Strategic Human Resource Management

This assignment delves into the crucial relationship between strategic human resource management (SHRM) and overall business strategy. It requires an analysis of various models and theories underpinning SHRM, such as the Resource Based View and the Strategic HRM Model. Students are tasked with examining the impact of HR practices on environmental performance, employee motivation, and organizational success. The assignment also explores the role of line management in implementing strategic HR practices effectively.

Strategic Human
Resource
Management

EXECUTIVE SUMMARY
The following report focuses on analysing the issues of strategic human resources in an
organisation. For understanding the topic more clearly various theoretical and models are
described. Along with this it includes other theories like Best Fit/ Contingency Theory, Best
Practice Theory and Resource Based View Theory which helps to clearly understand the role of
SHRM in organization. Every business organization varies, depending on ways to manage the
human resources. Following report will elaborate completely the role of strategies HR and
business relationship. Moreover, the other part involves the improvement in the employment
relationship in the organisation. For this purpose critically evaluation of various topics are done.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Introduction............................................................................................................................1
Main Body..............................................................................................................................1
Theoretical basis and models of SHRM................................................................................5
Strategic perspectives of Best fit/Contingency, Best Practice/Universalist and Resource Based
View, (RBV)...........................................................................................................................7
Specific HR practices of Performance Management and Reward.........................................9
Design/re-design a performance management system........................................................10
Conclusion ...........................................................................................................................11
TASK 2..........................................................................................................................................11
Introduction..........................................................................................................................11
Main Body ...........................................................................................................................11
The nature and theoretical perspectives of Employment Relations....................................11
Roles of the actors within the Employment Relationship with analysis of the changing nature
of employment relations.......................................................................................................12
Recommendations of how mechanisms of employee participation and employee voice can
contribute to improved employment relations......................................................................13
Conclusion............................................................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

Illustration Index
Illustration 1: Vertical alignment of HR and Business strategy.....................................................4
Illustration 2: Strategic HRM Model with business strategy ..........................................................5
Illustration 3: Behavioural theory ...................................................................................................6
Illustration 4: Model of SHRM........................................................................................................7
Illustration 5: Best-fit model for HR strategy..................................................................................8
Illustration 6: Resources Based View of SHRM.............................................................................9
Illustration 7: Performance Management Cycle............................................................................10

