NICOLE CARNEIRO

5CHR
APRIL 2020
Word count: 4438
 2.1 Analyse the Forces Shaping the HR Agenda

Emirates Airlines
Emirates is one of the largest airlines in the world. It flies to over 157 destinations and
prides itself as being a culturally diversified workforce that delivers award winning
services. As of May 2020, the Emirates group has over 59,000 employees of 172
nationalities (About us | Emirates United Arab Emirates, 2020).

(Customer care of Emirate Airline, 2020)

Emirates main asset is its employees. The company’s HR focus is to assure the quality
of the personnel they have selected in the provision of services to the customers whilst
maintaining the standards set by the airlines. The HR department carries out various
tasks which involve understanding the work requirements of their employees,
developing policies to encourage leadership within the organization, and developing a
healthy work-life balance that satisfies its employees and improves efficiency (Report
on HR Department and HR Policies of Emirates Airlines - Project Factory, 2018).

5 P’s Model of HR
The 5 P’s model was developed by Randall S. Schuler in 1992. It was used by Pryor,
White, and Toombs in 1998 as a tool for long-term continuity and business progress.

The 5P’s model is based on 5 aspects:

1) Purpose: the organisations vision, mission and primary objectives. HR helps the
organisation identify its strengths, weaknesses, opportunities and threats, and helps
the organisation to formulate its vison, mission and main objectives.
2) Principles: operational protocols that guide the organisation to achieve its purpose.
HR helps identify the organisations culture and value. In a diverse company like
Emirates, HR helps to instil an ethical culture that is grounded in respect and
understanding for different cultures.

3) Processes: represents organisational structure, systems and operations. HR list all

processes, and uses process maps, flux grams.

4) People: vital HR resource performing tasks in line with the appointed principles and
processes. In Emirates, HR plays an important role in recruitment training and
allocating employees to various departments.

5) Performance: results that can be measured by appropriate methods. Here

appropriate performance measures like appraisals and rewards are used to identify
strong employees that contribute to business success. Emirates conducts regular
Flight performances on its cabin crew to better evaluate its workforce.

In short, according to the 5P’s model, organisational performance directly depends

upon the performance of the people engaged in processes and guided by the
organisation’s purposes and principles (Eaton, n.d. 2016 & Nunes, 2016).

Harvard’s HR Framework
The Harvard Framework for HRM is one of the most significant HR models. It is
based on the work of Paauwe and Richardson (1997)
The Analytical framework of the Harvard model consists of:
1) Stakeholders Interests: The stakeholders’ interest includes stakeholders,
management, employee groups, government and more. These interests define the
HRM policies.
2) Situational Factors: These include workforce characteristics, unions, labour markets,
business strategy, market philosophy, task technology and laws and social values.
3) HR policy choices: Stakeholders interests and situational factors influence HR
policies. These include the core HR activities like recruitment, training and reward
systems.
4) HR outcomes: HR policies when practised efficiently lead to positive HR outcomes.
These include retention, cost-effectiveness, commitment and competence.
5) Long term consequences: The positive HR outcomes leads to long term
consequences. These can be individual, organisational or societal.

The implications of the Harvard model are human resource flows, reward systems,
employee influence and work systems which lead to HR policies like commitment,
congruence, competence and cost effectiveness (What are Harvard Framework for
HRM? | peopleHum Glossary, 2020 & Eweda, 2017).

Internal Factors Impacting HR Agenda

HRs agenda is to ensure a best fit between jobs and employees while avoiding
shortages and surplus to manpower. Several internal factors impact HR agenda such
as:

 Organisational structure
 Organisational culture
 Organisational strategy
 Budget
 Organisational mission (Hassan, 2014)

Budget
Budget is a critical internal factor that determines how human resources are utilised. HR
planning must occur within the budget to allow maximum profitability. The total
budgetary allocation determines how many people can be hired, retained or promoted.
In lean times, HR planners can devise innovative solutions such as lower base pay,
more stocks, better retirement benefits etc for their workforce. (Tanner, 2015).

