An Examination of the HRM-Market Performance Nexus in Bangladeshi Context

This assignment content presents various research studies and articles on human resource management (HRM) from different countries and regions. The studies explore the relationship between HRM practices and market performance, as well as the adoption of electronic HRM systems in organizations. Notable findings include the importance of strategic HRM for organizational success, the impact of HRM practices on employee outcomes, and the need to blend traditional and electronic HRM systems. The content also provides a brief overview of different HRM models and processes, including the Harvard Model of SHRM and the Strategic HRM process.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
ACTIVITY 1....................................................................................................................................1
1.1 Definition of strategic human resource management............................................................1
1.2 Importance of human resource management in organisations..............................................2
1.3 Analysis of the framework of strategic human resource management.................................3
2.1 Analysing the strategic human resource process..................................................................5
2.2 Assessment of the roles in strategic human resource management......................................6
2.3 Analysis of the development and implementation of human resource strategies.................7
ACTIVITY 2....................................................................................................................................8
ACTIVITY 3....................................................................................................................................8
3.1 Identification of range of HR strategies for Cambridge Satchel...........................................8
3.2 Assessment of HR strategies and their application in an organisation.................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

Illustration Index
Illustration 1: Harvard Model of SHRM..........................................................................................3
Illustration 2: Strategic HRM process .............................................................................................5

INTRODUCTION
Human resource management is the process of planning, assessing and managing
functions related to employees working in the business. Human resources have developed high
relevance in the current competitive market of this conceptual era (Chadzingwa, 2010). Strategic
HRM is the process whereby companies integrate the business objectives with human resource
goals in order to attain a high and successful growth impact in the market. The present study will
develop an extensive understanding about the theoretical concepts of strategic HRM and its
application in the business unit. The study will develop an in-depth analysis of the roles and
responsibilities of strategic HRM in the business growth and development. A clear understanding
about the contribution of HR policies in the growth and development of the business will be
analysed in the present study.
ACTIVITY 1
1.1 Definition of strategic human resource management
Human resource management is related to manage human resources at the workplace. The main
function of HRM is to maximise performance of the employee or to achieve pre-determine
objectives. HR manager is mainly concerned with the management of people within the
organisation, providing direction for developing policies and systems etc. HR department
comprises HR manager who perform operations like recruitment, training and development and
performance appraisal (Bhanugopan and et.al., 2013). Recruiting function is related to hire
candidate for a job as well as training and development is used to give the knowledge for
particular job. In today’s era, HR is focusing on mergers and acquisition, succession planning,
industrial relation etc. There are two models of management such as soft and hard, fSoft model is
considered as very flexible and smooth model in HRM. Whereas, the hard model is regulated by
top management so it includes stress or performance management.
Strategic human management resources
It is the activity of attracting, developing, satisfying and retaining employee within
organisation so that venture can achieve their goals and objectives in effective manner. Goals of
a human resource department supports the objectives of the rest of the organisation. Cambridge
Satchel Company implements this concept to utilize the talent and opportunity inside the human
resource department to make other sections stronger and more effective. However, this strategy
1

focuses on creativity, cooperation and flexibility. SHRM is the focal point on the team work and
developing employee’s training as well as education.
After that, under this strategy, employees are required to follow a set routine with
predictive and repetitive actions. Goals should be set for the labour productivity and cost
effectiveness (Darrag and et.al., 2010). By the set goals and objectives, organization’s flexibility
can be maintained so tat they can work smoothly. There are following ways firms can use HRM
to gain sustainable competitive benefit. Creating and maintaining HR valuation score is another
important form of strategic human resources management.
1.2 Importance of human resource management in organisations
Human resource management is the significant aspect of business development and
growth. Employees contribute widely in attaining organizational objectives and targets. They are
the only business resources which can be effective trained and developed for high productivity
and commitment. Employees are crucial for the growth and development of Cambridge satchels.
The importance of HRM for the company is: Enhancement of productivity: HRM helps in analysing the employee performance in the
business and undertake effective measures to enhance the same. Moreover, measures of
motivation and training helps in better commitment of employees. The above mentioned
measures help the company in enhancing organizational productivity for the business unit
(Han and et.al., 2013). Employee commitment: The HRM department of Cambridge Satchels helps in analysing
the employee efficiency. Strategies for employee benefits, effective working environment
and spacial enactment in the company helped the business unit in creating high growth
aspects for the business.
 Empowerment of employees: HRM of the company helps the business unit in providing
well defined measures to contribute in business development. Enhancing employee
engagement and communication in the business has helped the company in creating a
significant business impact on organizational growth (Salaman, Storey and Billsberry,
2005).
1.3 Analysis of the framework of strategic human resource management
Strategic human resource management is the process which focuses on attaining the
business objectives by effectively involving employees in the business development and growth.
2

