products that cater to the needs
of the government organizations (Rubow, 2016). The company can take advantage of the
political support for the e-technologies in the macro-environment by enhancing its innovation
processes. The demand for online products in the market helps the company to target online
demand and market for its product and growth. Technological integration is one of the external
factors that IBM faces in the global environment. This act as a barrier to the growth of the

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industry because it attracts competitors from other industries. For example, some manufacturing
computing multinationals customize their products to compete with IBM. Cybercrime is another
factor that affects the online infrastructure of the company. The demand for renewable energy,
reusable products and sustainability in the market creates opportunities for the company to grow
its commercial business in the global marketplace. The fluctuations in the interest rates have
brought stability in the worldwide market, which has lowered the interest rate of credit to the
customers of IBM. The increase in the expenditure of the customers and uplift in the economic
slowdown after the recession allowed the company to gain new customers and increase market
shares (Rubow, 2016).
HR strategies, policies and practices of selected organizations
Every organization has some HR policies, strategies and practices that are based on certain
principles to play the game fairly. This includes the fair rules and the decisions that affect each
member of the organization in an equal manner. In every organization, the manager implements
HR policies with the help of HR consultants. The executives practice performance management
system to develop the strategies for the organization and evaluate the ability of the team to form
a positive environment, climate and relationship inside the organization (Yano, 2017).
Microsoft is one of the successful organizations worldwide. From the point of view of
human resource, the company is employee-driven enterprise. Since, most of the company’s
success depends upon technological advancement, innovative products and different
manufacturing techniques (Buckley, 2019). Apart from these key factors, Microsoft’s success
depends upon the efficiency of its employees. The company values the workers and knows the
importance of the workforce. Since the company values its manpower, it seeks to preserve,
recruit and retain the talented and huge workforce. The company has around 93000 employees

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from all over the world (Warner, 2019). To sustain such a huge labor force, the company is
composed of around 1500 experts in human resource from over 100 countries around the globe.
The human resource generalist assists the business regularly, and the center of excellence by the
company designs the programs of the human resource generalists. The company takes advantage
of low-cost technical labor, and it recruits both fresher’s and experienced graduates in the IT
sector. Some of the important HR practices and policies in Microsoft are career management,
flexible work shifts employee retention, leap year acceleration programme and many other such
practices for the well-being of the employees (Warner, 2019).
IBM recruits those employees who are hardworking and can add value to the
organization. HR resource responsibilities include counseling multiple initiatives of workforce
optimization and recommend solutions for employee relations and HR issues. For the company,
human capital plays a vital role in gaining competitive advantage. The HR practices like strategic
deployment and motivation is a part of the human resource strategies of IBM. Some of the HR
policies of the company are compensation, research and development plans, operational
flexibility, staffing and many more. IBM has implemented many innovative HR programmes,
practices and policies that help in sustaining the employees (Jörn, 2016). Some of them are the
open-door policy of the organization, employee opinion surveys, interpersonal communication,
and think magazines, announcements on the daily bulletin board, intranet and many other
programmes. Its HR policy goes through some transformation like the policy of the job sharing,
flexibility in the working hours, global teamwork, around thousands of human resource
procedures, part-time employment, mass collaboration and many more.

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1.2 Stakeholder Analysis and Environmental Audit of the selected organizations
A stakeholder is an distinct or a group that takes an awareness in a project or an
organization and are directly affected by the occupational processes and its consequences.
Stakeholders of an organization can be either internal or external. The stakeholders that are
affected by the business procedures and its consequences are employees, customers,
stockholders, communities and suppliers. The stakeholders who provide guidelines and influence
the business operations of the organization are government and non-government organizations,
regulatory authorities and the civil societies (Buckley, 2019).
Microsoft has developed sustainable relations with its stakeholders; both internal and
external. Customers are valuable shareholders at Microsoft organization as they are the major
source of revenue generation and a driving force for sale in the organization. The organization
should develop those products that meet the expectations of the customers. Microsoft fulfils its
customer's demands and expectations regarding the quality service products. The enterprise is
continuously improving its efficiency to serve its customers better. To safeguard the rights of the
depositors, it is the responsibility of the Panel to sustain their privileges like the right to vote,
right to obtain the facts on time, right to receive payments, pre-emptive right, and the right to
assessment. The Board of the company should make sure that the organization should timely
disclose the quantifiable evidence and dealings that affect the market value of the organization’s
dividends (Buckley, 2019).
Microsoft is fully dedicated towards the growth and the well-being of its personnel. To
build a high-performance culture in the organization, employees are trained regularly, and
development programs are carried so that they achieve excellent performance. These profession
growth programs are developed to safeguard continuous growth of the employees through job

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enrichment opportunities, performance management, learning and growth and appraisal system.
Microsoft takes initiatives for the development of the community and improves the lives of the
people of the communities (Gürel, and Tat, 2017). The company fulfills it through its corporate
social responsibility scheme and engages their employees through volunteers initiatives. To be a
responsible citizen of the society, Microsoft contributes towards building a sustainable society
with the partnership of the government establishments, non-government organizations and many
public administrations. They work on a project that promotes education, entrepreneurship and
development of surroundings.
Microsoft built a volunteer programme “save a soul for better tomorrow”. The enterprise
maintains a mutually beneficial relationship with the suppliers those perform with fairness,
integrity, accountability and transparency while conducting business. Microsoft maintains the list
of those suppliers who serve the requirement of the company from expenditure to the operating
expenses and the service requirements. Before doing business with Microsoft, the supplies
undergo through the accreditation process to become an authorized member for doing business
with the company. The criteria used for the authorization are capacity for continuous business
operations, legitimacy in the business operations, quality and prices of the commodities, track
record, complying with the legal laws and maintenance of transparency in the relationship while
conducting business with the enterprise (Eyring and Consuegra, 2017). The purchases of
Microsoft are made based on bidding through the support of recognizable and qualified
suppliers.
The responsibility of Microsoft towards the environment starts by accepting rules,
practices and standards to create a better workplace, and not just for the development of the
company but a place that has some responsibilities towards the improvement of the environment.

