Human Resource Management Systems

This assignment focuses on the crucial connection between Human Resource Management (HRM) systems and employee performance. It requires you to delve into relevant theories and research, examining how various HRM practices influence employee behavior and organizational outcomes. The analysis should encompass concepts like strategic HRM, knowledge management, and human capital, ultimately demonstrating the significance of effective HRM in driving success.

HUMAN RESOURCE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
ACTIVITY 1....................................................................................................................................4
a. Define strategic human resource management........................................................................4
b. Importance of human resource management..........................................................................5
c. Analysis of framework of strategic human resource management ........................................6
d. Analyse the strategic human resources process......................................................................7
e. Assess the roles in strategic human resource management.....................................................8
f. Analysing development and implementation of human resource strategies..........................10
ACTIVITY 2..................................................................................................................................11
Covered in PPT.........................................................................................................................11
ACTIVITY 3..................................................................................................................................11
a. Identifying range of various HR strategies............................................................................11
b. Assessment of HR strategies and their application in an organisation.................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Human resources are valuable assets for corporate bodies. They are responsible to plan,
organise and execute various strategies in favour of their respective organisation. Managers and
employees work collectively to accomplish goals and objectives of business entity. HRM plays
crucial role in managing activities of human resources and utilise their efficiency to the fullest. It
also maintains ethical polices and behaviour within and outside premises of organisation.
Strategic HRM is a part of this wider concept that reflects practice of attracting, developing,
rewarding and retaining skilled employees for the benefit of both human resources and
corporations (Mello, 2014). Fusion Food is a small yet rapidly growing restaurant located in
Northern London. It is a fast food restaurant that provides Italian, Mexican and British cuisine to
customers. The present reports elucidate usage of Strategic HRM applications in concerned
business entity to make optimum utilisation of its workforce.
ACTIVITY 1
a. Define strategic human resource management
In present day, strategy is a frequently used key word that focuses on plans prepared to
attain targets. These are considered as long term decisions taken by top executives and middle
level management of the company. So, it can be concluded that strategies are unified, integrated
and comprehensive plan which provide guidelines to human resources about how to handle
challenges.
Strategic HRM is an approach that combines functions of HR with strategic
organisational objectives to develop performance of entity. It is considered as pattern of
scheduled HR tasks and deploying employees to perform their roles and responsibilities in
planned manner (Armstrong and Taylor, 2014). The concept can be better understood by
analyzing its purpose and importance in concerned business enterprise:
 It provides detailed analysis of external environment existing for an organisation, it helps
to identify threats and opportunities monitored addressed in the market.
 SHRM avails a framework that helps to minimize effect of adverse conditions and creates
coordination among different activities.
 In addition, it focuses on allowing usage of few resources and devoting less time to
correct erroneous decisions.

 It also encourages a favourable attitude towards any change occurring in the market and
provides measures for it.
There are different ways to approach human resources' management in a business
enterprise, among these two crucial concepts are discussed below:
 Hard HR: According to this type, organisations consider employees as another factor of
production like building and machinery (Huselid and Becker, 2010). There is formal and
minimal communication between employer and employees. It follows autocratic style of
leadership where employees are not involved in decision making process and participate
only in executing strategies framed.
 Soft HR: Here, employees are considered as an important resource for the company.
There is strong and two way communication among different levels of management. The
managers adopt autocratic style of leadership which encourages and motivate employees
to suggest innovative ideas in the decision making process.
b. Importance of human resource management
Fusion Food is a small scale business enterprise that serves fast food services to its
potential customers. The cited organisation gives proper weight age to its manpower and adopts
different principle of HRM. It helps to build good team of professionals who are focussed to
increase profitability and productivity of the restaurant (Buller and McEvoy, 2012). HRM plays
vital role in managing human resources for concerned business firm and its significance can be
evidence in three forms, mentioned below:
Organisational significance
 Firstly, it helps to build strong team of dedicated employees that prepares strategies to
attain set benchmarks for the mentioned restaurant.
 Another importance of HRM is that it attracts qualified and efficient candidates to
provide their services in the restaurant.
 There effective utilisation of human resources as HR managers of Fusion Food provides
effective training and development activities to employees. HRM theories and practices focus on creating willing cooperation among employees
through adopting motivational theories (Tooksoon, 2011).
Social significance

