Assignment: Understanding the Business Context of Human Resources (5cbic)

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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 strategy is translated in HR strategy and policy…show more content…
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

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