Human Resources Management and Its Development Role

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Internal Forces Analysis

Organisational Structure

The most important internal force that currently exists is the organisational structure because it might provide the HR manager with specific insights into how the organisation functions. On the other hand, it is also one of the keys to capitalising on staff performance and ensuring that all employees fulfil their functions perfectly. Therefore, optimal staffing needs are contingent on the HR manager’s involvement in organisational charts and standings. In order to make the best use of an organisational chart, the HR manager would have to point out the most vivid connections among staff members and rank every position in a rich, understandable way (Hecklau et al., 2016). Each position within the organisation should be attached to a detailed job description where every essential function would be listed. The HR manager relies on the organisational structure because they have to include positions that currently lack employees. Moreover, there may be a situation where the optimal organisation chart might not include specific employees, having the HR manager rework the existing staff map. A thorough review of the organisational structure is the shortest path to identifying all the redundancies and addressing them in the most viable manner.

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HR function models

Nowadays, there exists a variety of HR function models that differ in terms of the business units’ expectations from the segment. Hence, one of the most widespread function models in the modern market, being as well applied to the following organisation, is Ulrich’s three-legged stool model. This model presupposed dividing HR shared leadership team into three major categories: programme-facing, employee-facing, and business-facing, implying each of the “legs” taking responsibility for the sphere (Kelly and Rapp, 2017). One of the major advantages of such a strategy is the ability to divide the staff into smaller teams, establishing tighter and more efficient communication. Another important benefit is the manager’s ability to address various aspects of issues without them being united into a single structure.

In contrast, the business partner conceptual model should be introduced. The major idea behind the model implies HR management is divided into four segments responsible for strategic planning, employee contribution, transformation management, and HR service delivery. While this approach can be considered valuable for large enterprises that deal with much responsibility, it still implies abundant autonomy of each division. On the contrary, a three-legged stool is divided in terms of responsibility but requires a great deal of collaboration, making it more beneficial for HR development within the unit. Hence, considering the current environment in the business unit, a three-legged stool HR model can be considered the most suitable compared to other existing approaches.

Available Budget

Another internal force that severely affects the HR function is the budget that is currently available to the manager. The problem with this point is that there are specific positions that require additional demand – especially in customer service, manufacturing, and delivery services. The latter put a strain on any organisation’s budget because the HR manager has to assign adequate pay to each of the employees who are linked to demand-sensitive positions. A potentially increasing revenue may be helpful in terms of filling each of the positions. This is also true for those positions that do not actually bring revenue, meaning that the value that they bring still has to be remunerated monetarily, but in a slightly different way (Wilton, 2016). The HR manager should be on the lookout for the best ways to cut and extend the existing budget where necessary to offer the best options to every employee. In turn, the manager would also discover the advantages of voluntary benefits and their low-cost analogues that may be:

  1. attractive to employees
  2. reducing payroll taxes for the organisation.

Corporate Culture

The definition of how employees may be able to work together and interact on a daily basis delineates the concept of organisational culture. For example, HR managers in smaller companies would only deal with employees who perform their duties directly from the office. In bigger organisations, staff members may be allowed to work remotely, which also puts a strain on the HR manager. Despite the potential comfort, many employees may not be so willing to attend virtual meetings when they are used to their offline counterparts (the same works for phone calls as well). The most important task that the HR manager has to complete in this case is to review the existing flexibility options and come up with conditions that all employees (both office-bound and remote) would have to tolerate throughout their working hours (Sparrow, Brewster and Chung, 2016). The increasing number of work-from-home personnel forces HR managers to define clear specifications that are going to regulate staff operations. For example, if the company expects to offer its services 24/7, both employees and the HR manager should be ready for schedules that extend for the whole twenty-four hours.

