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Assignment: Understanding The Business Context Of Human Resources (5cbic)

2815 words - 12 pages

CIPD Level 5 Diploma in Applied Human Resources |
Assignment: Understanding the Business Context of Human Resources (5CBIC) |
Name: Sian GluckTutor: Tim BatesDate: 29/08/2014 |

No. | Understanding the Business Context of Human Resources (5CBIC)Contents: |
1.0 | Compare two different types of organisation and their operational/business purpose (AC:1.1) |
2.0 | Assess how business type and purpose affects the HR Function (AC: 1.2) |
3.0 | Explain how different organisational structures and management roles can impact on the HR Function (AC: 1.3) |
4.0 | Explain the role of the HR function in formulating organisational strategy (AC: 3.2) |
5.0 | Explain how organisational ...view middle of the document...

The business purpose of multinational companies is to generate revenue, to dominate the preferred market and sourcing the cheapest way to run the business.
There may be several constraints placed on the business which may obstruct from fulfilling these purposes. Such constraints include, legal restraints, when working in various countries as one business the company will have to deal with different laws in order to function correctly, it may also have to deal with the politics of different countries and factor in any policies which may affect how the business can be run. Language and culture will have an effect on how the business is able to fulfil its purpose, if a multinational company has employees who speak several languages it could be difficult for them to work successfully,

“The latest report from the British Chambers of Commerce (BCC), titled "Exporting is Good for Britain But … Knowledge Gaps and Language Skills Hold Back Exporters," examined how multinational corporations that experienced miscommunication between employees and with clients did not meet sales goals. The report found a direct link between language skills and reaching economic objectives among international businesses, with 70 percent of the 4,600 respondents saying they had no foreign language aptitude.” 

The large private sector also has a purpose of generating revenue but it also has to keep evolving as a company, companies do this by developing a mission and vision of the business purpose.
Unions and stakeholders both place constraints on the private sector in different ways, where unions use the force and power to gain changes and empower people within the sector, stakeholders use their powers to make changes which will benefit the company and sector as a whole. Unions may have played an important role in the private sector in the past, today membership is just as important, “Private sector membership levels increased by 61 thousand in 2013, to 2.6million, with members from ‘transport and storage’, ‘financial and insurance activities’ and ‘arts, entertainment and recreation’ industries contributing to the overall increase.”
Other constraints on the large private sector include a large high turnover of staff; this can vary from sector to sector, “Turnover levels can vary widely between occupations and industries. The highest levels are typically found in retailing, hotels, catering and leisure, call centres and among other lower paid private sector services groups.”

2.0 Assess how business type and purpose affects the HR Function (AC: 1.2)

The function of HR can change dependent on the business type and purpose. HR within the Private Sector is usually delivered by “teams of HR specialists to carry out much of their people management work”. For the private sector key HR objectives will include recruitment, managing absence, managing performance and keeping staff motivated to work efficiently. Absence management is important within the private...

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