Strategic HRM Evaluation: Impact on Performance at MVP Tech

This report evaluates the Human Resource Management (HRM) strategies employed by MVP Tech, a UAE-based IT organization, to understand their impact on organizational performance. Utilizing the BSU model of HRM, the report identifies key forces shaping the HR agenda, including the use of HR metrics and the Balanced Scorecard (BSC) model to quantify costs and measure the impact of training and recruitment programs. The business environment is analyzed through SWOT and PESTEL frameworks, highlighting strengths such as a skilled workforce and weaknesses like the lack of reward programs and internal communication. The report further discusses how HR functions influence organizational performance, emphasizing the importance of skilled recruitment, training, and employee engagement, while also noting challenges such as high employee turnover and the absence of formal training programs certified by CIPD. Finally, it outlines the stages of strategy formulation and evaluates business performance, concluding with recommendations for improving HRM practices to enhance organizational effectiveness and sustainability. Desklib provides access to this and other solved assignments for students.

Running head: HUMAN RESOURCE MANAGEMENT
HUMAN RESOURCE MANAGEMENT
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Executive summary
The report will be undertaking an evaluation of the different steps that arte undertaken by the HR
of MVP Tech in order to uphold the smooth functioning objectives of the business. In this
connection, the BSU model of the HRM is utilized and the different factors that influence the
strategy formulation in the organization are being enumerated. It will be helping in identifying
the different factors of the HRM that contributes to the organizational performance largely.

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Table of Contents
1. Introduction..................................................................................................................................3
2. Key forces shaping the HR agenda..............................................................................................4
3. Business environment..................................................................................................................7
4. Impact on organizational performance and HR functions...........................................................8
5. Stages of strategy formulation...................................................................................................10
6. Evaluation of business performance..........................................................................................11
7. Conclusion.................................................................................................................................13
References......................................................................................................................................15

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1. Introduction
The performance of businesses is based on the manner in which the workforce undertakes
their operations as per the needs of the organizations. The different factors that affects the proper
functioning of the workforce is based on the leadership qualities and approaches that the HR
undertakes in order to manage the employees (Alfes et al. 2013). The concerned organization for
the report is MVP Tech, an UAE based IT organization. The different HR functions that are
undertaken by the management of the organization and the different environmental factors that
influence the management’s decision making will be enumerated in the research. The
technological innovations that are undertaken by the organization are dependent on the active
participation of the employees in the functions of the management. The HR functions of firms
help the same in upholding the different interests of the workforce. It also helps the organizations
in cutting off different costs from the expenditure list of the companies leading to the
profitability of the same. The key elements of the HR functions are based on the needs of
empowering the workforce and thereby maintaining the sustenance of the organizations through
continuous performance in the international scenario.
The purpose for undertaking the report is to define the different factors that shape the role
of the HR of the organization. On the other hand, the research will be enumerating the different
elements of business environment and the impacts of HR functions on the performance of the
business. The different stages of the strategy formulation will be mentioned in the later part of
the report which will provide a clear in sight of the decision making process and the manner in
which it affects the proper functioning of the employees.

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2. Key forces shaping the HR agenda
The HR metrics forms a vital way of quantifying the costs and thereby identify the
different impact of the training and recruitments programs on the organizational performance.
The organizational management has taken steps to minimize the cost per hire that is incurred by
the businesses. On the other hand, the BSC (Balanced scorecard) model has helped the HR in
upholding the efficacy of the task as per the priorities. This section of report has enumerated
different stages of the BSC model for MVP Tech.

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The BSC model clearly indicates the manner in which the strategies and vision of the
organization influences the smooth operating financial systems, internal processes, learning and
growth of the employees and customer retention. Alfeset al. (2013) stated that the different
functions of businesses help in upholding the efficacy of the coordination of the business as per
the needs of sustenance. The financial growth of organization is guaranteed through the retention
rate of the employees in different processes planned by business. Some 90% of people who are
into their probation period are retained in the organizations. The involvement of employees in
the procedure of the business will be helping to promote the smooth functioning of the business
to work on the objectives of the same (Caligiuri 2014). The identification of different unease that
are faced by the people while working on the objectives of the business and the manner in which
they can be resolved is one of the major concerns of the HR. The HR of the concerned
organization works as an intermediate between the hierarchy of management and the workforce.
The issues that are faced by workforce and manner in which the workplace conditions can be
modified in order to maximize the productivity of the business is one of the major aim of the HR
manager. The maximization of employee engagement in the processes of the business helps in
upholding the efficacy of the systems. Alfes, Shantz and Truss (2012) stated that employee
commitment in the processes of the company helps in upholding the enhanced productivity of the
businesses, which helps in upholding the sustenance of the organizations in the market. The HR
of MVP tech has taken steps to support the employees and motivate the same in order to
maximize their involvement in the processes that are planned by the IT firm. Mariappanadar
(2012) stated that it has helped in minimizing the different costs of recruiting the workforce as
per the needs of the organization through the minimization o0f the turnover rates.

