- The developing role of HR within present day business
- Internal forces which shape the HR Agenda
- External forces which shape the HR agenda
- Tools for Analyzing the Business Environment
- Comparison between SWOT analysis and PESTLE analysis
- Stages of strategy formulation and the role of HR in each stage
- Stages of implementing the strategy
- Role of HR in Business Ethics
- The role of HR in Accountability
of HR within present day business’. Your report should include;
• An analysis of internal forces which can shape the HR agenda, you could
include for example; structure/model of the HR function, HR strategies,
strategic objectives and stakeholder expectations.
• An assessment and summary of a range of different external factors
impacting on an organisation’s performance and explain how they affect
the HR function.
• A table comparing two different environmental analytical tools e.g. SWOT,
PESTLE, Porter’s 5 Force’s, etc.
• A summary of the key stages of strategy formulation and implementation.
You should refer to the role of HR in each of the stages summarised.
You should also highlight HR’s role in; i) Business Ethics and ii)
Accountability. You should reference all key models and literature used.
• A table or chart illustrating a range of ways business performance is
measured in the organisation for different purposes. You should also
highlight with examples, the role of HR in; i) Business Planning and ii)
• An assessment of how different sources of business/internal and
contextual/external data should be considered and used when planning
e.g. internal information within the organisation including HR metrics,
industry information e.g. trends in HR, competitive information,
The developing role of HR within present day business
The focus of modern organizations is on the aggressive growth, finding niches markets, developing innovative products, and performs excellently in the market to be on the top in the industry. This cannot be possible without effective human resource in the organization. Therefore, the role of human resource has been increased significantly in the current business scenario (Brewster et al., 2017).
Internal forces which shape the HR Agenda
• Structure of the HR function: the structure of human resource function or department significantly affects the agenda of human resource. If the structure of human resource department is complex and there are several hierarchies in the structure, the function of human resource would be affected greatly. The complex structure and hierarchy is the barrier in the way of executing the functions effectively. The agenda of the human resource in any organization is to foster the growth of the organization and achieve outstanding outcomes within the given time. But the complex structure and hierarchy in the structure become hindrance in the way of accomplishing the goals and objectives of human resource. But if the structure is not complex and there is less or no hierarchy system in the organization the human resource would be more effective in accomplishing its goals and objectives. So, it is clear that the structure of human resource shape HR agenda.
• Strategies of Human Resource: the strategy of human resource determines the success and failure of an overall organization. It is very important to have effective human resource strategy to achieve the desired goals and outcomes. As we all know that human resource is the most important resource of the organization which provides a competitive advantage to the organization. The agenda of human resource is deeply depended on the strategy of human resource. If the strategy of human resource is not effective to accomplish the target goals and objectives of the organization the agenda of human resource would also not be accomplished and may shift downward as compared to the previous target. On the other hand, if the strategy of human resource effective enough to accomplish the target goals of the organization the agenda of human resource would shift upward and may focus to achieve more in the future. In this way, human resource strategy shapes the human resource agenda.
• Strategic objectives: the strategic objectives also shape the agenda of human resource. The strategic objectives determine what need to be done and how the things will be done. As the strategic objectives of the organization would aim at a high result the agenda of human resource would also shift to accomplish the strategic objectives of the organization.
• Stakeholder expectations: stakeholders are all the interested parties to the organization. They work for the benefits of the organization. But all the stakeholders have some expectations from the organization. The shareholders, consumers, employees, management, government, and suppliers are the stakeholders. The shareholders expect that the organization will provide a handsome return on their investment; the consumers expect that the organization will provide best product and services to them; employees expect best working environment and compensation, and so on. As the expectation of stakeholders increases the agenda of human resource also changes according to the expectations of stakeholders.
Apart from the internal forces, there are some HR models which also affect or shape the HR agenda. HR models help in connecting the goals and objectives of HR and strategies of HR. With the help of HR model, the roles and responsibility of human resource could be defined. HR models also outline how the key HR tasks would be delivered and who or which process would deliver the key HR tasks. One of the most important HR models is the model of Dave Ulrich.
