Human resource management

Table of Contents
Introduction................................................................................................................................3
Critically assess the roles that internal and external organisational context plays in
formulating effective HR strategies...........................................................................................5
1. PEST and SWOT analysis..................................................................................................5
2. Developing HR strategies appropriate..............................................................................10
3. Evaluating the developed HR strategies with consideration of the internal and external
context......................................................................................................................................14
Conclusion ...............................................................................................................................16
Reference list ...........................................................................................................................17

Introduction
In this 21st
century with the advancement of time and technology, the whole operational
system has totally changed in the business organization. As completely marketing structure as
well as organizational is changing, with this the range of competition level is also increasing
with time. In case of every business organization the HRM mean the Human Resource
Management plays the most important role. The human resources management mainly
maintain four basic functions namely the staffing, training and development, motivation and
maintenance.
The Human resource management mainly helps the business organization to run and manage
the business organization effectively. The HR mainly looks all the activities of the
management and employees. In order to manage the organization the HR mainly focus on
the organizational policies and system. It has been found basically the HR department look
after all the concerned activities of the organizations. In order to perform all the activities
effective the HR department mainly implements few strategies and technique in the
organization. It has been found that with globalization and technological advancement the
working pattern and operation has totally changed. At the same time, the HR department is
also concerned to look for the employees benefits. In order to enhance the performance level
or skills of the employees, the HR department provides training to the employees and judges
their performances through the performance appraisal. The main function of the HR
department is to maintain the industrial relation, balance and maintain all the activities of
the organization.
The HR is basically a part of human relation management. With the span of time, the human
resource management has become the most important part of the business organization. Here
the learner has put forwarded that without good team and management the organization
cannot fulfill the goal and objectives. The HRM team mainly recruits right people for the
right position for the organization. Basically the team set different criteria to assess the
employees talents and knowledge and final recruit them. The HR Mainly encourages the
employee to deliver their best to the organization. Basically the HR mainly tries to maintain a
healthy business atmosphere in the organization. It helps the individual to perform
comfortably. And at the same time it also manages the disputes of the organization.
In this case, study the learner has found that the Ireland and United States basically follows
different strategies and techniques in order to perform and maintain the internal and external

operation. It has been found that mostly the American owned MNC’s has established there
business in Ireland and they are quite successful than the Ireland MNC’s. Here the learner is
mainly going to focus on role played by the HRM team in the Ireland business organization
and the United States business organization. Through SWOT and PESTLE analysis, the
learner is mainly going to assess the situation. And at the same time it is also going to focus
on the strategies and techniques implemented by both Ireland and United States companies in
order to perform their activities.

Critically assess the roles that internal and external organisational context plays in
formulating effective HR strategies.
1. PEST and SWOT analysis
In this research, the case study clearly deals with the various strategies that are undertaken by
the Ireland companies regarding the Human resource management and at the same time, it
transparently differentiates the strategies that are undertaken by the Multinational companies
in Ireland to the Multinational companies of the Unites States. It is very essential to state that
Ireland is considered to be one of the most globalized countries in the whole world and
involves the development with the inclusion of the MNC strategies which have further led to
the establishment of the subsidiaries (Snell, et al. 2015, p.225). Moreover, the government
has framed certain policies or agendas that have offered the international MNCs with various
incentives in order to make them invest in the companies of Ireland. Information has been
derived through many sources which has stated that several multinational companies have
invested in Ireland thereby developing companies which accounts for around 470 thereby
employing 140,000 people. The main international companies are Dell, IDM, Microsoft,
Google etc.
From the case study it can be illustrated that the HRM practices or the policies that are
developed further explains that it would lead to the betterment in the strategies if it converges
with the HRM practices of the US MNCs (Bae, et al. 2012, p.545). The operations of
subsidiary companies would enable them to develop their management, as it is very well
known fact that the US MNCs are far more innovated as compared to that of the Ireland
companies. However, the Ireland companies are more centralized to follow their own way of
operation and they pay more attention to the standardize policies in their foreign operations.
It is very important to state that the MNCs are considered to be very essential as they are held
as one of the most essential source for the innovation in the management practices and to
incorporate the high defined HRM strategies that would enable the Ireland companies to
develop the functions of the Human resource management. It is also very clear that the MNCs
have developed the operations that are undertaken by the HRM within the organizations.
There are certain grounds in which the MNCs have developed the scope of the HRM such as
the improvement in the working systems and the performance systems thereby offering
various rewards to employees who performs the best.

