HRM's Impact: Tools, Employee Well-being & PESTLE for Growth

This report examines the critical role of Human Resource Management (HRM) in enhancing organizational performance, focusing on a local travel agency as a case study. It identifies key tools and techniques such as HRM practices, human relationship theory, information technology, and strategic management to improve efficiency and effectiveness. The report emphasizes the significance of employee well-being and motivation, discussing motivational theories and the impact of rewards, incentives, and a positive work environment. Furthermore, it conducts a PESTLE analysis, evaluating political, economic, social, technological, environmental, and legal factors affecting the organization. The conclusion highlights the importance of HRM, macro-environmental analysis, motivation, and employee well-being in achieving business objectives and overall organizational development. Desklib provides access to similar solved assignments and resources for students.

Human resource
management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................4
What tools and techniques will help improve organisational performance................................4
The role of employee well being in improving motivation and performance.............................4
PESTLE analysis for the organisation........................................................................................4
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Human resource management plays a crucial role in overall development of the company
at the marketplace. It is essential for an organisation to focus on development of performance of
the employees in order to achieve key objectives and goals (Armstrong, and Taylor, 2020). All
major companies in the international and national marketplace focus on development of
performance and motivation in the employees to achieve desired outcomes. The human resource
department also plays a key role in development of employees by introducing different
techniques of motivation and employee development. In this report case study of a local Travel
agency is taken into consideration which is having less workforce and working with traditional
personal development based approach. In this project

TASK
What tools and techniques will help improve organisational performance
In the functioning of a business entity, it is essential to focus on development of
employee performance for achievement of desired results. Many companies in the global and
domestic marketplace focus on improving organisational performance in order to accomplish set
goals and targets. In order to increase the efficiency and effectiveness of a company, it is
essential to focus on organisational performance improvement (Brewster, and Hegewisch,
2017). The main tools and techniques which are used by companies to improve organisational
performance are mentioned below:
 Focus on HRM- The human resource management is considered as key and major
department of a business which helps in management of employees. In the recent times,
human resource management is also responsible for maintaining key functions of a
company along with training and development. A business should focus on development
and hiring professionals in the area of human resource department to lead the
marketplace. In order to gain competency edge at the marketplace, it is essential for a
business entity to provide training and development to its key employees.
 Human relationship theory- Human relationship theory is considered as an universally
adopted approach which is helpful in growth and expansion of a business. With the help
and application of human relationship theory, a company can build effective relationship
between employees. It also supports a company to develop harmony between different
employees. Most of the successful business organisations use this theory to increase
productivity of the employees. In the recent times, it is important for a business to apply
this theory in order to gain competitive advantage and employee satisfaction. This also
supports an organisation to gain effectiveness in managing employees and also increase
their productivity.
 Information and technology- The information and technology are two major pillars of
business development which helps in increasing capability of a company. It is major role
of a business to include application of information and technology in order to perform
accurate and quick operations (DeCenzo, Robbins, and Verhulst, 2016). This is also one
of the major role of top level and strategic management of a business to focus on

information and technology to develop a major approach. In the corporate world, many
organisations are hiring skilled and trained IT professionals to deal with major challenges
and issues. In order to increase the efficiency and effectiveness of a business, it is
necessary to focus on IT.
 Strategic management- This is one of the major organisational body which helps a
company in future planning. In the corporate world, many companies in order to improve
organisational performance use the application of strategic management. All major
companies should focus on development of strategic approach in order to move in right
direction. This is the major role and responsibility of management of a business to take
assistance of strategic management to perform planning and development based
practices. There are various companies which also focus on taking assistance of strategic
management to formulate key decisions of the organisation. It is also one of the major
role of a company to develop planning framework according to demand of the market
needs.
The role of employee well being in improving motivation and performance
Motivation is necessary for any work to be done for an organisation. Motivation can be
provided in any form or in any terms like monetary, rewards and recognisations, promotion and
other different forms (Gupta, M., 2016). The benefits and advantages of employee well being are
unlimited for the organisation. Increase in staff satisfaction, team morale, motivation, high
working capacity, productivity, sense of belonging, loyalty for organisation, less of absenteeism
in working attendance and high pay scale, rewards and recognition and all are benefits.
Motivation plays an important role in performance of employees in developing and intensifying
desires of each and every member of organisation in figuring out the holding position effectively
and efficiently. A great worker is very much responsible for achieving definite goals and
objectives for the organisation. A motivated employee results in the acquisition of all the overall
goals and objectives set by the organisation. Human resource management of a business entity
should analyse key focus on development of motivation in the employees. The motivational
theories like content and process theories helps a company to deliver best business practices
which are important for overall growth (Iqbal, and Hassan, 2018). This is one of the major role
of a business to focus on key areas of development by using methods and techniques of

motivation. The company should focus on development of strategic and planning framework in
order to reduce the chances of risk associated with the business.
The HR management of a company should focus on providing training and development
to different employees for accomplishment of key targets. In the organisational life, it is the key
role of HR to provide training according to needs of employees. The HR management is also
responsible for maintaining key development approaches which are suitable for employees. HR
management of a business should also focus on providing monetary and non-monetary rewards
to employees for achievement of key goals and objectives (Ko, and Ma, 2019). Human resource
management is also responsible for management of conflicts in the company. This approach will
help the business to increase employee satisfaction as well as created a major impact on overall
progress of company. The development of effective workplace is essential for making
employees productive at the marketplace. Incentives and rewards which are offered by a
company to its employees will increase the chances of increasing satisfaction of employees. The
employment legislation related to health and safety of employees is also important for overall
growth and expansion of a company.
The HR management of a business should also develop a dynamic internal environment
which is suitable for working and development. In order to increase the chances of marketplace
success, it is important for company to analyse worth of employees and facilitate them
accordingly. This is also one of the major role of top level management of a business to focus on
development of planning based approach which will be beneficial for the company. The different
companies at the marketplace, put emphasis on development of motivation as it increases the
emotional intelligence and mental stability. The different marketplace companies also focus on
development of an employee centric approach in which all major wants and needs of different
customers are met in a precise manner (Marchington, Wilkinson, and Kynighou, 2016). The
companies should also follow instructions in the form of corporate laws developed by
government to gain marketplace advantage. Employee well being depends on the steps taken by
a company in order to increase potential of whole organisation. The companies should also
majorly develop a basic approach which includes major motivational techniques that are
beneficial for whole company. Motivation is the key factor which should be considered by many
different organisations in order to develop mind based capacity in employees (Nankervis, Baird,
and Shields, 2019). The overall development of employees in the company is also facilitated

