Introduction

Business organizations work in society. Changes occurred in society or targeted market segment bring changes in their business practices as well. Human Resources (HR) managers are required to review and analyze this external business environment for formulating an appropriate business strategy. Human Resources (HR) managers share the responsibility of an active manager for human resources. Human Resources (HR) managers analyze the business environment, develop good approaches, and use Human Resources (HR) skills for better management of their workforces and performance of their employees. Human Resources (HR) managers resolve conflicts and ethical issues in the workplace. The present work is about the critical role of a Human Resources (HR) manager in the organization operating in the contemporary business world. Present work will include analysis of key forces which have an impact on Human Resources (HR) agenda. Additionally, this report will cover information about the comparative analysis of two main tools used by managers for business environment analysis. Present work aims to summarize strategy formulation and implementation processes in an organization for better human resources management.

Forces Which Have Impact on HR Agenda

The main objective of the HR manager is to regulate changes in the employee's attitude to ensure better performance outcomes for an organization. HR managers motivate and encourage organizational employees by making attractive retention policies and incentive plans. Additionally, the HR manager also pays attention to payroll management and talent management. HR agenda can get infleucne from several factors which can be from internal business environment or external business environment. Internal forces and external forces which can bring changes in the HR agenda of an organization are discussed by using the Ulrich model. This model was developed by David Ulrich. In this model four major forces are discussed as influencing factors for the HR system of an organization. See the following points elaborating on this Ulrich model and its role in changing the HR agenda of an organization(Gary, 2011).

1)      HR Business Partner

HR manager work as a business partner. They communicate and deal with the employees and corporate management regarding all human resource issues. However, they are not given full authority to make all decisions independently. HR department team is responsible to obey the corporate policies which may cause them to change their HR agenda or HR retention plans.  For instance, if the HR manager has developed HR strategies and policies for all local employees but corporate management decides to expand business operations in a new country then HR managers would change their HR plan as well. They will need to create new HR policies and strategies to ensure the retention and satisfaction of other international employees as well. Additionally, they will also understand their cultural requirements and values while shaping their HR agenda or strategies(Ellinger, Ellinger, & Keller, 2003).

2)      Change Agent

According to the Ulrich model, HR managers are also required to understand the requirements of their organization. HR strategies and plans should be according to the key business requirements. HR managers are responsible to change their HR agenda whenever a business introduce new changes in the organizational operations. For example, a soft drink manufacturing company plans to introduce new juice flavours. They will buy new machines and require new staff members to operate these machines. Now HR managers will align their HR practices with this change. They will identify the requirement and capacity for new employees. Then they will organize interviews and recruit new employees. This process will change their previous HR agenda(Dievernich, Tokarski, & Gong, 2014). 

3)      Administration Expert

The primary role of an HR manager is to build efficient infrastructure in an organization as an administrative expert. HR manager’s role can get shaped by the changes that occurred in the legislation system. For instance, if the government or labour regulation department has introduced new policies which concerns with the business operations of respective organization then HR managers will make changes in their legislation system as well. HR managers will observe these legislation changes or changes of regulation system and decide a most suitable method to implement or adopt that new legislation in the organization without influencing the jobs of existing labour or employees. Other than these, HR managers are also required to ensure the alignment of their HR practices with the country's legislation to avoid legal consequences. For instance, the HR manager cannot freely recruit any candidate or reject the other one just because of prejudice, discrimination, or stereotyping. Instead of these, they are required to make sure they have followed equal employment opportunities act and other employee's anti-discrimination acts. 

4)      Employee Champion

The HR department of any organization has the responsibility to ensure that employees working on different job positions of their organization are having a safe work environment. They should be aware whether their employees are protected from any racial discrimination, social unfair, unethical actions, and work hazards. For instance, the HR manager has the responsibility to support an employee when he/she experience harassment or any kind of stereotyping at the workplace. Additionally, in high-risk industries employee's protection measures should be ensured by the HR department. In short, HR managers changes their HR agenda whenever an organization introduce any risky strategy in the organization or introduce a new system which requires proper protection measures and HR policy. 

Business Environment Analyzing Tools

The business environment can be subdivided into two main categories: internal business environment and the external business environment. Both sides of the business environment can be analyzed and viewed using different tools and techniques. For instance, two commonly used business environment analysis tools are SWOT and PESTEL.

 

Comparison of PESTEL and SWOT:

SWOT and PESTEL analysis are two different methods and tools to analyze the business environment of an organization. The following table will compare above discussed both business environment analysis tools(Pestleanalysis.com, 2020).

