Contextual Developments Influence HR Strategy

External and Contextual Developments which Influence HR Strategy

Human resource management is the process of maintaining the rules and regulations of the organization and interrelate them with human resources of the organization. It is a process by which organizations can get efficient and effective in their working process. The human resource management also helps to get the benefit from the organization and deal with different kinds of problems and inconvenience employees face in their workplace. By solving all of the problems and interacting with the employees they can ensure better outcomes for the organization and can form new and innovative strategic processes of work in the workplace (Arora, 2016).  It is important for each and every organization to increase the use of sustainable competitive strategies. Here the report is based on Megastore’s, which is one of the largest and most successful high street retailers. They want to develop their strategies based on their ideology of value-based strategies. The organization is trying to explore the related and contemporary issues and strategies related to their organization which can be beneficial for them in the long run.

Determine Key Current Trends and Developments that Influence an Organization’s HR Strategy

The current trends and developments that influence of organization’s HR strategy are described here. All of these trends and development processes are taking the organizations one level ahead of traditional organizational processes and set up and making them market leaders to lead the organization in a better way. The significant current trends and developments are described below:


Today business organizations are not only operating in the national boundary rather than they are going global and expanding their business functions. The rise of expansion in the different territories of multinational corporations is creating a need for HR managers (Arora, 2016). The growth of cross-border trade and the use of communications technology are attracting global talent and forming new strategies to retain them and use their skills.

Workforce diversity

The workforce diversity of employees in terms of age, cultural background, race, religion, gender, etc. is linked with the development of the work context of HR. For making and changing the strategy of the workforce it is important to consider the diversity in the work environment. HRM must train and educate people from diverse environments with workplace rules and regulations and effectively manage and deal with each other to create a participative approach in the organization (Beer, 2017).

Changing skills requirements

Changing skill requirements is another important issue to cope up with competitiveness, productivity, quality and managing the diverse workforce of the organization. Megastore can build up and improve their HR management system with quality work and higher productivity. They should communicate with experts and specialists to plan carefully by fulfilling skill deficiencies and shortages of the organizations and meet up the requirements of upcoming days.

Technology advancement

Technological advancement and improvement of the computerized systems are helping HRM practices to make the works simple and sophisticated. These systems helping a lot to maintain the safety (confidentiality) of the information and developing a better way to deal with information in Megastore (Beer, 2017).

Continuous improvement programs

The Megastore is changing its way of operation to focus on the customer and involves workers more to strive for success in hiring quality people, paper processing and meeting customer needs. HRM enables employees to ensure continuous improvement in their personal and professional life which is necessary for the change and cope up with different environments (Evans, 1986). All the process need is to work with clear and extensive communications to make the changes in expected and resulted needs of the employees.

External and Contextual Developments Influence HR Strategy

Analyze how both External and Internal Factors Influence HR Strategy and Practice

The external and internal factors of the environment can influence the HR strategy and practices of Megastore in positive and negative ways. It depends on the environmental situation and the practices of the Megastore are compatible with the environment or not. Here are some ways by which factors HR strategy and practices can get affected.

Government Regulations

It is important for the organizations to abide by the laws and regulations of the country on their hiring, training, compensation, termination, etc. processes. All of these regulations and maintain them properly can be beneficial for business in the long run and business conditions become favorable to the Megastore.

Economic Conditions

One of the biggest external influences come from the economic condition of any economy. It affects the talent pool and the ability to hire people in different economic conditions to avoid the economic downturn and keep the organization safe for a longer period of time (Evans, 1986). The economic conditions can affect the Megastore business to improve and get the benefit and also can affect it in a negative way.

Workforce Demographics

Workforce arrangement is changing from time to time. Megastore should work for improving new generation people and hire talented and skilled people for their organization for workforce planning and resource management. Otherwise, there can be a gap of skills and abilities which are not positive for any organization.

Available Labor Pool

Workforce planning is a very important issue for any organization. Megastore needs to manage the ability to recruit qualified candidates from the labor market based on availability. They also need to know about the unemployment rates, a number of qualified workers, the availability of applicants’, etc. to hire the best candidates (Gobind, 2014). An organization might have difficulty in identifying and attracting suitable candidates, with the same skill sets so based on geographic location they need to be careful and analyze the situation carefully.


Compensation is an important issue for HR to retain current employees and attract new employees in their organization. They need to plan the compensation in such a way so the employees feel motivated to work and at the same time the compensation is better compared to market condition (Gobind, 2014). Based on these two factors employees will be interested to work with Megastore for long term agreement.

Employee Relations

Internal policies and procedures of HR activities help to monitor the number of employees and their potentials to fulfill the necessity of the organization. HR must engage in collective bargaining with the representatives and focus on organization culture and structure to maintain the proper relationships with the employees to ensure a better work environment for the future and avoid any negative effects of the environment (Kanter, 1983).


After analyzing and discussing the entire situation above about the HR planning and strategic management of Megastores it is easy to conclude that the process of handling and dealing with the overall situation is not very easy. The organization has to be more careful about their strategy building and focus more on the employee’s betterment for the overall development of the organization (Strategic human resource management, 2008). It is impossible to deal with planning and processing without making the HR department strong, flexible and efficient. So Megastores need to focus on their strategic planning and implementation with their overall environmental improvement.

Written by

Md. Shadequr Rahaman

Email: [email protected]

Contextual Developments Influence HR Strategy

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