5CHR BUSINESS ISSUES AND THE CONTEXTS OF HUMAN RESOURCES

 Unit Overview

This cipd level 5 requires HR practitioners to become familiar with modern administration in the workplace as a result of company changes. The module enables students to conduct an external business environment review in order to identify the difficulties that may be influencing the organization's ability to function properly. In this view, the module encourages learners to think creatively about how to solve problems that may arise in their organisations. Students enrolled in the Business Issues and the Contexts of Human Resources module should be aware that human resources (HR) has an important function to play across the company. HR specialists should therefore be involved in the planning process to guarantee that organisational strategies are effectively implemented.

Learning Outcomes 

By the unit's conclusion, the leaders should be;

• Capable of comprehending the external influences that shape human resource agendas, taking into account critical components of corporate goals, insights, and solutions
• Have a working knowledge of various analysis tools, including SWOT, PESTLE, and Porter's five
• Recognize the stages involved in the creation and implementation of company strategies, as well as the role of human resources in implementing the specified stages.
• Recognize the significance of human resources in business planning with the goal of boosting organisational performance
• Capable of responding to all business changes

External influences on business and human resources

External influences affecting organisations and HR functions can be evaluated using the PESTLE analysis tool. Political, economic, social, technical, legal, and environmental issues (PESTLE) are all included in the acronym.

Forces influencing human resources policy

It is the responsibility of human resources (HR) professionals to foresee how organisations will develop in the future. Students who complete this course will have gained the information necessary to recognise the tactics that are most effective in fostering change, as well as the tactics and activities in which they themselves must participate (CIPD, 2015). Information about the changes in organisations that affect HR functions like recruiting, selection, and employee rights is provided by this unit.

Organizations are trying to adapt to the changing nature of competition, and HR professionals are expected to organise the various approaches that they use to help the business attain a competitive advantage in this new environment.. Ulrich's model, which assesses the nature of collaboration among business platform teams, was established by this module (Ulrich, 1995). To guarantee that goals are reached and business value is realised, HR uses a variety of tools.

Finding the best tool for business analysis

A SWOT analysis, PESTLE analysis, and the Porter's five-force model are some of the most common business analysis techniques (Rivalry among competitors, Threat of new entrants, bargaining power of buyers, bargaining power of suppliers, and threat of substitute products). All of these techniques aid HR practitioners in better understanding the complexities of business concerns and, as a result, the characteristics of successful organisations. In order to assess an organization's competitiveness, students in this course examine the various techniques that have been identified and the ways in which they can be utilised to analyse the external business environment. The current coronavirus pandemic, for example, has changed the corporate environment, and the tools will help organisations identify concerns that need to be handled (Ritter and Pedersen, 2020).

Developing a Strategy

For example, the logical method entails having senior managers be responsible for keeping tabs on both the internal and external environment of their companies while formulating a plan. The emerging issues and the role of HR and management in reacting to these difficulties are at the heart of the emergent strategy approach. Symbolic thinking is the third approach, which looks at many approaches to determine whether or not a business will succeed in changing work contexts.

Students will need to connect strategy to the three levels of strategy: corporate strategy, competitive strategy, and operational strategy. This diagram shows the steps involved in developing a strategic plan.