Properties	SWOT	PESTEL
Business Environment	SWOT analysis is used to analyze external as well as the internal business environment.	PESTEL analysis can be used to analyze the external business environment.
Concerns	Managers used to tool to analyze the business environment at the introduction stage or to ensure improvements in existing business operations.	PESTEL analysis is used by managers to understand how business can be influenced by external factors and what action plans can be used for mitigation.
Components	SWOT represents four important factors of a business environment including strengths, weaknesses, opportunities, and threats.	PESTEL analysis includes political factors, economic factors, social factors, technological factors, environmental or ethical factors, and legal factors.
	Strengths: Organizational strengths can be of different types. For instance, it can be financial strength or non-monetary competitive advantages. Weaknesses: Organizational weaknesses draw negative impact on business and HR strategies. Some common examples of weaknesses are insufficient funds, limited product range, poor competitive power of product portfolio and limited resources for business operations. Opportunities: Opportunities are external environmental factors. Using SWOT analysis, a manager can analyze internal as well as the external business environment. In opportunities, they identify potential market gaps, inclining demand, and other supportive factors which can provide the opportunity of expansion and growth to a business organization.    Threats: A major factor to be studied in the external business environment is a market threat. A business should have sufficient strength to stand against its threats. Some common examples of threats are new entrants, increase in competition, dynamic market demands, and changes in technology.	Political Factors: Here managers analyze political factors which can have an impact on business operations and strategies. For instance, governmental policies, international political relationships, international trade policies, war, elections, or government projects.  Economic Factors: Economic factors can have a negative or positive impact on business strategies. Some common examples of economic factors are inflation rate, monetary policies, interest rate, and taxes. Social Factors:            Social factors of a society which includes in the business environment are educational level, employment status, awareness level, culture, and social norms. Technology Factors:  If the business environment requires advanced technology, then the business is required to ensure the availability of advanced technology for securing a better position in a targeted market. Environmental Factors: Climate changes and disposal of industrial waste are common environmental factors which are studied by PESTEL analysis. Legal Factors:            Legal factors should be considered by HR managers in business environment analysis. Common examples of legal factors are compensation plans, recruitment-related acts and regulations by government, labour union demands, and workplace safety laws.

 

Factors and HR Functions

HR managers have dynamic roles in the contemporary businesses. Whenever requirements change for a business it causes to bring changes in the HR role as well(Cummings, Bridgmanl, & Brown, 2016). While some other factors are draw impact on HR business functions. The enlisted below are common factors with impact on HR role.

I)                   Financial Situation or Funds Availability

Unavailability of funds create challenges for HR managers. For instance, limited funds will reduce chances of incentive and reward systems for performance improvement. Therefore, in such organizations HR managers will think about alternative plans to retain their employees.

II)                Globalization

Globalization also have impact on HR policies and strategies. Countries which have active participation in globalization and international operations are having relatively diverse workforces which encourage HR managers to continuously change their HR policies for retaining the individual needs of these diverse workforces.

III)             Contemporary Business Issues

Contemporary business issues are major economic and social issues that a business organization face. For instance, some common contemporary business issues are Debt crisis, monetary and fiscal policies of developing countries, cyclical nature of recession, and economic effects of stock markets. Such issues draw negative influence on businesses. Sometimes recession and debt crisis cause downsizing and job-cuts. Thus, HR managers change their plans to make adjustment with these changes and fire unwanted employees(Ukessays.com, 2020).

Strategy Formulation and Implementation

Business organizations develop business strategies at each level of their business. These strategies are usually having different areas of focus. For instance, a strategy develops for improvement in resources utilization will focus on production sector or operational department. Business strategies are classified into three major types. Three business strategies are competitive strategy, operational strategy, and corporate strategy. It is important to understand these strategies before advancing towards strategy formulation and implementation.

i)                    Corporate Strategy: A corporate strategy is usually developed by corporate management. it concerns with the corporate mission and vision statement. A corporate strategy defines overall business scope and purpose for the whole organization. While formulating this strategy business management mainly gives importance to the requirements and expectations of stakeholders especially shareholders or investors. Corporate strategy acts as a blueprint in the decision-making process(Yusliza, Norazmi, Jabbour, & Fernando, 2014).

ii)                  Competitive Strategy:Business organizations develop their competitive strategies for their response to market competition. What competitor companies are doing in the market? How the company can secure a better position against competitors? What competitive advantage can be developed? All these questions are answered by an effective competitive strategy.

iii)                Operational Strategy:Operational strategy is all about the operational processes and practices of a business organization. How a business unit or department will work? The operational strategy focuses on resources utilization, planning of business production processes, and employee's performance.

