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Table of Contents

External Environmental Factors 6
Role of Human Resource to gain Sustainable Competitive Advantage 8
Analysis of Collective Bargaining 10
Key Features of Collective Bargaining 11
True argument as reimbursement and compensation packages negotiated through coll
ective bargaining an ability to compete in International Market 14

The Human resources division of the Organisation is a major strength of the busi
ness as their chief job is to deal is in the man power and its planning for the
organisation. The main t5ask of this department is to place the person at its be
st possible position. The following report analyses the major areas of responsib
ilities and the function of human resources, Also it is being highlighted in rel
ation with constant changes in external environmental. The project also highligh
ts the various methods adopted by the human resource department to achieve susta
inable competitive advantage. The final part of the report summarizes with the v
arious compensation packages negotiated through collective bargaining. All the f
ollowing analyses have been done through various researches from various journal
s, books, web –sites and different interviews of the human resource executives. Th
e analyses have also being supported through various organisational examples.
“The people that staff and operate an organization … as contrasted with the financia
l and material resources of an organization. The organizational function that de
als with the people Long a term used sarcastically by individuals in the line or
ganization, because it relegates humans to the same category as financial and ma
terial resources, human resources will be replaced by more customer-friendly ter
ms in the future.”
(Source - http://www.humanresources.about.com)
Human resources commonly deal with management of human capital in an organisatio
n. All corporations need an efficient human capital to work effectively and effi
ciently. Various research, surveys and programs have being conducted and it has
being concluded that the human resource management is the picture of the entire
organisation. That’s one of the main reason that human resource management has to
be very efficient and effective in its role and management.
The first part of the project analyses the overall role of human resource manage
ment on a daily basis in an organisation. Also In the description of the project
there are number of exterior factors affecting the business like changes in pol
icies, market conditions, government interference, etc. The project in brief als
o describes the role of human resources management giving in explanation of thes
e external factors which affects the organisation and their role to over come it
. The human resource management also plays a vital role to make the company comp
etitive in the market and how the company attains competitive advantage by vario
us Human resource policies.
The Later part of the company concludes on as how the organisation compete in th
e international market with different negotiations like compensation and benefit
s with the help of collective bargaining agreements giving a debate on their abi
lity to sustain such problems