The Harvard model of HRM focuses on integrating Hard and soft HRM practices for the best
interest of the business which leads to the best practice (Jackson and Malthis, 2010). Cambridge
Satchels has effectively adopted the framework to attain high success in the economy. The
elements of the stated model are universally acceptable.
Illustration 1: Harvard Model of SHRM
(Source: Human Resource Management Models, 2015)
§
Harvard model of HRM has a significant impact on the business growth and
development. The major elements of the model include: Stakeholder interest: Stakeholders are the people who are directly associated with the
business decisions and are effected by the organizational outcomes as well. SHRM
closely determines the key stakeholders of the business and analyses their needs as well
as requirements. Cambridge satchels analysed that employees, investors and consumers
are the key stakeholders of the business. Thus, close analysis of their needs and demands
is ascertained by the company.
3

 Situational factors: The changing factors have a significant impact on the business
operations and decisions. Cambridge Satchels has effectively analysed the changing
business environment and environmental factors to determine labour needs and demands
in the market. This helps the company to be at par with environmental needs and
demands. HRM policy choices: This is a significant aspect of SHRM framework. Cambridge
Satchels has developed HR policies parallel to business objectives because it is
effectively analysed that HR is the significant factor to attain competitive growth in the
market. Hence, the business unit has adopted effective business strategies regarding
employee influence, growth, training, rewards etc (Hernandez, 2009). HR outcomes: Effective and well-developed policies in the business have helped the
company in attaining high and positive business outcomes. Thus, the company has
successfully managed a talented team of employees. HR outcomes in terms of
productivity, commitment, competence, congruence etc. are high and effective for the
business. Hence, growth of the business unit has attained effective market growth.
 Long term consequences: The strategic HRM approach for the business has helped the
firm in attaining positive development aspects. Adapting SHRM has helped in enhancing
employee well-being in a social and individual manner. Impact of the same has resulted
in attaining high organizational effectiveness and development.
4

2.1 Analysing the strategic human resource process
Illustration 2: Strategic HRM process
The strategic HRM process is an integrated organizational development method which
helps the companies in analysing business objectives and coordinating with employee’s policies
and procedures for the firm to attain high and well defined growth aspects in the market.
Cambridge Satchels have adopted an effective and well defined process of SHRM. The stages
involved for the same are: Setting business objectives: Determining business objectives is the initial stage of
SHRM because it lays the foundation about the goals and objectives on which the
organization focuses. Cambridge Satchels has the core objective of attaining high market
share in the bags and accessories market in UK. Thus, product innovation and
productivity are the key focus of the business. Workforce planning: Employees are the key resources to attain the business objectives.
Work force planning stage of the company analyses the employment need in the business
as per the budget (Gibb, 2011). Hence, at this stage, basic planning regarding cost of
labour, types of vacancies and recruitment as well as selection measures is done.
Organization undertakes effective planning to attain talented and skilled employees for
the business.
5

 Recruitment and selection: This process focuses on attaining right person for the right
job. Hence, effective planning regarding recruitment and selection process, analysing
skills of the applicants and hiring right person to ensure effective organizational
operations is carried out. At this stage, the core focus of the business is to make the
company resourceful by recruiting skilled workforce. Training and development: Employee development helps the business in attaining high
and well defined growth in the competitive market. Thus, training and development is an
integral part of SHRM. This coordinates organisational growth with employee
development. Moreover, providing growth opportunities to employees motivates them to
deliver high and effective business results. This aspect helps in managing talent and
efficiency of the employees (Absar and et.al., 2012).
 Reward management: The most significant part of SHRM process is performance
management. This focuses on analysing overall employee efficiency and developing
remuneration as well as reward system accordingly. This helps the organization in
managing and maintaining the talented and skilled workforce at the workplace. The
company focuses on analysing the gap between actual and standard performance of
employees as well as fills the same with training, development or coaching.
The main objective of the overall process of SHRM for Cambridge Satchels is to attain
high growth and manage a team of loyal employees in the company to develop a competitive
edge in the market.
2.2 Assessment of the roles in strategic human resource management
Employees are the major resources for Cambridge Satchel because they are the key
source of carrying out the daily business activities to attain high productivity to attain increasing
needs in the market. Moreover, employees are the source of innovative ideas and development
aspects for business growth. SHRM thus focuses on effectively managing the following roles for
the company: Performance management: SHRM focuses on analysing the performance management
role closely. The company develops effective and well defined measures of analysing
employee performance and enhance the same for business growth. Cambridge Satchel
focuses on employee motivation, development etc. to enhance their performance level in
the business. In addition, the strategies to develop productivity of the employees by
6