Staff Skill Level

One more essential concept that cannot be ignored when dealing with the internal forces that affect the HR manager job position is the presence of certain skills among employees. If the company tends to grow relentlessly, there will be an increasing number of different needs (either operational or administrative) that might not be completed by the existing employees for a variety of unexpected reasons. One of such issues is the lack of job-specific skills, which mostly becomes evident due to the unstoppable innovation in different areas and deployment of cutting-edge technologies (Sparrow, Brewster and Chung, 2016). Many current workers simply do not have the knowledge required to run such operations, and the HR manager becomes responsible either for hiring new staff or coming up with additional training sessions intended to help the existing workers gain more insight into the required innovation. On-site training is an irreplaceable asset that should not be ignored by an HR manager who expects their workforce to extend their knowledge base and nurture innovative approaches to business instead of avoiding them.

Workplace Productivity

From the organisational point of view, employee efficiency should be seen as a trend that is either rising or falling from time to time. An accurate prediction of how the team is going to deal with the next challenge is one of the strongest internal forces that affect the HR manager. They would have to exert persistent efforts in the area of creating a positive working environment to achieve more positive results and ensure that productivity is actually growing. One of the most helpful ideas for the HR manager would be to come up with the most detailed job descriptions and offer employees the most all-inclusive wellness programs (Hecklauet al., 2016). An optimistic attitude taken by the HR manager would also have the employees become more confident and reassured. There is a never-ending number of morale-building activities that could be used by the manager to make the best use of individual employee strengths and achieve all the organisational objectives without hiring new staff or dismissing the existing ones.

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Regulatory Compliance

The last internal force affecting the HR manager that has been identified within the framework of the current paper is the importance of regulatory compliance. This means that the HR manager should be in a somewhat close relationship with the local security experts and insurance company representatives. If the company fails to adhere to all the necessary legal requirements, the majority of internal forces presented above will not make sense, as there will be no workers allowed to complete tasks for the company (Hecklau et al., 2016). The manager will be responsible for assessing the labour laws (either of the county, state, or national origin) and making sure that the office space is as safe and secure as it can be. Each organisational facility should adhere to the same rules if the company management wants employees to follow corporate policies. The executives, on the other hand, should communicate with the HR manager to find out about the latest required insurance and tax payments.

External Factors

Sociocultural Environment

HR management may not exist without the influence of several external factors as well, with the sociocultural environment leading the way. There may be numerous other concepts included in the cultural and social aspects of an organisation, such as employee motivation, work ethic, or even attitude toward the workplace. Depending on the culture, the HR manager has to define the correct rewards and come up with the best ideas to remunerate employees. In some cultures, improved work-life balance may be much more welcomed than even a reasonably high monetary reward (Stewart and Brown, 2019). Based on this, the HR manager should recurrently gain more insight into what kind of motivators move the staff forward. If work-life balance is superior to money, the best way to reward employees will be to give them a robust paid leave package and respond to the workers’ lavish vacation plans. Society’s role in affecting the HR manager’s position is also critical, as the former establishes the acceptable norms and carefully monitors the state of affairs (child labour, for instance).

Technology and Innovation

Another external factor that might severely affect the HR manager’s operations is technology. The idea is that there are multiple opportunities and challenges inherent in innovation that have to be explored by the HR manager and either implemented or refuted based on the needs and capabilities of the organisation. HR professionals should hire new workers based on the skills that the latter possess. Otherwise, the company would have issues related to the inability to adjust to the flexible workplace environment (Stewart and Brown, 2019). In order to remain successful, the enterprise should always respond to the innovation and hire individuals that are experienced in these specific areas. In a situation where the existing employees do not possess the required knowledge, they either have to be requalified or released from the roster. Managerial needs are always the key priority for the HR manager, so that an HR-sponsored training program could be rather helpful.

Economic Conditions

One more force that cannot be controlled by the HR manager (but still has to be reckoned with) is the economic situation within the market in general. Commercial booms and recessions, with the prevailing rate of inflation going out of control, may easily affect consumer demand. On the other hand, there is also the ever-growing rate of unemployment, which is also a considerable factor affecting salaries and wages for the existing employees. The challenge of economic conditions is supported by globalisation, as the latter forces HR managers to operate within a more competitive environment than before (Bratton and Gold, 2017). Every employee has to perform on the edge of their capabilities in order to remain relevant. This means that employee selection and development performed by any given HR manager should always be aimed at maximising efficiency. For some HR managers, the problem of globalisation may also become an opportunity to outsource jobs and save crucial organisational resources. This would help the company increase profits while decreasing the majority of employee-related costs.