HR model of Dave Ulrich
Dave Ulrich in his HR model identified four key roles of human resource which is very important to ensure effectiveness and efficiency in the organization. Dave Ulrich is a strategist who has defined a new human resource agenda. He also defined strategic role of human resource. According to his model, the four key roles of human resource are the following (Ulrich and Brockbank, 2016);
1) HR business partner: one of the strategic roles of human resource is HR business partner. HR business partner develops strategic relationship and partnership with the dedicated internal clients of the organization. HR business partner also acts as a single point contact for the internal clients of the organization.
2) Change agent: Human resource is the change agent of the organization who ensures change within the organization. Human resource acts as a change agent who prepares the employees to accept the change within the organization.
3) Administration expert: It is the transactional role of the human resource. It is very important for the human resource to be a trustful administrative expert to play its strategic roles.
4) Employee advocate: employee champion or employee advocate is one of the core roles of human resource. HR represents employees, ensure their rights and protect their interest.
By playing these roles human resource change or shape the agenda of the HR. Apart from this model, there are various other models which also shape the HR agenda. One of the important models to understand the same is the Harvard Model.
The Harvard Model
The Harvard model was propounded by Beer et al., 1984. According to this model, there are six major components of Human Resource Management. The six components are the following;
1) Stakeholders interest:
2) Situational factors:
3) HRM policy choices
4) HR outcomes
5) Long-term consequences
6) Feedback loop through
All of these components determine the agenda of the human resource. The interest of the stakeholders is one of the most important components which shape the HR agenda (Beer et al., 2015). The company should protect the interest of the stakeholders for the benefits of the company. And to protect the interest of the stakeholders if there is a need to change the HR agenda, the company should go for it.
External forces which shape the HR agenda
• Competition: today there is cut-throat competition in every field irrespective of size and location of the organization. Every organization is competing with hundreds of organization in the same market. Due to the introduction of globalization, the level of competition has increased significantly. Now every organization has to compete with the domestic organization in the domestic market and with the international organization in an international organization. So, the level of competition is increasing day by day. The only competition is not increasing, but it is also determining the agenda of human resource. According to the level of competition, the agenda of human resource changes to cope with the high competition. If the human resource agenda is not changing with the changing in the level of competition, the organization would not be able to cope with the competition and very soon it will be out of the market.
• Government regulation: every organization in a nation is regulated by some authority. To regulate the organization the government or the regulatory body formulates some rules and regulation. Every organization has to follow those rules and regulations. For example, the government has increased the duration of maternity leave, so the organizations need to follow this rule and provide maternity leave according to the prescription of the government. So, the agenda of the human resource changes with the change in government rules and regulation.
• Economic factors: economic factors also affect the human resource agenda. The economic factors such as tax policy, monetary as well as fiscal policy, inflation rate, the rate of unemployment, etc. affect the human resource agenda significantly. Every organization needs to cope with the economic trends in order to avoid any uncertainty. The high rate of unemployment is a major concern for the nations and the government directs the organizations to generate employment in the country to reduce the level of unemployment. So, the organizations change their human resource agenda to follow the direction of the government.
• Technology: technology is one of the fasted growing external factors in the world. Technology is developing at a very fast rate every day. Therefore, every organization needs to cope with the fast growing technology. For this purpose, the organization needs to provide training to the employees to deal with the high-tech technologies. So, the need for training and skills change the agenda of human resource.
• Changing taste and preference of the consumers: the main aim and objectives of every organization is to fulfill the needs and demands of the consumers and make them satisfied. As long as the organization is fulfilling the needs and demands of the consumers, the organization will survive in the market and gain profit. But the matter of concern is that the taste and preference of the consumer changes with the passage of time. They demand high quality and innovative product and services, therefore; the organizations need to hire a more talented employee to produce high quality and innovative product and services. In this way, the agenda of human resource changes with the changing taste and preference of consumers.
