EXECUTIVE SUMMARY The report has begun with explanation ofrelationship between business strategy and human resource strategy. SHRM approches like best fit and best approaches etc. has been compared and contrasted in the report. Performance management has evaluated in the report and approaches like 360 degree approach and ranking method describes. Employment relationships have also explained in the report where roles of actors and nature explained. Changing nature of employment relationship has also explained in the present study. Some recommendation related to performance management and employment relationship has been also presented in the report.
Table of Contents EXECUTIVE SUMMARY.............................................................................................................2 INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 Relationship between business strategy and human resource strategy........................................1 Vertical alignment and horizontal integration.............................................................................1 Compare and contrast Strategic HRM.........................................................................................2 HR practices of Performance Management and Reward.............................................................3 Recommendations for designing of performance management system......................................3 TASK 2............................................................................................................................................4 Nature of employment relations...................................................................................................4 Roles of actors within employment relations...............................................................................4 Changing nature of employment relations...................................................................................4 Recommendations for employee participation and employee voice...........................................5 CONCLUSION................................................................................................................................5 REFERENCES................................................................................................................................6
INTRODUCTION Human resource management is an approach of effective management in a business which helps a business in attainment of competitive advantage and maximizes employees performance(Albrechtandet.al.,2015).InthisreportSainsburyistakenforbetter understanding. Sainsbury is the largest supermarket chain of UK. There are many subsidiaries of Sainsbury like Argos, Home retail group etc. This report will lay emphasis on relationship between business strategy and HR strategy. Vertical and horizontal alignments will also be explained in the report. SHRM's compare and contrast will also be discussed. HR practices of performancemanagementandrewardwillbediscussedalongwithrecommendations. Employment relation will also be covered in the report. The nature and roles of actors will be discussed. Also, changing employment relation will also be discussed and recommendations for increase in employment participation will be covered in the report. TASK 1 Relationship between business strategy and human resource strategy Human resource strategy affects decision making of the firm because practices of human resource is aligned closely with strategies of business as a whole. This also helps in developing superior outcomes of performance by the companies who execute coordination between policies of human resource and business strategy. Human resource department by adopting special strategies helps achievement of organizational goals in efficient manner which is useful for business because they make their strategies in accordance with accomplishment of goals and objectives. Human resource strategies motivates workforce of the company for working in order to attain success in business strategies. Therefore, the relationship between strategies of business andhumanresourcepracticehelpsinattainingorganisationefficientperformanceand competitive advantage (Analoui, 2017). Like inSainsbury, the company manages their business strategy along with human resource strategy that helps them in attaining competitive advantage and growth of organization which lead them as largest supermarket chain in UK. Vertical alignment and horizontal integration The horizontal integration includes increase in diversify product offerings and size. Also, this integration is helpful in reduction of competition. This integration is able to produce more profitability as compared to when they dealt individually. This aid the companies in cutting cost as they are sharing technologies, research and development, production, marketing, distribution, 1
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etc. For example, in Sainsbury takeovers Argos have benefited the company in reducing competition. Also, they able to capture new market of groceries (Bailey, and et.al., 2018). Vertical alignment is the strategies which are related with organizations vision, mission and values. In this company acquires other company with same industry. This is done for the sake of reduction in cost of production and to strengthen chain of supply. Like, Asda and Sainsbury merger is a vertical alignment which helps Sainsbury in reducing production cost. Compare and contrast Strategic HRM Bestpracticeapproachincludesprovidingsecurityofemploymenttoemployees, selecting and hiring the right person for the right job and provide training in different skills. Also, the employees working in such organizations are self managed and manages effective teams as well in achieving organizational goals. The Sainsbury follow this approach by providing compensation to their employees according to their performance whereasbest fit focuses on best approach that fits the organization. These approaches are chosen that fall with the trait's behavior of employees to attain competitive strategy. Like in Sainsbury, competitive strategy is provider of low cost for which employees behavior is mainly concerned with quality, lower risk taking activity and high degree of comfort and stability. For this the company formulated the HR policy with performance appraisal, training and development campaigns and clear job description allot to employees to avoid ambiguity (Brewster,2017). Also,Resource based view (RBV)is an approach which is reliable on resources and they see resources as a key to superior performance of the firm. These resources provide aid to organizations in sustaining and gaining competitive advantage. All assets of the business whether it is tangible, intangible or heterogeneous are selected and used in efficient manner. Businesses like Sainsbury who needs large number of workforce focuses more towards human resource policies and formulate their business strategy accordingly. The Best practice approach is the best approach to be followed by the company Sainsbury becauseitattainscompetitiveadvantageandgoalsoforganizationsinflexibleworking conditions as well by satisfying their workforce with appraisal and recognition. This motivation help them to stay focus towards their goal achievement. While Best fit approach is not able to tackle difficult challenges because department of HR not able to adjust frequently. Also, the resource bases view is not very focus towards human behavior. They take consideration of all the assets of business including employees of the business which can not be treated as any other 2
