5CHR ASSIGNMENT EXAMPLE
Learning outcomes
1.  Understand the key contemporary business
issues and main external factors
affecting different organisations and the impact on
HR.
2. Understand how organisational and HR
strategies and practices are shaped and developed.
3. Know how to identify and respond to changes in
the business environment.
Assessment criteria
1.1 Assess a range of different factors which
impact on an organisation’s business and its HR
function.
2.1 Analyse the forces shaping the HR agenda.
2.2 Compare different tools for analysing the
business environment.
2.3 Explain the key stages in strategy formulation
and implementation and the role of HR.
2.4 Examine HR’s contribution to business ethics
and accountability
3.1  Evaluate business performance and the role of
HR in business planning and the change
management agenda.
3.2  Assess and utilise different sources of
business and contextual data for planning purposes
 Assessmen
Assessment activity
t criteria

You have been asked by the CEO to compile a report on ‘The developing
role 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 2.1
stakeholder expectations.

An assessment and summary of a range of different external factors impacting on an

1.1
organisation’s performance and explain how they affect the HR function.

A table comparing two different environmental analytical tools e.g. SWOT, PESTLE,
2.2
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
2.3, 2.4
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 3.1
HR in; i) Business Planning and ii) Change Management.

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
3.2
organisation including HR metrics, industry information e.g. trends in HR, competitive
information, government information.
Developing Role of HR within
the Present Day Business
Introduction
The Human resource department is crucial for every organization operating within
the society. It is in this department that new ideas are developed to boost efficient
running of the organization. The human resource department is tasked with the
responsibility of overseeing operations conducted within the organization. Most of
the operations carried out in an organization  have to be supervised or controlled
thus the need to have the human resource department to oversee these functions.

The main operation that the department is responsible for overseeing and
controlling includes those that focus with the relationship between employers and
employees.  Every organization  is guided by labor laws hence it’s the department
that ensures laws are adhered  to the latter. The HR department consults with the
executive arm of the organization when paying compensations, recruitment and
training of all staffs. The department has a mission to create a powerful workforce
which according to Armstrong (2006), explains that created workforce of any
organization should be able to meet set goals.

Leading Forces Shaping the HR Agenda

In the contemporary business world we are today there is no doubt that the
functions of HR are evolving. There is need for every HR department to be aware
and updated with the current changes in trends relating to the department.  Failure
to which, an organization is likely to be disadvantaged by its competitors. The HR
considered new parameters (Farndale etal, 2010) since most of the business
leaders appreciate that the more they support their own human resources,
commitment and productivity the more leverage they get in return. Since late
1980s, organizational managers took control of their staff- related aspects by
developing HR strategies which defined performance framework. This influenced
organizations positively by reducing influence and powers by unions since majority
of employees opted to seek in- house advice. The strategy has shown positive
impact in shaping the HR agenda such as structure of the HR function, strategic
objectives, HR strategies and stakeholders expectation.

Structure of the HR Function. According to Polyhart and Maliterno (2011), the HR

role has been changing frequently due to the global economic growth since
technologies have been rapidly interconnected and transparent. HR practices has
since then been at a crossroad.  Over three decades the HR department has indeed
passed through frequent transformations from its initial personal department to
one that adopts HR as a service center.

HR strategies. These are the general plans adopted by organizations to enhance

efficient implementation of certain HR functional areas. HR strategies help in
guiding the personnel decisions taken into account by the organization. As noted by
Cipid.co.uk. (2016), HR strategies should identify the overall plan that brings about
the implementation of particular HR functional areas. As compared to the
traditional practice where the HR strategies focused only on leadership, the current
HR strategies take into account issues of culture, organization and other systems.

Strategic Objectives. A plan is what differentiates a useful HR function and a great

one. A high- quality plan tends to deliver best results thus making the HR
department stronger. Any ordinary HR department is capable of performing its
tasks, but a highly strategic HR department incorporates business strategies and
innovative practices that boost productivity. A highly strategic HR agenda is capable
of enhancing sustainable competitive advantage by improving the organization.
Human resource managers should design strategic objectives that guide the
organization in driving critical decisions and predicting positive trends of the
organization. Therefore, developing a successful HR agenda depends on being
strategic and developing an objective plan that fits best with the organizations
corporate culture. The success of HR in the organization will depend on the quality
of the strategic objectives defined by the HR department.

