Importance of Strategic Human Resource Management

This assignment explores the significance of strategic human resource management (SHRM) in ensuring a smooth flow of operations within an organization, particularly in the hospitality industry. The report delves into the two approaches to SHRM - best fit and best practices, explaining how they can be applied in different contexts. It also discusses the importance of alignment with company strategies and how HR practices impact productivity, employee engagement, and performance. The assignment emphasizes that SHRM is crucial for business success, especially in industries like hospitality where customer satisfaction is paramount.

Strategic Approach to Human
Resource Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Human resource management is mainly the work of HR manager in organisation. This
practice is done within company for maximising productivity with effective use of resources and
employees. Main function of this is personnel recruitment, workforce management, job role
assignment, learning and training as well as performance management (Armstrong and Taylor,
2014). This entire work is necessary for every enterprise for managing work of whole so that
they can easily achieve goals and objectives. This assignment is based on the hospitality industry
which is a wide sector as they provide variety of services like lodging, theme parks, event
planning, transportation, cruise line and many more. This sector is playing a vital role in today's
scenario because now a days, people want facilities and luxury in everything. Hospitality
industry helps in providing such facilities to every individual. The same sector mainly works for
customer’s satisfaction by providing services according to their needs and wants. Below
mentioned report explains the importance of HRM in the same industry and strategic approaches.
Instead of this, below it is also describe that how HR systems and procedures and its influences
on performance of organisation.
TASK
Hospitality industry is much broader compare to others sectors. This mainly focuses on
customer satisfaction while this is needed by every business that their customers are happy with
them. It is because; such sector provides luxury services and facilities and these are needed by
everyone. Competition in this sector is wide as more and more companies are enter as well as
exit in this market. On the other hand, there are more opportunities which increase value of its at
global level (Wright and McMahan, 2011). There are various segment in this such as Food and
beverages, Accommodations, travel and tourism. The same sector helps in development of
economy because now a days, people spend a huge amount on food and travelling. These are
customer oriented and mainly focus on them because if they are satisfied then companies in this
sector can earn more profit. Continuous market research is done by them so that they can analyse
the current trends, needs and wants to fulfil. This sector is common and popular.
HRM (human resource management)it is the work of HR department manager in
company so that they can manage their employees in proper way. This process includes job
analyses, recruiting right person at right place, training and development program, performance
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evaluation, resolving disputes, communication with employees at every level and many more.
This is important for increasing productivity and generating revenue with effective and efficient
use of resources as well as manpower (Boxall and Purcell, 2011). There are many benefits of
HRM practices in organisation some of them are; improves employees turnover because if they
leave organisation and new joins then this will cost more for company. Other is help in conflict
resolution if there are issues and problems between each other then it effect productivity of
organisation. Apart from this it help in budget control which very essential to work on setted
monetary target. If also provide satisfaction to personnel and improve their performance with the
help of training and development.
Strategies are broad term in itself it set direction or way to achieve goal and objectives.
These are measurable, specific, gettable set of plans cautiously formed with involvement by a
firm's stakeholders. This is linked with the every individual, groups working in organisation and
they should have to work according to strategy created by top level department (Strategic
approach to human resource management. 2018). Whereas, Strategic human resource
management is simply the practices done in organisation for attracting, developing, rewarding
and retaining personnel (Bratton and Gold, 2012). SHRM can explained as linking of human
resource with strategic objective and goals. For improving performance as well as for developing
organisation culture that help in competitive advantages, flexibility and innovation. This is
beneficial for both hospitality industry as well as individuals working in these companies.
Strategic HRM properly use opportunity and talent with human resource department for making
other department stronger and more efficacious. In firm related to hospitality industry the same
means accepting and including human resources function as a strategic partner in preparation and
implementation of the administrations strategies through HR activities like recruiting, selecting,
training and rewarding personnel.
There are various contribution done by strategic HR in organisation by focusing on
human resource plan which is concerned with people issues and activities that directly gives
effect on individuals behaviour and contribution in the goal and objective of company. Apart
from this it see employees as strategic resources for achieving competitive advantages in this
world full of competition. If there is proper implementation of HR activities this help in
development of performance and also in maintaining which is required for sustainable growth of
company. Hospitality industry is that which have to maintain quality of their product and
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services offered by them because customer of this sector want luxury and comfortability
(Lengnick-Hall, Beck and Lengnick-Hall, 2011). Apart from this, there are two approaches of
SHRM; both is related to human factor in which their performance help in gaining surplus in
business. An approach related to people is based on belief that they are important for sustained
business success. Human activity in firm help in increasing productivity if this increased then
goal and objectives are easily achieved. Both these approaches help in generating revenue or
profit and this is required to maintain performance of any organisation in competitive market.