Legislation and Politics

The legal aspect of human resource management cannot be avoided as well because HR managers have to focus on different regulations expected to have the organisation align its operations against many complex laws. Some of the essential laws include the Equal Pay Act, the Fair Labour Standards Act, and Worker Compensation laws. Before taking action in any of the areas, the HR manager should first achieve compliance with every required law project to protect the organisation from being exposed to political and legal issues. Even civil lawsuits could be evaded if the HR manager took over the legal positioning and made sure that the current environment allows for specific changes (Stewart and Brown, 2019). With the political processes leading to the development of legislation-related practices, the HR manager should monitor pending statutes and protect organisational and employee interests if necessary. Political debates are practically unstoppable, which makes it critical for the HR manager to gain more insight into the latest legislations and their potential impact on the organisation and staff members.

Labour Force Demographics

The last type of external force that affects the HR management process is the dynamic nature of intrinsic personnel characteristics. This means that there are older generations preparing for retirement and their younger counterparts who are ready to replace them. The key problem for the HR manager is to find proper methods of attracting these new potential employees. The younger generation requires a different set of rewards and compensation packages, as they are hired differently as well. Given the fact that younger workers are rather picky and much more tech-savvy, HR managers are exposed to the problem of reaching out to such employees. All the potential sources of external influence have to be reviewed by the HR manager prior to making any labour force-related decision, as there will always be a risk of sanctions and lawsuits (Bratton and Gold, 2017). The market pressure also makes HR managers reluctant to external influences as they start ignoring the value that younger workers could bring to the organisation. Too many factors that are out of the HR manager’s control yet have to be considered if the organisation is willing to succeed.

Analytical Tools Comparison

Table 1. SWOT vs PEST(LE) Appraisal:

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SWOT PEST(LE)
Benefits SWOT may be used with any company, as it is simple enough and does not require additional investments. There are many situations where SWOT-based strategic initiatives may be implemented. Moreover, SWOT does not cost much, so the management does not have to hire expensive consultants or purchase costly software to support organisational objectives. The only resource that is needed is the time required to fill out a spreadsheet with the SWOT analysis. PEST analysis may be implemented in the cases where the SWOT did not work for the organisation. Even though there is a potential conflict of interests between the external and internal factors that are to be reviewed, the overall state of PEST analysis shows that it can be successfully used for the review. Compared to SWOT, it is much more successful on the macro scale, meaning that it considers economic factors as well.
Challenges There are two essential challenges that affect the application of SWOT analysis. The first is the lack of prioritisation, where the tool itself does not help in making the decision on what to address first. The second problem is that SWOT is too subjective, as it is mostly based on the data that the reviewer puts into it. Therefore, all sources of bias and experience are damaging the potential objectivity of SWOT analysis results. The major challenge related to PEST analysis is that it does not assess any internal factors and only focuses on the external situation. Yet, this potential strength is also the biggest weakness of PEST(LE) because its simple design deprives it of the reviewer’s ability to gain insight into every important area of business.
Conclusion Both PEST(LE) and SWOT are beneficial for the organisation and its HR manager, as they help determine weaker corporate areas and address them in a timely manner. Nevertheless, internal factors are often much more important than their external counterparts. This means that all the disadvantages and benefits of each of the analytical tools have to be approached carefully if the HR manager wants to analyse the organisation properly. Instead of picking just one, they might be able to combine the results of both the PEST and SWOT and make an informed decision in terms of the essential threats and opportunities. Objectively, the SWOT is more powerful because it addresses both external and internal factors and provides the manager with a big picture.