Stakeholders Expectation. Internal stakeholders are individuals or groups directly

and financially involved in the general operational process of the organization.
Therefore, employees and managers are considered to be internal stakeholders
who feel the impact of the strategies established by the HR. Since Integrated HR
solutions account for 87% of HR’s impact on management and 91% on employees,
shareholders expect the HR department to provide practices that are fully
integrated and reinforce each other. Both the managers and employees expect the
HR department to integrate HR practices with the business strategy vertically, thus
providing seamless solutions to the organization.

External Forces impacting an

Organization Performance
Competition. Competition is one of the major external forces that have a huge
impact on almost all the agenda of the HR in every particular organization. The
existence of other organizations bring about the existence of competition especially
firms that are grouped in the same industry. As competition increase, specific
industries force some firms to embrace and adopt new business strategies. HR
departmental managers are forced to ‘outline new practices in order to deal with
arising competition’ (Armstrong 2006, p. 53). Competition between the two firms
will affect the activities in the HR department. As a result, management of
organizations is forced to attend several job fairs and internal meetings to design
strategies that will promote the organization. As competition gets tough, the HR
department may have to come up with advanced policies and programs that will
help retain important and skilled staff from being lured to the competitors. This
strategy is very useful in ensuring organizations become successful while the
targeted organization becomes more competitive by hiring competent employees
for them to succeed. To improve performance the organization is able to introduce
new business strategies that are aligned with the targeted industry.

Technological advancement. Technological advancement is an external factor that

affects the operations and the agenda set by the HR department especially in this
digital age of technology. Urgent need by organizations to update to the current
technology for efficiency in operations does affect the patterns through which
people are hired. Also, technology affects how trainings and evaluation sessions
among staffs are conducted in the organizations. For instance, advancement in new
marketing channels prompt the HR department to initiate training sessions for staff
particularly in that department involved. In cases where the organization has
procured new technology, then the HR department will require to recruit new staff
in the (Information communication Department [ICT]) who can manage the
equipment’s.
Government and political forces. According to Boxall and Purcell (2011), the
government plays a major role in influencing the processes of recruitment, hiring,
training, termination and compensation by organizations to its employees. The
government on the other hand always releases new employment compliances
standards that affect the operations of the HR department in the organizations. For
instance, in the UK the government constantly pressures the HR departments to
always operate within the set law. Misstep by the organization could lead to
sanctions and lawsuits filed by an employee, clients or vendors in case of failure to
adhere to the government laws which will affect the organizations performance
negatively. On the other hand, political environment of a nation can affect hiring,
training and evaluation of a company. The HR department is forced to offer training
to its workers during or after political election period for staffs to fully understand
and respect political views of their co- workers. In a situation where the HR
department fails to offer such training and employees become uncooperative, then
the overall performance of the organization is likely to be affected.

Demographics. The issue of demographics also plays a crucial role in reshaping the
HR agenda of any particular organization. In reference to Sission (2001), every HR
department should always consider the number of potential workers in any given
market. The performance output of the organization will depend on the amount of
staff acquired for each department, thus ensuring maximum efficiency is achieved.
The HR should always monitor the number of employees who are eligible for
retirement to ensure potential replacements. Similarly, the HR should ensure other
staff members are trained enough to gain the knowledge in case of departure of a
worker especially during retirement. The HR should be highly trained to ensure he
or she is ready to face any arising challenge that comes in the way. The HR should
be adaptable and ready to combat any force that arises affecting the organization.
A good HR manager should be cooperative and always work hand-in-hand with the
heads of other departments to efficiently share any forces that could hinder
effective operation of the organization (Huselid 1995, P635-672).