INTRODUCTION
Human Resources strategies are developed to maintain the administration, development,
recruitment, safety & Health and welfare in the organizations. For this HRM helps to
communicate with the employees and raise their issues in front of management and try to resolve
them. Along with this, they play great role in the managerial and operative function of the firms.
There are various ways by which employees performance can be improved. Such improvement
help the organization to achieve their goals and objectives at faster rate (Albrecht and et.al.,
2015). However, to improve the performance various strategies and planning are required which
requires HRM role. Following report evaluates the operation of Human Resource and business
strategies in the organization. Further, it comprise of the strategies made by them to provide
shape and structure to the firm. Moreover, theoretical knowledge regarding the basic of SHRM,
performance management and reward system is evaluated. At last, nature and theoretical
perspective of employment relationship is discussed which includes the employee participation
and their voice in decision-making process for the organisation. The study shows how business
goals and objectives are formulated through HR strategies.
TASK 1
Introduction
HRM is the procedure to integrate employees and organizations together so that firm can
achieve their goals and objectives. They play main role in affecting the bottom line and strategic
role in the companies. To achieve long-term productivity, success and profit, firm owner
understands the inter-relation between them. This section of the report comprise of relationship
between the HR and business strategies. Further, it involves the vertical alignment and horizontal
integration across the firms. Moreover, it comprise of different strategic perspectives and HR
practices. At last, structure of the performance management system is given.
Main Body
The main focus of the business strategies is to earn profit and succeed in their respective
markets. It helps organization to understand the internal and external environment. This supports
firm to focus on the competitive environment and gain advantage over it. Further, it shows the
organizational and manager approach to customers, market and competitors. For this purpose,
the strategies must be made on the basis of the changing needs and available resources to achieve
goals and aims along with pursuing competitive advantage.
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To attend the goals, objectives and long-term productivity, firm prepare annual business
plans (Alfes and et.al., 2013). Such things includes the strategies related to improvement in the
product quality, quantity, supply chain, innovation, leadership, values, price reduction, customer
focus, suppliers, growth and various other things. Business strategies are mainly focus on the 3
question: what, how and who. These question includes the aim, mission, goals, vision, budget,
cost, design, planning, strategies, resource utilization, performance management and
development.
Before making any strategies firms need to consider external environment. Other things
that can included are scope, ability and governing bodies. There are many other factors which are
included in the external business environment. Besides this, firm distinctive competencies
comprise of the success they achieved in the market by competing with others in terms of cost,
brand, price, product development and innovation. The governing bodies may include the
directors, government, business partners and stockholders. Firm success can be defined by
established long-term market position and competitive advantages achieved by the them.
Competitive advantage in the market can be gained through providing better services at lows cost
and having more market shares (Ali and et.al., 2015). For this, there is necessity of customer
satisfaction and profit maximization. Though, the firms have large capital and technology but the
major development and improvement can be made through the human resource. Moreover,
companies can gain competitive advantages if their employees have commitment, skills and
values to achieve organisational goals. Thus, HR strategies are made to manage the human-
capital in the firm. For this various policies and practises are implemented in the company.
Various roles such as recruitment, engagement, monitoring and deployment are performed by
HRM with consideration of the mission and goals of the organization. Further, their role includes
the to add the values in the organisation. HR strategies are enforced to allocate the role and
obtain the routine, uniformity and consistency in the HR efforts. Both the strategies serves the
stakeholders of the firm who want the organisation to deliver outcomes. External environmental
impacts are understood by the organization so that HR professionals can make strategies to
control or minimized its adverse impact (Aswathappa, 2013). For this purpose, leadership,
direction, training, monitoring and development are the important activities implemented by the
HR management. The role of implementing the HR strategies is the develop effective work
environment which have employee commitment, morale values, service and positive approach.
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Such approach enables the workers to serve customer better. For the integration of the HR and
business strategies, HR professional should consider the life-cycle stages of their firms. This
must also include the financial control system. Business strategies can be achieved if competitive
strategies are focused with HR strategies. To accomplish this task, vertical alignment and
horizontal integration method is adopted. Firms have the dynamic system, where task can be
easily completed through the alignment. It is the approach made by the company to accomplish
their goals and objectives (Babalola and et.al., 2016). The main focus is given on the mission,
vision and values. HR strategies need to aligned in such a way that firm uses all its resources
effectively and in sustainable way so that success can be achieved. However, horizontal
integration are required to maintain the competitive business. Through this companies can get the
idea of industrial development, economic scales and how to increase the efficiency of the
organisation through integration. This will helps the business in achieving the higher production
at lower cost, more featured product, increased in market power and capability to enter new
market.
To accomplish all the task, HR needs to make planning related to various things. One of
the main task is to provide the manpower to the organization who have technical skills,
knowledge and values which firm can utilize to achieve success. Further, they need to be in
communication with them so that development can be made. For the alignment of both
strategies verbal acknowledgements and progressive involvement is required. Along with this
leaders guidance and vision should be there (Hameed, Ramzan and Zubair, 2014). Effective
communication and workforces diversity must be provided in the organisation so that every
employee can get equal opportunities. Additional to it, health and safety must be ensured. All
this things will improve the performance and productivity of the firm which will ultimately lead
to achievement of organisational goals and objectives.
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Illustration 1: Vertical alignment of HR and Business strategy
Sources: Technical Information on Customs Valuation, 2017.

Theoretical basis and models of SHRM
According to Hameed, Ramzan and Zubair (2014), there are several theories associated with the
given above strategies.
Major two are considered to understand it more clearly:
1. Behavioural Theories: It describes that development of business strategies involves the
involvement of the employee behaviour. This improves the firm performance and
relationship. In many literature reviews behavioural approach can be easily seen. For
instance, Kehoe and Wright (2013) concluded that, to achieve the goals and objectives
firms needs to understand the employee behaviour. Also, Marchington and et.al. (2016)
mentioned that policies and practises in the organisation are part of the development but
employee behaviour plays important role in it. Behavioural theory is required if firm
wants to achieve competitive advantage.
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Illustration 2: Strategic HRM Model with business strategy
Sources: Kehoe and Wright (2013)

