Managing Human Capital: Assignment

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London School of Commerce


Lecturer: Dr Kumar
MBA1 – Rajendra Kumar

Date: 23rd August 2010
Student: Jesiquenia Ferracini de Lima Regiori – L0412PRPR0610

Table of Contents

Part A3


2.0External Environment Changes and Role of HR Management4
2.1HR Managers Roles4
2.2Human Resources Management are responsible for:4

3.0External Environment Analyse5


5.0Gaining Competitive advantage through HR practices8




2.0Compensation Package Explained11

3.0Collective Bargaining Agreement12




Part A


The success of an organization depends on various factors, so it is important to know how to manage them. Evaluating the external environment of a company, choosing the right people for the right job and train them to do their best are extremely important steps that HRM have as functions to achieve success. (ABE, 2008)

Organisations Differ from each other and each organization is unique. Some are Big and others have few employees, some are very sophisticated technologically, while other have specific ways of doing things. These are factors that affect the way of managing the organization. (ABE, 2008)

All organisations operate in a specific environment and are affected by what happens around them. The outside factors that effect the way how organization manage people are called External Environment Factors, which are: Political Environment

Economic environment
Social Environment and
Technological Environment

With increasing competitive pressures from global economy, talented human resources have become critical for achieving competitive advantage in the past decades. Therefore the role of HR managers changed and added value to organizations to achieve business goals. (ABE, 2008)

In this study is necessary to take in consideration the roles of HR managers when changes occur in the external environment and how can management be more efficient. And how can HR managers help the organization to achieve competitive advantage. (Dr. Kumar, 2010)

2.0External Environment Changes and Role of HR Management

2.1HR Managers Roles

“Companies now are finding that the HR issues are, in fact, centre stage to business competitiveness. The intellectual capital, core competencies and organizational capabilities are all the pieces that are central to success.” (HARVARD PRESS, 1997)

To meet pressures the HR profession has begun to work in new ways of creating value through the function. In the recent years a new model has appeared to provide HR managers with the platform on which to deliver its promise. The new model requires HR to position itself to engage with the business at the right levels, in the right ways. (Hunter, 2004)

Hr Managers need to have direct relationship with subordinates. In doing so it has fulfilled a gap in the business – the voice or advocate of the employee. It has achieved the role of facilitator and executor of all people related processes, regardless of whether these were necessary or HR was the most appropriate method of delivery. (Hunter, 2004)

2.2Human Resources Management are responsible for:

-Sizing the workforce
-Evaluating the available skills
-Cost of Labour and the return they produce
-Labour turnover rates
-Industrial relations
-Structuring the organisation – hierarchical
-Managing the Time’s sizes
-Managing the style of structure to follow
-Training and development.

3.0External Environment Analyse



Governments, legislative powers, the legal and regulatory framework applying to business and the public sector. Also give direction to a country through the way in which they exert control over the economy. Political environment operates in national level but it is...
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