SWOT, PESTLE and Porters 5 Forces

SWOT Analysis. SWOT analysis is a technique for analyzing the strengths,
weaknesses; opportunities and threats (SWOT) of an organization. SWOT analysis
points out a guiding framework that assists planners and researchers in identifying
or prioritizing business goals while also in identifying strategies of achieving these
goals (Ommani 2011, P.9948). It is considered a very important tool for any
organization whose aim is to succeed in its operations. Using SWOT analysis, the HR
can assess how to take advantage of strengths, minimize effects of weaknesses,
make the most of the available minimal opportunities and reduce any effects
brought about by threats in the organization.

PESTLE analysis. PESTLE analysis looks into the political, environmental, social,
technological, legal and environmental factors that are likely to impact on the
normal functioning of an organization. According to Professional Academy (2018),
PESTLE analysis refers to a tool that marketers use to analyze and monitor macro-
environment or the external marketing environment factors with direct impact on
the organization. The outcome of this analysis is what the SWOT analysis depends
on to identify threats and weaknesses of an organization. It is the best analysis tool
for the HR to use when the organization is on the verge of expanding operations for
instance when opening a new branch in a foreign or different geographical region.

The HR should be equipped with sufficient knowledge in PESTLE analysis to be able

to make use of the opportunity arising from external forces to adjust the
organization plans and still be able to meet future plans.
Porter’s Five Forces. Porter’s five forces is a tool that any organization can use to
improve their competitive position in the market by examining where power is
situated in a competitive situation. The model was developed by a Harvard
Business School Professor Michael E. Porter in his book “Competitive Strategy”.
According to Porter (2008), P.9 strategy is an incentive used by organizations to
perform better than its competitors and still be able to manage the difference.
Porter discussed five forces in this strategy which includes; the threat of substitute
products, bargaining power of suppliers, bargaining power of buyers,  threat
caused by potential entrants by new entrants and lastly competition between
existing industries.
Key stages of strategy formulation and
implementation
Strategy formulation
Strategy formulation is the processes by which an organization opts for the best
course of actions that will enable it realize set organizational goals and objectives.
The role of HR in the organization is thus to ensure HR’s strategies are aligned with
the ideologies of the company. The process basically involves the following main
stages;

Setting Organizations objectives. In this stage the organizations strategy is to set

long term objectives. This includes fixing of the objectives and the mediums to be
used to realize these set objectives. Realization of these objectives will be
determined by the HR role in recruiting inspired employees with high efficiency and
potential to grow.

Evaluating the Organizational Environment. This next step involves extensive

evaluation of the general economic and industrial environment in which the
organization operates. The HR department is involved in reviewing the competitive
position of the organization to produce viable strategies that ensure the
organization survives in the prevailing environment.

Setting Quantitative Targets. The HR department of the organization comes up with

quantitative targets to be achieved by the organizational objectives. The HR ensures
that the set targets are achievable within the prescribed period of time.

Performance analysis. This stage aims at discovering and analyzing the gap created
between planned or desired performance of the organization. A critical
performance evaluation of the organization, past, present and future conditions of
the organizations are studied to identify any degree of gap that exists. The HR
department ensures that the recruited employees possess the skills needed to
enable the organization perform as planned.
Choice of Strategy. Is the final stage where the best course of action is selected
after all the consideration such as goals, strengths, limitations and external
opportunities. The HR department in consultation with other managerial
departments settles on the best choice strategy for the organization well-being.
Strategy Implementation
Strategy Implementation involves putting into action the strategies developed by
the organization to facilitate the realization of set goals and objectives.  The stages
involved in implementation of organizational strategies include;

Executing Organization objectives. Is a level that involves all the means that have
been set by the organization to enable it act on the strategic plans. Employees of
the organization are responsible for executing the set strategies thus the HR role in
recruiting qualified employees will determine if the strategies will be implemented
efficiently.

Resource Disbursement. Essential activities that require resources often are

disbursed abundantly in this stage to ensure continuous operation. The HR is
involved in monitoring department that needs extra personnel to boost operation
since it’s the department responsibility of recruiting new workers.

Creating strategy. It is in this stage that HR department comes up with encouraging

policies that boost smooth running of the organization. Since organizations are
guided by policies the HR department and other managerial departments are
directly involved in creating the best strategies to be adopted.

Employing policies. The HR department ensures that policies and programs are
implemented to ensure the organization has a constant improvement in its
activities.

