Strategic Human Resource Management in ASDA

This report explores the relationship between business strategy and human resources strategy, vertical alignment and horizontal integration, theories and models of SHRM, and HR practices of performance management and reward system in ASDA. It also discusses the nature and theoretical perspective of employment relations and provides recommendations for improving employment relations within the organization.

Strategic Management
Human Resources
1

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
Relationship between business strategy and human resources strategy......................................3
Explanation of vertical alignment and horizontal integration.....................................................4
Theories and models of SHRM...................................................................................................5
HR practises of performance management and reward system. ................................................7
TASK 2............................................................................................................................................8
Nature and theoretical perspective of employment relations......................................................8
Identify and evaluate the role of actors within the employment relationship with analysis of
the changing nature of employment relations. ...........................................................................9
Recommendations of how mechanisms of employees participation and employees voice can
contribute to improved employment relations within an organisation. ....................................10
CONCLUSION..............................................................................................................................10
REEFRENCES..............................................................................................................................11
2

INTRODUCTION
Strategic human resources management is the relation between human resources
department and their strategies, goals and objectives. It is the process by which business
organisation engage employees with the motive to retain them in the organisation because it is
necessary for both employees and business organisation. Strategic management of human
resource helps the workers to increase their skills and capabilities in the working place and
working environment (Ansoff and et.al., 2018). The company which is taken for this project is
ASDA. ASDA is the British supermarket chain which has a headquarter in England, UK. It was
founded in the year 1949 and currently it operating in more than 631 locations in all over the
world. There are approx 1,65,000 employees working currently in the organisation. This report
covers relationship between business strategy and human resource strategy, explanation of
vertical and horizontal integration. Then it covers theories and models of SHRM and best
practises of performance management and reward system. Also it covers nature and theoretical
perspective of employment relations and identification of roles of the actors within the
employment relationship with hanging nature of employment relations. Then report covers some
recommendations how mechanisms of employee participation and employee voice.
MAIN BODY
TASK 1
Relationship between business strategy and human resources strategy.
Strategic human resource management is the process of connection between a company's
human resources department and their goals and objectives. ASDA is the largest retailing
company in UK as its human resource department is very effective in performing its all
activities. In business world uncertainties comes at the frequent basis. Due to this business needs
to changes its policies and regulation in which the company is operating. The business strategies
and human resources strategies are interconnected with each other as to formulate business
strategies, top management is responsible for that and human resources department is responsible
for providing right direction to the strategies made by top management (Booth, 2015).
Organisations or firms are of private and public sectors that are being pushed its customers,
investors, board of directors and analysts etc. Company's human talent provides an competitive
3

advantage in modern environment. To make unique ability of employees, the HR mangers
should adopt or designs some of the business strategies that can helps the employees in learning
new skills and capabilities. This will helps the employees and the organisation in building and
enhancing goals and objectives of the company.
Business strategies includes market segmentation, designing of products and services and
creating value of the products. This requires proper skills and learning of the employees working
in the organisation (Crumpton, 2015). HR department of the ASDA company formulate all these
strategies and policies that can help employees in learning new skills and satisfy their customers.
HR department of the company provides proper training and development sessions, performance
appraisal methods and reward system to enhance employees effectiveness. This methods help all
employees to tackle with any situations occur in the organisation. HR strategy help the
employees in providing them proper training. And business strategies helps the organisation in
achieving their goals and objectives. Objectives of the company is to make profits and make
customer satisfied. Company also take feedbacks from customers and try to improve their issues
related to products or services provided. So without making HR strategies, business cannot
formulate its marketing strategies in the market.
Explanation of vertical alignment and horizontal integration
There are two ways in which business can expand. These are Horizontal and vertical
integration. Horizontal integration is when a company grows by acquiring a similar company in
the industry at the same point of supply chain. Vertical integration is when business grow by
acquiring another company that operates previously or after them in the supply chain. Horizontal
integration is very common as company grow by taking customers from their competition. This
is done when company is successful business model and want to increase more customers to
increase their profits and revenue. Merging is done to diversify company's products and services
and can able to reduce competitors in market place. For example- when a large hotel purchase
any small hotel. Vertical integration is that when business choose to expand by purchasing of any
other company that occupies a critical place in supply chain process (Das and Kodwani, 2018).
This involves raw materials, manufacturing, distribution and retailing. Vertical integration
integrates a company with units supplying raw materials to it (backward integration) or on the
other hand with the distribution channels that carry their products or services to end customers
(forward integration).
4