For example, The COVID pandemic has devastated the global economy and closed
borders, resulting in the aviation industry greatly suffering. Emirates had to initially cut
employee salaries and when this was not enough, the company had to make
redundancies.

Organisational Culture
Organisational culture encompasses shared beliefs, habits and values within an
organisation (Understanding the type of culture that exists in a firm is important when
formulating HR strategies and policies. HR also needs to consider the flexible hours,
dress code and other behaviours that are endorsed by the company. It also ensures
staff coverage during all working hours as defined by the company’s operational policy.
Eg: As Emirates operates flights 24/7/365 the HR team rosters workers throughout the
day. Additionally, as Emirates is essentially an Arabic airline, the uniforms are in line
with Arabic cultural expectations.

1.1 External Factors Affecting Organisation and the HR Function

Businesses and human resource management are influenced by external

factors. External factors are forces from outside an organization that directly or
indirectly influences it. (Grimsley, 2019)

The PESTLE Analysis tool is a framework used to analyse and monitor the macro-
environmental factors that may impact on an organisation’s performance. (B2U -
Business-to-you.com, 2016)

(Thiele, 2018)

Economic Factors
Recession: Economists officially define a recession as two consecutive quarters of
negative growth in the gross domestic product (GDP). According to the National Bureau
of Economic Research, the hallmark of a recession is a "significant decline in economic
activity spread across the economy, lasting more than a few months." (Davis, 2019)
Recession leads to loss of jobs, decline in real income, slowdown in industrial
production and manufacturing, and a slump in consumer spending. In an organisation,
recession will lead to:

 Falling stocks and slumping dividends

 Credit impairment and bankruptcy
 Employee layoffs and benefit reductions
 Cuts to quality of goods and services.
 Reduced customer access

The HR issues during a recession demand a greater commitment to achieving stability

for the company and assuring employees that they won't endure the harsh effects of a
recession (Mayhew, n.d.). During recession, HR needs to:
 Keep company goals in mind
 Retain the best employees
 Understand Employee stress
 Keep employees motivated
 Redesign the Workplace
(Davis, 2019) (Mayhew, n.d.)

Sociocultural Factors

Sociocultural factors are the larger scale forces within cultures and societies that affect
thoughts, feelings and behaviours which in turn affect an organisation
(Campus.avadolearning.com, 2019 & Hirsch, 2017).

Aging Workforce: The average age of the workforce is increasing as people live longer.
The retirement age in the UK is 65. Younger people are investing and taking longer to
complete their education.
An aging workforce impacts organisation in the following ways:
 Experienced workers are easier to retain but young people find it harder to enter the
job market
 Businesses focus on retaining skilled staff and retraining existing employees
 Businesses need to look at flexible routes to retirement and pension planning,
issues surrounding age discrimination and health as their employees age
(Campus.avadolearning.com, 2019)

 For HR personnel, aging employees engender challenges as well as offer new

opportunities for businesses. For an ageing workforce, HR needs to:
 Encourage some baby- boomers to stay
 Build a mentoring culture
 Invest in employees career development
 Cultivate millennials (Hirsch, 2017)

Technological Factors
In PESTLE analysis, technological factors are variables which relate to the existence,
availability, and development of technology. This could include things from
computational power to engine efficiency. (Bush, 2016)

Automation: The automation of many unskilled task can allow companies to replace
human production lines entirely with machines. This can reduce costs for
manufacturers, distributors, supermarkets, etc. However, the gradual increase in job
automation might not be such a great thing for job search firms (Bush, 2016).

The HR Department:

 Needs to embrace new technology

 Keep updated with latest trends
 Motivate employees to give their best
 Research on what drives employees
 Research what skills will be used in the future. (Bush, 2016)

2.2 Compare Different Tools for Analysing the Business

Environment
SWOT Analysis is a simple but useful framework for analysing an organisations
strengths, weaknesses, opportunities and threats. With this analysis, businesses will be
armed with a solid strategy for prioritizing the work needed to grow. (Parsons, 2018)

Porters 5 Forces (P5F) model is a framework for analysing a company's competitive

environment. P5F are
 Competition in the industry
 Potential of new entries in the industry
 Power of suppliers
 Power of customers
 Threat of substitute products (Chappelow, 2020)

P5F and SWOT Analysis are both tools used to analyse and make strategic decisions.
Each of the models seeks to define the company's position in the market. Both tools
can be used to put strategic planning processes in place to further boost a company or
an individual's success. (Hall, 2019)

The primary difference between the two is that SWOT focuses more on company-
specific elements, while P5F involves a look at five important competitive factors when
making a strategic decision.