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Figure: Stakeholder Mapping
Source: (https://www.ibm.org/responsibility/policies)
The above figure is a stakeholder-mapping tool that is used by the organizations to
measure the level of curiosity of different sponsors engaged in a project or an association. This
helps the managers prioritize certain opinions that are needed in the project. The mapping
displays the interest of different stakeholders that are a part of the project, and it also indicates
that whether the opinions and the interests of the stakeholders are positive or negative. Every
stakeholder has a different expectation from the company, so the manager has to meet the
expectations of every stakeholder, and if there is any conflict, it should be resolved
diplomatically so that the processes of the organization should run smoothly and if the opinion of
the stakeholders are same, then it proves beneficial for the company.
International Business Machine(IBM) is a business giant among information technology
companies. The company has many investors from different parts of society. The stakeholders of
the company include communities, environment, investors, suppliers and employees. These
stakeholders ha different aspects in different aspects of the business. Therefore, they require a
corporate social responsibility scheme. For example, the company’s approach should contain the
strategies for the stockholders as well as the surroundings, such as programs for sustainability

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(Den Hartigh et al., 2016). IBM considers the location as its most important shareholder because
the company is dependant on the natural environment or its supply chain. The interests are
related to the preservation of the environment and reducing the effect of business operations on
the environment. Therefore, the company’s strategy of corporate social responsibility should
focus on sustainability. IBM’s strategy for CSR activities towards the environment includes
climate protection and energy conservation. IBM has an environmental management system for
the protection and conservation of environmental goals. It fulfills its responsibility towards this
stakeholder recycling, waste reduction, energy preservation and other related issues.
The impact of the communities on corporate social responsibility is based on the
perception of the customers. This stakeholder shows interest in the company’s inventiveness that
help in the development and other needs of the community. The company aims to support the
community through enterprise and entrepreneurship. The corporate social responsibility is taken
at IBM tackle several interests of the community. The company’s CSR strategy also involves the
policies and standards for citizenship in the supply chain of the environment. So, the dealers are
considered as a significant stakeholder in the business of information technology. The company
provides technical support for the improvement of the operational efficiencies of the supplier.
The involvement of the depositors in corporate social responsibility is the consequence of the
wealth of the industry (Jain and Jain, 2017). The investor being one of the stakeholders of the
company shows interest in investing more through the company’s profitability and growth in the
industry of information technology. The investors are attracted towards the company through the
corporation’s CSR methodology that includes functioning with the government to succeed in the
digital marketplace as well as the databases that endorse renewable energy methods for the
enterprise. The company satisfies the interest of its stakeholders through the generic strategy that

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is designed for intensive growth and competitive advantage. Thus, it is clear that the corporate
social responsibility of the company satisfies the interest of the investors through sound business
operations.
Employees are the major stakeholder group of IBM due to the corporate citizenship
program. Since the employees expect a high salary and wage for their cooperation in the
company and they also seek career development programs. The corporate social responsibility of
IBM must report these needs of the employees by keeping in mind that the staffs are important in
determining the competences of the organization. For example, innovation capabilities to gain a
competitive advantage in the field of information technology. The strategy of the enterprise
comprises rational engagement practices, reimbursement, diversity and enclosure databases that
boost the self-esteem of the employees and prove beneficial in reducing the conflicts (Guenole
and Feinzig, 2018).
The environmental audit enables a company to examine the operations of the business
and how well they comply with the local, state and the federal regulations of the environment.
The audit let the organizations correct the problems that are identified during the process. The
audit at Microsoft is done through the SEA program. SEA stands for social and environmental
accountability. Through this program, Microsoft wants all the supplier doing business with the
organization to support the environmental, health, safety and ethical practices described in the
company’s code of conduct. The audits and assessments by the company take place annually to
access the conformation with the customer requirement and also compliance with the legal
entities related to the environmental issues (Buckley, 2019).

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The environmental audit of IBM is reviewed against both the external and internal
requirements. Therefore, the company takes prompt actions if any issues are identified. The
company manages the operation to minimize the impact on the environment. The environmental;
audits at IBM are conducted through energy management programmes under ISO 14001
standard (Jörn, 2016). During these audits, the consumption of energy records are tested by
comparing the consumption values on the energy bill and verification of the energy management
programme by the company is tested and implemented. The results of these audits and self-
assessment are communicated to the top management of the company for further improvement in
the process and resolving any issues that persist during the auditing. The testing results are used
further for third party validation audit of greenhouse gas emissions management by the company.
Role of HR professional during stakeholder analysis and environmental audit
The effective Human Resource department must make a balance between the internal as
well as external stakeholders. To generate worth for the line managers and the employees of the
company, the HR professional should carry out the human resource practices that integrate and
influence each other. To support the business in generating worth for the external stakeholders,
the human resource department must identify, access and supply important external information
to the stakeholders. The HR department should focus on optimization of its popularity with the
internal stakeholders with less impact on the external stakeholders (Jörn, 2016). The HR strategy
is said to be successful if it involves and engages both the stakeholders, for example, internal and
external to succeed in the business goal. The HR professionals of every conglomerate,
implement the global model and sets rules, policies, procedures to make sure that the business
interests are met across the company. The HR chooses the tactics that encourage the stakeholder
to express their views and get feedback for the global practices.