Theories and models of SHRM.
There are various theories and models of strategic human resource management that help
organisations in building and enhancing the operations. These theories are:
 Universalistic theory: This theory is related to the internal resource of an organisation.
This theory helps the organisation in improving and enhancing the activities performed in
the organisation in effective manner. With the use of this theory company can able to
formulate its business strategies or plans that can help the company in accomplishing its
goals and objectives (Brewster, Mayrhofer and Farndale, 2018). In context of ASDA
company, HR department plays important role in the organisation for recruiting and
selecting a best candidate for them. In addition, management of the company uses
effective ideas and innovations to achieve company's goals and how they can increase the
efficiency and effectiveness of company productivity. For example, ASDA company uses
this theory and conduct recruitment and selection procedure in very effective manner.
They identifies skilled and talented employees for their organisation who has a capability
to perform different job roles at anytime. The skilled employees initiate some new ideas
that helps them in satisfying customer needs and preferences. This helps the organisation
in growing fluently, earning more profits and revenues and maintaining its reputation in
the market.
 Contingency theory: Contingency theory is the theory known for situation based theory
as depending on the different situation different actions are taken. In businesses there are
various uncertainties can come on frequent bases, for them different actions and
strategies are to be performed accordingly. In ASDA company, management is ready to
handle any situation and they perform there functions and strategies accordingly.
Company can able to deal with complex situations and uncertainties. Implementation of
this theory helps the business organisation in increasing their revenue and profits and also
increasing in productivity (Ferris and et.al., 2018). Furthermore, company would be able
to work effectively with the full potential employees working in the business
environment.
 Resource based view theory: According to this theory, it focus on the firm or
organisation. According to this, competitive advantage can only occur at the time of
heterogeneity and mobility and then in these assumptions serve to resource based model.
5

Resources based model is different from the traditional based model. Heterogeneity
resource refers to the company capital. This model provides sustainable competitive
advantage to the company. In ASDA these resource provides positive value to the firm,
the resources must me unique or rare so that they can bring competitive advantage in the
market. Also the company resources cannot be substituted by any other resource of
competitive firms. In context of ASDA company, they make use of unique and rare
resources so that they can earn high competitive advantage in the market. Because there
are various competitors of the firm such as Tesco, Sainsbury etc. these organisations also
have similar products as ASDA have. But ASDA use those resources which are unique so
that there could be no substitute available for them.
There are some models of strategic human resource management that are to be used by
the business organisations to achieve organisational goals and objectives (Frynas and Mellahi,
2015). Human resource department formulate some strategies that focus on accomplishment of
goals of company. In context of ASDA, human resource department follows a model. These are
discuss below:
 Organisational SHRM content model: The model which is used here is Labelle and
Wils. It was founded in 1983. this strategy founds that company strategy was influenced
by the internal and external factors of the country. There are various types of goals and
HR practises that are to be founded by Labelle. The another models which comes in this
SHRM content model was carried out by Wils. He identifies the relation between content
of business strategy and human resources strategy.
 Competency model: SHRM competency model identifies that what id takes to be
successful. This model defines the competencies and knowledge requires for effective
practices. This also support human resource professionals in their career and professional
development. This model helps the organisations in building approaches for the
identification of HR leaders, teams and individual contributors. This model provides
foundation for talent management throughout the Hr life-cycle. And this helps the
organisation to ensures that HR manger of the company can able to handle and tackle all
situations or issues that comes in between (Greenwood and Hinings, 2017).
 Kotter's model: This model is given by John Kotter which consist of eight steps. These
are establishment of urgency which is created by the management with a motive to
6