P5F is a comparative analysis strategy that analyses competitive market forces within
an industry whereas SWOT analysis looks at the strengths, weaknesses, opportunities,
and threats of an individual or organization to analyse its internal potential.

P5F are all external factors, the SWOT analysis examines both internal (strengths and
weaknesses) and external (opportunities and threats) forces. (Hall, 2019)

2.3 Explain the Key Stages in Strategy Formulation and the

Implementation and the Role of HR

An organizational strategy is the sum of the actions a company intends to take to

achieve long-term goals. The following questions (pictured below) need to be answered
while forming an organisation strategy. HR professionals can take a key role in shaping
their organization's strategy and contributing to its future success because they know
the workforce best. (Meinert, 2016) Organisational strategy can be put down in a 5 Step
process. (Campus.avadolearning.com, 2019)
1. Analysis
The first step in developing a business plan is assessing where the organisation is
today; to define its vison, mission, and value statements. This is done by combining the
external analysis of the business environment (PESTLE) the internal analysis of the
organisation (SWOT) and by analysing its competitors (P5F) (Stages and Types of
Strategy | Principles of Management, n.d.).

In this stage, HR needs to gather as much relevant information to accomplish the

organisations vision. HR can influence promoting strategy development at the
organizational, divisional and departmental levels.

The focus of the analysis should be on understanding the needs of the business as a
sustainable entity, the strategic direction and identifying initiatives that will help the
business grow. HR will need to examine any external or internal issues that can affect
the business objectives and goals (Thompson, 2019).

2. Formulation
In this stage, an organisation can decide its direction by scenario planning and vison
process. The information from PESTEL and SWOT analyses should be used to set
clear and realistic goals and objectives based on the strengths and weaknesses of the
company. Organisations will use all the intelligence gathered to formulate a strategy
that will help it achieve its goals (Clayton, 2019 & Kammar, n.d.)

Formulating plans requires competitive intelligence and HR management can supply

useful information like competitor’s incentive plans, pending legislations like labour
laws, and surveys that provide customer complaints.
HR also supplies information regarding the company’s internal strengths and
weaknesses, with some companies building their strategies around HR based
competitive advantage (Clayton, 2019 & Kammar, n.d.)

Setting up employee development plans will help identify the skills and potential of the
workforce. This information is important in business strategy formulation as
organisations rely on their employees to help achieve business goals (Clayton, 2019 &
Kammar, n.d.)

3. Evaluation
At this stage, companies should evaluate the decisions they have made, consult with
stakeholders, check figures and carry out risk assessments of their chosen objectives
(AVADO Learning Platform | AVADO Learning Platform, n.d.)  External and internal
conditions are always changing, this stage is extremely important. 

Business success is evaluated by checking its employee’s ability to deliver results in a

timely and profitable manner. Integrating HR management into organisation strategy
evaluation enables it to identify goals, opportunities, and competitive advantage.

The department develops processes to manage organisational development by

evaluating employees’ skills to implement new strategies and achieve goals. HR tracks
external factors like competitive market, economic factors, technological changes,
political issues and other trends (Duggan, n.d.).

4. Implementation
In this stage, the organisation analyses its goals and develops implementation
strategies. Sometimes referred to as strategic execution, this stage is when the
planning stops, and the action begins.  Success in this stage depends upon employees
being given the tools needed to implement the plan and being motivated to make it
work. (Stages and Types of Strategy | Principles of Management, n.d.).
HR helps employees understand the business strategy. HRM helps to augment
employee's commitment to the strategy. This means carving deeper relationships
between inter-dependent organizational units, like sales and manufacturing, customer
service and distribution.  HR has the power to generate opportunities to bring
employees together with managers and executives (Human Resources Strategy
Implementation, n.d.).