Strategy Formulation and Implementation

Align the Strategy against the Organisational Vision

The first task that the HR manager would have to complete is to switch to strategic planning and see how daily operations might affect the organisation in both the short and long term. Both the vision and values are equally important because they help the HR manager develop their talent expertise. While understanding the organisation’s essential purpose, the manager will also be able to develop motivation and specific behaviours among employees (Banfield, Kay and Royles, 2018). As one of the organisational pillars, the HR manager would also have the opportunity to refocus the corporation and help employees pay attention to what is important at the moment. As an asset that is capable of modelling organisational values and behaviours, HR managers should participate in the process of creating and implementing a new strategy because they possess the internal and external knowledge that could become crucial in the nearest future.

Business Ethics and Culture as Enablers of the Strategy

When there is a dysfunctional organisation culture, even the best strategy will fail over time. In order to evade such misfits and issues linked to the lack of ethics and strategic vision, the executives should consult the HR manager to see how the future business plan would align against the existing organisational culture and values. In a sense, business ethics may not be ignored because of the organisation-wide importance of employee effectiveness in a situation where decisions have to be made quickly (Banfield, Kay and Royles, 2018). Without supporting the team’s performance, the HR manager will not be able to communicate with the required employees and motivate them to behave ethically at all times. Nevertheless, the manager still possesses the power to articulate the necessary behaviours and values that would shape the new strategy. The organisational culture may not be removed from the company’s radar either, as employees’ needs and aspirations also have to be considered in the case where the business expects to succeed.

Identify the Potential Constituents of the Strategy

Even though the financial performance of any organisation is rather important and cannot be ignored when it comes to top levels of management, the HR manager has to place an equally strong emphasis on talent and human resources. Without being able to retain the best workers, the organisation is not going to succeed, meaning that inclusion and diversity should also make it to the list of the core capabilities that have to be possessed by organisational leaders. All the requirements regarding the potential workers have to be developed and deployed by HR managers (Bailey et al., 2018). Accordingly, the latter are the ones responsible for the successful execution of requirements received from the top-level directors. The fact that HR managers have access to the current talent pool and realise the weaknesses of existing employees means that all the insights that they can gain into strategic decision-making are valuable. Even during the earliest stages of business decision-making, HR managers cannot be ignored, as their knowledge has much potential.

Accountability as a Strategic HR Management Device

The concept of accountability is also crucial for HR managers because they have to maintain specific feelings and opinions among the workforce in order to make the best use of the proposed strategy. By successfully engaging employees in the policy, the manager will have the opportunity to control the hearts and minds of all team members by picking the best motivation devices for every particular worker. The only requirement that has to be met in order for the strategy to become successful is constant employee engagement. All the possible suggestions, feedback options, and workforce reactions have to be recorded and processed by the HR manager to see if the proposed strategy is working out as expected (Bailey et al., 2018). In the case of possible significant changes, the team would have to restructure its operations with the help of HR-induced transformations touching upon organisational communication and the ability to behave in a certain way. Therefore, an HR manager is an organisational architect who directs the change and makes sure that all the required instruments for proper transformation are in place.

Business Performance Measurement

Table 2. Business Performance Measurement Instruments:

Measurement Instrument Description
Profit The business has to check in with its incomes from time to time in order to see if its initiatives actually pay off in both the short and long term. If there is something wrong, the company’s balance sheet will immediately reflect it. There has to be at least one finance specialist across the organisation that would assess the company’s standing.
Satisfaction The management should recurrently review its initiatives in order to see how satisfied are employees across the organisation. In the case where corporate objectives are not attained, the workforce will be most likely to remain discontented. New ideas have to be delivered from time to time in order to keep the company afloat and maintain employee satisfaction.
Social Media Social media will always be relevant to any kind of business. An organisation could track its performance using follower count, positive interactions with other users, and any additional aspects of social media that one could come up with when assessing the company’s performance. The ability to select the right social media platform is another important success factor that may be used to connect with customers on a personalised level.
Customer Feedback Customer feedback is just as important for measuring business performance because it serves as a compass for the future company’s initiatives. The reputation of the organisation depends on how it processes customers and responds to the growing demand. Online reviews are critical, as they could be the shortest way to improve existing business ideas.

