Relationship between Business Strategy and HR Strategy

This report discusses the relationship between business strategy and HR strategy and evaluates the nature and theoretical perspective of employment relationship. It explores different models and perspectives of HR strategy and their impact on organizational goals.

HUMAN RESOURCE
MANAGEMENT
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Relationship between BS and HR strategy..................................................................................3
Horizontal and vertical integration..............................................................................................4
Evaluation of performance management and reward system......................................................4
TASK -2...........................................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Human resources management plays an crucial for each and every organisation as its
main responsibilities is to hire, recruit or select and retained highly talented and skilled
employees within firm for achievements of goals. There are several motivational techniques or
performance management strategies that are used by HR manager so that employees are motivate
to give their best for growth of organisation. This report has discussed about relationship
between BS and HR strategy and critically evaluated that nature and theoretical perspective of
employment relationship.
TASK 1
Relationship between BS and HR strategy
Business strategy can be termed as set of actions that are taken by enterprise in order to
attract maximum customers, strengthen its positioning in external environment and earn huge
amount of profitability. Hr strategies are plans that are related to management of employees or
human resources that are directly linked with end goals of organisation (Armstrong, 2019). It can
be evaluated that there is direct link with HR and business strategies which can be illustrated
through different models:
Separation model: It is model which states that there is no relationship between HR strategy
and business that was used 20 years ago.
Fit model: It illustrates that hr manager formulate strategies that contribute in meeting
organisation objectives for examples: manager of Sainsbury have formulated strategies to use
incentive as motivators to enhance performance so that company can attain its objectives.
Dialogue model: Some strategies set by Hr manager may not be feasible or contribute in gaining
actual outcome such as manager have planned to reward and recognise employees that have
work hard for success of organisation (Koster and Benda, 2020). But no one is motivated so after
taking feedback manager get to know that they want incentive or financial increament rather than
recognition.
Holistic model: HR manager pay more emphasis on satisfying needs and requirement of
individuals so that they are happy and satisfied to deliver qualitative services thus company can
easily gain competitive advantages. Therefore, Tesco manager have ensure that employees are
happy and satisfied to work for growth and development of company.
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Hr driven model: In this HR manager by encouraging employees to take part in decision
making helps in achievement of company goals.
Horizontal and vertical integration
Vertical integration state the way HR practices, contributions helps in achievements of
company mission and vision Like Hr of Tesco make use of bureaucratic practices that resulted in
systematic delivery of services to end customers. Horizontal integration state the way HR
policies and practices resulted in optimum utilisation of resources, such as Hr manager by
implementing equality policies have motivated all employees to make best use of their
capabilities so that company can gain competitive advantages.
1.0 There are three theoretical perspective of SHRM like Best practices, best fit and resource
based view. Best practices are related to more engagement or higher performance of employees,
fit is change of Hr strategy as per current situation and resources based view emphasis on
internal capabilities (Fenech, Baguant and Ivanov, 2019).
1.1. Best practices: 360 degree performance management is one of the best practices that is used
by Hr manager to contribute in attainment of organisational goals. Company by hiring right
individuals at right place or ensuring safety and security of employees are some of the best
practices used by HR to promote success of organisation.
1.1.1 Fit approach: It state that Hr strategy need to meet existing demand of business strategy
For example with use of digital technology manager of Sainsbury have planned to hired
employees that have better command and knowledge on new technology.
1.1.2 Resource based view: It contain four elements such as value, rarity, imitable and
organisation thus management by focusing on its internal capabilities can help company in
gaining competitive advantages. Like, Most of the employees of Tesco are valuable, but have
special capabilities to handle challenges and stay positive, clam, their skills can be easily
imitable and there are chances to add enhance their skills and knowledge so that they can give
their best for achievements of company goals (Fahim, 2018).
1.1.3 Performance management
Evaluation of performance management and reward system
Performance management is a system that is used by Hr manager to analysis and
evaluates actual performance of employees so that several steps can be taken for attainment of
desired outcome. Reward system is used to motivate employees to make best use of their skills
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so that company can enjoy high profit margin. Both performance and rewards are valuable or
have important purpose in firm as they helps in increasing overall productivity and performance
of employees thus lead growth of organisation.
There are mainly two elements of reward system like financial and non financial reward
that encourage employees to take active part in operation of business. Financial reward are
further categorised into direct pay (that is actual salary or wages or performance related
payments), indirect are statutory and organisational specific like several leaves, pension benefits,
canteen etc. Non financial rewards are also given by many organisation such as recognition for
hard work, job security and development.