5. Control
Control actions include performance measurements, consistent reviews of internal
and external issues, and making corrective actions when necessary. Progress can be
determined by measuring the actual results versus the plan.

By monitoring goals, objectives, KPIs and KRAs, HR can help determine if the route
taken by the enterprise has helped it reach its organisational goal. KRAs are
performance factors that help track an employee's performance and aligns individuals’
goals and responsibilities with those of the organization. KPIs are metric indicators used
by firms to gauge the success in achieving organisational goals. HR provides a
framework and a clear understanding of the key drivers and outcomes of employee
performance, and designs the path for employees to achieve the focused key
results (Belinda, 2019).

2.4 Examine HR’s Contribution to Business Ethics and

Accountability

Business Ethics
“Business ethics is a form of applied ethics or professional ethics, that examines
ethical principles and ethical problems that can arise in a business environment. It
applies to all aspects of business conduct and is relevant to the conduct of individuals
and entire organizations.” (Business Ethics (Stanford Encyclopedia of Philosophy),
2016)

HRs Role in Business Ethics:

 Through HR, ethics can be given credibility and aligned with how businesses run.
HR helps integrate ethics into processes such as
o recruitment and induction
o diversity and inclusion
o learning and development
o performance management
o rewards including bonus and incentives
o appraisal
o retention
o coaching and training
 HR develops an ethics programme to support its organisations values and should
include a code of ethics as its key element
 HR and the Ethics function work together to develop an employee incentives system
for organisations to reward employees who demonstrate good ethical behaviours
 Regular internal communication throughout the organisation communicating the
values and ethical expectations of the organisation brings about a long-standing
ethical culture
 HR professionals should have good knowledge in labour laws and compliance
practices to help manage tough decisions and issues
 Professionals should introduce activities to familiarise staff with ethical issues

The HR function deals with a variety of ethical challenges. It is the department that
directly deals with people employed by a company.
HR leaders can model behaviours and create corporate practices that reduce unethical
business practices even while making their firms more competitive in the marketplace
(Vickers, 2005).
Business Accountability
“The obligation of an individual or organisation to account for its activities, accept
responsibilities for them and to disclose the results in a transparent manner.” (What
comes after those ellipses, n.d.) Accountability in the workplace is holding employees to
a common expectation by clearly setting the company's values goals and mission.

HRs Role in Accountability

 HR discipline policies are designed to provide employees opportunities to correct
objectionable behaviour or to improve work performance. These are given out in the
form of counselling, warnings, suspension or termination (Reynolds, n.d.)
Eg: As cabin crew at Emirates Airlines, ‘warning’ letters are given out to crew
who fail to comply with company policies and expectations. The severity of these
letters increases as the acts of noncompliance increase. It starts of as a verbal
warning, then a written warning and lastly final warning. These disciplinary
actions come about if crew have excessive numbers of sick or absent days,
excessive complaints from customers, failing recurrent exams etc. These set of
disciplinary actions and rules keep crew in check and hold them accountable for
their actions. Emirates stresses on focussing on the development of the
leadership among the employees and developing an atmosphere that would
inculcate a sense of responsibility among the staff and crew of the airlines
 HR professionals work with company leaders to form and plant solutions to protect
organisational value
 HR champions accountability at all levels so that employees understand that they
are responsible for upholding the organisational values and they are accountable for
their actions
 Professionals encourage a companywide understanding that accountability is
positive and not punishment (Team, 2019)
Eg: Employees completing all their task and being responsible for specific duties
assigned to them.
Employees working together to attain the company’s goal, etc (Jahan, n.d.)

Accountability cannot be forced but encouraged and being accountable in a workplace

is not easy. HR can play an important role in making accountability an essential factor
to innovate business culture. (Lawrence, 2016)
 3.1 Evaluate Business Performance and the Role of HR in Business
Planning and the Change Management Agenda

Business Performance

Matt F Champion (Champion, 2015)

“Business performance management is a set of performance management and analytic

processes that enables the management of an organisations performance to achieve
one or more pre-selected goals.” (Business performance management, n.d.)