2. 'Resource-based view of the company' theory: This theory is best described by the
Paillé and et.al. (2014), where they mentioned the competitive advantage and firm
resources can help the company to achieve their goals. The theory is based on the
assumption that every firm must have specific resource which their competitors are
unable to buy. It comprise of four main advantages which are positive value, unique
resource, imperfectly imitable and can not be replaced by the other similar companies.
Whereas, according to Purce, (2014), sustainable competitive advantages can be evolved
through resource identification rather than developed. Thus, focus on the resource can
help the firm to achieve competitive success.
As cited by Kehoe and Wright (2013), there are two basic models related to the SHRM. They
are:
1. High Performance Management model: The model is related to development of the manpower
to improve the performance level of the company. It includes the growth, customer's service,
productivity, profit and shareholder values. For this purpose, monitoring, performance
appraisals, job design, recruitment, training, selection, proper functioning, promotion and awards
are given to improve the performance.
2. High commitment and involvement model: It further includes the employee commitment,
organization value and goals, their interest and voice in organization decision-making. As per
Sheehan, (2014), more flexibility, structured work, problem solving ability, payment system,
profit sharing and employee involvement are considered for achieving the organisational goals
and objectives.
Below is the model which represent the model of SHRM in organisation.
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Illustration 3: Behavioural theory
Sources: Paillé and et.al., 2014

Strategic perspectives of Best fit/Contingency, Best Practice/Universalist and Resource Based
View, (RBV)
According to the Sheehan (2014), best fit strategies are based on the entire organization.
It includes the culture, external environment and operational activities are included in it. Here
demands of organization and employee are considered. It focus on the alignment of HR and
organization strategies. However, Sikora and Ferris (2014) criticizes that the model is unable to
handle the new challenges which are faced by the HR manager. Further, it is unable to show the
interrelation between each other.
Best-practise model is described by the Sparrow, Brewster and Chung (2016), which
states that HR must reach the competitive advantages without considering the firm
setting/structure. This will help to increase employee performance and commitment towards the
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Illustration 4: Model of SHRM
Sources: Kehoe and Wright, 2013

organization. For this purpose HR must perform their respective tasks properly. However, this
model was also subjected to critique. As stated by Sparrow, Brewster and Chung, (2016), it will
lead to deterioration as well as impact on the universal best-practise. So better solution are not
provided in the best-practise. Though, various organization have implemented this methods and
have gain success, but it is not necessary that it work on others.
Both models have their importance for achieving organizational goals but best-fit model
has better approach for overall management by HR practices.
There is another model which can be included which is resource-based view. As defined
by Albrecht and et.al., (2015), the resource helps to gain the competitive advantage and sustain
profit for the firm. It deals with the focus on the sources which provides the competitive
advantage rather than environment. The model suggest that there are two types of resources
physical and non-physical. This includes all the areas such as land, equipments, capital, brand
image, reputation, assets and various other things. Through this firm can have the sustainable
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Illustration 5: Best-fit model for HR strategy
Sources: Purce, 2014

development. But, when external and internal factors both are considered than only company can
have success.
Specific HR practices of Performance Management and Reward.
Along with the other practises organization are also focusing on the reinforcement of
performance management and rewards. This has provided many advantages to the operation of
the firm as performance of the employees are increased. Motivation has played major role in this
segment. Employee performance enhancement program helps the organization to increase the
productivity (Alfes and et.al., 2013). Along with this, rewards system is directly linked with the
performance development system. Better the performance more incentives and rewards will be
earned by the employees. Reward system in the organization includes the sharing, recognition,
bonuses, incentives and other profit which company wants to provide. There are various
advantages of performance management and rewards such as:
1. Employees will be more focus on completing there task,
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Illustration 6: Resources Based View of SHRM
Sources: Marchington and et.al., 2016

2. This will reduce the service in the operational cost.
3. Further, it maintains the work-environment and promotes team work.
4. Minimizes dis-satisfaction among the employees
5. Increases the employee interest in gaining the financial advantages for the company.
Further, linking the performance with the rewards helps to continuous performance. It helps the
employee to perform more better which helps to enhance his skills and ability. It also supports
them as better career opportunities and recognition in the firms.
Design/re-design a performance management system
It is build on the basis of the teamwork and integration of the employees and
management. It is the responsibility of the HR to improve the performance of the employees and
firm. As advancement is taking place innovation and motivation in the organization are required
to get success Ali and et.al. (2015). So training must be provided by the company to improve
performance. Further, training , development, rewards are other things which are required for
the performance management system.
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Il
lustration 7: Performance Management Cycle
Sources : Sikora and Ferris, 2014

