Strategic Human Resource Management

The assignment delves into the crucial role of Strategic Human Resource Management (SHRM) in achieving organizational success. It examines various perspectives on SHRM, including its alignment with corporate strategy, the influence of human resource systems on employee performance and organizational outcomes, and potential challenges associated with employee focus within SHRM.

HUMAN RESOURCE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Relation between business strategy and human resource strategy.....................................1
2. Vertical alignment and horizontal integration....................................................................3
3. Theories of Strategic Human Resource Management........................................................5
4. HR Practices of Performance Management and Reward..................................................6
5. Recommendations to improve the performance management system of Hilton hotel.......7
TASK 2............................................................................................................................................8
1. Theoretical Perspectives of Employment Relations...........................................................8
2. Role of the actors in employee relationship.......................................................................8
3. Changing nature of employment relation...........................................................................9
4. Staff engagement and employee’s voice............................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

EXCUTIVE SUMMARY
Hilton Hotel is the global chain of Resorts ad Hotels founded by Conrad Hilton that have
expanded its business in more than 85 countries according more than six continents territories.
The company owns more than 570 hotels in their proprieties and render franchisee services for
deploying its business in global market. This reports studies various integrated strategic
managements of human resource management and its role in employee relations administration.
This analyses theoretical perfective, staff management, role of actor and changing nature in
context of employee relations.
INTRODUCTION
Strategic human resource management can be defined as developing and implementing
various plans and actions in order to achieve business objectives through managing human
resources of firm effectively. These activities ensure that human resources of a firm are working
as per the requirements of target of business firm (Armstrong and Taylor, 2014). Strategic
management helps in aligning the goals of HR professional with the objectives of corporation.
This is necessary to work in compliance with the goals of business strategy in order to enhance
the efficiency in working. The employees should be provided with effective training and
development opportunity in order to comply with the organisational strategic goals. Hilton hotel
is chosen in the present report that is implementing strategic HRM in managing the tasks and
activities of employees as per the needs of hotel industry. Here, the relationship between
business strategy and the strategic human resource management is discussed. This assignment
studies various theories of strategic management and approaches like vertical alignment and
horizontal integration in the functions of Hilton hotel.
TASK 1
1. Relation between business strategy and human resource strategy
The business strategies can be represented as blueprint of actions and pathway of a firm.
This describes about various goals and targets that are to be achieved and reflects working
direction of organisation. Hilton is developing various strategies to grow business in
international market effectively. These action plans define the requirement of various resources
including manpower needed for executing plan effectively in working environment. So,
strategies developed by human resource department should be complying with corporate
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strategies in order to work as per the developed blueprint of working. Both the strategies should
be linked with each other in order to work in a team and as a unit to achieve the Hilton goals and
targets effectively (Armstrong, 2011). Some of the linking aspects of corporate action plans and
strategies of HRM are defined as below.
Strategic Alignment of HR: In most of the business firms, HR department is working
only administrative function like recruitment, selection, compensation and training activities
which are not aligning with the goals of firm. The department should also be motivated to get
engaged in adding value to the Hilton working by providing the efficient human resource as
required to meet the goals of business plans. The requirement of Hilton strategies is to hire the
effectively working manpower who are capable of accomplishing the goals of Hotel growth. This
can be achieve only if the HR functions according to the Hilton action plans and as per its vision
and mission.
Delivering the Strategy: The human resources action plan will helps in lining the
business goals with the activities of the employees. The human resource always developed
various strategies to introduce in capabilities in function of its manpower to company with
targets of the business strategy (Boselie, 2010). It is important for Hilton to link the business
strategy with the HR action plan along with its investment plan. So that the contribution of
employees should be delivered to the Hilton strategies effectively.
Effective Training and Development: The organisation faces huge number of changes in
internal and external functional and working environment. In order to work efficiently in
marketplace the Hilton hotel should comply with the changing need of business environment
which should be linked with the development of strategies in Human resource management
activities too. This will contribute in developing various training programme in order to develop
new skill set in workforce to accomplish the goals of change management strategy in working
environment of Hilton efficiently.
Improved Recruitment and Retention: The alignment of business targets and action plan
to the HRM strategies can improvise the process of recruitment and selection to large extent and
also contribute in efficient fund planning and reduce various cost. The recruitment can be
efficient if the organisation strategy providing better growth and supportive working
environment to employees. This will enhance their productivity and contribute in accomplish
Hilton goals (Boxall and Purcell, 2011). While lining to business strategy and their brand image
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in market will smooths the functions of recruitment and selection and will help in selection
trained and skilled manpower.
HR Drives Strategy: The HR department of Hilton hotel should be mature enough to
interpret the competencies and capabilities of firm and work accordingly and helps in achieving
the future growth targets. The HR department is having a clear information about the
competencies of its manpower which can be utilised for development of Hilton business in
marketplace and also droves to new corporate strategies as per requirement.