with the help of strategic actions that are taken by company. In the era of stiff competition
between companies, the key focus of a business should be on ensuring positive employee well
being approach.
PESTLE analysis for the organisation
The PESTLE analysis is considered as a major framework which is used by different
companies to lead the marketplace. It helps a company to analyse macro and external factors
associated with a business in order to achieve desired goals and objectives (Salikov., Logunova,
and Kablashova, 2019). This is also one of the key role of a business to facilitate PESTLE
analysis for the achievement of short, medium and long term goals. PESTLE analysis of Boston
based travel agency is mentioned below:
 Political factors- The political factors are considered as key factors which related to
rules and regulations formulated by government of a country. It is one of the most crucial
role and responsibility of a business to focus on political factors in order to gain
competency edge. The Political stability in Boston affects different companies which are
functioning in the contemporary business environment.
 Economic factors- In the working of a company, economic factors are related to
inflation, deflation rates which can impact on functioning of a company. The monetary
policy developed by government in order to control economic operations is also helpful
in controlling money flow (Santana, and Lopez‐Cabrales, 2019). All major companies
focus on considering key economic factors which are related to business growth. It is also
compulsory for the companies to focus on economic factors in order to gain competency
edge.
 Social factors- The social factors are related to view points of society towards business
organisations. Social factors are also considered as key factors which are mainly related
to culture and traditions of the society (Somarathna, 2020). It is essential for a business
entity to focus on all major social factors in order to develop an effective internal
environment. The social factors of a company are considered as key factors which are
also helpful in overall growth.

 Technology factors- Information and technology is growing at a rapid pace, many
companies are thus focusing on installing best methods related to IT. It is necessary for a
company to focus on technological factors in order to perform all major operations with
great efficiency and effectiveness. The use of advanced computer systems and software
also helps a company to perform key operations with great stability. Different traditional
business organisations are shifting to digital technology to move ahead of competitors.
The digital technology based approaches like management information system, decision
support system and knowledge information system are also helpful in supporting key
functions of a company. Also many business entities in Boston are using application of
customer relationship management software to perform healthy relationship with
different customers. This approach is also helping companies to maintain effective
relationship with customers.
 Environmental factors- The environmental factors are related to sustainability in a
business functioning(Stewart, and Brown, , 2019). It is majorly important for a business
to take into consideration environmental policy formulated by government in order to
perform ethical business. This is also one of the major role of a business to focus on
development of goals and objectives for leading at the marketplace. A company based in
Boston should also develop and formulate key practices related to environmental
development for achievement of sustainability. This is also one of the major role of a
company to focus on sustainability and its achievement within a set period of time.

CONCLUSION
From the above stated report it can be concluded that development of overall
performance of organisation and employees is the key function of human resource management.
This project concludes importance of external or macro environmental analysis in order to
achieve effective outcomes in business operations. This project concludes significance of
motivation and employee well being in development of performance. The above discussion
concludes that performance of organisation can be developed with the help and support of key
strategic and planning framework.

REFERENCES
Books and Journals
Armstrong, M. and Taylor, S., 2020. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Brewster, C. and Hegewisch, A. eds., 2017. Policy and practice in european human resource
management: The Price Waterhouse Cranfield survey. Taylor & Francis.
DeCenzo, D.A., Robbins, S.P. and Verhulst, S.L., 2016. Fundamentals of human resource
management. John Wiley & Sons.
Gupta, M., 2016. An empirical study on fit between strategic human resource management and
business strategy. International Journal of Management Research and Reviews, 6(2), p.102.
Iqbal, Q. and Hassan, S.H., 2018. Green management matters: green human resource
management as blue ocean strategy. Firms’ Strategic Decisions. Theoretical and Empirical
Findings, 3, pp.214-236.
Ko, Y.J. and Ma, L., 2019. Forming a firm innovation strategy through commitment-based
human resource management. The International Journal of Human Resource
Management, 30(12), pp.1931-1955.
Marchington, M., Wilkinson, A.,and Kynighou, A., 2016. Human resource management at work.
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Nankervis, A., Baird, M., and Shields, J., 2019. Human resource management. Cengage AU.
Pattanayak, B., 2020. Human resource management. PHI Learning Pvt. Ltd..
Salikov, Y.A., Logunova, I.V. and Kablashova, I.V., 2019. Trends in human resource
management in the digital economy. Proceedings of the Voronezh State University of
Engineering Technologies, 81(2), pp.393-399.
Santana, M. and Lopez‐Cabrales, A., 2019. Sustainable development and human resource
management: A science mapping approach. Corporate Social Responsibility and Environmental
Management, 26(6), pp.1171-1183.
Somarathna, K.U.S., 2020. An agent-based approach for modeling and simulation of Human
Resource Management as a complex system: Management strategy evaluation. Simulation
Modelling Practice and Theory, 104, p.102118.
Stewart, G.L. and Brown, K.G., 2019. Human resource management. John Wiley & Sons.