adopting effective leadership, motivational strategies, performance appraisal measures
etc. helps in managing employee performance for the company (Hendry, 2012). Managing employee commitment: Employee commitment is a significant part of
business development. The strategies of the business regarding talent management,
managing performance culture in the company and delivering high business results helps
the company in delivering well defined business results for the organization. Moreover
the company has a successful implication on managing a team of committed employees
in the business. This results in reducing employee attrition thus managing high
profitability measures for the business.
 Attaining strategic fit: Cambridge Satchel is a manufacturing unit which delivers
fashionable bags, accessories and Satchel to consumers in UK. Attaining competitive and
talented team of employees with effective knowledge of operations and management is
significant. This recruitment, selection and talent management strategies of the business
helps the company in attaining strategic fit for the company. Here SHRM focuses on
attaining organisational competitiveness through talented employees with strategic
capabilities (Mello, 2014).
2.3 Analysis of the development and implementation of human resource strategies
The human resource strategies plays a significant role in the business operations for
attaining high growth and development measures for the company. The HR strategies
development and implementation by Cambridge Satchel includes: Aligning business objectives with HR needs: Cambridge Satchel closely analyses the
organizational needs and demands and evaluate HR needs as well. The company them
develop effective measure to attain the mutual needs of business and employees which
help the company in attaining effective business objectives. Strategic formulation: The company then focuses on developing and designing HR
policies and strategies to align the business objectives with employee demand. This stage
of strategic formulation develop a design about the company expectation from employees
which helps in infusing control and monitoring aspects for the employees. HR policies
communicate employee limitations and business support to the staff. Situation analysis: The next stage of the process analyses the changing needs and
demands of the environment for developing a market competitiveness. This stage of the
7

process undertakes effective analysis of the market situation to attain high business
results. Organisational structure: The organisational structure of the company helps in defining
the measures of control and monitoring of the process. Cambridge Satchel has developed
a structured business process where employees attain high growth aspects and also
guidance and support through effective leadership programs (Trappey and Ho, 2012). Organisational culture: The company has developed positive organisational culture for
attaining high and effective organisational results. The impact of the same is well defined
and positive for the business. This aspect help employees in enhancing their efficiency
and competency in the business.
 Employee development: Employee growth and development is the significant business
aspect. The company adopts effective measures for employee development to enhance
and organizational growth and development in the market. It also creates a significant
impact on employee commitment and motivation in the business (Werner, 2014).
ACTIVITY 2
Covered in PPT
ACTIVITY 3
3.1 Identification of range of HR strategies for Cambridge Satchel
The HR strategies in the company are developed to attain the predetermined goals and
objectives of the business. It creates a significant impact on business growth and development in
the highly competitive market. The range of HR strategies adopted by Cambridge Satchel
include: Employee engagement: This strategy focuses on attaining high employee commitment
for the business to create a competitive growth and development of the business.
Company has developed effective means of employee engagement by involving
employees in decision making process of the business. Also, effective communication
has helped the business unit in creating a significant business impact. Leadership and management: Cambridge Satchel has developed a well defined and
effective means of leadership and development for the business (Kord, Andouhjerdi and
Hallajian, 2014). This has helped the business in effective employee evaluation and
8