2. Vertical alignment and horizontal integration
Strategies of managing human resources should be fits with the requirements of Hilton
hotel strategic goals and objectives effectively. The aspect of fit to the organisational objectives
can be identified through the effectiveness of HRM strategies (Bratton and Gold, 2012). The
“Fit” can be defined the planned activities and plan of Human resource to work in compliance
with business firm targets. Hilton hotel is working in compliance with the Fit approaches to
SHRM which are of two types that is vertical integration and horizontal integration that are
defied as below.
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Horizontal integration: This can be referred as the HR department of a business firm is
working in integration with various human resource practices effectively to achieve the targets of
firm. Like for instance the Hilton is integrating the recruitment, compensation, rewards system
and training activities as per the goals of business strategies then this will be defining factor for
its the Horizontal fitness of Hilton firm with the organisation goals.
Determinant of horizontal integration: there are many determining factor which analysis
the horizontal fit of a firm to its business strategies and targets. The determinant of Horizontal fir
of Hilton hotel are described as follows:
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Illustration 1: Fit approaches to SHRM, 2006
Source 1: Li-Qun Wei. 2006. Strategic Human Resource Management: Determinants of Fit.
[Online]. Available through: <https://rphrm.curtin.edu.au/2006/issue2/strategic.html>.
[Accessed on 5th October 2017].

 HR policy- These are most important aspects which defied the structure of a human
resource department and is effectiveness in functioning. Hilton is focusing on developing
various HR policy in order to work appropriately and systematised manner to develop a
horizontal fit firm in HR practices. Option- this is another aspect which evaluates the horizontal fitness of HR practices as
this analysis the various options available to the HR of Hilton in order to work as per the
defied strategies and its needs to accomplish all roles and responsibilities of Human
resource of firm (Li-Qun Wei. 2006. Strategic Human Resource Management:
Determinants of Fit). Various option can be dealing with uncertainties, utilisation of
resources etc. that are available to the HR of Hilton defined its fitness with the targets of
firm.
 Investment and Budget- The organisation should be provided with higher investment and
fund to its human resource department in order to train manpower as per the needs of
organisation goals. The Hilton hotel is defined a major part in its budgeting strategies for
development of its workforce to develop a horizontal fit HR department.
Vertical alignment: This can be defined as the aligning the human resource activities
with the organisation goals in hierarchical function to achieve the corporate goals effectively in
commercial environment (Buller and McEvoy, 2012). This Vertical Fit describes the
comparability of Hilton hotel HR functions with the strategies pursued by the suited hotel in
business environment.
Determinant of vertical alignment: The determining factor of Hilton to describing its
vertical fit with the business strategies are like values of working culture and nature of Strategy
which are defined as follows: Nature of Strategy- The nature of strategies largely impact the HRM functionality and
also influence its contribution in its vertical integrations with the goals of business
strategy of Hilton hotel.
 Value of culture- The values of working culture also largely impact the motivation and
enthusiasm of the manpower working ion organisation. Hence the existing culture of the
organisation also another determining factor if the vertical fitness of the Strategic plan of
Hilton hotel to accomplish targets of hotel strategies.
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Determinants of both type of SHRM fit: There are also some aspects which helps in
developing and determining the both types of Fit to strategic human resource management which
helps in working in compliance with the business goals of Hilton hotel which are discussed as
follows: HR manager Capability- The capabilities and competence of the HR manager largely
affects the effectiveness of vertical integration and horizontal integration of strategic
human resource management in the working environment of Hilton (CHUANG and Liao,
2010). Higher management support and abilities- While the support of top level management
will motivates the HR department to work as per the performance standards which will
helps in developing an SHRM fit organisation to the business goals.
 Employees Skills and Knowledge- The skills and competencies also largely contribute in
effective implementation of various HR strategies and also affects the action plan to
accomplish Hilton growth gaols.
3. Theories of Strategic Human Resource Management
The various theories and models are introduced by researcher in order to study the
efficient of strategic human resource plans in the actin of any organisation. These strategies
develop different practice of linking the HSHRM with the business action plan in order to
achieve the targets effectively in marketplace (Daley, 2012). The strategic human resource
management plans involves study of 6 theories which are behavioural perspective, transaction
cost theory, resource-based view of the firm, institutional theory, cybernetic models and
power/resource dependence models to direct the action of HR department. Some of the theories
linking to corporate strategies to SHRM are defied as follows:
Resource based view of SHRM: This particular theory deals with diverting the focus of
the firm from external factors to the internal capability of organisation. This theory identifies the
various assets available to the business firm in order to again the competitive advantage in the
marketplace. The Hilton hotel is functioning this resource based view in defining the strategic
human resource management action plan. The sited hotel chain is focusing upon developing
newer competencies of their manpower in order to attain the objectives of resource based
strategic plan of organisation and gain higher competitiveness in marketplace. Human resources
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of an organisation are most valuable and most flexible asset which can be adapt new changes as
per the requirement of change management strategic plan of Hilton hotel.