 Fusion Food restaurant provides increased employment opportunities for learned and
skilled people present in society seeking for job.
 HRM helps to put scare talents to best use by treating employees fairly and meeting their
hierarchy of needs. It also eliminates chances of human resource wastage through conservation of physical
and mental health (Jiang and et.al, 2012). The concerned organisation adopts employee
legislation principle to provide them ethical work environment.
Professional significance
 HR team of Fusion Food offers excellent growth opportunities to improve potential of
individuals.
 It also develops and promotes feeling of team spirit among individuals to handle critical
situations for respective company.
 The concerned organisation provides environment and incentives for developing
creativity of individuals. Managers and employees of Fusion Food are able to improve
their skills and abilities.
c. Analysis of framework of strategic human resource management
According to many researches, the strategic HRM framework aims to improve quality
standard of employees in the business enterprises (Stahl, Bj and Morris, 2012). Strategic
management helps to build potential of professionals so that firms like Fusion Food can achieve
its objectives. The framework benefits the organisation to conduct fair recruitment and selection
practices of new employees.
Exploration of opportunities
The concerned business enterprises adopts strategic HRM concept to provide wider
growth opportunities to individuals. HR team appoints several new employees to different
position so that it increases their experience. On the other hand it also promotes existing
members to higher level of hierarchy where they receive proper exposure for career
development.
Minimises effect of adverse changes
There is high competition in today's market economy and firms like Fusion Food
evidence adverse changes (Brewer and Brewer, 2010). Occurrence of new consumption patterns

forces the managers to develop strategies according to changing requirement. SHRM framework
helps to reduce negative impact of this adverse modification taking place in market.
Proper allocation of resources
Another important implication of strategic HRM framework is it makes proper allocation
of resources. There are various factors of production which requires appropriate methods and
procedures to make their effective use. Managers prepare various strategies according to time
and situation in order to make their proper use.
Strengthen communication channel
Effective communication between supervisors and subordinates helps to implement
theories of SHRM effectively. Fusion Food work environment provides proper channel of
discussion to workforce (Ulrich, 2013). Employees actively participate in the decision making
process by suggesting innovative ideas to their managers.
Clarification of responsibilities
SHRM framework avails a basis of clarifying roles and responsibilities of every
individual. During recruitment and selection process of concerned entity, HR managers provide
detail job description to prospective employees. Every individual is aware about to whom they
are accountable.
Disciplinary framework
It also builds formal and disciplined framework to maintain efficiency of individuals.
One of the crucial functions of HRM is to provide legal and ethical property in internal
environment of the company. Therefore, employees and organisation both follow rules and
regulations of organisation.
d. Analyse the strategic human resources process
Strategic HRM primarily focuses on relationship between human resource management
and organisational performance. It deals with proper allocation of human resources and makes
efforts to increase its efficiency. Fusion Food adopts systematic procedure to undertake strategic
human resources process (Festing, 2012). It is three step processes where HR managers take
following essential steps, which are as follows:
Formulation of business and human resource strategy
It is the first stage of strategic human resource process which is performed in two steps
that are:

 Market research: The HR managers of concerned restaurant make proper and detailed
study of labour market. With the change in technology, organisation requires technically
updated employees. The market research helps to understand present educational
standards of candidates.
 Planning human resource strategy: According to the above study the managers begin
strategic human resource process. HR team of Fusion Food plans polices to be adopted
while conducting recruitment and selection process (Crook and et.al, 2011). They also
include rules and regulations essential to establish ethical framework in the company.
Implementation of HRM systems
It is the next step, where planned strategy for human resources is executed. It includes
two stages which are specified below: Resource allocation: The concerned restaurant has two options to allocate employees for
its business operations that are: internal and external source of recruitment. The HR team
will either appoint new employees or promote existing people to higher positions.
 Resources utilisation: Apart, from availing good flow of employees it is essential to
maintain their efficiency. Training and development plan will be organised for
subordinates so that they can make them aware latest trends and techniques to execute
business strategies.
Evaluation and review of HRM systems
This is the last step performed in strategic human resource process which focuses on
monitoring effectiveness of the plan and it includes following steps: Evaluation method: Assessment of employee’s performance helps HR managers to work
on measures to improve quality standards of employees (Ridder and McCandless, 2010).
It not only benefits concerned organisation but motivates employees to put in more
efforts to undertake their responsibilities properly.
 Up gradation of strategy: With changing scenario, HR team of Fusion Food updates
polices and strategies. This ultimately increases efficiency of staff members and it
provides exposure to new opportunities.
e. Assess the roles in strategic human resource management
It is the prime responsibility of HR manager to develop strong employer-employee
relationship in the organisation. This results in smooth and proper acquisition of organisational