Hence, from the above it can be stated that the main issues that lie with the operations of the
companies in Ireland with the ethnocentric perceptions. Although the government has
undertaken several steps to incorporate, the well-defined strategies that would help the
companies to develop in the near future, but due to the traditional ways of operations the
companies are unable to perform well in the market (Hendry, 2012, p.664). Moreover, with
the changes, the companies would be able to develop in various fields and with the
development in the HRM, the companies can operate in a more smooth way within the
market of Ireland. Moreover, it must also be kept in mind that the HRM strategies that are
developed by the organizations in Ireland are weaker as compared to that of the strategies
developed by the US MNCs.
In this case it will be very beneficial is the external and the internal environments are
considered and hence the researcher will be proceeding with the analysis of the internal
environment of Ireland companies (SWOT analysis) and the external environment (PEST
analysis) of the same.
SWOT analysis
The researcher has considered the SWOT factors of the company, as it is very important to
state that with the analysis of the SWOT factors it would be easy to understand the internal
environment of the companies prevailing within the Ireland market. The companies Strength,
weakness, opportunity and the threat would help in the better understanding of the different
operations that are undertaken by the organizations (Armstrong and Taylor, 2014, p.787). The
analysis of the SWOT factors would help in the better understanding of the internal
operations of the organization thereby delivering with the clear conception regarding the
various ways in which the organization would employ its strengths and opportunities in order
to eliminate the threats from the market. In addition to this, it would also help in eliminating
the several weaknesses of the operating system.

Figure 1: SWOT analysis
(Source: Created By Author)
Strength- the most important strength that is incurred by the companies in Ireland is that the
market is less competitive and that has enabled the companies to operate in a better way. It
can also be stated that the companies have well defined network as well as uses several new
and innovated technologies that leads to high productivity. The HR of the companies have
well defined strategies that enables them to perform. The HRM of the companies are highly
able to identify the various opportunities available in the market.
Weakness- every organization has own weakness. The companies prevailing within the
Ireland markets are although well established but the marketing strategies are not clearly
formulated as well as lack the required strategies. In addition to this, it can also be stated that
the rates of lending are very high which is considered to be an essential weakness (Budhwar
and Debrah, 2013, p.457). The HR also have little focus on the development strategies and at
the same time focuses on a limited segment of the market. Often the HR fails to integrate
with the CRM and are sometimes inflexible to the job.
Opportunity- the Ireland companies have the opportunity to finance the large projects that
will help the companies to develop as well as increase the brand awareness. Another
important opportunities to focus on, is that the companies can enter into new markets. There
is a high scope for developing their existing technologies and at the same time incorporate
SWOT
ANALYSIS
STRENGTH
WEAKNESS
OPPORTUNITY
THREAT

new and innovated technologies. The HR can be more convenient to communicate with
regarding several issues. The HR can recruit the best employees of the competitor
organization.
Threat- in case of the threats it can be considered that the bargaining power of the buyers are
very low. Moreover, the companies also fail to operate freely as several ethical pressures as
well as economic crisis bound them. It can be further stated that the threats eventually
decreases the productivity of the companies (Bratton and Gold, 2012, p.336). Moreover, it
has also been observed that the products that are developed by the companies are highly
imitable and at the same time, the cost of the raw materials fluctuates at a high pace, which in
turn leads to decrease in the production level of the companies. Sometimes, the HR must be
able to integrate new and emerging technologies and due to increase in competition, the
incapable HR may fail in strategizing several cases.
PEST analysis
The PEST analysis indicates to the analysis of the external environment of the organizations.
It is very important to state the fact that the external environments have high impact on the
operations of the organizations. The PEST factors are mainly the political factors, economical
factors, social factors and the technological factors. It is very essential to state the fact that the
PEST factors highly affects the operation of the company. It can also be determined that the
PEST factors also influences the HR practices of an organization in Ireland. In this case, it
can be elaborated that the PEST analysis act as the most useful tool that helps to determine
the growth or the failure of the organizations. It is considered as one of the most important
business measurement a tool that measures the growth or decline of the organizations
operating within the market (Snell, et al. 2015, p.889). In this case, the researcher would be
conducting the PEST analysis that would help in the understanding of the external
environment of the Ireland companies and the influences that it creates to the market.