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The internal business operations of the business are enhanced through the Effective and
Safe Work Environment with Appropriate Skills. The different On-boarding and Off-boarding
programs that are planned by the business has helped in upholding efficacy of the systems of the
functions as per the objectives of growth. On the other hand, the HR information systems like the
feedbacks from the employees and the payroll operations have helped in upholding a track of the
functions. Jimenez-Jimenez and Sanz-Valle (2012) stated that monitoring over the attendance of
the workforce will be helping the HR of the organization in upholding the smooth functioning of
the processes as per the objectives of the business. Despite the employee retention program that
is planned by the business, the rate of employee turnover has maximized which has affected the
smooth functioning of the business of the concerned organization (Giauque, Anderfuhren-Biget
and Varone 2013). The HR of the organization designed the operations in compliance with the
different regulations that are enforced by the governments in order to maintain their efficacy in
the functions. It has helped the business in enhancing the internal processes of the business.
Design of the training materials is one of the top priorities that are covered by the HR
departments (Zibarras andCoan 2015). The organization does not provide any formal training to
its employees and thereby offers no career growth opportunities, which constrains the
capabilities of the employees in the limited fields of functioning. The organization never
achieved a certification from the CIPD (Chartered Institute of Personnel and Development) for
the training of the employees in order to undertake the smooth functioning of the business
processes (CIPD, 2012). The smooth functioning of the business processes is affected through
the irregular functioning of the business processes (Lamba and Choudhary 2013). The proper
functioning of the workforce will also be helping the organization in retaining the workforce of

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the business, which will be supporting the sustenance of the business in the highly competitive
markets.
3. Business environment
Evaluation of the SWOT
The skillful team and the diversity in the workforce has helped in promoting the smooth
functioning and continuous innovative intentions of MVP Tech. The flexible workplace
environment has helped in maximizing the productivity of the business. On the other hand, the
financial stability of the enterprise has helped in its growth and expansion as per the objectives of
the business. The key elements of change in the technologies are supported with the highly
talented and skilled workforce that is recruited by the organization. However, there are different
issues that are faced by the organization due to lack of proper reward and recognition programs
(Chowhan 2016). Reward and recognition programs act as a motivational event where the
employees are recognized for their contributions to the success factors of the organization.
However, the lack of proper reward and recognition programs in the organization has affected
the morale of the employees. On the other hand, the lack of integration and communication
between the departments of the organization affects the workflow largely.
The productivity of the organization is lagged through the lack of proper coordination
between the different internal departments of the business. Lack of proper legislations and IT
infrastructure systems has affected the productivity largely. The organization also deemed to
provide training to the employees, which has affected the organizational progress while
operating as per the objectives of the business (Long, Ajagbe and Kowang 2014). The lack of
suitable HR functioning of the concerned organization has resulted to the loss of trained

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workforce. It has affected the proper functioning of the systems of the business while operating
as per the objectives of the same. On the other hand, the lack of product management has
affected the placement of the product and their suitable designing attributes contributing to their
availability in the relevant markets. The lack of proper career developmental schemes and
training to the employees has affected the progress of the business and its relevant sustenance in
the external markets. The proper functioning of the HR departments of the organization would
have helped the same in upholding the congruency between the operations and the workforce
expectations (Bello‐Pintado 2015).The understanding of the HR in the processes of the business
would have helped the organization in maximizing the participation of employees in the
development of business. On the other hand, supporting the workforce through the identification
of issues and manner in which they can be mitigated will be helping business in upholding the
smooth functioning of the business processes.
PESTEL of the organization
Political  Political climate and stability of the
different nations where the
organization operates
 political impositions
 taxation in the different field of action
taken by the organization
Economic  Distribution of income in the different t
communities
 monetary and fiscal policies of the
government
 trade restrictions in the different
regions
Social  social traditions, values and beliefs of
the people
 social satisfaction in the different
contexts as per the preferences of the
people
 maintenance of the ethical standards
while operating in the different markets