establish the sense of urgency in employees. Then build a powerful team- in this leaders
and mangers needs to build a strong team. Then create a vision- this is very necessary to
understand by every employee because this can help in communicating with each other.
Then next is communication vision- in this communication is very necessary with the
subordinates and superiors. Then next is remove hurdles- company identifies the hurdles
that are coming in between and make improvements on them (Helfat and Martin, 2015).
Develop a short term wins and last is build on the changes- as in this company identifies
some changes that are to be made in working environment.
HR practises of performance management and reward system.
 Performance management: Performance management is the process of evaluating the
employees performance to achieve the organisation goals and objectives. On the other
hand, it is the process of improving, building, enhancing the skills and capabilities of
employees working in the business environment so that they can give their best effort to
achieve the organisational goals with the definite time schedule. Human resource
manager is responsible for performance management of the staff members. This helps the
employees in increasing and enhancing their skills and productivity. Employees working
in ASDA company are very effective in performing their work. But human resources
manger of the company take regular evaluation of the employees performance. This
increase the employees productivity and potential. As employees are working very
effectively and efficiently, this is increasing company profits and revenues continuously.
ASDA company is performing very well the concept of performance management. By
using this step company can able to achieve their goals and objectives and also examines
that employees are working their task effectively or not. Performance management also
helps the employees in retaining at the business organisation.
 Reward system: Reward system is very effective HR practices that are to be performed
by the HR department of ASDA. As in this managers evaluate the performance of
employees on regular basis and at the end of month or year they awarded that employee
who has performed better in the organization with some bonus, incentive, gifts or
trophies etc (Kane and et.al., 2015). This reward system helps the employees in
motivating towards the work they are doing. In context of ASDA, the HR department is
responsible for providing rewards to the employees who has done better performance in
7

the working environment. They provides rewards to the potential employees in terms of
bonus and incentives etc. this motivates them and facilitate them to work with their full
potential. Also on the other hand, it is beneficial for the company in increasing their
productivity.
TASK 2
Nature and theoretical perspective of employment relations.
Employees relations is the relation between employees and employers in the organisation.
There are some scholars that are related field such as human resource management, labour
economics, industrial relations. Sociology, labour law and labour history (Lazzarini, 2015). The
employment relationship is simply sum of prescribed sum of activities and interactions of HRM.
Company consist of many employees as there are about 1,65,000 employees working currently
in ASDA company. They work with their full potential and productivity that helps the
organisation in growing more. There are various theories that are used in the company at the
perceptive of employment relations. These are discuss below:
 Unitarist: Unitarist is the method that is used by the organisation in which decision
making power is with top management and they made all the decisions rewarding
business activities. Then these decisions are to be followed by every one working in the
organisation. It is set on et assumptions that hold the conflicts at the workplace between
employees and mangers. The conflicts can be at any matter that is to be personality
disorder, inappropriate recruitment, inappropriate promotion process and poor connection
between employee and employers. So that is why this method is made to to give a single
source of authority, who takes all decisions regarding company policies and rules. This is
done to reduce conflicts and trade unions at the workplace. In ASDA company, it
involves employees in decision making process.
 Pluralist: Pluralist is different from unitarists as it is started with the assumption that
workplace conflict is unavoidable (Mathis, Jackson and Valentine, 2015). This theory
focuses on the perception that how business are complex and made up of certain interest
groups. In this there are different sources of authority within an organisation. So this can
create conflicts between employers and employees. There can be conflicts at the context
of reward system and workload of the employees. It is accepted that pluralist generally
8

except right of bargaining an employees collectively and trade unions can act in this
capacity on their behalf. ASDA organisation is having many conflicts in the internal
working environment but the trade unions protect them to provide right to employees.
 Marxist: Company is having an effective department that performs their functions very
well and in effective manner. Marxist is the method that helps the organisation in
improving their productivity and profits. By applying this method on employee relations,
social conflict can be viewed as natural outcome of capitalism, industrial conflict is
viewed as the being a reflection of the struggle played at the workplace (Morris, 2015).
ASDA company focuses on the quality of employees performance and involves them in
business activities. This helps the organisation in employee engagement and making
positive relations between employees and employers.
Identify and evaluate the role of actors within the employment relationship with analysis of the
changing nature of employment relations.
 Employees and the union: Organisation is having many factors that helps them in
increasing the performance. Employees are rigid and they do not want the organisations
to use various factors in the organisation. Trade unions helps the employees in protecting
them from exploitation and any other issues or problems occurring in the organisation.
This trade union collectively helps the employees in listening their demands and requests.
 Employer: ASDA consist of many employees working at the current time. But there
needs and demands are changed according to the dynamic environment. The employers
needs to maintain positive relation with employees. So that they can perform there work
more effectively and efficiently. Employers needs to analyse employees performance by
doing performance appraisal that can help the employers in evaluating their performance
that who is doing better and who is not (Panfil and Nechita, 2015). This also helps in
knowing the person who is able to get rewards.
 Organisation: Employees relation is the most crucial process in an organisation. Because
without having good employee relations, there can be conflicts among them. This
decrease companies reputation and goodwill. Good employees relation results in good
reputation of the company. In ASDA company, there is good employee relations between
employees and employers. This has increase their productivity and potential and results
in increasing in profits and revenue of the company.
9