resource. As the human resource is an essential resource which should be taken care by the company for their successful goal achievement. This approach is less concerned for capabilities of employees which affects their performance. HRpracticesofPerformanceManagementandReward 360 degree performance appraisal This is an approach which is based on feedback and knowledge of employees which can improve performance of employees as well as teams. It improves employees engagement in their organization. Also, develops different opportunities for employees by contributing various ideas and suggestions by them in decision making of the company. This method has some limitations too. This method is time consuming and also hurt employees feelings which depletes their performance. Ranking method In this employees are ranked according to their capabilities and skills applied in accomplishing their task. By this method, company got best employees that suit their designated task. This motivates employees of higher rank accomplish task effectively and efficiently. Also, the employees at lower rank work with efficiency in order to attain higher rank. On the other hand, this method has some disadvantages too that the employees employer relationship get worst and conflict may increase by this method. Also, there is lack of coordination in company as they criticize other employees which causes conflicts in the company (Hollenbeck, and Jamieson, 2015). The company Sainsbury follow this approach of 360 degree feedback of performance appraisal as it enables them to attain growth and gain competitive advantage. Also, the company by following this approach builds strong relationship with their employees and engagement towards their company increases by their contribution of ideas and suggestions. Recommendations for designing of performance management system Employees engagement can be increase by performance management system as the employees contribute their suggestion and ideas for the company which will help them in decision making. Feedback for advancement can be taken on monthly basis by this employees turnover ratio in the company Sainsbury will decrease. 3
Also, the company can opt for regular training and development campaigns which will develop their skills and performance of the company will increase with the contribution of employees effective performance (Taylor, Doherty, and McGraw, 2015). TASK 2 Nature of employment relations Employment relation is employer and employee agreement. For better employment relationship company offers competitive salary to employees. Also, they offer benefits like incentives and perks to enhance and recognize their contribution towards the company.The companies like Sainsbury also offers vacations and holiday benefit to build strong relationship with their employees. This will implement collaborative and productive relationship between them by use of these benefits in their organization. Also, by this they enhance workplace culture by giving flexibility in working and compensation. Therefore, employment relationship promotes the company towards growth and success. The company will also be able to gain competitive advantage by strong employee-employer relationship. Roles of actors within employment relationsEmployees-The roles of employees is to improve terms and conditions of employment. They share their ideas and suggestions with management and raise their voice for grievance handling. They share suggestion which are helpful in management in making decisions. Employer –The roles of employers to hire the right person and fired the wrong ones. The employer have rights to close, relocate and merger their company. Also, they can introduce relevant technological advancement in their company. Like in Sainsbury, the company own these rights in order to successful accomplishment of the goals. Changing nature of employment relations The employment relationship changes with changes occur in organization. As the company Sainsbury offers flexible working environment in their company which improves their relationship with the company. The company's flexibility attracting employees to retain with them and this decline employees turnover ratio (Taylor, Doherty, and McGraw, 2015). But on the other hand, technological advancement in the company increases disputes in the company. As the company uses machines instead of workers by which their relationship becomes worst and employees get demotivated by executing these kind of technologies in their company. 4
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Recommendations for employee participation and employee voice Sainsbury can increase employee participation by taking consideration of their ideas and suggestion. Also, provide recognition to them for their contribution (Collings,Wood, and Szamosi, 2018). The company shall prefer two way communication in their supermarket stores through which employees participation can be easily reached to the management. Also, the grievance of the company shall be addressed properly and immediately by the management team of Sainsbury. CONCLUSION The report concluded about relationship between business strategy and human resource strategy. Performance management was evaluated in the report along with approaches and recommendations. Also, Stretegic HRM was compared and contrasted in the report. Then comes employment relation where roles of actors and nature were explained. After that changing nature ofemploymentrelationshipwerediscussed.Atlast,reportwasendedwithsome recommendations in order to enhance employee participation and voice of employees. 5
REFERENCES Books and Journals Books and Journals Albrecht, S. L. and et.al., 2015. Employee engagement, human resource management practices andcompetitiveadvantage:Anintegratedapproach.JournalofOrganizational Effectiveness: People and Performance. 2(1). pp.7-35. Analoui, F., 2017. The changing patterns of human resource management. Routledge. Bailey, C. and et.al., 2018. Strategic human resource management. Oxford University Press. Brewster, C., 2017. The integration of human resource management and corporate strategy. In Policy and practice in European human resource management (pp. 22-35). Routledge. Collings, D. G., Wood, G. T. and Szamosi, L. T., 2018. Human resource management: A critical approach. In Human Resource Management (pp. 1-23). Routledge. Hollenbeck, J. R. and Jamieson, B. B., 2015. Human capital, social capital, and social network analysis:Implicationsforstrategichumanresourcemanagement.Academyof Management Perspectives.29(3). pp.370-385. Taylor, T., Doherty, A. and McGraw, P., 2015. Managing people in sport organizations: A strategic human resource management perspective. Routledge. Online BestFitApproach.2014.[ONLINE].Availablethrough: <https://nscpolteksby.ac.id/ebook/files/Ebook/Business%20Administration/ ARMSTRONGS%20HANDBOOK%20OF%20HUMAN%20RESOURCE %20MANAGEMENT%20PRACTICE/2%20-%20Strategic%20Human%20Resource %20Management.pdf>. 6