Everything have some benefits same strategic human resource management also have
such as; identifying external opportunities and upcoming threats these are important for success
of company, gives well specified vision and business strategy which is necessary for present as
well as future growth, assure high productivity, supply information related to administrative
weakness and strength and recruit, retain, motivate employees for success of company. On the
other hand, some barriers are also there like inter-department conflicts, time limitation and
diversification in work-force with competitive skills set. Instead of this, there are many more
benefits and barriers. Removal of barriers is necessary because when there is problem in
companies, this leads to create many issues and required to work on it so that they will not
hamper the productivity, image and value of organisation (Cascio, 2018).
Best fit and best practices are two well-known approaches of strategic human resource
management. Best fit approach becomes more efficient when it is linked with the business
environment. This is also known as matching model which is based on developing HRM policies
according to the business strategy. It diagnoses the relationship between strategic and human
resource management. Strategies involved in this are policies for meeting the corporate aim,
planning future activities and performance objectives (Buller and McEvoy, 2012). Best fit
approach questions the best practices universal assumption perception. The strategies
implemented according to this approach are suitable for every employee working in organisation
as if they are satisfied with their work then it will result in growth and development.
On the other hand, “Best Practices” approach mainly use strategies which are universally
applicable in every organisation and the employees working in it know about that the same.
When Common and popular strategies implemented in company it help personnel that they can
easily adopt these and start working on it. “Best practices” approach requires less monitoring
workers themselves can work on it. Instead of this there is less chances of committing mistake.
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Both approaches are suitable for hospitality industry and companies in this sector can work
easily with the help of these. Because this industry mainly working for customers satisfaction by
serving them according to their taste and preferences or as per current market trends. Strategic
implementation should be proper and according to the size of company and availability of
resources.
Alignment of strategies is necessary for every business because everyone is going in the
same direction for success and growth. Strategies are required for achieving the goals and
objectives of company. Give indication to employees for achieving goal in effective and efficient
manner and when these work together gives effective results (Daley, 2012). It is because; if
employees of same organisation are going in different direction then this will result as the
wastage of time as well as resources. There are three types of alignments where first is, vertical
alignment which says that strategies of organisation are directly related to the goal and
objectives. These must be related to the mission and vision of company.
Main motive of making strategies is that how firm will achieve its predetermined
objectives and goals. Every organisation has various strategies and they align them for ensuring
that resources should be properly used in an effective manner. Second alignment is horizontal
which says that strategies designed by administration work together for effective working and
they should not be in competition with each other. While establishing business strategies,
enterprise is required to look at the big picture to guarantee that plan of action in one part of
company are not unknowingly and inappropriately effect the ability to accomplish strategies in
other part of the firm. Third is, operational alignment says that whatever strategies are created
should be actually work in company. While this indicates how hospitality organisation achieve
their goal and objectives. Many enterprise are going through scarce of funds and resources so
they should have to plan strategies according to that. Operational alignment mainly decide that
who will do work, how and when as well as with what resources. This is beneficial for those who
are going with scarcity of resources. Merging of different strategies of various departments is
necessary for working efficiently on the common goal.
Above discussed strategic human resource management put a huge impact on the
productivity of organisation. If resources and manpower are used in an effective manner then this
will directly result in increasing the productivity. Employees should be well trained and
developed so that they can work efficiently and effectively. This will result in the cost reduction.
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If services and goods in hospitality industry are provided at affordable and reasonable prices then
it will attract more customers. People who travel on daily basis for any reason want food and
accommodation at reasonable prices. SHRM do various research for fulfilling demand of
customers so that they become happy which is necessary for growth and development
(Chelladurai and Kerwin, 2017). HR practices make strategies of production department in that
way so there should not be wastage of resources as well as employees efforts. Human resource
department manage and control every department of company same they also manage production
department and this requires monitoring for no overlapping of work, no waste and proper
utilisation of man power. For increasing the productivity, there is requirement of proper
utilisation of resources in every firm.