Business performance can be measured by various indicators that focus on the growth,
profitability or social performance of companies. An effective management of financial
and non-financial objectives help evaluate an organisations growth (What is Business
performance | IGI Global, n.d.). It is important for organisations to measure
performance to help it remain competitive and to ensure a good place for employees to
work.
Kaplan and Norton Balanced Scorecard
Kaplan and Norton's balanced scorecard model was developed to help firms measure
their business performance. Organisations use this to motivate employees and evaluate
performance. The 4 perspectives of the balanced scorecard are:

 Financial: Measures that shareholders, creditors and other stakeholders use to

evaluate business performance
 Customer: Measures that management uses to evaluate customer satisfaction and
expectations
 Internal processes: Measures that management uses to evaluate efficiency of
existing business performance
 Learning and growth: Measures that management uses to evaluate effectiveness of
employee training (Riley, n.d.)

The balances scorecard approach uses a balanced set of measures divided into the 4
perspectives. Financial perspective falls under the financial indicator while internal
business, learning and growth and customer fall under non-financial indicators
(Nonfinancial Performance Measures: The Balanced Scorecard, n.d.).

Business Planning
Business planning describes in detail how a business is going to achieve its goals from
a marketing, financial and operational view point. It’s the ongoing process of
anticipating and preparing for changes that may be necessary to implement as the plan
progresses (What Is the Role of HR in Business Planning | Petaurum Solutions, 2019).

However, a significant reason for failure is that businesses concentrate on those narrow
goals and omits planning for the people who are going to make the business succeed.
This is where HR plays a vital role in working alongside senior staff to ensure that all
plans include the relevant areas of HR involvement (What Is The Role of HR In
Business Planning | Petaurum Solutions, 2019).

Areas where HR is involved in Business Planning are:

 Recruiting & Resource Planning

 Organisational Design & Development
 Rewards and Recognition
 Training and Development

The first few stages of the models depict small or relatively new businesses where there
is no systematic HR and no proper policies for the businesses to follow. As businesses
grow, HR gets more integrated with business planning where its involved in the
implementation and formulation of corporate policy. In big businesses, HR is fully
involved in the strategic development of organisations policy and help enhance the core
competencies of the organisation.
I work for Emirates Airlines which is one of the largest airline companies in the world
and the largest in the Middle East. I feel as the company’s primary focus is on delivering
customer service, its employees, who come from various backgrounds, cultures and
diversities, form the core main asset of the company.

 Innovation, quality enhancement and cost reduction systems are important in the
recruitment process in the airline and these factors ensure that it has a competitive
edge over its market rivals
 Factors such as stakeholders, environmentalists, legislative regulations, and
competition, technology and market trends influence strategy formulation. Thus, the
HR department needs to work with various departmental heads in achieving goals.
 The HR department at the airline performs frequent performance appraisals of its
employees to evaluate their attitude, skills, experience which leads to work
reallocations, promotions, compensation packages etc. As its employees are its
core asset, this helps improving the company's core competencies
 Performance Development provided by HR is offered to managers to help them
make decisions and form policies to improve the organisation.

HR managers are leaders in developing positive transformation in the fast-changing

world of the aviation industry as they are the link between upper management and its
employees (Panda, 2020).

Change Management
“Organisational change is a constant in many organisations, driven by a number of
different forces including customers, markets and technology. Yet research shows that
most change initiatives fail to get their intended outcomes and may even limit an
organisation’s potential and its people. The effects of not managing change effectively
can be devastating and long lasting, so it’s important that people professionals
understand the issues and equip themselves with techniques to support change
management initiatives.” (Change Management | Factsheets | CIPD, 2019).
 Change Management can be explained by Lewin’s Change model

(Model, n.d.)

Lewins model can help account for the uncertainty and resistance to change that is
experienced by staff at all levels of the organisation.