HR Role in Business Ethics and

Accountability
Business Ethics. Business ethics are codes of moral conduct that every organization
has either written or unwritten which govern the actions and decisions of the
company. As stated by Murphy et al. ‘s (2017),ethical business issues facing
organizations currently include; employee being asked  to gain and share sensitive
information by personal contacts, undermining of the organizations position and
 credibility, sexual harassment or peer pressure in personal selling. Collings and
Mellahi (2009) equally observed that globalization has a critical role to play in
shaping the HR agenda today. The HR manager and its department thus play a
crucial role in maintaining an ethical conduct within the organization by:

 Encouraging and nurturing of a morally organizational culture that its entire staff
including managers in different department and workers adhere to.
 Recruitment of workers who pledge to uphold high values and ethical climate by
setting the ethical tone that the organization requires of them.
 In case of emergence of ethical issues within the organization, the HR is tasked the
responsibility of ensuring the cases are heard and solved conveniently.
 The HR managers are tasked in dealing with the consequences that may arise in
case of ethical conflict within the organization.
Accountability. A successful organization has set cultures that prioritize and inspires
accountability among its staff. Therefore, professional HR managers cannot force
accountability but all they can do is enhance favorable environment for its
employees to be accountable. A healthy and flourishing work culture of an
organization highly depends on accountability in the workplace.

The HR professionals are responsible for increasing accountability in the

organization since they are involved with every decision affecting the staff. For
instance, the HR is involved in the recruitment of new staff for any department and
handling every departure of workers leaving the organization. As a result the HR is
responsible for movement of anyone in and out of the organization. The HR makes
decision that will make the people given access to move within the organization to
honor their human rights and be accountable to their actions.

Role of HR in ensuring accountability in

the workplace
 The HR is expected to keep promises and commitments to the employees in the
organization.
 The HR should bear in mind the ideals and values needed by the organization when
hiring new personnel to ascertain they can live up to the expectation.
 Design a competency framework that clarifies the behavioral expectation, values
and rewards regarding different roles.
 Should be able to champion accountability at all departmental levels of the
organization to ensure workers are fully aware they ought to be accountable for
their actions.
 Cooperate and prepared to work with the CEO to outline solutions that will help in
protecting the organizational values.
Measuring business performance in the organization

An organization performance model considers different perspectives to provide full

view of an organization performance.

Balanced Scorecard [BSC] (Kaplan and Norton 1996, 2001)

 
 

Is a model designed to find balance between financial and non-financial

performance indicators, between internal and external shareholders’ interests and
between showcasing past performance to predict future performances. This model
is meant to encourage organizations to design strategic long-term objectives and
link them to short-term operational targets.

An increase in performance related to growth, quality of products and services are

affected positively as a result improving customer performance. Hence, financial
and customer perspective indicators are assumed to measure performance
outcome, wear as internal business process and growth are considered to be
performance drivers (Kaplan and Norton 2004).

Business performance measurement encompasses a series of steps as highlighted

in the below diagram
 

Role of HR in Business Planning

A Business plan is essential for ever organization as it guides how an organization
operates and develops over a certain period of time. It should be reviewed on a
regular basis bearing in mind the organization goals and objectives. The HR is thus
involved in development of the organization business plan. Key elements in
business planning include;

Resource Planning. Resource planning of an organization requires people to carry

out activities as outlined in the business goals. Therefore, having the right skilled
staff to perform the roles is important and the HR department is responsible for
recruitment of new employees. Since employees in an organization can at any time
resigns, retire or leave on maternity leave. Such cases will impact on the number of
workers and roles assigned, thus the need for the HR to recruit. Therefore, the HR
is required to work with the management to define the role profile, compose
specifications needed for a new recruit, dictate when and how to advertise and
lastly, to structure interviews so as to select the best person.

Organizational Design and Development. Studies dated back in 1930s reveal that
organizational structures influence the behavior and motivation of a workforce. The
HR is involved in the design of structures and processes that increase operational
efficiency, lower risk and improve problem solving. It is the HR department that
ensures the creation of new systems and processes in specific areas have positive
impact on other related areas of the organization. Lastly, it is the HR whose
responsibility is to put forward staff based strategies that offer consistency of the
alterations throughout the organization.