Following stages can be considered for this process:
1. Salary and incentives can be reviewed at the regular interval
2. Providing multitasking and responsibility can help to improvement in performance.
3. Introducing the employees, companies objectives and aims, morale values and organizational
culture.
4. Communication must be effective and feedback must be taken from the employees (Alfes and
et.al., 2013).
5. Performance must be monitored, evaluated and recorded for future improvement. For
improvement training, motivation, development and rewards must be included.
Conclusion
From the above task business and HR strategies can be easily understood. Various
theoretical and models are discussed in the above scenario considering SHRM. Further, best-fit,
best-practise and RBV model is discussed. After that performance management and rewards
criteria are discussed and at last performance based system is designed.
TASK 2
Introduction
Following task comprise of detail regarding the employment relations. Further, it
includes the role of actor with it and changing nature in it. At last, recommendations are provided
about the improvement in the participation of employee and their voice in the relationship.
Main Body
The nature and theoretical perspectives of Employment Relations.
Employment relation are greatly increasing as major focus is provided on the beneficiary
of the employees and employer linkage. This is established when person performs the work
under certain condition in order to receive rewards (Ali and et.al., 2015). The nature of working
is changing continuously. Now various laws are implemented which helps to provide the success
and safety of the employees. Some of this features are Feminisation where part time work and
gender discrimination are avoided. Flexibility is provided so that employees can perform better.
For this company give stable sources and career opportunities. Fragmentation which includes the
safety of the organizational boundaries and its variety. Financialisation comprise of increment of
the global market and various laws and regulation which insure the employment relationship.
There are many theories related to employment relations some are mentioned below:
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Pluralist perspective: Workers relations is based on the employees which are managed by
leaders and legal loyalties. This perspective has focused on the level of trade union and
management. As defined by Sheehan (2014), employment relationship is associated with
perspective behaviour and management coordination. Further, legal activities are managed by
Trade Union. This helps to sort out the conflicts and issues faced by employee in firm with the
help of management and trade-union.
Unitarist Perspective: Generally refers to trust and loyalty of workers towards organization.
Mutual understanding, bonding, coordination, corporation and trust are considered as important
aspect in it. As stated by Sheehan (2014), trade-union has no role in employee relationship as it
is based on trust and deliverance. Due to such activities it forms criticism against purist
perspective.
Scientific management theory: According to the Alfes and et.al. (2013), the theory relates to
that employees are unable to develop their work performance. They need to have the better
performance by increasing the scientific management theory. Employees must perform their
work with full confidence and strength so that they can accomplish there part effectively.
Further, trust and deliverance can help the firm in maintaining the relationship. At the
organizational level it helps to maintain the relationship and build trust as well as bonding.
Human resource management: It is another theory which related to development of the
employment relationship. According to Aswathappa (2013) various training, development,
rewards, motivation, recruitment, and recognition provided to improve the relationship between
the employee-employer. Such approach enables the employees to perform better and their safety
is maintained by the company.
Marxist Perspective:Refers to inequalities in organisational decision-making power. Factory
system and free labour market are formed through the capitalism.
Roles of the actors within the Employment Relationship with analysis of the changing nature of
employment relations.
Integration of the Employee-employer relation helps the organization to achieve success.
It helps to build better teamwork which reduces the workload and create the peaceful work
environment. As per the views of Babalola, and et.al. (2016), if they are progressively making
the approach to gain the objectives of the company then firm can easily achieve success.
Maintaining the conflicts and corporation can help to build better relationship. In a country
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harmonious relationship is maintained through the relationship between organization and
government. They effectively contribute to the economic efficiency. Actors create positive
influences on organizational members and help them to build level of trustworthiness.
Actors in the IR system plays following roles:
Employers: They have their certain rights which are based on the labour laws. So they have
complete rights to hire or fire an employee. For their betterment, company needs to provide
better technology and services which can help them to serve better.
Employees: For them also there are various terms and conditions which are maintained by the
labour laws. Their voices and involvement must be made in the discussion making process.
With their unity they can perform effectively and collaboratively to achieve firms goals.
Government: All the rules and regulation are maintained by the government organization. They