Strategy Formulation:

        i.            The first step for the formation of a strategy is setting up the objectives of the company. A company can not set its strategies without any objective. strategies are made for a long period and that is why a list of factors should be focused before the implementation or creation of these strategies

      ii.            Another main step for the formation of strategy is the evaluation of the economic and industrial condition, these analyses made by checking the competitive position of the company. these analyses should be performed before the activation of the strategy

    iii.            This is the third most necessary step. the company is required to apply the practical quantitative target. In order to get the achievements, the company needs to analysis.

    iv.            Under the results of macroeconomic trends, the contribution and usefulness of each department should be explained to get the proper strategy.

      v.            At this stage, the companies identify the difference between the performance according to the strategy and performance performed by the department. this analysis is required to set up future plans and strategies.

    vi.            In this last and final step, the companies select the strategy that suits the company most. under this step, the results of all information given above are used to set up one long term strategy for the company.

Implementations:

1)      First and the most important step is to check whether the plan is according to the requirements or not. after checking the usefulness of the plan, the companies are required to make sure that the company have enough funds to start and carry on the project. at this point, every employee of the company should know about it.

2)      The next step is about the development of the implemented structure. Here strategy makers develop relationship or connections between all departments of the organization. They determine work requirements and tasks for each relevant department.

3)      Here managers evaluate performance outcomes and rewards. Then they determine rewards and recognition structure for all employees and workers of relevant departments.

4)      Now forth step is about budget and resources allocation. Managers determine how financial and non-financial resources will be used in various department. Additionally, they recruit more employees if required.

5)      The last step is about providing training and ensuring all possible methods to execute plans.

Nowadays corporate scandals are increasing rapidly and becoming the most important problem for the company. the HR department plays a game-changing and also a critical role. The HR department bears the risk and implies crucial rules for the betterment of society and the stakeholders of the company. HR department deals in the best way with all kind of corporate scandals of the company.  the department is required to make serious decisions about organizational ethics because ethics are the first rule of every industry. The HR department always held up for the formation of rules and regulations that creates the environment of trust. Whenever the HR department generates the favourable rules or in other words when the HR department is in good hands people are more cooperative. by the help of HR department´ś good decision the company flourish more quickly. the company enjoys a good reputation in the market and have a higher value of goodwill. 

The corporate world is concerned to develop a reliable methods to deal with the stakeholders and HR plays a crucial role in the management and decision making. It is believed that corporate work must be designed for the betterment of the community (Ameen, Ahmed, & Hafez, 2018). The efficient and effective HR management take the business to next level by making it more profitable and productive. The services are designed to flourish with the positive representation and accurate addressing of issues. effective HR management can resolve the issues of workers such as scandals, harassment, and other problems related to welfare (Adeniyi, 2007). The role of HR in the corporate social responsibility is to govern the policies according to scope. HR can improve the work environment and the commitment of employees. the most helpful tool of HR is the corporate social responsibility that results as guidance to the human resource practitioners and it can be maintained by HR. in conclusion, HR management must be capable to deal with the issues, welfare, strategies, and employee commitment (Afridi, 2013). the obligations of HR that must be followed for the successful business practices are listed below,

1.      Ethical integrity and standards

HR is responsible to maintain the professional and competent knowledge to continue the development in the organization. the proper support of management in the company requires new activities, actions, and decisions (Ameen, Ahmed, & Hafez, 2018).

2.      Professional competence and behaviour

HR must maintain, develop, and establish strong and competitive business relations on the basis of respect, confidence, and trust. The professional and personal integrity is required to improve the business environment. It is important to promote diversity, support, and opportunity for the employees. The key to the success of a company is safeguarding of confidential and personal information (Artsi & Levy, 2012).

3.      Profession representation

HR should act for the reputation and support of the values in the company. it is the responsibility of HR to exhibit the leadership and personal knowledge at the highest standards with the consideration of workplace. HR management is responsible for the maintenance of the highest ethical standards with the concept of improved workplace development. This will improve and support human rights in the company (Openstax. org, 2020; Dievernich, Tokarski, & Gong, 2014).

4.      Stewardship

HR should demonstrate fair and reasonable standards to deal with the employees. HR is responsible to promote appropriate development and practices to enable the employees to improve their skills and customer satisfaction. They can fully integrate all the operations according to developing CSR initiatives and decisions. HR should play a vital role in the retention and recruitment of labour. HR management is supposed to improve and enhance retention methodology (Pmctraining. com, 2019).

Traditional and Modern Business Performance Indicators

Financial indicators

Some of the important financial indicators are working capital, current ratio, and operating cash flow and details of each indicator are listed below in table 1.

Indicators	Evaluation
Working capital	In the companies, cash is immensely used as working capital and can be calculated by the knowledge. Key components and features of working capital are short time investment, accrued expenses, receivable accounts, and loans.
Current ratio	The current ratio is considered as an indicator of the difference between assets and liability. In order to grow the business, the financial obligation is to improve credit rating and time that can be maintained at a low level (Yusliza, Norazmi, Jabbour, & Fernando, 2014).
Operating cash flow	the deliveries and expenses of operating are necessary to analyze and monitor the operating cash flow. This indicator is used to compare investments and net capital. The indicator demonstrates advancement in the business and how it develops according to the policies of HR (Dievernich, Tokarski, & Gong, 2014).

