How HR Supports Business Planning and Change Management: An Overview

Business Performance

Explain How Hr Supports The Business To Maintain Performance Through Business Planning And Change Management?

How You Will Transfer The New Knowledge And Skills Gained During This Assignment Into Working Practices?

Tesco is considered one of the biggest supermarket chains on the global level. Tesco is operating its process on the international level that forces Tesco organization to evaluate its business performance in order to remain sustainable in the dynamic business market. In addition, this organization also makes use of financial indicators to evaluate their business performance as compared to other competitors in the market. Usually, Tesco Company makes use of various methods. One of the most common methods is key operation variables. This approach is mainly connected with evaluation of sales and profit performance. It offers the range up to which company has succeeded in terms of sales volume so that new change can be introduced if things are not in their favor (Tescoplc, 2020). The purpose is to give strong competition to its competitors in the business market. In addition, margin profit also explains the amount of money raised from the sale by this company in terms of profit. Another performance evaluation performance approach is market performance. Market performance is linked with performance of the company in particular areas. Market performance is completely dependent on profitability and its key indicators are market share and market ranking in terms of sales volume. Market share helps the company in influencing price related to product in the market which increases its margin profit (Rauch, Wiklund, Lumpkin and Frese, 2009). Tesco also used customer satisfaction performance as main success indicator. In this approach variables related to orders are linked with the feedback from the customers in order to understand level of customer satisfaction with the product. Satisfied customer ensures continuous sale and offers an opportunity to add potential customers to the business at rapid speed. Product and quality also act as business performance indicators because these are considered as roots of company performance. These indicate quality of the product along with warranty claims. Here performance of the company is measured on the base of product quality because quality directly impacts profitability which may decrease due to high rate of product return under warranty. Another important business performance evaluation is job satisfaction and training of employees.

Employee Job Satisfaction and Training are known as two key indicators that explore the satisfaction level of employees related to their job and training. Job satisfaction is directly linked with the ability of the employee by which they can offer quality service to the customers. This performance can be measured by evaluation change in the service period of the employee. In addition, company also focuses on the level of training offered to the employee every month (Costen and Salazar, 2011). Financial performance is also important in understanding profit margin and therefore company makes use of performance indicators in order to evaluate performance of company through numerical terms. For this company use liquidity and solvency ratio in order to evaluate company performance in order to ensure continuing operations which is connected with cash flow.

HR Support Business

All these performance indicators are somewhere linked with human resource management in order to provide smooth running of business operations by offering them an interlink business approach.

Business plan is known as the path on which company is meant to function and growth over a time framework. Business plan mainly focuses on two main elements. One is how to generate profit and other is recognize risk associated with the business. It is also considered a procedure that goes through anticipation and preparation which are essential to introduce innovative changes. This change can be part of growth or forces which are being created by market forces in terms of change in customer taste as well as market behaviour. In addition, new technology also initiates this progress through technology and new product development. In this situation, organizations are not in a position to take risk of failure and therefore they use human resource management as one of the most important tools which can offer them smooth business operations. When it comes to new startup, management will spend almost 60% time in focusing on new product development and will not focus on the market situation. In this situation, HRM helps management to first understand the market in which they are going to launch their product and then focus on their product as per the need of the potential customer so that chances of miss-match can be eliminated. Human resource management helps management to be ready for a possible change so that they may not ready for uncertain which can occur at any time with the help of trained employees. Both internal, as well as external market, has a direct impact on the business plan of the organization.

As per human resource management, business plan is such kind of document which is dynamic in nature and often faces a lot of challenges for its existence. HRM helps in connecting business objectives of the organization with business plan strategy. It helps management to focus on their long term goals in order to ensure that target is meeting even in fluctuation market through work cultural stability. HRM helps in creating smart business planning by combining both strategy and manpower in a single pattern to eliminate risk associated with business (Cascio, 2015). In most of the cases, it has been found that organization usually focuses their interest on such a set of goals which are too narrow in terms of finance, market as well as product visibility. HRM often focuses on those aspects which help in successfully running business in terms of market situation. HRM plays a very important role by connecting strategy with senior staff in order to ensure success of all plans and schemes which ensures regular participants of every employee. To provide business benefit of all sections, HRM drives integration of HR function with business plan so that full potential of strategy can be achieved. Aligning core functions of business with HR strategy helps management to prepare their employees in advance to face future challenges related to vision and optimum values. HR management helps management in identifying the gap between expectation and reality and offers them proper guidance to enclose this gap with innovative strategy (Caldwell, Truong,  Linh and Tuan, 2011). In addition, HRM also patterns strategy in such a way that organizations vision and value are set up as the foundation for progress. It also offers motivation to employees that they are capable of handling every difficult situation by breaking their long term goal into short term goals. HRM believes that it is important to achieve short and continuous success in order to gain the right confidence to resolve all types of challenges in this dynamic business environment.

HRM Matrices

In Tesco, HRM metrics is used to power data that helps in making effective decisions which helps them in taking better outcome for the business operations. HR matrix helps management to track and record all the operational activities in order to predict future needs on which training is based. HR metric is not same and is dependent on the nature of work to be delivered through HR medium. HR metrics connected business plans in specific patterns. First is job satisfaction level. In this pattern, HR matrix helps in measuring job satisfaction through customer surveys in order to understand the level of improvement required in the system. A baseline is established under this process so that employees can become self-aware about their requirements and understand the gap between their expectations and organization expectations. It openly describes the level of employee satisfaction level with work and their relation with their superiors (Diaz, Hosmani, Schacherl and Mittemeijer, 2008)). HR metric also helps in exploring cost related to the employee regarding healthcare. It helps in setting healthcare budget related to healthcare insurance. Health care benefit is considered an important part of employee motivation because employees believe that they are valuable assets for their organization. HR matric can maintain their range right from sales performance to satisfaction of customers who are availing their service. In addition, comparison can be explored related to past and future performance of the employee.

