Strategic Human Resource Management

Strategic Human
Resource Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Relationship between business strategy and human resource strategy.......................................1
Vertical and horizontal integration across the company.............................................................2
Comparison of strategic human resource management models..................................................3
Explanation of contingency, universalist and resource based view............................................4
Critical evaluation of performance management and reward system.........................................4
TASK 2............................................................................................................................................6
Theoretical perspective of employee relations............................................................................6
Role of players in employee relations.........................................................................................7
Importance of employees participation and voice in employee relations...................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic management is the procedure of planning of activities and leverage of tools and
resources for accomplishment of desired objectives. In this report, the strategic management plan
has been formulated for Tesco. Tesco is a retail company operating in Britain, United Kingdom.
It generally deals in groceries and general merchandise. It was founded a century ago by Jack
Cohen. The report include the explanation of relationship between business strategy and human
resource strategy. The report also include the explanation of vertical alignment and horizontal
integration in organization context. Further the report cover the evaluation and comparison of
theoretical basis models of strategic human resource management. The report also comprise the
explanation of nature and theory of employee relations. The report the include the roles of actors
in actors in changing the nature of employment relationship. The report contain the
recommendations of importance of employee participation and voice in improvement of
employee relations (Armstrong, and Taylor, 2020).
TASK 1
Relationship between business strategy and human resource strategy
Human resource is an important integral part of business. Business run well when
employees of the company feel motivated, satisfied and enthusiasm. Human resource strategy is
a part of business strategy. Effective human resource strategy also helps in enhancing the overall
growth of business. Business strategy is linked with human resource strategy. The relations
between business strategy and human resource strategy are given below.
HR strategy is business strategy
Business strategy implies all the activities needs to performed to achieve a specific goal
of a company. Human resource is a strategy is a plan of activities to improve potential of
employees within the organization. Employees are part of business that's why human resource
strategy is a part of business strategy. Initiative taken to improve human resources is indirectly a
step towards growth of business. Human resource strategy engaged team of business executives
and human resource specialist to discuss and develop aims of human resources that would
eventually benefit the overall business (Bratton, and Gold, 2017).
HR strategies and business productivity
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The process of hiring in human resource department is crucial for accumulation of
productive workforce. Formulation of human resource strategy for hiring competent employees
is the foundation of organization growth. Maintaining a conducive environment in which
employees feels satisfied and secure is transform workforce in ladder to reach at the final
destination. Human resource is considered as the most auspicious resources for an organization
according to human resource experts (DeCenzo, Robbins, and Verhulst, 2016).
Examining coordination of business executives and human resource experts
Efficiency of relations between human resource strategy and business strategy is
examined by the quality of communication between employees of human resource department
and executives of other department.
Vertical and horizontal integration across the company
Horizontal and vertical integration are the succession strategies utilized by companies to
expand their business.
Horizontal Integration: It is a practice of acquisition of similar company of the same
industry in which acquirer operates. The main objective of horizontal integration is to reduce the
competition as it enlarge the size of the business. Company decides to apply horizontal
contribution in order to offer diversify product and services. It also aids in accomplishment of
economies of scale. Firm may also aspire to establish their presence in new geographical region
in order to increase source of profit by selling products to new customers. If outcome of
horizontal integration is positive than companies becomes capable to earn immense profit which
was difficult to earn individually. Example of vertical integration is acquisition of picture
company Pixar by another picture company Disney (Sparrow, Brewster, and Chung, 2016).
Vertical Integration: In this phenomenon, one company purchase another company that
lies in the production process of acquirer company. The main objective of performing vertical
integration is to streamlined the supply chain system of the business. It decreases cost of
manufacturing thus increase the profitability of the company. Vertical integration is of two types-
forward vertical integration and backward vertical integration. In forward vertical integration,
company buy firm which placed downward in the series of supply chain. On the contrary,
backward integration implies the acquisition of company that directly or indirectly provides raw
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