Figure 2: PEST analysis
Political- it must be kept in mind that the political factors influence the operations of the
companies in several ways. In this case, it can be stated that the tax rates and the interest rates
fluctuates a lot with the spending level of the government. There are several laws and the
regulations set by the government affects the operations of the organization. In case of the
Ireland companies, it is very clear that the government has undertaken suitable policies or
agendas that have enabled it to make the international MNCs to invest in the Ireland
companies and offer the international MNCs with various incentives and encourages them to
invest more. In addition to this, it can be stated that the tax policies, laws and regulations and
the political stability also influences the roles of the HR (Allen, et al. 2013, p.545).
Economical- it can be stated that the economic factors also affects the operations of the
companies in the Ireland markets. In addition to this the increased tax rates in Ireland has
discouraged the international MNCs to invest more in the companies in Ireland. Moreover,
the increased tax rates in the trading has also reduced the level of production and at the same
time reduced the number of companies who traded with the companies in Ireland. In the
Political Economical
Social Technological

organizations of Ireland, the labour cost is also very high and the economy of the country has
also influenced highly due to the globalization. The HR mostly focuses on the growth of the
company based on the overall aspects. In addition to this, personal spending also influences
the activities of the HR (Van, et al.2011, p.215).
Social- the social or cultural factors affects the operation of the companies highly. It can be
stated that due to the ethnocentric perceptions the companies still lags behind in various
fields. They have a very centralized view, which in turn has led to less development in the
strategies that are undertaken by the organization. In this case, it can be stated that until and
unless the Ireland market or organization overcomes the social barriers it would not help
them to develop and compete with the international companies. The different perceptions of
the HR can affect the operations and at the same time, the HR of Ireland companies
prioritizes the culture. They highly focus on the development of the work environment
(Ulrich, 2013, p.555).
Technological- it must be noted that the organizations operating in the Ireland are
technologically well developed and innovated due to the HRM. However, it must be kept in
mind that the HR managers must be up to date with the new technologies. It has also been
observed that although the companies are technologically well developed it must be noted
that the employees of the companies takes a long time span to get accustomed with the
equipments due to lack of knowledge and training regarding the equipments by the HR.
2. Developing HR strategies appropriate
From the HR perspective of the organizations in the Ireland market it can be stated that the
companies have involved well-defined strategies that develop the HRM but it must also be
noted that in comparison to the US HR strategies. HRM or the Human Resource Management
is considered to be the core player of an organization. They play several important roles that
highly contribute to the development of the organization. It must be considered by the
organization to undertake suitable steps that would help in the development of the HRM.
As per the case suggests that the HRM strategies that are developed by the organizations in
Ireland are weaker as compared to that of the strategies developed by the US MNCs. It must
be considered that the Ireland organizations highly require developing the HRM strategies in
order to develop in the markets as well as compete in the international market as well. The
international MNCs are considered to be very innovated in the field of development and the

HR of the MNCs involve various roles such as developing the working system, reward
systems to encourage the employees to work better. It must also be considered that the
companies prevailing with the Irish markets must be able to develop the HR management, as
this would enable them to develop in the performance of the organization. The HR plays
various important roles that contribute to the development of the organizations (Mathis, et al.
2011, p.111). The major roles that are played by the HR are providing the employees with the
proper training facilities that would enable the same to contribute their skills properly for the
sake of their organization’s development. Moreover, the HR is also responsible for the
recruitment and selection of appropriate candidates at the right time for the right job and in
the right place. The selection and the recruitment process is not considered to be the easy job
as this requires high skills that would help in the selection of the appropriate candidates who
can prove to be worth for the organization (Bloom and Van 2011, p.1700). The SWOT and
the PEST analysis that has been undertaken clearly depicts that the HR of the Ireland
companies encounter several issues while operating. This in turn leads to less productivity of
the employees. It must be noted that the employees play a very important role in an
organization. Therefore, it is very important for the organization to develop their skills so that
the employees in turn are able to perform well thereby contributing highly to the development
of the organization. In this case, it must be kept in mind that the HRM is highly responsible
for providing the training sessions to the employees that would help the employees to develop
their skills (Nel, and de Wet, 2013. P.477).
Hence, it must be stated that the companies operating in Ireland are facing several issues
regarding the HR practices. It is very important to undertake suitable steps that would help in
the development of the certain strategies that can improve the HR practices within the
organizations thereby making them able to give their utmost potentiality at work.