Employee’s engagement is essential for every organisation because this creates a healthy
business environment (Marchington and et.al., 2016). In hospitality industry, personnel is
engaged in every decision making so that they can make proper decisions required for the
development and growth of company. But in some companies, human resource policies and
guidelines decide that how employees must can be engaged in decision making and also, in
creation of strategies. If personnel is properly involved in all activities then there is scope of new
ideas, views and opinions. This is because; everyone has different perceptions and viewpoints
related to a particular aspect (Huselid and Becker, 2011). When all employees work together
according to the management of human resources then this results in better productivity as well
as employee’s satisfaction. When workforce of any industry is satisfied then there will be no
employees turnover instead of this satisfaction pull person to do their work properly and give its
hundred percent to company. When personnel is engaged in working of company. This gives
many benefits to company and they manage the work accordingly with new ideas and innovation
as well as creativity. It is because when new candidates are engaged in organisation’s decision
making and strategies then they give the latest ideas because such new candidates comes with
updated skills and knowledge. Thus, engagement of employees are necessary for completing
working on time with effective and efficient manner and this will help in improving productivity
of organisation.
There is a separate department of human resource in company and in hospitality, there is
requirement of HR manager to meet day to day activities as well as for achieving the set targets.
For maintaining performance of company, there is the requirement of human resource
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department. When HR practices are implemented in firm, this will result in betterment as well as
in increasing productivity which is necessary for the future growth and development. Existing
performance of company should be same and it can be increased but should not have to decrease
because if it may decrease then will be cause of damaging brand image. Every company wants to
manage their working in a proper way and for this, there is the requirement of strategy
implementation which is formed by manager of company. Strategies give direction to employees
that how they will work for achieving the goals and objectives of same. When strategic human
resource management and human resource manage both work together then gives better results
in performance of employees. Sector given in this is widest sector full of competition and
opportunities to remain in this competitive environment there is requirement of maintaining
performance of companies who comes in hospitality industry (Guest, 2011).
From all above discussion shows that there is requirement of SHRM and HRM of
maintain performance of organisation, employees engagement is also necessary for strategies
making and also for decision and productivity which is necessary to increase so that company
can gain more and more profit as well as satisfy customers with their products and services
offered by them. So that their should be proper management of human resource department.
Because this is the main department who control overall working of company. Human resource
management should be done in a proper way for achieving goals and objectives of company in
an effective manner. Strategic human resource management is important and play crucial role in
managing every day activities of industry specially in hospitality industry.
CONCLUSION
From the above report, it can be concluded that strategic approaches to human resources
are required by every organisation for their smooth flow as well as also for its future growth.
There are two types of approaches related to SHRM best fit and best practices which are
explained above. Alignment to strategies are described and their types also. Instead of this how
human resource practices implemented in company gives their effect on productivity,
employee’s engagement and performance of firm. This is based on hospitality industry which
widest sector compare to others and provide services according to need, demand, current market
trend as well as preferences of customer so that they can get satisfied industry includes food and
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beverages, accommodation, tour and travel many more. SHRM and HRM both work together
then gives effective results for company.
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REFERENCES
Books and Journals
Armstrong, M. and Taylor, S. 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Wright, P.M. and McMahan, G.C., 2011. Exploring human capital: putting ‘human’back into
strategic human resource management. Human Resource Management Journal. 21(2).
pp.93-104.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave
Macmillan.
Lengnick-Hall, C. A., Beck, T. E. and Lengnick-Hall, M. L., 2011. Developing a capacity for
organizational resilience through strategic human resource management. Human
Resource Management Review. 21(3). pp.243-255.
Cascio, W., 2018. Managing human resources. McGraw-Hill Education.
Buller, P. F. and McEvoy, G. M., 2012. Strategy, human resource management and
performance: Sharpening line of sight. Human resource management review. 22(1).
pp.43-56.
Daley, D. M., 2012. Strategic human resources management. Public Personnel Management,
pp.120-125.
Chelladurai, P. and Kerwin, S., 2017. Human resource management in sport and recreation.
Human Kinetics.
Huselid, M. A. and Becker, B. E., 2011. Bridging micro and macro domains: Workforce
differentiation and strategic human resource management.
Guest, D. E., 2011. Human resource management and performance: still searching for some
answers. Human resource management journal. 21(1). pp.3-13.
Marchington, M. and et. al., 2016. Human resource management at work. Kogan Page
Publishers.
Online
Strategic approach to human resource management. 2018. [Online]. Available through:
<https://study.com/academy/lesson/strategic-human-resource-management-definition-
importance.html>.
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