1. Unfreeze Stage

Although change is meant to benefit the organisation, employees turn out to be the
biggest obstacle in adjusting to the change. Hence the HR department needs to:
 Clearly explain the purpose of the change and explain what does change and what
doesn’t
 Clarify the benefits of the change
 Arrange forums where employees' emotions are appreciated
 Clarify the benefits of the change
 Ensure efficient 2-way communication between management and employees
(Janse, 2019) (Lewin's Change Management Model: Understanding the Three
Stages of Change, n.d.) (Raza, 2019) (What Makes Lewin’s Change Theory Ideal
for Businesses | Lucidchart Blog, n.d.)

2. Change Stage

At this stage the change becomes real and it’s marked with uncertainty and fear making
it the hardest step to overcome. Some employees may grasp the change quickly while
others may be confused and insecure. To help employees adjust to the change, HR
needs to:

 Have surveys and respond quickly to feedback

 Ensure adequate training and education is offered to help employees adapt to the
changes
 Show benefits of the change
 Support managers in providing daily direction to staff
 Communicate changes, answer questions, clarify misunderstandings and dispel
rumours (Janse, 2019) (Lewin's Change Management Model: Understanding the
Three Stages of Change, n.d.) (Raza, 2019) (What Makes Lewin’s Change Theory
Ideal for Businesses | Lucidchart Blog, n.d.)
3. Refreeze Stage

The goal of this stage is to

sustain the change enacted
and consider the new state
as the new status-quo. This
stage reinforces and
solidifies the new state
after the change.

Lewin found this stage important to ensure that employees do not revert back to the old
ways. Formal and informal mechanisms must be considered to implement and freeze
these changes. To ensure that changes are not lost, HR needs to:

 Consistent in behaviour, communication and decision making

 Show the successes that the changes have brought
 Ensure leadership and management support and adapting organisational structure
wherever necessary
 Offer training communication and support for long and short term
 Celebrate success and milestones and create a rewards system to keep employees
motivated (Janse, 2019) (Lewin's Change Management Model: Understanding the
Three Stages of Change, n.d.) (Raza, 2019) (What Makes Lewin’s Change Theory
Ideal for Businesses | Lucidchart Blog, n.d.)

Emirates always tries to enhance their services to benefit customers. They also
changed their entire on board service when the new A380 aircrafts were introduced to
the fleet. During this time, a lot of emails were sent out to crew explaining these
changes and why they were done. Forums and workshops were held for crew so that
they could participate and share their opinions about the new changes and familiarise
themselves with the new services. Surveys and feedbacks were sent out to crew when
the changes were implemented and our managers were constantly communicating and
offering support sessions for us. Appraisals and performance reviews were conducted
to check the success of the change and how the crew had adapted to it. Additional
emails including customer feedback were sent across to the crew community to show
how the changes had positively impacted the company.

3.2 Internal and External Data Sources for Planning Purposes

I. Business (Internal) Data

Internal data is data received from within the company to make decisions for a
successful business. This information covers areas such as operations, maintenance,
personnel and finance (Rundle, n.d.).

A. Sales
B. Human Resources Data

Internal data can help businesses improve their efficiency and productivity that helps
failing businesses generate a profit.
 Sales data helps businesses understand their areas of strengths and weaknesses
which may drive a shift in the market
 Financial data includes data such as production reports, cash-flow reports and
budgets. This reveals what a company is spending to make products and services
 Human metrics provide information regarding training and recruitment costs, the
effect of absenteeism on work culture and the productivity of each employee (Quain,
2018)

II. Contextual (External) Data

“An external source of information is concerned with what is happening beyond the
boundaries of the organisation. This covers any documentation relating to a subject
area produced as a summary or detailed report by an agency external to an
organisation. Such information may be obtainable from government agencies or private
information providers.” (Sources of Information, n.d.) Some examples include:

 Census figures
 Economic data
 Labour market data
 Legislation update
 Market data etc

A. Market Data
B. Office of National Statistics

External Data provides businesses with factors that influence the organisation from
outside its direct control.
 Labour market competition - There may not be enough skilled employees for each
business, so businesses may need to increase their wages to attract the right staff
and manage their funds efficiently.
 Impact of automation - This addresses the changes in technology over time and how
this affects organisations
 Government policy - Government policy and changes to education policies can lead
to gaps in skills. (P1 & M1 - The Factors Involved in HR Planning in Organisations,
n.d.)
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