 

Non financial indicators.

In HR management, the non-financial indicators are brand preferences, customer experience, and innovation. The important non-financial indicators are demonstrated in table 2.

Non financial indicators	Evaluation
Brand preference	This indicator is mainly used to get knowledge about the present position of services and product. The indicator compares the services and products of the company with other competitors. according to many marketer’s people check the brand before the pricing. The brand image is more important as compared to pricing therefore, HR is responsible to keep the company in peak position (Yusliza, Norazmi, Jabbour, & Fernando, 2014).
Customer experience	The customer experience has a direct and effortful effect on the retention of the customer. It is possible to improve customer interaction with the employees to provide them with a better experience to the customer (Dievernich, Tokarski, & Gong, 2014).
Innovation	Innovation is an indicator that shows the ability of the company to launch a new service and product in the previously existing market. through innovation, companies launch new products with distinct features. advertisement plays a key role when companies launch new products (Ameen, Ahmed, & Hafez, 2018).

 

Business and Conceptual Data

This section is entailing information about different sources of business and contextual data which can be used for planning purpose. Different sources can facilitate the HR manager of an organization with primary and secondary datasets to take right decisions for the contemporary business issues and other challenges faced at a workplace. These data sources can be internal information system and external information source. For example, internal sources of information are HR metrics, productivity, and HR costs. While external information sources are subclassified as industry information sources by different possible means including but not limited to HR trends and competitive information. Additionally, these data sources can be primary data sources or secondary data sources. Primary data sources are based on direct information extraction process and methods. For example, using survey in an organization to get information about their workplace challenges and issues. While on the other hand secondary data sources provide information extracted from the previous research studies on similar research topics. For example, using a journal article writtenon employee’s preferences and requirements for performance improvement.

Important data sources for business planning are enclosed below:

        i.            Interviews: A major technique to collect qualitative data is interview. HR managers can conduct interview at workplace to learn about the employee’s perception and opinion on a specified issue. Interview data can be also classified as primary data. HR managers can used these interview based data sets to develop new short and long term plans for human resources management. An interview may also include close ended or open ended question. In majority cases, interview questions are open ended and conversational. Take the example of an interview system conducted by the HR managers to obtain the  opinion of senior organizational management regarding business environment and key challenges faced by the operational department.

      ii.            Surveys:

Survey and questionnaire strategies are commonly used to collect qualitative data set for an organization. Survey can be complied of close ended and open ended questions. Survey is known as the most convenient and cheapest method to collect massive scale data (from and outside the organization). For example, these survey questionnaires are used determine employee’s opinion about the organizational culture and employees engagement with the workplace. A survey or questionnaire should consider the following points:

v  Timelines

v  Resources

v  Making Plans and Adjustment

v  Methods of Measurements

v  Completing action items

Somehow, surveys can also provide information about overall industry and market. For instance, survey from consumers and competitor companies to determine consumer preferences and market demands for offered products or services. 

    iii.            Employee Turnover:

Employee turnover can also provide vital information to a HR manager in the planning process. HR managers calculate employee turnover ratio using their previous spreadsheets for employee’s recruitment and firing. Employees turnover ratio shows whether employees are satisfied with the organization or not. If an organization have higher turnover rate then HR managers are required to identify reason behind increased employee’s dissatisfaction towards this organization. Furthermore, employee turnover can also used to identify performance standard of retailing skilled employees. A metric developed for turnover rate will show how many employees of an organization have left that workplace within one-year duration. Thus, employee turnover is an effective option to be used as a data source for HR planning.

    iv.            Benchmarking: HR managers can use benchmarking techniques to analyze changes in the organizational performance and employee’s performance. For instance, benchmarking for the financial performance outcomes of an organization can enable its HR manager to understand improvement in employees’ performance as well.

      v.            Absentees:  

Absentees show employees interest at workplace. HR managers can use this value to determine employee’s engagement level and motivation level towards offered job activities.

Conclusion

The whole discussion concludes that HR managers are the most responsible leaders and managers in an organization who deals with the human resources. HR managers support an organization in bad and good times to handle human resources related issues such as compensation problems, recruitment, rewarding system, and work performance of all temporary and permanent employees. Presented work studied several important aspects associated with the HR functions and job roles at organizations. HR managers align their HR agenda and policies with organizational needs and requirements therefore changes occurred in internal or external business environment influences them to change their HR agenda accordingly.