Figure 3: Strategies used to resolve the issues faced
Assessment of the HR capacity
It is very important for the organizations to assess the capacity of the Human resource. It can
be stated that the skills, capability and the knowledge of the HR staffs must be assessed at the
initial stage, as this would help in the proper assessment of the strategies that are developed
by the organization. It is worth mentioning that assessing the capacity of the HR is very
essential and it can only be carried out through the help of inventory skills of the employees.
It has been observed that the inventory skills often go beyond the skills in order to determine
the specific position (Jiang, et al. 2012, p.1266). The HR capability is very essential to be
assessed and at the same time the development must be prioritized.
Forecasting the requirement of the HR
The next strategy is to focus on the requirements of the current HR for the strategies and
goals that are framed by the organization. It must be further noticed that the actual
forecasting of the requirements of the human resources involve the estimation of both the
demand and the supply. It must be considered that training is one of the best methods that are
required by the human resource of the company so that they are strong and skilled enough to
Focus on the strategic vision
Transfer of Knowledge

compete with the competition prevailing within the markets. Moreover, the number of
employees required for the organization is also another issue that are faced by the
organizations. This can be implemented by making suitable steps that would help in the better
recruitment and selection of the employees as per the skills required (Guest, 2011, p.10).
It is a very evident concept that an HR cannot perform in a vacuum. It needs to have certain
strategic visions that are framed by the organization. In order to be effective in nature, the HR
must be provided with the strategic vision so that they can perform effectively. In addition to
this, it can be stated that the vision that the company has designed would help the HR to
identify the main objectives and goals of the organization (Meredith, 2011, p.1114). So that,
according to the same they are able to provide the best resources to the organization so that it
is able to achieve its framed goals and objectives of the organization.
An organization can be considered as the most effective in its HRM when the staffs would be
able to cooperate and coordinate at work. In this case, it can be stated that the HR plays a
very important role in the transfer of knowledge by providing the employees with the
opportunity of training, which in turn enables them to share the knowledge, which would help
the employees to perform well.
The strategies that are mentioned above must be incurred by the HR of the companies
operating in the Irish market, which would help in the effective development of the HR. It is
very essential for the companies to develop the HR management so that the objectives and
the goals of the companies are achieved (Buller and McEvoy, 2012, p.50). In this case, it
would be very important to state that the fact that the US MNCs who involves better HRM
have the maximum chances to expand in further markets and they can flourish more.
However, it is something else in case of the Irish companies who have HR management but
they fail to meet the requirements that are needed in the highly competitive market. The
strategies that are mentioned above would help the companies to develop their HR practise.

3. Evaluating the developed HR strategies with consideration of the internal and
external context
The strategies that are mentioned above would be highly effective for the development of the
organizations. In this case, it can be further stated that the strategies would help in achieving
all the desired goals and objectives of the organization (Wilson, 2014, p.2214). It has already
been explained that the internal and the external environment affects or influences the
working of the organization. Moreover, the internal and the external environment also affect
the working of the HRM and hence the strategies that are stated by the researcher would be
highly effective for the development of the organization. In the below points the various
strategies that are mentioned by the researcher has been elaborated related to the internal and
the external environment of the Irish companies:
In case of assessing, the HR capacity it is very important to state that the strengths and the
weaknesses of the HR must be assessed so that based on the same work is distributed. In
addition to this, the social factors can have an impact on the operation but through proper
training, the same can be overcome.
In this case, the political factor can be considered from the external environment. This is
because the requirements involve the demand and supply of the HR. Moreover, the economic
factor also plays a vital role, as this would enable the determination of the salary of the staffs
along with the cost that will be incurred by the company in order to provide the organization
will suitable training so that the employees are able to develop their skills (Wright and
McMahan, 2011, p.100).
While focusing on the strategic vision the internal environment must be considered as the
four factors such as the strength, weakness, opportunity and the threats. These four factors
highly affect the operation of the HR. Since the companies must consider the strength,
weakness, opportunity and the threats that will help in the development of the proper vision
that will contribute to the development of the organization. It is very important to focus on
the strategic vision, as this would help the HR to comply with the strategies that are
developed as the vision for the company (Gunnigle, 2013, p.225).

