Strategic Human Resource Management

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Strategic human resource management

Contents
Introduction................................................................................................................................3
Relationship between business strategy and human resource strategy......................................3
Vertical alignment and horizontal integration............................................................................4
Universalist (best practice) approach.........................................................................................5
Performance management and reward.......................................................................................6
Performance management system..............................................................................................6
Theoretical perspective of employment relations......................................................................8
Marxist perspective....................................................................................................................8
Pluralistic approach....................................................................................................................9
Unitary theory of employment relations....................................................................................9
Actors of the employment relation.............................................................................................9
Changing pattern of the employment relation..........................................................................10
Recommendations for improvement in employee participation and employee voice.............10
References................................................................................................................................11

Introduction
In the recent time, it is significant for the organisation to effectively manage the business
strategy and human resource strategy by working effectively on different aspects. In the
paper, discussion has been carried on the employment relations and SHRM. It has also
explained the relationship between the business strategy and human resource strategy as well
as taken into account the models of SHRM. Further discussion has been carried on the human
resource practices in the performance management and reward. At the end, recommendations
has been provided regarding the employee contribution and employee voice for the
betterment of the organisation.
Task 1
Relationship between business strategy and human resource strategy
Business strategy is the long term planning of any business regarding how business will
achieve the goals, as well as satisfies the customers. It is also said to be the master plan that
company management implements in order to maintain the competitive position by carry out
its operation effectively. From the business perspective, it is said to be the long-term desired
direction, image and destination of the business organisation. business strategy are therefore
actions taken on the management part in order to increase the market position of the company
as well as overall business performance. The business strategy mainly includes the major
competitors that are also doing better in the market with their innovative approaches.
therefore, business strategy allows the organisation to measure the performance and growth
of the organisation against the desired goals.
Human resource strategy on the other hand are said to be the policies that is made by the
organisation of different people. It helps in maintaining the sustainable competitive
advantage. It is therefore said to be the long term planning made for the human resource
development in the organisation. It is said to be one of the significant part of the strategic
management. It therefore directs the actions of the people. When business strategy is formed
after that human resource strategy is made so that people follow, the actions required for
achieve the business goals. It tends to manage all the work. William (2017) has also stated

that human resource includes the strategic factor which further plays an essential role in the
implementation of strategy at organisation.
Human resource as well as business strategy is connected with each other because without the
effective implementation of business strategy, it is not possible to bring the effective working
on the side of employees. Every HR function of the organisation also depends on the business
strategy that further helps in meeting the needs of the organisation. Paauwe and Boon (2018)
has also effectively observes that problems are seen in the human resource strategies when
organisation fail to effectively deploy the human resource. Business strategy assists the
organisation in case of any issue facing from competitors. In the absence of effective and
competent human resource, it is not possible for the organisation to carry out the process or
any strategy.
Vertical alignment and horizontal integration
Both these factors are most significant factors for maintain the positive relationship between
the organisation business and human resource strategy. Vertical alignment is said to be the
linking of HRM strategy with the business strategy. IN this alignment, every member of the
organisation is aware of the company objectives. It tends to ensure that all the resources are
in proper place to fulfil the company goals. As compare to this, horizontal integration is said
to be the linkage between different elements of the human resource strategy such as training,
recruitment, reward and performance management (Mone and London, 2018).
Task 2
Strategic human resource management: theoretical perspective
Strategic human resource management is said to be the alignment of business goals with its
human resources that further improves the satisfaction, motivation, productivity, and thereby
overall performance. Strategic human resource management solves the business obstacles.
The major objective of the strategic human resource management is to solve the issues related
to the organisation structure, culture, resource matching, effectiveness, and performance.
Therefore, strategic human resource management is said to be the concept that links the
management as well as every individual to the business organisation as a whole. It tends to
fulfil the long-term requirement instead of daily policies (Bailey, Mankin, Kelliher and
Garavan, 2018).