Pestle_Analysis

1. INTRODUCTION – ORGANISATION AND MY ROLE IN HR 1.1 Organisation Birmingham City Council (BCC) is Europe’s largest council, employing some 55,000 staff. BCC has embarked upon the largest business transformation programme to revolutionise the way that council delivers the services to it’s service users and stakeholders. The business plan in a longer term seeks to save money over next 10 years and to find a new and better way of working as a corporate organisation and deliver efficient service to the citizens of Birmingham. Bcc online. 27th March 2010. (hptt://www.birmingham.gov.uk/businesstransformation) 1.2 My Role I joined Birmingham City Council (BCC) in 2000 and in 2008 I transferred to Human Resources (HR) as a HR Assistant, My role is to provide professional and friendly service to employees. The new structure has not yet been fully implicated as my job role remains the same. 2.PESTLE ANALYSIS The reason for PESTLE analysis is looking at external facilities and how does it affect BCC. Pestle Heading Current/forthcoming issues Impact on the organisation POLITICAL After 2 decades of Labour rule, Conservative and Liberal Democratic took control of BCC. The local elections are in May 2010 and General Election. Conservative cuts the expenditure immediately due to budget cuts from the central government. BCC debt to recover expenditure in next few years. ECONOMIC The UK recession has lead to highest unemployment figures Public borrowing, due to National debt the Central Government has cut the budget for the Local authority. However this impacts on BCC expenditure. BCC has overspent and are in debt, the recovery period is 10 years to save money this mean more job cuts and redundancy in the workforce. SOCIAL More strain on old people service, Closing down of the nursing homes. Safeguarding Children Services Closing down of care homes due to not meeting to the government standards and cost implications of renovating. High profile cases, every child matters children’s act. Balancing Budget TECHNOLOGY IT computer/ Systems Applications Process (SAP) Flexible home working pattern, access to network and associated technology. BCC has invested money on new technology SAP to make better working tool. The flexible home working initiative applies to senior managers and directors. LEGAL Employment Law, changes to Have to keep up to date with changes ENVIRONMENT Money has been allocated by the Government to make the city cleaner, greener and safer place BCC are working to make the environment greener. Re-cycling plants All the employees files been scanned on Emerald electronically software and the hard copies been shredded. Summary of Analysis: Although BCC has a lot of credibility in the market place, it needs to address serious internal issues with the workforce and restructuring of the organisation. 3. EVALUATION OF PERSONNEL FUNCTION The role of the HR function is to enable the organisation to achieve it’s objectives by taking initiatives and providing guidance and support on all matters relating to its employees. The basic aim is to ensure that management deals effectively with everything concerning the employment and development of people and the relationships that exist between management and the workforce. Bibliography - Armstrong, Michael. Human Resource Management Practice, 7th Edition. Cogan Page Limited, 1999. The reason of changing the way Council works is to introduce better ways of delivering services to their stakeholders by improving on the following areas; The HR Department is currently made up of four employees and undergoing in the process of implementing several new systems of work and processes as well as producing a master library of policies and procedure. • Strategic Partner • Administrative Expert • Employee Champion • Change Agent 3.1 Strategic Partner Business Partners (BP) work closely with the Business Leaders influencing and steering strategy and strategy implementation. i.e Business Transformation programme the BP were engaged in the consultation to apply future changes to BCC Policy and Procedures. Advantages of strategic partner • Have more power • Disadvantage of strategic partner • Work well under pressure • Valuable time can be lost in searching for vital information • Job cuts on business partners due to limited budget. 3.2 Administrative Expert Shared services where all the routine transactional services across the business. Shared services provide resourcing payroll, absence monitoring, issues, queries, legal contract, and general terms and conditions of the services. Advantages of Administrative Expert • Employee interaction Centre (EIC), this is when the employee/managers have any queries and contractual changes. • Excellence in People management (EPM) - giving managers self service (MSS) to update staff records and employee self service (ESS) restricted access to view and request leave. • New technology SAP where all the adequate data are stored to include payroll, Voyager and EIC. Inline for the staff where all the wealth of information are stored this will include structure with new ways of sharing knowledge and best practice across the city. • New electronic Performance and Development Review (PDR) • Training and development information Disadvantage of Administrative Expert • Managers don’t have full access to MSS to make contractual changes for their staff. • Managers are struggling to input sickness on payroll system • Managers/employees are struggling to use new technology 3.3 Employee Champion Listening and responding to employees queries and providing resources i.e carrying out staff survey and how that would enable HR to improve future services. Advantage of Employee Champion • Future Operating Model (FOM) is to assess and monitor every business transition activity. • Opportunities are available for internal change agent Disadvantage of Employee Champion • Loosing skilled and experienced staff due to significant job cuts • HR staff are well under pressure to process queries and not enough resources. 3.4 Change Agent Team of HR experts with specialist knowledge. The role centre of excellence is to deliver competitive business advantage through HR Innovation. Managing transformation and change agent i.e taking people from their substantive post and forward to agent pool to put in a team to identify or resolve the problems. Advantage of Change Agent • BCC was awarded excellence gold award in 2009 Disadvantage of Change Agent • 3.5 Outsourcing HR Work To a professional and nationally recognised, demography, unemployment, economy, skills shortages, (i.e social workers) BCC is outsourcing the IT network with service Birmingham due to shortage of skilled people in-house. 4. CONCLUSION: Whilst researching the organisation’s personnel functions and referring to Martin and Jackson’s Personnel practice 4th edition I can conclude that the new structure of BCC has not yet fully implemented and the new SAP technology has lot to offer in the business world