Role of Strategic HRM and Balanced Scorecard in Organizational Performance

Strategic human
resource management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Role of strategic HRM including the use of a balanced scorecard as part of a strategic
framework...............................................................................................................................3
Analyse how HRM strategies are related to wider management strategies and organizational
capabilities and performance..................................................................................................6
CONCLUSION ...............................................................................................................................8
REFERENCE...................................................................................................................................9

INTRODUCTION
Strategic human resource management is defined as the framework that is related to
management of human resources and involved in developing practices in order to achieve long-
term objectives in efficient manner. Basically, it is the combination of different HRM strategies
that enables organisation to achieve competitive advantages. It is the connection of employees
and organisational strategies that facilitates them to perform defined task in most efficient
manner (Chadwick and Li, 2018). Human resource manager developed range of policies and
strategies to maximise employees contribution in towards organisation determined objectives.
Effective strategies helps organisation to run in efficient manner and enhance employees
engagement and satisfaction from their job role.
In this report, chosen organisation is Farmfoods which is British retailing supermarket
chain, established in the year of 1955 by Eric Herd. Headquarter of respective organisation
situated in Scotland and has more than 330 shops in United Kingdom. It deals in highly-
processed frozen food, so it marked as being of farm origin. This report covers roles of strategic
human resource management and use of balance scorecard as a essential part of strategic
framework. Furthermore, HRM strategies that are related to wider management strategies and
business performance are mentioned in this project report.
MAIN BODY
Role of strategic HRM including the use of a balanced scorecard as part of a strategic framework
Strategic Human Resource Management is related to managing employees within
organisation and involved in developing strategies that facilitates organisation to attain
competitive advantages than other competitors. It is the distinctive approach of employee
management that enables organisation to develop highly committed as well as capable workforce
through using integrated organisational culture like building as well as maintaining high work
performance culture. Organisation uses personal techniques hiring, rewarding and promoting
employees. Main objective of strategic HRM is to develop effective organisational culture that
motivates employees and improve their innovative skills that help business to sustain in
competitive environment (Chang, Son and Pak, 2020). Farmfoods organisation manages their

stores in well-defined manner and start with innovative idea of providing frozen food items to
customers. The idea facilitates organisation to protect food items from spoiling as well as help to
maintain nutrition level and taste of food items for longer period of time. Farmfoods HRM
department develops various policies and strategies that enable it enhance employees
engagement level and their contribution towards organisational goals and objectives.
Organisation provides rewards to employees for their excellent performance and extra efforts
that motivates them to retain with organisation for long-run.
Balanced scorecard is defined as the strategic management performance metric that is
used by the organisation to identify as well as improve business internal operations that helps to
improve organisational outcomes. The technique used to measure past performance data of
business and provide feedback to organisation that enable to take better decisions. It facilitates
organisation to attain defined goals and objectives in efficient manner and plays important role in
improving business internal operations. Improvement of business operations enhance
organisational productivity and profitability ratio (Hermans, 2018). Farmfoods use the technique
of balance scorecard to evaluate part performance and take decisions according that help to
improve overall operations of business. In balance scorecard four main aspects are included such
as learning and growth, business processes, finance and customers are explained below:
Learning and growth is defined as the activities in which training and knowledge is
provides to employees to enhance their skills and competencies that enable them to perform in
most efficient manner. It is related to how information is captured and how employees using
information to to gain competitive advantages within industry. It mainly depends on performance
of employees in organisation.
Business processes is the aspect of balance scorecard that investigates how well products
are manufactured in organisation. Farmfoods organisation ensures that best quality products are
produced by organisation that satisfy customer's needs and demands. Operational management
department of organisation track whole process to identify gapes or delays in production of
products and reduce the level of waste through implementing waste management technique.
Customer perspectives is related to measure the satisfaction level of customers with
with quality, price and availability of organisational products and services. Farmfoods provides
better quality products at affordable prices that enhances customer's satisfaction and lead