The Role of HR Management

Employees’ full-scale understanding of the working model within a business unit is of crucial importance in terms of the enterprise’s proficiency. HR management, in its turn, bears responsibility for securing this understanding executed through a five-step business planning model presented below (Alley, n.d.):

Table 3. Five-Step Business Model

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Step Name Definition Role of HR Examples of application
Assessment Evaluation of the factors surrounding the business strategy. HR manager is responsible for the human resource assessment in terms of its capability and productiveness. HR management develops a report considering the previously estimated KPI of the employees to assess the potential resource productivity rate.
Prioritising and Setting Objectives Setting major business goals according to their significance in the context. HR manager allocates employees according to the set goals and plans of their fulfilment. HR management creates a spreadsheet with the allocation of the employees according to each objective’s labour and time requirements.
Measurement Estimating the quantitative data concerning the results, progress, and employee performance during the business strategy implementation. HR estimates KPI for each employee according to the defined data, tracking the progress for further reports and interventions. HR manager provides each employee with a performance indicator spreadsheet that will track one’s productivity; the HR manager holds intervention sessions based on the KPI rate.
Design and Implementation Estimating the design of the future product takes into account external factors and previous experience. HR manager calculates the approximate scope of human resources required for the design and strategy implementation. HR management creates a spreadsheet with the resources allocation required to implement a particular idea.
Technology and Customer Service Development of technologically advanced tools aimed at obtaining immediate customer feedback and resolving arising issues. HR managers secure training on the ways to communicate with potential customers in order to establish beneficial service patterns. HR management develops training strategies on customer service and teaches employees to track the business’ CRM to communicate with current and potential customers.

The Role of HR Manager in Business Planning

The first task that an HR manager has to do when participating in business planning is to allocate all the organisational resources properly and make sure that all the right people are assigned to specific tasks. This role of an HR manager is one of the key predictors of financial forecast because each of the individuals that have to be recruited has to possess a special skill set to be suitable for the organisation (Banfield, Kay and Royles, 2018). All the recruitment activities performed by the HR manager have to be aligned against the resource plan rather carefully. Resignations, maternity leaves, and other dynamic aspects of the HR manager profession could be predicted under the condition where the person responsible for the HR department is aware of the resources available to them.

On the other hand, there is the problem of organisational design. Every HR manager has to possess extensive knowledge in the area of corporate development in order to influence employees in a positive way and have them perform better and come up with innovative ideas more often (Stewart and Brown, 2019). Behavioural and motivational aspects of the HR manager’s work cannot be ignored either because many organisational processes require increased operational efficiency and a workforce with outstanding problem-solving skills. The organisational design proposed by the HR manager should reflect cooperation and loyalty.

The third task that an HR manager could complete within the framework of business planning is the allocation of training and development activities. Numerous new roles appear as a response to technology-related innovations. Accordingly, HR managers have to come up with strategic growth plans intended to outline the company’s future for the next 5-10 years (Banfield, Kay and Royles, 2018). The need for adequate business planning will be promoted and established by the HR manager, who will also mention the possible ways of achieving organisational goals effectively.

The Role of HR Manager in Change Management

The HR manager should support change management by communicating all the essential points to employees. The increasing knowledge in terms of business intelligence might allow HR managers to come up with a better strategic vision where all the marketing and finance points would be taken into consideration. All organisational departments should have access to this kind of information in order to be able to perform at the highest possible level. In this case, the HR manager’s central function would be to employees’ willingness to embrace the change and adapt to the dynamic changes applied to the organisation. Strategic HR policies may be seen as a powerful instrument for change management.

On the other hand, HR managers are always responsible for coming up with a complex change agenda where all the required data would be included. The changing calendar and several important milestones have to be proposed by the HR manager in order to specify what has to be reached within a certain timeframe. Both organisational and personal objectives may be included in that agenda, motivating the workforce to exert their best efforts. Business transformation is not a quick process, and it should be carefully managed to the point where all employees have been able to embrace the change. The job of the HR manager is to make sure that everyone adheres to the proposed change and make the steps that bring the organisation closer to completing the transformation.