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Technological  technological innovation in the security
systems
 competition in the market due to the
advancement in the technological
aspects
Legal  different tax impositions in the market
 ethical standards relating to the
security systems
Environmental  Waste management policies
 intervention of the different
environment protection agencies
4. Impact on organizational performance and HR functions
Organizational performance is specifically based on the different functions that are
undertaken by the HR of the organization. The key role that is played by the HR of the
organization is to undertake recruitments for the organizations. The recruitment of skilled
workforce has helped in upholding the proficiency and productivity of the businesses while
operating as per the objectives of its expansion. The skilled workforce helps in enhancing the
functions of the enterprise. On the other hand, Vanhala andRitala (2016) stated that the quality of
the processes and knowledge transfer among the employees is enabled through the skilled
workforce. Alternatively, the recruitment of the skilled workforce also helps the companies in
minimizing the training costs, which helps in maximizing the profitability of the venture.
The HR of the organization also designs the induction and training process of the
employees, which helps in enhancing the skills of the same. It helps the organization in
maximizing its productivity as per the objectives of the business. The training and induction of
the new candidates helps in inducing the culture of the organization in them and thereby helps in
making the same more adaptable to the processes of the business. The design of the training that

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is provided to the employees by the management is a crucial factor as it helps in upholding the
efficiency of the functions of the business (N. Theriou and Chatzoglou 2014).
Identification of the concerns that are faced by employees and thereby mitigating the
issues is one of the major functions of the HR of the organization. It has helped in upholding the
proper functioning of the systems of the business (Gold et al. 2013). Communication with the
employees and thereby maximizing their involvement in the processes of the business helps in
upholding the efficacy of the performance of organizations (Lewicka 2013). Changes that are
planned by the management of the organization is supported through the communication of the
same through the HR departments to the employees. The smooth functioning of the workforce as
per the changed processes of the business facilitates the smooth operations. Clarke and Hill
(2012) stated that the HR department of the organizations aims at resolving the inter- cultural
clashes in the workforce and thereby maintain the smooth functioning of the workforce through
the integration of the different internal departments of the organization.
The HR of the organization also aims at upholding the ethical backdrops and thereby
induces the corporate culture within the people. It will facilitate the business in upholding the
smooth functioning of the systems as per the objectives of the business. The different aspects of
the change in the systems of the business are based on the proper functioning of the HR
departments (Donate, Peña and Sanchez de Pablo 2016). The induction of different regulations in
order to maintain the flexibility of the workplace has helped in enhancing the productivity
conditions of the business while operating as per the objectives of the business.

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5. Stages of strategy formulation
The strategies that are formed by the organizations pass through different stages, which
portray the feasibility of the idea and the manner in which they can be implemented on the
business model in order to enhance the proper suitable operations of models of the business. The
most important step even before a strategy is formulated is to have a clear conception of the
objective (Zakaria2013). The identification of the objective of the organization helps in
upholding the efficacy of the function as per needs of the business. The strategy formulation
model by Andrew Isherwoodwill be helping organizations in identifying the different steps that
might be undertaken by the businesses in order to formulate and implement a proper strategy as
per the needs of the organization. The identification of the vision of the organization will be
helping the management to support the strategy with a rationale (Björkman et al. 2014). The
vision of the organizational situation through the implementation of the strategy will be helpful
in understanding the potential outcomes.
Defining the market situation of the organization through internal and external
environmental analysis will be helping the management in gathering data of the current situation
of the business. The different element of the change that is required to be undertaken by the
organization in order to support its sustenance needs is being understood through the different
environmental analysis (Hennekam andHerrbach 2015). It will be helping the management of the
organization in upholding the similarity between the functions and the strategy as per the
objectives of the business.
Formulation of the strategy is one of the major steps that are undertaken by the
management in order to enhance the organization’s scopes of expanding in the international
markets (Renwick, Redman and Maguire 2013). The implementation of the correct strategy on