Recommendations of how mechanisms of employees participation and employees voice can
contribute to improved employment relations within an organisation.
 Employees at the workplace should communicate the problems they are facing in the
organisation. ASDA company is having top level of employees which that can solve their
problems and issues at the workplace. If employees are participating in any business
activities then this can improved the relation of employees and employers both. It is
important for having good employee relations to accomplish the companies goals and
objectives (Brunstein, 2016).
 Then at the time of certain conflicts, ASDA company employees form trade unions that
helps them in protecting their rights and save from exploitation. By solving issues and
problems of employees there could be a good and positive employment relations in the
company. This will increase the potential of workers and they work more effectively in
the organisation.
 Rising voice of employees towards wrong decisions and rights is the another factors by
which organisations are affected. For this organisations needs to maintain good and
healthy relations with each other. This will help them in increasing their productivity and
potentials both. Also helps in making company's profits and revenue.
CONCLUSION
From the above report it has been concluded that strategic human resource management
is very effective in ASDA company. As human resource department is very important in every
organisation. In ASDA company human resource mangers perform there functions very
effectively and efficiently. They identifies new talents who brings new ideas and innovations that
helps the company to grow in the market. Different theories and models are develop to assist
human resource in an organisation. Then there is the critical function in effective manner that
helps the organisation in smooth functioning of all activities. In addition, human resource
strategies are are very helpful in achievement of organisational goals and objectives.
Performance management and reward system are the ways by which employees performance can
be increased. These practises helps the organisation in achieving their goals and objectives and
improves the performance of employees and their standard of living. They helps employees in
motivating and providing them proper direction of goals of company.
10

REEFRENCES
Ans-off, H.I and et.al., 2018. Implanting strategic management. Springer.
Booth, S.A., 2015. Crisis management strategy: Competition and change in modern enterprises.
Routledge.
Brewster, C., Mayrhofer, W. and Farndale, E. eds., 2018. Handbook of research on comparative
human resource management. Edward Elgar Publishing.
Brewster, C., Mayrhofer, W. and Morley, M. eds., 2016. New challenges for European resource
management. Springer.
Brunstein, I. ed., 2016. Human resource management in Western Europe (Vol. 68). Walter de
Gruyter GmbH & Co KG.
Crumpton, M.A., 2015. Strategic human resource planning for academic libraries: information,
technology and organization. Chandos Publishing.
Das, R. and Kodwani, A.D., 2018. Strategic human resource management: a power based
critique. Benchmarking: An International Journal.
Ferris, G.R and et.al., 2018. Politics in organizations.
Frynas, J.G. and Mellahi, K., 2015. Global strategic management. Oxford University Press,
USA.
Greenwood, R. and Hinings, C.R., 2017. Understanding strategic change: The contribution of
archetypes. Academy of management Journal.
Helfat, C.E. and Martin, J.A., 2015. Dynamic managerial capabilities: Review and assessment of
managerial impact on strategic change. Journal of management. 41(5). pp.1281-1312.
Kane, G.C and et.al., 2015. Strategy, not technology, drives digital transformation. MIT Sloan
Management Review and Deloitte University Press. 14(1-25).
Lazzarini, S.G., 2015. Strategizing by the government: Can industrial policy create firm‐level
competitive advantage?. Strategic Management Journal. 36(1). pp.97-112.
Mathis, R.L., Jackson, J.H. and Valentine, S.R., 2015. Human resource management: Essential
perspectives. Cengage Learning.
Morris, M.H., 2015. Entrepreneurial intensity. Wiley Encyclopedia of Management, pp.1-5.
Panfil, G. and Nechita, D., 2015. Fundamental principles in strategic management. Eur. J. Pub.
Ord. & Nat'l Sec. p.5.
11