objectives. There are certain roles and responsibilities performed by HR manager of Fusion Food
which is discussed below: Recruitment and selection: It is the major duty assigned to HR manager of concerned
firm to hire skilled human resources for the company. They come up with plans and
strategies that will be adopted to hire right kind of people. In addition, criteria will be
developed which will be best suited for specific job description. Managers undertake
these operations with utmost sincerity so that qualified team of professionals is build. Training and development: When HR managers address increase rate of defects in work
performance of employees they render training sessions (Scullion and Collings, 2010).
Here, trainees are provided for each and every concept required to perform their
responsibilities effectively. It helps to sharpen skill and ability of professionals so that
productivity of restaurant increases. Further, training and development helps to make
optimum utilisation of resource. Compensation and benefits: Fusion Food provides effective compensation and benefits
to its employees so that they can fulfil their desires. It develops positive image of
restaurant in the market. The HR mangers make performance assessment of each
individual and provide incentives. This is an effective motivational tool for employees to
render their services effectively. Maintaining work atmosphere: It is the vital aspect of HRM which has direct relation
with performance of employees in cited restaurant (Alfes, K. and et.al., 2013). Positive
and healthy work environment improves work dedication of employees in the concerned
organisation. It can bring out best in an employee as he is ready to face any challenges to
acquire organisational objectives. Open interaction between employer and employee
builds friendly atmosphere and also avail job satisfaction to the individual. Managing disputes: Team conflict is a critical condition for any business firm like
Fusion Food. The HR manager and employer are responsible to handle such situation
with utmost care. HRM provides consultancy services so that individuals can solve their
grievances.
 Developing employee relations: The HR manager of Fusion Food is also responsible to
establish good relationship between employees and concerned organisation (Moutinho,
2011). They organise business meetings, seminars and various official gatherings on

behalf of restaurant. The HR managers solve any issue related to human resources of the
company. The above mentioned roles and responsibilities reveal that HRM has crucial
role in determining strategies favourable for the company.
f. Analysing development and implementation of human resource strategies
The four essential stages of any program is planning, organising, implementing and
controlling. After strategic formulation, the next step involved in process is related to its
implementation. The HR manager of Fusion Food develops various HR strategies which help in
acquiring organisational goals and objectives.
HR manager of concerned firm identified lack of motivation among team members. So
they are adopting various motivational theories especially Herzberg theory of motivation to boost
performance of the individuals (Nankervis, A. and et.al., 2010). It entirely focuses on two factors
that help to attain satisfaction level of employees. Every individual posse certain desires and to
achieve them employment opportunities are opted. The theory comprises of motivational and
hygiene factor which identifies effectiveness of individuals desires. On the other hand,
motivational factor comprises of recognition, achievement, responsibility and healthy working
condition. On the other hand, hygiene factors reflect elements like basic salary, compensation
and incentive provided to employee in Fusion Food. So, the HR manager of concerned business
entity makes sure that employees are able to attain both these elements effectively by performing
well in favour of organisation. This helps to improve standard of living and motivate them to
work for such opportunities.
In addition, the HR team of Fusion Food also adopts reward management strategy to
improve morale of individuals (Hendry, 2012). It empowers professionals to perform their roles
and responsibilities with sincerity as it will result in appreciation and recognition. The concerned
business enterprise rewards its human resources for increasing its productivity and profitability
in the market.
The above mentioned HR strategies are developed to reduce labour turnover and
absenteeism in concerned business entity. Before implementing Herzberg theory of motivation
and reward management policy, the HR manager will consult top level executives of the
restaurants. After their approval it will be implemented and HR manager will be responsible to
implement these strategies properly (Snell and Bohlander, 2010). They will make performance
assessment of each individual for fair and ethical execution of process.

