Understanding the Business Environment Sample

Posted on November 17, 2023 by Cheapest Assignment

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Topic: ‘Today’s workforce and the nature of work itself are changing, particularly in the climate of globalization, and the new technological revolution. As a consequence issues facing HRM are expected to change dramatically in the next decade’. Consider this statement and draw upon at least two topics from the unit to discuss what some of these challenges are and the specific competencies required by organizations and HR professionals to support employees in the contemporary business environment.

Introduction

The business environment has undergone radical change in the last few decades. It has led to the reformation in the trend of the workplace and the nature of work. As per Armstrong & Taylor, the change in work is due to various factors like modification of management theories, materials, globalization, technological advancements, etc.

The new work situations bring with them new opportunities and risks for workers and employers (Armstrong & Taylor, 2014). It is highly vital for any business undertaking to analyze the business environment since it includes both external and internal factors that have a significant influence on a business firm and its activities.

The essay covers the transformation in the work culture due to different factors like influence from international work processes and rapid changes in technological aspects and it discusses the different sorts of issues faced by human resource management in businesses due to changes in the business environment.

It is the requirement of the time for the human resource department of all business undertakings to understand the current situation and challenges that come their way and effectively devise strategies to support their work teams to work productively in the contemporary business environment (Botha, Kourie & Snyman, 2014). The object of the essay is to help human resource teams come up with various master plans so that they can equip the organizations and use the changes in a business environment to their advantage.

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Summary

“Today’s workforce and the nature of work itself is changing, particularly in the climate of globalization, and the new technological revolution.

Business organizations have to be highly alert so that they can grasp the changes and accordingly modify their work pattern and adapt to the changing environment (Cai & Yang, 2014).

According to Coker, globalization is one of the key factors that affect business life and performance. This phenomenon affects the global economy, business productivity, society, and environment in different manners, so it is highly paramount for business corporations to observe what is its impact on their work. Generally globalisation increases the competition intensity, information transfer, etc. Just like globalization impacts the work processes the technological revolution reinvents various business and work processes (Coker, 2014).

The speed at which technology is getting enhanced is transforming the entire business process. It is reducing manual intervention in work activities and it is encouraging automation of work. In the new scenario, the obsolete firms need to adopt new and latest business models so that they can have effective interaction with different stakeholders of the business.

Hence over the last few years, the fundamental shift from traditional business models to modern work processes has been witnessed. Such changes have a huge influence on how the business firms operate. It affects all aspects of the day-to-day operations of businesses irrespective of their size and nature of activities.

According to Fee, the drastic changes in the business environment are mostly beyond the business management’s control but it has a vital influence on the organizational performance. Since globalization and technological changes are a few of the dramatic challenges faced by business firms, firms need to understand how they can compete against foreign firms, both at a domestic and abroad scale by using the latest technological inventions (Fee, 2014).

At this point, the role of human resource management is vital since they are the ones who need to tackle these changes and help and support their workforce to adapt to the changing business environment.

They must try to build a common corporate culture so that the changes like the work can be used positively by the business undertaking. It is important for HRM to identify the nature of the changes, i.e. whether it is short-term or long-term and accordingly create specific competencies to tackle the situation (Georgescu & Popescul, 2015).

The business environment needs to be thoroughly analyzed by all the business firms that exist in the market since a lack of understanding of the business situation can lead to the total failure of the business firm (Gupta, 2013). Thus the thorough analysis of various internal and external elements that influence the operations and productivity of a concern is required to use it to one’s advantage.

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Research Questions

  • How do globalization and technological revolution affect the workforce and nature of work in a business organization?
  • What are the challenges faced by human resource management in the changing business environment?
  • What kind of strategies and competencies can human resource management develop to support employees in the contemporary business environment?

Theoretical Framework

This section of the essay includes the solutions to the various questions that arise from this particular topic concerning the changing business environment. It helps the readers to understand the purpose of writing this essay (Mowforth & Munt, 2015).

The essay shows the readers that the business environment has a significant impact on the business and its operations. Thus it is integral for the business firm to follow the trend of the environment and make necessary changes in the working approach so that it can work efficiently in the current situation.

How do globalization and technological revolution affect the workforce and nature of work in a business organization?

Obstfeld said that globalization refers to the integration of the world’s population, businesses, and offerings on a single platform. It affects the business approach adopted by business firms. The changes in the nature of work today have been shaped by the globalization of economies and the technological revolution (Obstfeld, 2015).

From a business perspective, globalization and technological advancement expand the markets for any business. Post-adoption of this model, business undertakings can offer their product or service to global consumers on the global market. It has enabled closer ties in international trade which in turn leads to access to cheaper resources (Purce, 2014). The technological advancement in the current business scenario has improved the work process, and design and it has increased automation in various work models. These changes have also increased competition intensity in the market.

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What are the challenges faced by human resource management in the changing business environment?

As per Rupert & Smith, the changes in the business environment have brought about several benefits for business firms but they have also introduced a few challenges for the firms and their human resource management teams (Rupert & Smith, 2016). Globalization has led to a rise in the costs of doing business.

Since firms can target the global audience, they need to improve their building and equipment infrastructure and the human resource needs to focus on hiring talented local employees and adopt effective modes of internal and external communication.