Training and Development. The HR department is tasked with developing strategic

approaches to training and development that guarantee their employees are
equipped with the needed quality skills. The HR is a key influencer in the
organization through making suggestions and feedbacks from both employees and
the management concerning input and execution of strategies.

Change Management
Change is dynamic thus change management in an organization is the ability of
employees in their own capacity to adapt to change. The HR department is
responsible for recruiting, training and monitoring employees performance thus
since the above tend to change often then the HR has a key role to play in case of
change in management.

It is the responsibility of the HR department to motivate employees in the

organization to undertake and accept any change in the program. During
recruitment HR recruits people who have the potential of bringing different
perspectives and easily adapt to changes. The HR department recruits people who
are agent changers those that can easily motivate other employees to participate in
change initiatives thus helping in driving change in the organization.

Different sources of business internal and external data used in planning

Internal data is information generated from operations, maintenance, staff
personnel and financials of an organization. The data assists in running the
organization and optimizing operations. On the other hand external data is data
obtained from the market by use of statistical surveys, research and feedback from
clients and competitors. It assists in understanding customer base and competitive
landscape.
Internal Data
Sales. Sales data is an important source of internal data for an organization to use
during planning. Using the sales data an organization is able to break down the
numbers and analyze each distribution channel, price, geographical area and
customer type to determine which are more efficient.  For instance, an organization
is able to break the sales data into geographical area to determine which areas the
campaign is successful and which area is not.  Using HR metrics the organization
can review the salespersons data to ascertain if it is due to lack of training of
employees that result to low sales in a particular region. An organization can rely on
this internal data to gain competitive advantage against its competitors. Areas with
low sales the organization may opt to leave the market and direct resource to other
regions with potential.

Finance. Financial department in the organization is tasked by providing internal

data from cash flow reports, production reports and from the budget analysis.
These reports assist the organization in knowing the cash flow going in and out of
the company and at what time and purpose. Using HR metric the management is
able to use this data when planning as the management is able to monitor the best
time to order supplies per unit cost, thus buying when the cost is low to maximize
profits. To gain competitive advantage in terms of setting low price of commodity,
financial data is crucial for an organization in cutting down costs by ordering
supplies when costs are low.

Marketing. Marketing is a source of internal data for organizations gathered mostly

from statistics obtained from websites, promotional codes and phone records.
Using these reports the organization can use HR metrics to track and monitor the
demand of the company’s product and services depending on how frequent they
are inquired on their digital platforms.  If clients prefer using these technological
means then the organization when planning opts to allocate more resources in
marketing the product using such options. It is able to drive sales up thus gaining
competitive advantage from other industries relying on traditional marketing
methods.

Conclusion
The success of an organization depends on the management by the HR department
to ensure programs and targets are achieved. An organization strategy designed by
the HR will determine the success or stagnation of the company agenda and
programs.  Therefore, the HR should ensure that adequate and relevant training for
all its employees to ensure goals and objectives are achieved.  The HR is also tasked
in keeping a good track record on globalization and the effects it could have on the
organization. The HR should monitor such effects and update the organization. The
HR shall not only engage in the selection, recruitment, training of the workforce but
also should assist in monitoring employee’s performance to ensure maximum
efficiency by the employees.

Recommendation
Every organization no matter how big or small has a HR department thus there is
always room for improvement. The following are suggestions regarding the
developing role of HR in the current business environment in organizations;
Performance of the organization is crucial thus the HR should ensure to meet
regularly with employees to monitor the performance and suggests areas of
improvements.

The HR should clearly define the expectations expected by employees to ensure

that staffs know what is expected of them on a regular basis. Defining development
goal by the HR to motivate its employees to understand what they are working for
to ensure they put effort in every task they do to meet the objectives. The HR
department is expected to carry out routine absenteeism checks to find out if any
employees of the organization have grievances that may limit their work
performance.

Lastly, the HR department should engage in constant review of its policy and
procedures to ensure they meet the current standards of law.

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