Behavioural perspective theory: This particular theory stages the learning and the action
executed by an individual follows the relationship of the stimuli and response in the working
environment. The firm is follows this particular theory in order to implement actions in the
human resource department in order to learn new things to react confidently and responsibly to
the change management (Guest, 2011). This particular theory states that the changes in external
environment leads to behavioural change of manpower and they learn and react from the changes
as per the need of new strategies developed by strategic HRM.
Transaction cost theory of SHRM: This can be defined as the activities or the action
plan carried out by a business firm in response to the external environment. This particular
theory focuses on the reducing various cost incurred in transacting or exchanging the valuable
resources with the external commercial environment. The strategic HRM follows this particular
theory in order to reduce various cost included due to uncertainties and risk in external
environment while changing the human capital of Hilton hotel chain. These cost involves the
Cost of search and information of Human resource, bargaining costs incurred in hiring and
selection and also involves the enforcement cost to work properly with the selected manpower of
company.
4. HR Practices of Performance Management and Reward
HR department is developing various strategies in order to manage the performance of
their employees effectively in order to achieve targets of company within the time and quality
constraints. The companies are following various approaches to influence the performance level
of workforce by developing various strategic plans related to management of reward system in
working culture of organisation (Harzing and Pinnington, 2010). This reward system provide
motivation to work more responsibly and confident for the growth of organisation. Hilton human
resource department is also engaged in developing various strategies in relation with the
performance management system and reward management system of company. These both
respective of the HR function of an organisation are discussed below:
Performance management system: This particular system of an organisation can be
defined with the responsibilities of managing the performances standards of workforce in the
organisation. This particular system develops Key performance indicators, performance appraisal
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techniques in order to work in compliance with the targets of the firm and corporate strategies of
Hilton hotel. This also follows working in compliance with the various approaches in
management by objectives, management by performances, team work etc.
Reward Management System: This is the system which helps in enhancing the
motivation level and enthusiasm of the workforces by providing various rewards on the basis of
their performances in the organisation. This follows various approaches like modern
performance appraisal techniques by developing employee’s performance auditing the working
environment of Hilton hotel chain (Huselid and Becker, 2011).
Rewarding strategies can avail in the development as well as management of worker
relations with the company. As Hilton Hotel have very long chain in hotel industrious in more
than 80 nations, it is hard to manage the worker relation and retain them for the work at the same
time. Through monetary and non-monetary such as direct pay, indirect pay, non-financial
reward, benefits, extra work, work appraisal, compensation activities, company can
development.
5. Recommendations to improve the performance management system of Hilton hotel
Here are the some recommendation to the system of performance management followed
by Hilton hotel in order to react responsibly towards the strategies of human resource
management plans in the working environment which are defies as follows:
 Process: The process followed by Hilton should be appropriate and effective with the
defined goals and objectives that are to be achieved in order to maintaining specific and
defined performance standards in the organisation to work in compliance with the
business strategies.
 Feedback: the company should follow up various feedback in order to develop in
changes as per the requirement in order to improve the process of performance
management in firm.
 Goals: The PMS of an organisation should with complied with a definite set of gaols
working with the targets of corporate strategies as well as the strategy development for
growth of Human resource department of Hilton (Jiang and et. al., 2012).
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 360 reviews: The organisation should follow up 360 degree review of while actin plan in
order to take corrective measures in order to implement changes in organisation
effectively and contribute in organisation development.
TASK 2
1. Theoretical Perspectives of Employment Relations
Employee relations refer organisation's efforts for managing the connection and
relationship among worker and employers through help of HRM and personnel management.
The concept refer ton better and effective relations with employee and providing proper rights
and freedom to worker for purpose of workplace liberty.
There are three theories defined in relation to maintaining good and motivating
employee’s relation in working culture of firm. These all theories have different perspective in
dealing with the various conflicts faced in developing good employment relation in the firm
which are described as below.
Unitarist perspective: This theory maintaining the relationship of unity in the working
environment and develop a culture of loyalty in the employees. This theories based on
developing good employment relation working for shred gaols and objectives.
Pluralist perspective: While this perspective of employees relation is working for the
differentiated goals by dividing the task in different team and department. In this the relation of
employees develops as an team members which enhance the motivation to work together. This
follows a relationship of leaders and followers in organisation to work in direction and guidance
of leader for performing specific tasks (Jiang and et. al., 2012).