ACTIVITY 2
Covered in PPT
ACTIVITY 3
a. Identifying range of various HR strategies
There are various range of HR strategies identified in concerned business entity which is
discussed below: Inclusion of leadership strategy: According to general belief, business operations
become successful by introducing effective leadership strategy. It provides employees
proper direction to attain organisational objectives. The HR manager adopts certain
leadership style depending upon changing organisational conditions. It helps to invite and
generate new ideas and suggestions from employees. Further, increases participation of
employees and boost their morale is increased. Assessing talent strategies: Another range of HR strategies is to identify employee
requirement of the present candidates. Further, it helps to forecast need for appointment
of new employees (Lohrey, 2016). The HR manager is responsible to create new plans
for recruiting and retaining talented individuals in restaurant. These HR strategies will
help them to identify job competency such as skill, talent and capability of new members.
 High performance culture strategy: Training and development of employees plays
crucial role in improving quality standards. It is an effective strategy to address high
performance culture in Fusion Food work culture. The top executives of company
influence employees to achieve their individual as well as organisational goals and
objectives. The HR strategies support HR manager to develop dynamic work
environment so that desired outcome can be gained.
b. Assessment of HR strategies and their application in an organisation
The organisational goals and objectives are achieved by inclusion of various strategies
and application in favour of concerned entity. It avails better allocation and utilisation of human
resources. Now, below are mentioned different HR strategies and application adopted in Fusion
Food: Process: Firstly, the HR manager draws outline to asses plans and procedures in favour
of organisation. The HR manager requires efficient employees which are involved in

communicating plans and procedure of organisation. Formulation of particular plan and
policy is addressed to all essential employees of the company (Sarkissian, 2016). Collecting facts: The next step involved is collecting required information and data for
assessment of procedures. Various employees will be engaged in this process to provide
guidelines and deadlines for specific target which cited company have to achieve.
 Action plan: Now, the HR manager needs to execute action plan in an appropriate
manner. Every individual is aware about his roles and responsibility and conduct actions
accordingly.
CONCLUSION
The present report articulates significance of HRM to accomplish goals and objectives of
business entity. Fusion Food applies strategic HRM concept to efficiently manage activities of its
human resources. It helps to allocate and utilise human resources so that set benchmarks can be
achieved. It helps to build ethical and healthy work environment for employees which ultimately
increase their morale. Further, report highlights different range of HR strategies and their
application to increase productivity of the company.

REFERENCES
Books and Journals
Mello, J., 2014. Strategic human resource management. Nelson Education.
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Huselid, M.A. and Becker, B.E., 2010. Bridging micro and macro domains: Workforce
differentiation and strategic human resource management. Journal of management.
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.
Tooksoon, H.M.P., 2011. Conceptual framework on the relationship between human resource
management practices, job satisfaction, and turnover. Journal of economic and behaviors
studies. 2. pp.41-49.
Jiang, K. and et.al., 2012. Clarifying the construct of human resource systems: Relating human
resource management to employee performance. Human Resource Management Review.
22(2). pp.73-85.
Stahl, G.K., Bj, I. and Morris, S. eds., 2012. Handbook of research in international human
resource management. Edward Elgar Publishing.
Brewer, P.D. and Brewer, K.L., 2010. Knowledge management, human resource management,
and higher education: a theoretical model. Journal of Education for Business. 85(6).
pp.330-335.
Ulrich, D., 2013. Human resource champions: The next agenda for adding value and delivering
results. Harvard Business Press.
Festing, M., 2012. Strategic human resource management in Germany: evidence of convergence
to the US model, the European model, or a distinctive national model?. The Academy of
Management Perspectives. 26(2). pp.37-54.
Crook, T.R. and et.al., 2011. Does human capital matter? A meta-analysis of the relationship
between human capital and firm performance. Journal of applied psychology. 96(3). p.443.
Ridder, H.G. and McCandless, A., 2010. Influences on the Architecture of Human Resource
Management in Nonprofit Organizations An Analytical Framework. Nonprofit and
Voluntary Sector Quarterly. 39(1). pp.124-141.
Scullion, H. and Collings, D., 2010. Global talent management. Routledge.

Alfes, K. and et.al., 2013. The link between perceived human resource management practices,
engagement and employee behaviour: a moderated mediation model. The international
journal of human resource management. 24(2). pp.330-351.
Moutinho, L. ed., 2011. Strategic management in tourism. CABI.
Nankervis, A. and et.al., 2010. Human Resource Management: Stategy and Practice.
Hendry, C., 2012. Human resource management. Routledge.
Snell, S. and Bohlander, G.W., 2010. Principles of human resource management. South-Western
Cengage Learning.
Online
Lohrey. J., 2016. What is the competency framework in Strategic HRM. [Online].Available
through:<http://smallbusiness.chron.com/competency-framework-strategic-hrm-
82008.html>. [Accessed on 6th June,2016].
Sarkissian. A., 2016. The significance of Human Resource Management Systems.
[Online].Available through:<http://smallbusiness.chron.com/significance-human-resource-
management-systems-62126.html>. [Accessed on 6th June,2016].