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...Read More

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

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the organizational context helps in enhancing the scopes of expansion and sustenance of the
businesses (Farndale, Brewster and Poutsma 2014). The long term objective of the businesses is
to sustain in the highly competitive markets. Therefore, strategies help in upholding the efficacy
of the functions of the business.
Implementation of strategy on functions of the business through suitable communication
with the internal and external stakeholders of business will be facilitating the organizations in
upholding proficiency of the performance. The implementation of the different strategies as per
the needs of the organizations helps in upholding the efficacy of the functions. Monitoring over
the processes and thereby bring in changes in the strategy of the organization is one of the final
steps of the strategy formulation. The strategies that are formed by the businesses are meant for
the betterment of the operations as per the objectives (Dumont, Shen and Deng 2017). The
different steps of the strategy formulation help the organizations in upholding the efficacy of the
functions. Human resource of the organizations helps in expanding the scopes of productivity
and success for the business organizations. The proper functioning of the workforce as per the
processes helps in upholding the efficacy of the functions correlating to the needs of the
organization to sustain in the highly competitive market conditions.
6. Evaluation of business performance
The evaluation of the business performance is based on the profitability of the business.
The increased retention rate of the employees helps in upholding the efficacy of the business
enterprises. The measurement of the performance of the business organizations are based on the
different key elements of sustenance of the business while operating in the diverse markets. The
traditional indicators of the business performance were based on evaluation of absolute value of

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the earnings, indicators of cash flow and profitability of the venture. Indicators of the earnings of
the business were done through evaluation of net income, earnings before taxes, earnings before
interest and depreciation(Cooper, Liu and Tarba 2014). The group of indicators was mostly
focused on the profitability of the firm ignoring the different sustainability concerns of the
business while undertaking the venture. On the other hand, the modern indicators of business
performance are discounted cash flow, market value added to the business, excess return on the
investments, total shareholder return, economic value added, shareholder value added, cash flow
return of investment and the like (App, Merk and Büttgen 2012). It has helped in understanding
the market holdings of the organization pertaining to its sustainability while operating in the
diverse markets. The enumeration of the different indicators has helped in upholding the
proficiency of the functions of the business operation.
The HR of the organizations holds an important place in enhancing the performance of
the businesses while operating in the diverse markets. The HR of the organizations aims at
motivating the employees through different rewards and recognition programs. The different
reward and recognition programs help in motivating the employees and thereby undertake the
smooth functioning of the business processes. On the other hand, the provision for different
training programs has helped in enhancing the skills of the workforce, which helps in the smooth
functioning of the processes of the organizations (Ko and Smith-Walter 2013). The changes that
are planned by the management of the organization for the growth and expansion of the
businesses is being communicated by the HR department to the employees which helps in
upholding the change readiness among the workforce. On the other hand, communication with
the employees helps the HR manager in coming across different issues that are faced by the
workforce while operating as per the processes that are designed by the organization. The

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identification of the issues of the employees and thereby resolving the same will be helping the
organizational management in promoting the smooth functioning of the workforce.
Communication also helps in encouraging the employees to involve in the processes that are
planned by the management of organizations (Bos‐Nehles, Van Riemsdijk and KeesLooise
2013). The suitable performance of the systems of the business is facilitated through the
participation of the HR in the processes of business to encourage employees. Encouraging
employees and motivating the same helps in upholding efficacy of functions as per objectives of
the businesses while operating in the diverse market conditions.
7. Conclusion
Therefore, from the above analysis it can be stated that the performance of the businesses
is based on the HR activities. The smooth functioning of the workforce is based on the design of
the training and the communication of the issues that are faced by the same. Mitigation of the
issues that are faced by the employees helps in enhancing the workflow of the organizations. The
involvement of the employees and engagement of the same in the processes that are planned by
the management helps in upholding the efficacy of the productivity of the organizations. The
enumeration of the different needs of the employees and thereby supporting them with the same
has helped in upholding the efficiency of the functions as per the HR responsibilities of the
organization. The HR of the organizations also holds the responsibility of integrating the
different departments through communication. It helps in undertaking the collaborative venture
of the organizations. The different aspects of the performance of the organization are based on
the productivity, which is influenced by the skills of the employees. Therefore, the HR of the
organization takes steps to design training materials in order to induce the culture of the
organizational processes. The changes that are planned by the businesses are communicated to

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the employees through the HR department, which help in upholding the change readiness.
Therefore, the research that was undertaken focuses on the identification of the different key
roles that are played by the HR in boosting the employee morale through which the
organizational performance is supported.

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