The last task that may be completed by the HR manager within the framework of change management is to come up with a strategy to overcome the emotional barriers. Naturally, change instils fear, so the workforce should be prepared for approaching their tasks and responsibilities differently. The manager should be responsible for preventing and alleviating reluctance among employees, paving the way for even more improvements. Every adverse reaction may be foreseen by the HR manager, especially in the case where they have been able to plan all the activities.

Assessment of Data Sources

Common Metrics Tracked by HR Managers

The total revenue, when divided by the number of employees, makes it possible to gain insight into the average revenue per worker. This particular metric is important for organisations that value monetary efficiency and do not often capitalise on any other aspect of company performance. Another metric is the offer acceptance rate, which stays for the job offers that have been accepted by applicants within a specific period. The higher the percentage is, the more chances there are that the company’s talent acquisition strategy is perfect and does not require any specific changes (DeCenzo, Robbins and Verhulst, 2016). The third important metric is the presence of training expenses per employee. This particular element may be used to determine the overall efficiency of the proposed training, as the organisation would have the possibility either to cut training expenses or to increase them where necessary. The final metric is training efficiency that can be analysed with the help of multiple data points such as employee role, performance improvement, and test scores.

Types of Data Sources

There are two essential types of data that can be used by an HR manager to assess the current state of affairs and propose a set of actions to either maintain or improve it: internal and external. As for internal data, it refers to the information that was obtained through inside analytics. For example, the HR manager could gain access to employee training records, performance appraisals, or employee tenure. This information might be required to ensure that all employees report their feedback and performance-related data in a timely manner. The information on potential workers could also be collected using internal tools, as the manager would have the ability to see if there are any disciplinary actions taken against the given employee (Jamali, El Dirani and Harwood, 2015). Internal data also gives the ability to point out the most valuable workforce who contribute to organisational success and realise their potential. The only probable challenge related to gathering and using this type of data is that some of these measures may be disconnected, leading to no reasonable conclusions.

As for the external data collection, there are four main types of information that an HR manager could gather to improve the current state of affairs within the organisation: financial, organisation-specific, passive, and historical. Financial data is used to calculate the cost of hire or further revenue per employee, stabilising the monetary efficiency of each particular employee. Organisation-specific data that the HR manager may be able to collect relates to supplement analytics of essential products or services provided by the organisation. Team members could also provide passive data intended to help the HR manager see how contented employees and customers actually are (DeCenzo, Robbins and Verhulst, 2016). Historical data, on the other hand, could be collected by the manager to gain more insight into different environmental variables that could affect employee behaviour and the company’s economic standing. Internal data cannot give as much insight into global events as its external counterpart.

Reference List

Alley, B. (n.d.) Five steps of the model business strategy. 2020. Web.

Bailey, C.et al. (2018) Strategic human resource management. Oxford: Oxford University Press.

Banfield, P., Kay, R. and Royles, D. (2018) Introduction to human resource management. Oxford: Oxford University Press.

Bratton, J. and Gold, J. (2017) Human resource management: theory and practice. New York: Palgrave.

DeCenzo, D. A., Robbins, S. P. and Verhulst, S. L. (2016) Fundamentals of human resource management. Hoboken: John Wiley & Sons.

Hecklau, F. et al. (2016)‘Holistic approach for human resource management in Industry 4.0’, ProcediaCirp, 54(1), pp. 1-6.

Jamali, D. R., El Dirani, A. M. and Harwood, I. A. (2015)‘Exploring human resource management roles in corporate social responsibility: the CSR‐HRM co‐creation model’, Business Ethics: A European Review, 24(2), pp. 125-143.

Kelly, C. and Rapp, K. (2017) ‘The HR function in 2021: models & competencies’.

Sparrow, P., Brewster, C. and Chung, C. (2016) Globalizing human resource management. New York: Routledge.

Stewart, G. L. and Brown, K. G. (2019) Human resource management. Hoboken: John Wiley & Sons.

Wilton, N. (2016) An introduction to human resource management. New York: Sage.

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