Essay on Research Paper: Environmental Analysis: An HR perspective

Abstract

The issue of environmental analysis in the context of HRM is reviewed in this paper. The role of HRM in the overall success and performance of the organization is crucial, and it’s important to research the factors that influence it.

It’s especially necessary for the global corporations, such as Tesco, because they work under conditions of increasing globalization and complex environments.

HR managers have to face with so many challenges on the various markets, because workforces are spread across countries, cultures and political systems.

Tesco is an interesting example of UK – based corporation that has gained an international success and its well developed HRM is one of the reasons of its performance. The major environment influences for Tesco were analyzed in this paper and the summary states that it’s not a surprise why this company has gained the leading position on the retailing market. Probably a part of its market success is explained by it thoroughly designed HRM system. The Tesco’s example shows the importance of studying the factors that influence HRM and use them as a competitive advantage.

Introduction

The world is constantly changing nowadays and it has an impact on all of the sectors of the organization activity.
Worldwide, organizations are confronted with different environmental constraints. The idea that organizations are deeply embedded in wider institutional environments suggests, that organizational practices are often either direct reactions of, or responses to, rules and structures built into their larger environments. (Paauwe and Boselie, 2003)
It should be noted that human resources management has a strategic importance for the overall organizational performance. The strategic human resources management is part of the general strategic part of the organization.

Constant environmental changes are the challenges not only for the marketing, or for the sales departments but for the human resource management as well. The HR department has to be able to respond quickly and effectively to the challenges that happen so rapidly in the modern globalized business.

In order to be able react this way, HR needs to analyze the environment it operates in and take advantage of this knowledge. Boxall and Purcell (2011) state that organization’s people management practices should be embedded in a firm’s socio-political and economic environment and its business strategy. These authors argue that there is a complex relationship between HRM and the results achieved by organization and that HR strategies experience serious influence of a number of factors.

In my opinion the environmental analysis in terms of HR is required for all the organizations, but especially it is crucial for the international corporations.

The reason is that that organization that wants to achieve the success experiences substantial influence by the globalized economy. There are many environmental factors that has create an impact, for instance economic, regulatory and legislative and many others. In order to provide the effective HH policy and rely on it, the company which deals with different cultures and nations should check both local environment in specific countries and global trends. (Ashkanasy, 2011)

It’s very useful to analyze and compare practices of companies that operate on the same market and on the other markets.