External Environmental Factors
There are various external environmental factors that influence the establishmen
t or a business in the marketplace. They are characterized into external and int
ernal factors of the environment affecting a corporation. Internal factors inclu
de internal factors of an organisation affecting a company running like change i
n management policies, culture, new ideas, values, product, and other factors wh
ich affect the organisational running. All the above factors are in control of t
he business and hence it is termed as internal environmental factors
The external factors are the factors which are not in control of the management
and are occurred due to changes in external factors. Some of them are public en
vironmental factors, political factors, competitors, changes in taxation and oth
er important government regulatory policies and different competitors of the org
anisation. Several possessions in a financial system and taste of the consumer a
nd people inside the business are a few external factors which affect the organi
Role of human resources to manage external environmental factors
The human resources manager and the entire management has to be prepared all the
moment to make sure that the company is able to uphold from the exterior enviro
nmental conditions. Different steps are being taken n such conditions by the Hum
an resources department to put together the entire organisation and make sure t
hat the company is capable to manage up with the altering factors within and out
side the organisation.
The human resources department has to be ready al the time to make sure that the
business is able to sustain from the external environmental factors. Various st
eps are being taken by the Human resources management to make sure that the orga
nisation is able to cope up with the changing factors within the organisation.
(HRP) Adequate Human Resource Planning: Planning of Human resource is very signi
ficant to resist internal as well as external environmental factors like Retenti
on of staff and their resignation, Also Competitor factor is also an important f
actor that needs to be planned by the HR management. The planning has to be done
in such a way by the human resource department that the daily running of he com
pany is not being affected and the organisation s working is being done smoothly
Example “ Tesco ensures that each and every employee has the opportunity to unders
tand his or her individual role in contributing to the Tesco core purpose and va
lues. This requires an innovative induction programme that caters for different
cultures, styles of learning and varying commitments to the job. The frontline e
mployees are considered the ultimate reflection of Tesco to its customers, but a
ll employees have a very important role to play in turning core values and custo
mer commitment into reality on a daily basis”. (Whitlock, N. 2003)
Whitelock, N. (2003)Tesco’s new recruits see the big picture
Creditors: The human resource sector requires to make sure that the sum or amoun
t of creditors of the organisation are stable with debtors and reserves or accou
nts of the company. The following issue is generally analysed by the finance di
vision of the organisation but at the same time the human resource department d
o give significance in it as affects the picture of the corporation directly to
its customers, shareholders and the promoters of the company.
Reviewing Changing Policies: The government policy factor play a key role in af
fecting external environmental factor of the organisation. It is that factor whi
ch cannot be challenged but it is just need to be accepted unanimously but also
at the same time it affects the business running directly. The duty of the human
resource management is to always keep on reviewing the government policies and
try building up a flexible work force which can accept the change and run the bu
siness smoothly.
Example: In an Interview with Mr Andrew Richards, Senior HRM Executive Of Sainsb
ury being questioned on changing policies had a clear answer that they more conc
entrate on ther quality and customer service. They have made their Policy review
committee which review each and every changing policy.
(Source: HRM executive Sainsbury Local, Brixton,)
Development of Technology: It is the duty of HRM to monitor the workings of o
ther department. They need to make sure that the there is a certain technologica
l growth with in the organisation. This helps the company to become a technologi
cal advance company and can easily over take the competitors in context of techn
ological growth
For Example: With an interview with the Human resource executive of Apple Indust
ries. The executive made a comment as “Apple does not have to fear competitors as
they have a unique product line but they make sure what their competitors are up
to in the market”
(Source :Executive Interview with Store manager of Apple Stores)
Role of Human Resource to gain Sustainable Competitive Advantage
“Sustainable competitive advantage is the focal point of your corporate strategy.
It allows the maintenance and improvement of your enterprise s competitive posi
tion in the market.
It is an advantage that enables business to survive against its competition over
a long period of time”.
(Source - www.1000advices.com)
Quality Strategy
Quality is one aspect that can beat any competitors in the marketplace. The most
excellent way to achieve sustainable advantage is to deliver quality and qualit
y products along with quality service to its consumers. The Human resources make
sure that all the parameter which is necessary to meet up the quality is fulfil
led by the company. The general study by a variety of companies and a range of e
xperts also consider that excellence in goods in products and services i.e. Qual
ity is one reason which is to a large extent a crucial way to gain competitive
gain in the market.
Example : “BMW Group has reorganised its method for supplied parts quality managem
ent in the product development process to meet the demandingchallenges of the fu
(Source - https://b2bpapp6.bmw.com/public/en/gdz/logistik/ersatzteile/qualitaet/
Value Creation
Values are very significant where sustainable growth is considered. As it is tha
t component of the establishment which is not written but it being understood an
d followed. Each corporation has to follow definite values .It is the responsibi
lity of the Human resources as how those standards and alues of the organisatio
n can be well introduced in the workforce and every employee is well cultured
with it.
Human resources have to make certain that there is a cultural stability inside t
he establishment. It s very much vital for the organisation to have a prosperous
and developed customs and culture in order to face opposition for its competito
r and other international market runners .It’s the responsibility of the Human res
ources department to create a class of employment culture which is not only fasc
inating to its workforce nevertheless it also helps to carry out their responsib
ility effectively.
Innovative Strategy: Any company is recognised with the kind of product line the
y deal in to and then best way to make it different and out come the competitors
is by adopting the innovative means. Innovation is one tool which can make the
company be different from its competitors. The Human resource management makes s
ure that there is always a strategy which lays down innovative principals and i
deas which make their company different from their competitors and it helps them
to achieve sustainable competitive advantage of in the market.
These were some of the ways where a company can be achieving sustainable competi
tive advantage in the global market economy.
Analysis of Collective Bargaining
“Good-faith process between an organization s management and a trade union represe
nting its employees, for negotiating wages, working hours, working conditions, a
nd other matters of mutual interest. To the management, this process presents (u
sually) one set of people to negotiate with; to the employees, it gives greatly
enhanced bargaining-power. Collective bargaining is the fundamental principle on
which the trade union system is based.”
(Source - www.businessdictionary.com)
Collective bargaining is a sort of reconciliation or conciliation ability which
is being used by the employees or the labour to endow with a answer or work out
with the employer or top executives of the organisation. Collective bargaining t
ake place as and when the employees have definite issues or they don’t be of the s
ame opinion with the organization. In such catastrophe, employees trade union re
presentatives get in such talking terms with the company so that both the partie
s can mutually agree on a certain thing and in such case a solution is brought d
own to resolve the issue.
Common issues relating to such crisis are covered in a employment bond are amou
nt of wages, remuneration, compensations, policy of the workplace, functioning a
nd hygienic environment, hours of work and many other distinctive matters are f
requent reason of difference in the agreement. Subsequently after putting down
a range of negotiation skills and techniques, A point in time come when individu
ally the parties be in agreement on a joint resolution which has to be in recor
d, And that is in a structure of contract and signed by both the representatives
. The agreement time for such negotiations is usually for a period of 3 years.
This mutual agreement by both the parties is known as collective bargaining agre