The swift change in technology has astonished business firms since it has impacted their work processes. As per Sparrow, Brewster & Chung, the adoption of new technologies by business undertakings has made it possible for businesses to connect with their consumers in a new manner but it also brings certain challenges for organizations managing information is not a simple task and the cost involved for the up gradation of technology is pretty high. So the human resource management team needs to carefully analyze the pros and cons of adopting the latest technology since it requires a lump sum investment (Sparrow, Brewster & Chung, 2016).

What kind of strategies and competencies can human resource management develop to support employees in the contemporary business environment?

It is integral for the human resource team of every business undertaking to be alert to comprehend the changing trend in the business environment and help the business and its personnel to adapt to the changing working situations.

Since the HR department is mainly involved in activities relating to organizational development, training of employees, etc it plays a vital role in the strategic model of managing the workforce and working environment.

According to Wetherly & Otter, human resource management needs to provide necessary training to the employees of a business undertaking as per the changing business processes. It will enable them to increase their skill set and work efficiently in the current business scenario (Wetherly & Otter, 2014).

The HR team must also create an effective model for the correct allocation of resources so that funds are utilized in the right manner and the business can create a competitive advantage for itself in the market. It needs to focus on various aspects like technological enhancement, marketing strategies, etc before allocating resources. The selection of manpower is also an important point since it should try to bring fresh blood with the required skills and knowledge to the business (Wright, 2016).

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Significance and Limitations of the Essay

This essay mainly focuses on the changing business environment due to factors like globalization and technological revolution and how it drastically changes the issues of human resource management (Mowforth & Munt, 2015). It discusses these challenges and the competencies necessary for business organizations and human resource professionals to support their employees in this changing business environment.

The significance of the essay includes the various elements that have been covered which reveal the current challenges faced by business undertakings. It will help firms to understand the key areas that need their attention.

The essay also showcases how firms can amend their strategies and business processes to adapt to the changing business environment. By reshaping the business model, organizations can efficiently work in challenging business environments and can convert a challenge into an opportunity (Mowforth & Munt, 2015).

It also highlights the various aspects that human resources must consider while devising a strategy or making an important business decision. The impact of globalization and changes in technology on various aspects of the workforce and the nature of the work of a business has been unfolded in this essay. It helps the readers to have a better grasp of the business environment in which a firm operates.

The essay also has certain limitations since it only focuses on the challenges that arise due to changes in the business environment. Every subject has different facets thus it is vital to understand both the merits and demerits of the changes in the business environment. In this essay, the focus has been only on the challenges that arise in the work process of business organizations and the impact such situations have on the issues of the human resource department (Mowforth & Munt, 2015).

Several opportunities arise for any business undertaking due to the changes in the business environment. It primarily depends on the business firm to make relevant changes in its business processes to utilize its resources and gain a competitive advantage in the market. Thus the main limitation of the essay is that all positives brought out by globalization and technological revolution like expanded market and wider reach, reduction in manual work, improved communication, etc. have been ignored (Mowforth & Munt, 2015).

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Conclusion

The essay focuses on the dynamic business environment and its impact on the work processes and nature of work in different business organizations. Since it includes a series of elements which influence the business and its performance, it is important to keep a tab on its movement so that relevant and timely changes can be brought about in the working model of the business organization.

The role of human resource management is vital since it manages the manpower resource and accordingly, it needs to help and support the employees to adapt to the new working model. The various challenges that arise due to the globalization of economies and technological revolution have been explained and the specific competencies and strategies that are required by different business firms and human resource professionals to support their employees in the contemporary business environment have been included in this essay.

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References

Armstrong, M. and Taylor, S., 2014. Armstrong’s handbook of human resource management practice. Kogan Page Publishers.

Botha, A., Kourie, D. and Snyman, R., 2014. Coping with continuous change in the business environment: Knowledge management and knowledge management technology. Elsevier.

Cai, S. and Yang, Z., 2014. On the relationship between business environment and competitive priorities: The role of performance frontiers. International Journal of Production Economics, 151, pp.131-145.

Coker, C., 2014. Globalization and Insecurity in the Twenty-first Century: NATO and the Management of Risk. Routledge.

Fee, M.C., 2014. Human resources management.

Georgescu, M. and Popescul, D., 2015. Social Media–the new paradigm of collaboration and communication for the business environment. Procedia Economics and Finance20, pp.277-282.

Gupta, A., 2013. Environmental and pest analysis: An approach to the external business environment. Merit Research Journal of Art, Social Science, and Humanities1(2), pp.013-017.

Mowforth, M. and Munt, I., 2015. Tourism and sustainability: Development, globalization and new tourism in the third world. Routledge.

Obstfeld, M., 2015. Trilemmas and trade-offs: living with financial globalization.

Purce, J., 2014. The impact of corporate strategy on human resource management. New Perspectives on Human Resource Management (Routledge Revivals)67.

Rupert, M. and Smith, H. eds., 2016. Historical Materialism and Globalisation: Essays on Continuity and Change. Routledge.

Sparrow, P., Brewster, C. and Chung, C., 2016. Globalizing human resource management. Routledge.

Storey, J., 2014. New Perspectives on Human Resource Management (Routledge Revivals). Routledge.

Wetherly, P. and Otter, D., 2014. The business environment: themes and issues in a globalizing world. Oxford University Press.

Wright, S., 2016. Language policy and language planning: From nationalism to globalization. Springer.

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