1.2 It can be suggested that design and redesign PMS should not be cope of techniques that are
used by other organisation as one strategy is not fruitful for managing other individuals. Thus it
can be recommend that it should be different and unique and should include key points such as
objectives, coverage, variation by category and assessment criteria that will be used to evaluates
performance of employees (Cugueró-Escofet, Ficapal-Cusí and Torrent-Sellens, 2019).
TASK -2
2.1 Employment relationship is term that state legal relationship between employee and
employer of specific organisation. Nature of employees relation is complex and multi
dimensions as it is not limited to trade union or employees but include employer, government
and employees. There should be two parties that is employer and employees that are ready to act
or perform certain responsible as previously agreed. Therefore, large organisations like Tesco,
Sainsbury have emphasis on building strong employment relationship so that company can gain
competitive advantages.
2.1.1 Unitarism perspective: It is a perspective of employee’s relationship which state that both
employees and employer have same interest so they are mutually coordinate to work together for
achievements of common goals. So company have strong cooperation between employees thus
there are less chance of conflict and misunderstanding.
2.1.2 Pluralism perspective: It is type of employee’s relationship in which each individual have
different perspective, point of view and belief. Employer can misuse its power so management is
responsible for resolving conflict and building relationship so that company can enjoy huge
market share (Dessler, 2016).
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2.1.3 Marxism perspective: It is another perspective of employee’s relationship which beliefs
that clashes of interest between capitalist and labour is continuous process as capitalist
(employer) wants to enjoy maximum profit while employee needs more and more wages for their
hard work. Therefore, conflict or clashes between employees and employer will be continued
and it will end in social society only where labour have get value or amount for their hard work
and determination.
2.2 There are several actors that contribute in building and retention of strong relationship
between employees and employers of particular firm such as trade union, government and
employees. Government make rules, regulation and policies the way employees need to treat to
employees so that no due pressure have to bear by individuals. Trade unions are another actors
or individuals that on behalf of employees share their feeling, suggestion and ideas to company
or management so that correct action can be taken. Employees are key individuals that work in
organisation in order to get specific wages or salary so they are also actor of employment
relationship (Teimouri and et.al., 2016). As they are individuals through which employers is able
to perform several function and attain its respective objectives. There are several changes in
nature of employment relationship such as more flexibility and feasibility are provided to
employees so that they can work as per their conveniences can contribute in growth and success
of enterprise.
2.3 It can be stated that organisation such as Tesco can enhance employees participation and
employees voices by providing them opportunities to share their view, ideas and opinion in
crucial decision making of firm. Manager needs to encourage or motivates employees to take
active part in several operation or function of organisations. Employer by openly, clearly
communicating and sharing important information about firm or its long term vision, mission
statement can create feeling of belongingness among employees thus motivate them to work hard
so that company can achieve its desired goals. Proper organisation structure or method the way
they can share their innovative ideas will also helps in raising voice and participation of
employees thus leading to strong employment relationships. It can also be suggested that asking
employees for feedback can also acts as options in developing and retaining strong and effective
employment relationship for benefits of organisation.
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CONCLUSION
It can be concluded that there are several function performed by Hr manager that lead to
effective management of people and achievements of organisational goals. Employees
relationship is also important part of firm so HR manager need to devote time to build
relationship so that they are motivated and inspired to be part of organisation for longer time
frame.
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REFERENCES
Book and journals
Armstrong, M., 2019. Strategic human resource management. pdf drive. com.
Cugueró-Escofet, N., Ficapal-Cusí, P. and Torrent-Sellens, J., 2019. Sustainable human resource
management: How to create a knowledge sharing behavior through organizational justice,
organizational support, satisfaction and commitment. Sustainability, 11(19). p.5419.
Dessler, G., 2016. Fundamentals of human resource management. Pearson.
Fahim, M. G. A., 2018. Strategic human resource management and public employee
retention. Review of Economics and Political Science.
Fenech, R., Baguant, P. and Ivanov, D., 2019. The changing role of human resource management
in an era of digital transformation. Journal of Management Information and Decision
Sciences, 22(2). pp.1-10.
Koster, F. and Benda, L., 2020. Innovative human resource management: measurement,
determinants and outcomes. International Journal of Innovation Science.
Teimouri, H and et.al., 2016. Study of the relationship between employee engagement and
organisational effectiveness. International Journal of Business Excellence, 10(1). pp.37-
54.
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