Key Features of Collective Bargaining

Form of negotiation: “Collective bargaining is a process of decision making betwee
n parties representing employer and employee interests which implies the “negotiat
ion and continuous application of an agreed set of rules to govern the substanti
ve and procedural terms of the employment relationship ...” Windmuller et d. ( l98
7)]. WINDMULLER, J.P. el al. (1987), Collective Bargaining in
Industrialised Market Economies: A Reappraisal, Geneva:
To Restore equal Balance: The employer always have a superior hand within the
organisation .The complete authority for decision making and implementation of v
arious policies lies beneath with the employer. Collective Bargaining Agreements
helps to restore an equal balance on both the ends of the organisation which in
order help to run the organisation more smoothly.
Peaceful Way of Negotiating - Collective Bargaining is an transparent and clear
means of argument of complaint or disagreement along with a structured negotiati
ng approach. Employee which has inconvenience pertaining to about a number of as
pect of their service can deal with them in a calm and mutually understandable s
ituation from both ends of the corporation.
Involvement of workforce: The collective bargaining agreement helps to restore t
he balance between the employees and the employers of the organisation. It enabl
es the employees to get mixed up evenly with the top executives and management o
f the business. It in general gets down the inconsistency among both sides.
Creates Flexibility: This kind of collective agreements helps to create flexibil
ity with in the working of the organisation and it enhances to reduce conflicts.
It makes the employees feel that they a voice within the organisation and helps
to create flexible working environment.
Workers representation: The Collective bargaining is method where the disagreeme
nts and conflicts between the employer and workers are been sorted and resolved.
In this way there are representatives of the workers who voice up the opinion o
f the workers in front of the management. It helps the workers who are weak and
who needs to voice up their opinion.
Creates Industrial harmony: Collective Bargaining is a way where industrial an
d organisational imbalance and conflicts are being resolved. Due to such conflic
ts the working of the organisation is hampered in the form of business shut down
, strikes and other factors. With the help of collective bargaining agreement th
e issues and conflicts are being resolved mutually giving the business a solutio
n to resolve the issues.
The collective bargaining influences the company management as well as the compa
ny workers creating, at times creating a difficulty for both the parties. Given
below are some disadvantages which are being occurred due to collective bargaini
ng agreements.
Management’s power and liberty within the organisation get more limited due to neg
otiated set of laws.
It increases probability for division between workforce and the management.
It restricts the rank quo, in this manner implementing new ideas, change and inn
ovation get restricted up to an extent. This is particularly the case when the
change involves privatizations.
Increases difficulties for labour of smaller group to get their opinion or voice
s heard in the management in presence of the collective bargaining agreement.
“More often than not, unions initially get a substantial pay increase through thei
r collective bargaining efforts. However, unions also tax employees with union d
ues” (Source - www.nursetv.com)
High management expenditure related to the collective agreements like administra
tion costs.
It removes the capacity of organization to formulate one-sided changes in remune
ration, hours, other compensation and benefits related to the organisation.
It overall avoids or removes the ability of the management of the organisation t
o deal with the individual employees of the organisation.
Increases the Higher dependence for services like technological requirements in
the private sector of the economy gets restricted or needs to be compromised mos
t of the times.
Bond management is a very complicated method to handle and extensively change th
e skilfulness and the set essential for a manager and supervisor.
Such type of agreements gives rise to trade unions and union representatives whi
ch hampers the harmony and peace of the organisation as they are known for their
irrelevant demands from the management.
Strike is something which is not in control of the management as and when the tr
ade unions call of for strike as and when their demands go unheard ,Overall aff
ects the business running.

True argument as reimbursement and compensation packages negotiated through coll

ective bargaining an ability to compete in International Market
Given on top of in the information has competed study of collective bargaining a
greements and collective bargaining. It has the outlined the merits and demerit
s of collective bargaining agreement. In right sense reimbursement and compensat
ion packages which are being negotiated during collective bargaining agreements
are a key reasons of our capability to the company and organisations to partici
pate in a range of sectors of the global marketplace. The company is being known
by the labour force and in the absence of them it is impossible for the organ
isation to survive.
It becomes very crucial for the establishment to make sure that labour force is
kept back pleased and fulfilled and they receive all the amenities which they a
re permitted to like hours, good sanitary and healthy working conditions, remune
ration, etc. It’s also correct that a range of labour unions take an benefit of it
and attempt to get their needless and immaterial demands from the administratio
n. For this reason the business has no other alternative other than to give way
to the demands of the unions.
The above report has clearly specified the role of a human resource manager in o
rder to overcome the external factors which affect the organisational str
ucture. Also at the same time what steps are being taken by them to make sure th
at the organisation is having a competitive advantage in the market and has atta
ined sustainable growth in the economy. The following analysis is being supporte
d from various references for different articles and sources. Further the report
has outlined the importance of collective bargaining agreements in the internat
ional market as a tool to achieve competency through various negotiations skills
in relation to its workforce. The following has being proved with help of a deb
ate between the concepts and merits and demerits. Adequate resources have being
used to support the answer. Critical analyses have being thoroughly made to answ
er each and every task.

Whitelock, N. (2003) Tesco’s new recruits see the big picture
WINDMULLER, J.P. el al. (1987), Collective Bargaining in Industrialised Market E
conomies: A Reappraisal, Geneva: ILO.
HRM executive Sainsbury Local, Brixton,
Executive Interview with Store manager of Apple Stores
Danthine, Jean-Pierre & Hunt, Jennifer, 1994. "Wage Bargaining Structure, Employ
ment and Economic Integration," Economic Journal, Royal Economic Society, vol. 1
Skinner, W. Big Hat, No Cattle: Managing Human Resources. Harvard Business Revie
w, September-October 1981
Schuler, R. S. Personnel and Human Resource Management (2nd ed.). St. Paul, MN:
West Publishing, 1984