At present boundaries related to business are expanding day by day. This recent change in business has forced organization to look for new requirements in order to compete with new business trends.

This trend has expanded beyond cross-border trade, mode of communication and expansion of operational transnational strategies. It has become very important for business to attract new talent which can full fill new strategies in order to explore new things. It has become one of the most significant duties of organization that connects employees with organization in terms of knowledge, talents as well as a cultural adaptation on the global level. In addition, it has become very significant for HRM executives to arrange proper training in order to provide flexibility to their employees for future practices (Wang and Shyu, 2008). At present employees are being hired from various countries in order to improve their effectiveness in the business operations. The purpose of this trend is to increase the overall performance of the employees related to their skills and knowledge. HRM make use of this data to understand the flow of trend towards industry sector. This data is also used to study the influence of strategy in the improvement in the performance of employees in future. HR trend analysis is mainly based on business data by making them subjective in terms of qualitative patterns in order to develop managerial development. It has been found that without data, executive seems to be surrounded by cloud where they have to meet their desired goal related to profitability. This trend is being used to understand differentiation between market trends as well as employees.  

Human resource management act as information gathering too which collects data related to business through competitors pattern. Data helps HRM to explore which strategy which is more helpful in satisfying potential customers. But it becomes very difficult for organization to arrange it in financial patterns. It also helps organization to acquire those skills which are essential for the betterment of their customers as well as employees by exploring data related to public opinion. Gathering competitor data helps in exploring that information which helps the organization in understanding their strength and weakness as compared to other competitors in the market. It also helps in exploring those opportunities which can lead this organization towards better position in the dynamic business environment. HRM also helps organization to design their strategy in such way that helps them in eliminating risk factors associated with their current business operations on the global level. It has been found that over last year human resource management has gone through various transformations. The trend has started in which interest is being transformed from administrative management to strategic partner in order to gather important information that is connected with evaluation of knowledge. Data related to competitors as well as government helps HRM to develop its strategy in an effective way by which they can make optimum use of available resources and extract maximum output in the form of profit. Data collection actually acts as proof which provides a strong foundation to the formation of business plan in order to face future challenges related to the business. These data gathering has improved service level of HR practices which has helped organization in better growth and development. Involvement of data analysis has altered the current working pattern of HR function as well as their professional terms. Information system act as support base to ensure that organization is moving in the right direction and can link employees goal with overall objective of the organization by showing them big picture objective. It also explores the possible limitations which management must understand in their strategy related to success of the organization. HRM form an integrated linked with all other departments of the organization in order to offer them a smooth business operation at all levels; it may be operation, finance, production and so on.

Continuing professional development is a process in which people learn from various interactions throughout their life.  At present, business environment is changing very rapidly and therefore in this situation it is not possible for organization to remain sustainable until they do not have an effective HRM strategy. HRM strategy at present makes better use of data in order to ensure that effective change can be implemented in the organization in attaining proper success in the present business environment. In addition, HRM helps in connecting business objectives with goals of employee so that both missions can be covered while working in a single direction. Data information act as legal proof which helps in motivation employee for change which otherwise will be difficult. HRM also helps in exploring gaps between expectation and reality which helps in improving current performance of the organization. In addition, HR metric also helps in exploring time and amount spend on employee training which helps them in finding out whether training is paying off.

Employee productivity can be explored through performance metrics.  Continuing professional development conducts on job training which plays a very important role in the performance of the individual by offering them required skills and knowledge which they are in need as per the present circumstances.

References

Caldwell, C., Truong, D.X., Linh, P.T. and Tuan, A. (2011) Strategic human resource management as ethical stewardship. Journal of business ethics, 98(1), pp.171-182.

Cascio, W.F. (2015) Strategic HRM: Too important for an insular approach. Human Resource Management, 54(3), pp.423-426.

Costen, W.M. and Salazar, J. (2011) The impact of training and development on employee job satisfaction, loyalty, and intent to stay in the lodging industry. Journal of Human Resources in Hospitality & Tourism, 10(3), pp.273-284.

Diaz, N.V., Hosmani, S.S., Schacherl, R.E. and Mittemeijer, E.J. (2008) Nitride precipitation and coarsening in Fe–2.23 at.% V alloys: XRD and (HR) TEM study of coherent and incoherent diffraction effects caused by misfitting nitride precipitates in a ferrite matrix. Acta Materialia, 56(16), pp.4137-4149.

Rauch, A., Wiklund, J., Lumpkin, G.T. and Frese, M. (2009) Entrepreneurial orientation and business performance: An assessment of past research and suggestions for the future. Entrepreneurship theory and practice, 33(3), pp.761-787.

Tescoplc. (2020) Business performance of Tesco [online]. Available from: https://www.tescoplc.com/ [Accessed 18/1/2020].

Wang, D.S. and Shyu, C.L. (2008) Will the strategic fit between business and HRM strategy influence HRM effectiveness and organizational performance?. International journal of manpower, 29(2), pp.92-110.