HR’s Contribution to Organisational Performance Assignment Help
As an experienced HR Manager, you have been asked to produce a discussion paper to be delivered. Support of a seminar at a Leadership Development Forum. The seminar entitle ‘HR's contribution to Organisational performance.
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In the current business world, the business organisational performance is highly dependent on the performance of its Human Resource department as it handles the most important and complex resource of the business which is Human resource. Human resource can help the business gain a competitive advantage in the market by its highly effective hiring, training, development, and growth program for its employee. In this report, different aspects of the business will be discussed. In the first part, the business performance indicators and the role of HR in business planning and change management will be discussed. In the second part, the different type of data used for business planning by the management will be discussed. In the end, a brief conclusion will be given.
1. Business performance (3.1)
• How business performance can be evaluated using ‘traditional' and ‘modern' indicators. (AC 3.1)
In the current business environment, it is highly important to evaluate business performance for different reasons. Some of the reasons for which this evaluation becomes more significant are listed below.
? To check whether business objectives or goals had been fulfilled or not.
? To check the effectiveness of different activities of the business.
? To evaluate employee performance, and distribution of reward to the employee according to his performance.
? To increase the efficiency of the business operation.
? To communicate with different stakeholders of the business about business performance.
? To develop future strategies and objective of the business.
The above mentioned are some reasons for business evaluation, and there are many other reasons like these. In order word, it can be said that the business performance evaluation set the direction for the activities of the business in the future period.
Two types of indicators are used for the evaluation of business performance, and they are traditional indicators and modern indicators.
Some of the example of the traditional indicators and how they are used in the evaluation of the business performance are given below.
• Profit or Loss - One of the most traditional indicators of the business performance is profit or loss, and under this indicator, it is observed how much profit or net income, the business has been able to generate from its operation. The higher the amount of profit is, the better is the indicator of the business under this traditional indicator.
• Competitive Position - The second traditional indicator of the business performance evaluation is a competitive position, and under which, the business's market share is estimated. The higher the market share of the business, the better is considered the performance of the business, or the increase in the market share considered to be positive business performance and a decrease in the market share considered to be the negative performance of the business.
• KPIs / SLAs - Another type of traditional indicator includes the KPIs or SLAs. The KPIs are the Key Performance Indicators which are different performance measures which assess different aspects of the business (Klipfolio.com, 2019). The SLAs are the Service Level agreement which measures the different aspects of the service provided by the business to its customers like the quality of the service, availabilities of the service and many other aspects like these. The higher is the performance of the business under different KPIs or SLAs, the better is the performance of the business.
• Customer Feedback - Another traditional indicator of business performance is customer feedback. Customer feedback includes all customer assessment about the quality of service or product experience provided by the business to its customers, and the business records these in different forms like customer card, direct interaction with the customer and many more other types like these. If the overall customer feedback shows the positive experience of the customer, then it is considered the good performance of the business. Otherwise, the business performance found lacking by the customers and has to be improved immediately.
• Product Assessment - This is another traditional indicator for evaluating the business performance, and under this, the number of awards or other recognition that the product of the business got from the market is assessed to evaluate the business performance. Under this indicator, the higher the number of awards and other recognition of the product from the market, the better it is considered the performance of the business.
• Safety Record - Under this traditional indicator for evaluating the business performance, the safety of the stakeholder in the business environment is considered for evaluating the business performance. The number of accidents that happened in the business in a particular period, or the safety norms compliance by the business are considered as the measure in this indicator. The lower is the number of accident in the business environment or the higher is the compliance with the safety norms, the better is considered the performance of the business.
• Turnover Or Stability- Under this traditional indicator for evaluating the business performance, the turnover of different aspects or different resources of the business are considered. The high turnover of some aspect of the business is considered as good performance of the business like assets turnover. On the other hand, the high turnover of some aspects of the business is considered the negative performance of the business like the employee turnover. In overall assessment under this indicator, the stability of the business is checked, and the higher stability means the good performance of the business.
Some of the examples of the modern indicators and how they are used in the evaluation of the business performance are given below.
• Levels of employee engagement - In this modern indicator, it is assessed how much the business engaged the employee in the decision-making processes of the business. The higher the level of employee engagement, the better the business performance is considered.
• Psychological Contract - In this modern indicator, it is assessed how well the business can meet the unwritten expectation of the employees from the business. It can be measured in many ways like by employee feedback through a questionnaire.