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Tools for Analyzing the Business Environment
Comparison between SWOT analysis and PESTLE analysis
|SWOT Analysis||PESTLE Analysis|
|SWOT analysis is used to analyze the business environment of an organization.||SWOT analysis helps in identifying the strategy of competitors and helps the organization to outdo the competitors.|
|SWOT analysis is used to analyze the current position of the business in the market.||SWOT analysis helps in identifying the strategy of competitors and helps the organization to outdo the competitors.|
|SWOT analysis is used to formulate a strategy to strengthen the strengths of the business and minimize the weaknesses of the business.||PESTLE analysis is used to analyze the effects of external factors on the business.|
|SWOT analysis helps in identifying the strategy of competitors and helps the organization to outdo the competitors.||PESTLE analysis is used to formulate a strategy to mitigate the impact of external forces on the business.|
Stages of strategy formulation and the role of HR in each stage
• Setting of organizational objectives: before formulating strategy, it is very important to define the objectives of the organization. Without defining objectives of the organization, it is very difficult to formulate a strategy because there would not be any base to formulate strategy upon. Organizational objectives are the pillar of the formulation of strategy which provides a base for formulating a strategy. Therefore, the objectives should be based on a SMART approach to formulating an effective strategy. The role of HR is significant in defining organizational objectives. The organizational objectives should be linked with the objectives of all the department in the organization, and human resource department is one of the most important departments in the organization which provides a competitive edge to the organization (Bamberger et al., 2014). So, HR is responsible for aligning the objectives of the department with the objectives of the organization.
• Evaluating organizational environment: the organizational environment has a great impact on the functioning of the organization. The organizational environment is of two types, i.e., internal environment and external environment. Both the environments affect the functioning of the business while the internal environment is controllable and external environment is uncontrollable. So, the strategy should be formulated in a way to deal with both the environment. The HR is responsible for analyzing the internal as well as the external environment to deal with the uncertainty within the organization (Bamberger et al., 2014).
• Setting quantitative targets: setting target is not a big deal, but setting target based on SMART approach is a big deal. The target should be attainable and measurable. SMART target is also a base for strategy formulation. The HR is responsible for setting the target of HR department and then motivating the employees to achieve the target of overall organization (Bamberger et al., 2014).
• Performance analysis: the analysis of performance helps in analyzing and discovering the gap between the desired performance and actual performance. If the gap is stating that the desired performance is more than the actual performance, there is a need to improve the performance and strategy would be formulated according to the need of organization. Here, the role of HR is very significant (Bamberger et al., 2014). HR is responsible for assessing the performance and provides feedback to the strategist to develop the strategy.
• Choice of strategy: choice of strategy is the ultimate stage in the process of formulating a strategy. After formulating several strategies, the best one is chosen to implement in the organization. HR is responsible for assisting the top management in selecting the best strategy to implement in the organization.
Stages of implementing the strategy
• Exploration stage: in the exploration stage various alternate option available to the organization are explored to select the best one. In this stage, various options are analyzed to choose the best one. HR helps in assessing the feasibility of the alternate options to select the best one (Rajasekar, 2014).
• Installation stage: after selecting the best one to implement the installation stage begins in which all the necessary things required to install the strategy is obtained. HR provides all the required material to install the strategy (Rajasekar, 2014).
• Initial implementation: the strategy is implemented partially at this stage to check the effectiveness of the strategy. HR is responsible for assessing the effectiveness of the strategy.
• Full implementation: after checking the effectiveness of the strategy the full implementation of the strategy is done (Rajasekar, 2014). HR is responsible for implementing the strategy.
Role of HR in Business Ethics
• Nurturing of ethical organizational culture: HR is responsible for maintaining the healthy organizational culture and the good working environment in the organization. Healthy organizational culture is one which ensures ethical standard in the organizational culture. This is the first step in order to maintain business ethics in the organization.
• During the recruitment of employees, HR is responsible for upholding ethical climate and organizational values. HR is responsible for recruiting such staff who can uphold the values of the organization and maintain the ethical standard to avoid any unethical practice in the organization.
• To resolve the ethical conflict whenever it occurs: HR is also responsible for resolving the ethical conflict if it is occurring in the organization. HR resolves the ethical conflict in the organization to maintain business ethics in the organization.
• HR also deals with the aftermath of an ethical conflict within the organization. Whenever an ethical conflict becomes a destructive event, HR resolves the situation to ensure business ethics in the organization.
The role of HR in Accountability
• HR formulates plans and policies to provide employees a direction to work effectively.
• HR ensures the healthy organizational culture and good working environment to boost up the level of morale of the employees to perform better.
• HR motivates the employees to accomplish the target within the given time to make the organization profitable.
• HR resolves the conflict of the employees to ensure good cooperation and coordination among the employees to increase productivity and performance of the organization.
To be continued..