In case of the transfer of knowledge, again the internal environment or the condition of the
organizations must be considered. In order to transfer knowledge it is very important to
consider the strength weakness of the HR as based on the same they would transfer or share
their knowledge.

Conclusion
Therefore, by analyzing the entire report, it can be stated that the companies in Ireland
encountered several issues at the time of operations due to the human resources available to
the companies. Although the companies had good HR practices but it is very important to
involve the best HR so that the organizations are easily able to meet the framed goals and
objectives. This was very clear when the case study provided a comparative study regarding
the HR practices of the US organizations. The HR practices are well developed and the
working system are developed by the HR themselves. In addition to this, the employees are
provided with suitable rewards and incentives for their best performances. This on the other
hand motivates and encourages the work force to high extent thereby enhancing the
productivity of the MNCs. In addition, if the Irish MNCs are able to incorporate with the
strategies then it will enable the companies in Ireland to develop at a faster pace.

Reference list
Books
Snell, S., Morris, S. and Bohlander, G., 2015. Managing human resources. Cengage
Learning.
Bae, J., Rowley, C. and Sohn, T.W. eds., 2012. Managing Korean business: Organization,
culture, human resources and change. Routledge.
Hendry, C., 2012. Human resource management. Routledge.
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Budhwar, P.S. and Debrah, Y.A. eds., 2013. Human resource management in developing
countries. Routledge.
Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave
Macmillan.
Snell, S., Morris, S. and Bohlander, G., 2015. Managing human resources. Cengage
Learning.
Allen, M.R., Ericksen, J. and Collins, C.J., 2013. Human resource management, employee
exchange relationships, and performance in small businesses. Human Resource Management.
Ulrich, D., 2013. Human resource champions: The next agenda for adding value and
delivering results. Harvard Business Press.
Mathis, R.L. and Jackson, J., 2011. Human resource management: Essential perspectives.
Cengage Learning.
Journal
Nel, P. and de Wet Fourie, L., 2013. ORGANISING THE HUMAN RESOURCES
FUNCTION IN NEW ZEALAND TO HARNESS FUTURE OPPORTUNITIES: SURVEY

RESULTS OF 2010 FORECASTED FOR 2020. Journal of Global Business and Technology,
pp.447
Jiang, K., Lepak, D.P., Hu, J. and Baer, J.C., 2012. How does human resource management
influence organizational outcomes? A meta-analytic investigation of mediating
mechanisms. Academy of management Journal,55(6), pp.1264-1294.
Guest, D.E., 2011. Human resource management and performance: still searching for some
answers. Human Resource Management Journal, 21(1), pp.3-13.
Meredith Belbin, R., 2011. Management teams: Why they succeed or fail.Human Resource
Management International Digest, 19(3),p.1114
Buller, P.F. and McEvoy, G.M., 2012. Strategy, human resource management and
performance: Sharpening line of sight. Human resource management review, 22(1), pp.43-
56.
Wilson, J.P., 2014. International human resource development: Learning, education and
training for individuals and organisations. Development and Learning in
Organizations, 28(2), pp.2214
Wright, P.M. and McMahan, G.C., 2011. Exploring human capital: putting ‘human’back into
strategic human resource management. Human Resource Management Journal, 21(2), pp.93-
104.
Gunnigle, P., 2013. Human resource management in Ireland. Employee Relations, pp.225
Bloom, N. and Van Reenen, J., 2011. Human resource management and
productivity. Handbook of labor economics, 4, pp.1697-1767.
Van Buren, H.J., Greenwood, M. and Sheehan, C., 2011. Strategic human resource
management and the decline of employee focus. Human Resource Management
Review, 21(3), pp.209-219.

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