• Employee Advocacy - In this modern indicator, it is assessed how well employee support is used in the promotional activities of the business (WhatIs.com, 2019). The higher is the level of employee advocacy; the better is the business performance is considered.
• Employer Brand - In this modern indicator, it is assessed how much value potential employee in the market put to work in a particular business or the reputation of a business working environment in the market (Bassig, 2019). The higher the value or the reputation is, the better is the business performance considered.
• Level of brand risk - In this modern indicator, the stability of the business brand is assessed. The higher the level of stability, the better the business performance is considered.
• Level of social media presence - In this modern indicator, the business performance is evaluated by the social media presence or activities of the business. The higher the level of social media presence or activities, the better is the business performance considered.
• Corporate Social Responsibility (CSR) performance - In this modern indicator, the impacts of CSR activities of the business on society is assessed. The high level of positive impacts of CSR activities is on the society considered good business performance under this indicator.
• Staff Development - In this modern indicator, the business performance is assessed by the number of opportunities given by the business to its employees to increase his skill set or to grow professionally in the organisation. The business achieving a high level of opportunities is considered performing well under this indicator.
The above mentioned are the traditional and modern indicators of business performance. It can also be observed that the scopes of modern indicators are higher than traditional indicators.
• Examples of how HR contributes to business planning and change management with some example to illustrate HR's key role. (AC 3.1)
HR plays a significant role in both planning and change management of the business from different aspects, and they are listed below.
• Training and development - This is one of the most significant roles of HR in both business planning and change management. For example, the business needs to acquire a new skill to expand in the market, then that skill will be developed in the business employee through training and development. Therefore, it plays a key role in implementing the planning of the business. The example of change management is that suppose the structure of the business has changed and the employee needs to develop a different skill set. Then this skill set will be developed by the training and development of the business (Bobinski, 2019).
• Hiring New Workforce - Another role of HR is to hire a new workforce for the business according to business planning and change management. For example. Suppose the business plan to expand in a new market and need extra workforce for it. Then it is the role of the HR to find that extra workforce for the business.
• Business Environment - Another key role played by HR is that is the development of a business environment, and this is not important for different planning purpose but also need for the change management. For example, suppose, a UK organisation is planning to expand in the Asian market. Then the business environment in the Asian market has to be developed or modified according to different aspects of that market like cultural, social, political, and many more like these. The HR department mainly does these modification implementations. Another example, in change management, is that suppose, the business is merging with another business, then the new business environment had to be modified to combine the synergy of both businesses, and for this purpose, the role of HR in change management becomes critical (SHRM, 2019).
• Employee Growth Plan - Another key role that the HR has to fulfil is the growth of the employee according to the planning of the business and in change management. For example, after the business merged with another business, the employee becomes worried about their growth in the business, and then it is the role of the HR to assure the employee and tell about the growth opportunities of the employee in the new business structure.
• Efficient Use of Human Resources - Another role of HR is the efficient use of the Human resource of the business and allocating different role to different individuals according to their skills and knowledge set. Besides, in change management, HR has to reorganise the workforce of the company according to the business need. This called talent management role of the business. For example, one company has acquired another company; then it is the role of the HR to reorganise the workforce of the acquired company according to the need of the company which includes shifting roles of different individuals or minimising the existing the workforce of the acquired company.
• Development and change in HR policies - Another vital role played by the HR is the development and change in HR policies according to the change in business dynamic. For example, the business has merged with another business; then the HR needs to develop new HR policies which will work best in that situation.
2. Business Data (3.2)
• Explanation of how different sources of business and contextual data can be used for planning purpose e.g., internal information within the organisation including HR metrics and industry information such as trends in HR, competitive information and government information (AC 3.2)
The business gathers data from different sources to make the planning of the organisation more effective and efficient. There are mainly two types of data used in the planning purpose, and they are business data which is the data sourced from the different internal process of the business and the contextual data which is the data sourced from the external source of the business. In the next section, how different sources of data are used for the planning purpose will be explained.
The explanation of how different business data used for planning purpose are listed below.
• Business Metric - Business metrics are simply the performance metrics of the business, and this is used in the planning purpose, to estimate the strengths and weaknesses of the business. Then the resources and activities are planned according to the strengths and weaknesses of the business. For example, a business can use business metrics to evaluate its core competencies or strength and then select its expansion plan according to its strength or core competencies.