Marxist perspective: This particular theory involves the engagement of trade union who
resolve the various conflicts between the employees and employer in order to develop a
motivation employees relations in the firm.
2. Role of the actors in employee relationship
Employer, employees and government are the three parties and people around which the
employee relationship revolves around. Following are the roles and responsibilities of these in
achieving the desired goals and objectives.
Employees: They act as the valuable assets for the firm because it is the contribution of
these people only through which they attain the goals and objectives. So it is necessary that they
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should be happy for they should get healthy working environment (Purce, 2014). It is the duty of
the management to ensure that these people are well aware about their rights.
Employers: It is the duty of the employer to hire those candidates only who has certain
skills which can help them in achieving new heights. They should create an environment where
employees are free to communicate with the management of the company.
Government: Government of any country frame certain laws and legislation which
ensure the business in the country runs well with no hurdles coming in their way (Storey, 2014).
There can codes of ethics related to employment act, health and safety act, discrimination act and
etc.
The actors play wide role in changing nature of worker as they regulate and control entire
activities among worker. They are the reason of employee participation which motivate them that
avail purpose to worker in developing in a company. This will also avail in changing
environment of company and adoption of worker in their nature to avoid conflicts and resistance.
3. Changing nature of employment relation
No one can predict when the conflicts can arise in the organisation and there can be
certain issues in front of the managers and the higher officials. There are lots of factors which
can impact the changing nature of the employment relation (Wright and McMahan, 2011).
Expectations of the employers and employees should be managed properly, there can be
changing nature of employees, performance appraisals and any change in the techniques used by
the company.
Nowadays, through increasing participation of worker in the decision making process,
organisation are managing their employee relation. For this, the companies use various activities
such as consultation, behaviour analysis or suggestion strategy that can vent the worker with
company.
4. Staff engagement and employee’s voice
For the success of the business it is necessary that there is participation of the employees
in different activities. For overall performance of the company it is necessary that there is full
contribution of the employees at every level (Van Buren, Greenwood and Sheehan, 2011). It is
the responsibility of the management to ensure that staff contribute to every function they
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organise. For this they have to build a platform which can reduce the communication gap
between the employees and employer.
CONCLUSION
From the above report it has been concluded that the key factor behind the success of any
business is the better relationship between their employees and employers. It is necessary that
there is coordination between the staff and the management and for that they should be in regular
touch to each other. The management is liable to give them a healthy working environment
through keeping employment act and other in mind.
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REFERENCES
Books and Journal
Armstrong, M and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Armstrong, M., 2011. Armstrong's handbook of strategic human resource management. Kogan
Page Publishers.
Boselie, P., 2010. Strategic human resource management: A balanced approach. Tata McGraw-
Hill Education.
Boxall, P and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
Bratton, J and Gold, J., 2012. Human resource management: theory and practice. Palgrave
Macmillan.
Buller, P. F and McEvoy, G. M., 2012. Strategy, human resource management and performance:
Sharpening line of sight. Human resource management review. 22(1). pp.43-56.
CHUANG, C. H and Liao, H. U. I., 2010. Strategic human resource management in service
context: Taking care of business by taking care of employees and customers. Personnel
psychology. 63(1). pp.153-196.
Daley, D. M., 2012. Strategic human resources management. Public Personnel Management.
pp.120-125.
Guest, D. E., 2011. Human resource management and performance: still searching for some
answers. Human resource management journal. 21(1). pp.3-13.
Harzing, A. W and Pinnington, A. eds., 2010. International human resource management. Sage.
Huselid, M. A and Becker, B. E., 2011. Bridging micro and macro domains: Workforce
differentiation and strategic human resource management.
Jiang, K and et. al., 2012. Clarifying the construct of human resource systems: Relating human
resource management to employee performance. Human Resource Management Review.
22(2). pp.73-85.
Jiang, K and et. al., 2012. How does human resource management influence organizational
outcomes? A meta-analytic investigation of mediating mechanisms. Academy of
management Journal. 55(6). pp.1264-1294.
Purce, J., 2014. The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management (Routledge Revivals). 67.
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Storey, J., 2014. New Perspectives on Human Resource Management (Routledge Revivals).
Routledge.
Van Buren, H. J., Greenwood, M and Sheehan, C., 2011. Strategic human resource management
and the decline of employee focus. Human Resource Management Review. 21(3). pp.209-
219.
Wright, P. M and McMahan, G. C., 2011. Exploring human capital: putting ‘human’back into
strategic human resource management. Human Resource Management Journal. 21(2).
pp.93-104.
Online
Li-Qun Wei. 2006. Strategic Human Resource Management: Determinants of Fit. [Online].
Available through: <https://rphrm.curtin.edu.au/2006/issue2/strategic.html>. [Accessed
on 5th October 2017].
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