development for the business. Effective leadership has helped the company in enhancing
employee motivation and development in the business. Work culture growth: The work culture has a significant impact on employees and their
performance. Cambridge Satchel has developed positive and cooperative working
environment for the employees. The friendly working environment has helped employees
in attaining safety and social needs. Moreover, this has also helped in developing
employee rate of retention.
 Employee relations: This aspect focuses on managing the business operations in effective
and well developed manner. The employee relations aspect focuses on providing
effective rights and responsibilities to the employees and minimizing the occurrence of
any activity related to exploitation of the staff. Cambridge Satchel has developed positive
employee relations where staff members are provided right to present their views and
negotiate with the employer (Dhar, 2008). This has helped business in attaining strong
and committed team of employees for the business.
3.2 Assessment of HR strategies and their application in an organisation
The strategic HR operations has a significant impact on the business growth and
development in the economy. It helps the company in creating a significant impact on
organizational development by enhancing competency in the economy. The analysis of the
present research helps the business unit in effectively understanding the significance, implication
and assessment of HR functions and contributions in the organisation.
The analysis of the present study helps in determining that the Cambridge Satchels have
developed effective and well organised means of growth and development strategies for the
business. The contribution of the employees in business productivity and growth is high. The
employees provide innovative ideas about enhancing organizational activities in the economy.
Cambridge satchels effectively determine and analyse the business outcomes for the competitive
market positioning. Integrated HR policies of the company has helped in effectively
communicating roles and responsibilities for enhancing growth. The employees thus effectively
contribute for attaining the stated business objectives (AreYou an HR Manager or a Personnel
Manager?, 2014). The company has developed various measures to motivate and influence the
employee for better and efficient performance. Moreover, and employee engagement in the
business has helped in effectively integrating the personal objectives of the business with
9

organisational objectives. This helped the company in attaining quick and significant growth in
the economy.
CONCLUSION
Employees are the integral resources of the company and contribution of the employees
in growth and development of the business is high. Business strategies for the growth of
employees results in cost enhancement of the business however integrating business objectives
with organisational objectives of business develops a win-win situation for the company. The
above study effectively contributes in analysing and undertaking effective organizational
approach to analyse and understand the business objectives of the company in the competitive
economy. Cambridge Satchels has adopted well defined strategies for employee growth and
development in the economy which has helped company in creating a competitive edge in the
market.
10

REFERENCES
Books and journals
Absar, N. and et.al., 2012. HRM-market performance relationship: evidence from Bangladeshi
organizations. South Asian Journal of Global Business Research. 1(2). pp. 238–255.
Bhanugopan, R. and et.al., 2013. A structural equation model for measuring human resource
management practices in the Jordanian organisations. International Journal of
Organizational Analysis. 21(4). pp. 565–587.
Chadzingwa, M. M., 2010. Human resource management in Southern African libraries. Library
Management. 31(6). pp. 451–465.
Darrag, M. and et.al., 2010. Investigating recruitment practices and problems of multinational
companies (MNCs) operating in Egypt. Education, Business and Society: Contemporary
Middle Eastern Issues. 3(2). pp. 99–116.
Dhar, R. L., 2008. Strategic Human Resource Management. Excel Books India.
Gibb, S., 2011. The state of human resource management: evidence from employees’ views of
HRM systems and staff. Employee Relations. 23(4). pp. 318–336.
Han, Y. and et.al., 2013. China's civil service adopts e-HRM … up to a point: Most offices blend
paper-based and electronic systems. Human Resource Management International Digest.
21(4). pp. 33–34.
Hendry, C., 2012. Human Resource Management. Routledge.Chiva, R., 2014. THE COMMON
WELFARE HUMAN RESOURCE MANAGEMENT SYSTEM: A NEW PROPOSAL
BASED ON HIGH CONSCIOUSNESS. Personnel Review. 43(6).
Hernandez, S. R., 2009. Strategic Human Resources Management in Health Services
Organizations. 3rd ed. Cengage Learning.
Jackson, J. H., and Malthis, R. L., 2010. Human Resource Management. 2nd ed. Cengage
Learning.
Kord, R. A., Andouhjerdi, S. P. and Hallajian, E., 2014. Asian Research Consortium. Human
Resource Management. 2(2). pp.137-146.
Mello, J., 2014. Strategic human resource management. Cengage Learning.Price, A.,
2011. Human resource management. Cengage Learning.
Salaman, G., Storey, J. and Billsberry, J., 2005. Strategic Human Resource Management: Theory
and Practice. 2nd ed. SAGE.
Trappey, A. and Ho, P., 2012. Human resource assignment system for distribution centers.
Industrial Management & Data Systems. 102(2). pp. 64–72.
11

Werner, J. M., 2014. Human Resource Development≠ Human Resource Management: So What
Is It?. Human Resource Development Quarterly. 25(2). Pp.127-139.
Online
AreYou an HR Manager or a Personnel Manager?. 2014 [Online]. Available through:
<http://www.brighthubpm.com/resource-management/75775-personnel-management-vs-
human-resource-management-whats-the-difference/>. [Accessed on 18th June 2016].
Human Resource Management Models. 2015. [Online]. Available through:
http://www.managementstudyhq.com/hrm-models.html>. [Accessed on 18th June 2016].
12