develop the laws, rules, regulation, policies and agreements for the employee-employer for better
work environment. They also comprise of other NGO's and third parties ((Ali and et.al., 2015).
The changing nature is seen in the employees relationships, which can be seen through
advisors, social movement and global Union federations. There is changing sphere of business
market, now better facility and technology are provided for the employees in the organisation.
Actors in terms of mentors and instructor helps to solve issues of employees and provide
motivation for teamwork. For the age group people NGO's and trade union act as actor and help
them. Further, companies are providing better training, development programs, reward,
incentives in the organization. Along with this, their voice are raised and they are also involved
in the decision-making process which helps them to perform more better. Communication and
monitoring processing are also developing the employees ability and performance. Starting from
the initial stage to final stage, actors have different roles to play. They contribute towards better
workplace and provide justice to employees.
Recommendations of how mechanisms of employee participation and employee voice can
contribute to improved employment relations
Employee participation and their voice can help in their development which indirectly
improves the firm productivity, performance and profitability. Through this they can effectively
share there problems can can reduce them. Further, it helps to build relationship and trust among
the company. Communication also help to provide better improvement in the organization.
Motivation and inspiration can be provided to them so that they can be more innovative and
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progressive to the company (Sikora and Ferris, 2014). Other than this, providing challenging
situation can help them to develop better decision-making skills and can keep their monotonous
lifestyles aside. All such things will help to improve the employee performance and relationship
in the organization.
Conclusion
Following part includes nature and theoretical perspectives of
Employment Relations. Further, it includes the roles of the
actors within the it and at last it includes recommendations about the their participation and
voice in employee-employer relation.
CONCLUSION
Employment relationship takes into account the honesty, trust and dependency on each
other to execute tasks with responsibility and proficiency to attain business objectives. The above
mentioned report details about the relationship between the HR and business strategies with the
involvement of vertical alignment and horizontal integration in the organisation. Further, various
theories are discussed and models are explained. To the same critically evaluation is done.
Moreover, performance management and reward system is included for the improvement in the
SHRM. After that employment relationship and its theoretical approach is explained. Along
with this, role of actor in the employment is explained and at last changing nature of employment
relation in the organisation are analysed. Through the report individual can clearly understand
the SHRM role in the organisation.
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REFERENCES
Books and Journals
Albrecht and et.al., 2015. Employee engagement, human resource management practices and
competitive advantage: An integrated approach. Journal of Organizational Effectiveness:
People and Performance. 2(1). pp.7-35.
Alfes, K. and et.al., 2013. The relationship between line manager behavior, perceived HRM
practices, and individual performance: Examining the mediating role of
engagement. Human resource management. 52(6). pp.839-859.
Ali, M., and et.al., 2015. Relationship of Strategic Human Resource Management Practices with
Organization Performance and Employee Relation Climate.
Aswathappa, K., 2013. Human resource management: Text and cases. Tata McGraw-Hill
Education.
Babalola, M.T., and et.al., 2016. The relation between ethical leadership and workplace conflicts:
The mediating role of employee resolution efficacy. Journal of Management,
p.0149206316638163.
Hameed, A., Ramzan, M. and Zubair, H. M. K., 2014. Impact of compensation on employee
performance (empirical evidence from banking sector of Pakistan). International Journal
of Business and Social Science. 5(2).
Kehoe, R. R. and Wright, P. M., 2013. The impact of high-performance human resource
practices on employees’ attitudes and behaviors. Journal of management. 39(2). pp.366-
391.
Kehoe, R. R. and Wright, P. M., 2013. The impact of high-performance human resource
practices on employees’ attitudes and behaviors. Journal of management. 39(2). pp.366-
391.
Marchington and et.al., 2016. Human resource management at work. Kogan Page Publishers.
Paillé, P. and et.al., J., 2014. The impact of human resource management on environmental
performance: An employee-level study. Journal of Business Ethics. 121(3). pp.451-466.
Purce, J., 2014. The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management (Routledge Revivals). 67.
Sheehan, M., 2014. Human resource management and performance: Evidence from small and
medium-sized firms. International Small Business Journal. 32(5). pp.545-570.
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Sheehan, M., 2014. Human resource management and performance: Evidence from small and
medium-sized firms. International Small Business Journal. 32(5). pp.545-570.
Sikora, D. M. and Ferris, G. R., 2014. Strategic human resource practice implementation: The
critical role of line management. Human Resource Management Review. 24(3). pp.271-
281.
Sparrow, P., Brewster, C. and Chung, C., 2016. Globalizing human resource management.
Routledge.
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