• Internal Survey - Internal survey is the feedback of the employees and partners of the business, and these are used in the business to identify the areas where the business was unable to fulfil the certain customer need and the gap in the market. These are incorporated to plan the goal and strategies of the business to fulfil those needs by the business in the future period. These internal surveys can be incorporated into the business strategies by evaluating the current satisfaction level of the employees within the organisation and find out the employees needs that are not fulfilled by the business. By fulfilling those needs of the employees, the business can lower its employee turnover and increase its employee retention rate. This increase the quality of the workforce of the company. It also helps in the planning of the business as the business knows the strengths of all its current employees and can allocate the different roles to different employees according to its skill set and knowledge.
• Internal Reporting - Internal reporting is the management process which assesses the effectiveness of different activities of the business and also the overall performance of the business. This is used to find the current financial position of the business and plan the future growth plan of the business according to the business resources. The internal reporting can help in the planning of the business as it evaluates the financial capabilities of the business. It also helps the business evaluate inefficiencies in business activities. These evaluation leads to the business planning its future growth plan according to its financial capabilities and also removing the inefficiencies in the current business activities with the help of the findings of the internal reporting. Therefore, internal reporting helps the business grow and become more sustainable.
• Customer Feedback - Customer feedback include the overall assessment of the customer about the business product or services including the customer complaint. Customers are one important element for the success of the business in the long term. These data are used to plan a more effective product or service journey for the customers. This customer feedback can be incorporated in the business plan to assess in what areas the customers are finding the business lacking. Then the business can better those areas in which the customer find it lacking. Therefore, the business can increase their customer satisfaction and also achieve the planned or targeted customers or reach a highly targeted customer base. This increase in the customer base happens due to the increase in the quality of the product or service of the business by incorporating the customer feedback into it.
• Safety Record - Safety record include the assessment of the business environment safety measure, and these data are used for the planning purpose to make the business environment safer for all stakeholders of the business. One of the risk that any business faces is the legal risk due to having inadequate safety measure in its business environment. Therefore, the business always needs to evaluate its business environment and plan adequate safety measures for it. The safety record can help the business find the weaknesses in its business environment regarding safety measures and takes appropriate measure to better the current safety measure. This helps the business environment become safer than before.
Explanations of how some of the contextual data are used for planning purpose are listed below.
• External Survey - External survey means the survey conducted among the customer of the business to assess customer satisfaction from the business product or services. The business uses this for the planning purpose to identify the areas which are having low customer satisfaction and modifying those areas according to the customer need.
• Competitor Analysis / Benchmarking - Competitive analysis is the assessment of the business competitors position in the market and benchmarking is the comparison of the business performance with the industry best practices (ToolsHero, 2019). This data are used to identify the areas in which the business is performing lower than its competitors and better its performance in those areas.
• Industry Satisfaction Survey - Industry Satisfaction survey is used to assess customer satisfaction from the overall industry of the business. It is used in the planning purpose to understand the gap in the market and plan its business activities to fulfil those gaps in the market.
• Salary Survey - Salary Survey is the overall standard of compensation offered to the employee in a different position by the different business in one industry. It is used for the planning purpose to make the salary package of the business more lucrative than its competitors which will help the business attract good talent from the market.
• Trade Press - Trade press is the collective information about an industry's different aspects, and this is used in the planning purpose to identify the latest development in the industry and make the business more prepared for that development.
• Government Reporting / Research - Government reporting or research are those reports which give the user overall view about the market situation of the industry, and this is used for the planning purpose, to better the performance of the business and also plan the expansion of the business.
Commenting on how the researcher will transfer the new knowledge and skills gained during this assignment into the working practices.
The learning in the assignment will help the researcher become more professional and help its growth in its career. This assignment has helped the researcher understand the importance of different data. For this reason, the researcher will give adequate attention to different data as these data can help in its career growth by giving proper direction to the researcher. The researcher has also understood the importance of Human resources and engagement with different stakeholders for the success of the business. Therefore, the researcher in its professional life will give high priorities to communication to different members in his carreer. In all these ways, the researcher will transfer his learning in the assignment to working practice.
The finding of this report consists of different business performance indicators and an explanation of how each of the indicators works. Then the role of the HR in the business planning and change management had been explained. Then the use of the different type of business data by the business in the planning of the management had been discussed.
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