Role of Strategic HRM and Balanced Scorecard in Organizational Performance

This report discusses the importance of strategic human resource management (HRM) in creating a competent workforce and achieving organizational goals. It also explores the use of balanced scorecard as a strategic performance management tool. The report highlights the link between HRM strategies and wider management strategies, and how they impact organizational performance. The case of Marks & Spencer is used to illustrate the concepts discussed.

Strategic Human
Resource

Table of Contents
Introduction......................................................................................................................................3
Main body........................................................................................................................................3
Role of strategic HRM and the utilization of balanced scorecard as a part of strategic
framework...................................................................................................................................3
identify how HRM strategies link to wider management strategies, performance and
capabilities of organisation.........................................................................................................6
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

Introduction
Strategic human resource management helps the organisation in creating a workforce
which is beneficial for the company and can help them in achieving their mission and vision. It is
essential for the organization to make sure that they are having a pool of talent which can help
them in completing the task with utmost efficiency and effectiveness (Justiniano and et. al.,
2018). The human capital of the organisation is considered to be one of the most important
resource for the establishment as it help them in completing the projects according to the
expectations of the company. Having a good workforce will help the company in achieving
competitors benefit in the market. In context to Marks and Spencer, the company is a British
Multinational Retailer specializes in clothing, home products and food items. The company was
founded by Thomas Spencer and Michael Marks in the year 1884. The company is having its
presence worldwide and is headquartered in London, England. In this report, the role of strategic
HRM along with the balanced scorecard is provided. It is a part of strategic framework which
helps the company in enhancing the broader management strategies and performance of the
organisation.
Main body
Role of strategic HRM and the utilization of balanced scorecard as a part of strategic framework.
Human resource management of the company plays an important role in the processes of
the company as it aims is to retain the employees of the company and to create a workforce
which is loyal to the company and are working at optimum productivity and capacity (Michalski,
Wisniewski and Gralewski., 2018, July). It helps the company in making sure that they are
continuously working towards their goals and objectives and will also do sure that they are able
to have competitors benefit in the market. In context to Marks & Spencer, the company makes
sure that the employees of the company are having work satisfaction and are working in a
positive and healthy environment. The human resource department of the organization will make
sure that the employees of the organization are satisfied and are working in a safe environment.
Given below are some of the roles of strategic human resource in an organisation:
To create a good relationship between employer and employee: In order to create a
better employer employee relationship in an organisation, it is essential for the organisation to
have an effective human resource management strategy. It will help the company in creating a

good relationship between employer and employee. A healthy relationship between employer and
employee will make sure that there is a positive environment within the organisation and
employees are having job satisfaction (Kamari and et. al., 2018). It will also help the company in
influencing their employees and will make sure that the company is operating according to the
goals and objectives of the company. It is essential for the organisation to make a working
environment which can help them in their growth and development. In case of Marks & Spencer,
the company makes sure that the employees of the company are having a freedom to openly
communicate about their problems and issues which will help the company in having a better
understanding and will also help in finding a better answers to the problems.
To create better employee engagement: It is an essential factor for the company to
make sure that their employees are engaging effectively with the tasks of the company. It will
help the employee in understanding the tasks of the company and in improving their
performance. It is important for the organisation to make sure that they are functioning according
to the goals and objectives of the company (Su and et. al., 2018). When the employee engages
better in their work, it will help them in getting experience which will help them in handling
dynamic situations of an organisation effectively. In case of Marks & Spencer, the company
makes sure that the employees of the company are aware of the expectations of the organization
and are working in that direction. It will also help the employees of the company in attaining
accuracy in their work and in having a better communication with other employees as well as the
staff of the company.
To decrease employee turnover rates: It is crucial for the company to make sure that
their employee turnover rates are low as high employee turnover rates shows that the employees
are not satisfied with the workings of the company and that the company is unable to retain their
employees. It is not good for the finances of the organization and also the reputation of the
company will also be affected by this factor (Ambrosius., 2018). In order to retain their
employees it is important for the organisation to have an effective human resource management
team which can help them in managing their workforce and will also provide them job
satisfaction. In case of Marks & Spencer, the company makes sure that the human resource
department of the company is making efforts through which they can retain their employees. The
first step is to make sure that the company is having a proper employee schemes which can help
their employees in getting satisfaction within the organisation. The next essential factor is the

environment of the workplace. It is important for the Marks & Spencer, to provide a healthy and
positive environment which can help the employees in their growth.
Balanced scorecard is a strategic performance management tool which can help the
company in creating a well-structured report to keep a track of activities of employees so that the
managers can control the activities of employees and can also make sure that corrective actions
are taken on time in order to avoid any loss in the workings of the company (Zabarna., 2019).
The framework has four key perspective which can help them in analysing the actual situation of
the company in the market. It is important for the organisation to look after several aspects
instead of just financial aspects in order to measure success and position in the market. The four
perspective of balanced scorecard are given below:
Financial perspective: It refers to the financial position of the organization in the
market. It helps the framework in understanding the financial growth of the company. It assist
the company in determining whether they are earning their return on investment back or not. In
case of Marks & Spencer, the company is in a stable position in the marketplace. It is important
for an organisation to make sure that they are fulfilling the needs of their key players including
their shareholders, suppliers and customers.
Customer perspective: It refers to the level of satisfaction and value that the products
and services of the company is providing to its customers. Customer satisfaction is one of the
major aim of the organisation which is needed to be achieved in order to survive in the market
(Gope, Elia and Passiante., 2018). In case of Marks & Spencer, it is crucial for the company to
provide value to the customers as in that case only the customers will be willing to purchase the
products and services of the company.
Internal businesses processes perspective: It is important for the organisation to have
effective and efficient internal management processes in the organisation. It will help the
company in completing their task with optimum capacity. The balance scorecard confirms that
the products and services of the company are up to the expectations of the customers and are
meeting the quality standards of the company. In case of Marks & Spencer, it is important for the
company to include innovation in their processes which not only help the company in becoming
effective and prompt but will also make sure that the organization is having competitors
advantage in the market.

Organisational capacity perspective: In order to achieve the mission and vision of the
company it is essential for the organisation to analyse the capacity of the organisation and if it is
not enough then the company can take measures which can increase their capacity (Kaliannan.,
2018). The balance scorecard analyses the demonstration of departments about their high
performance in terms of entity culture, leadership, skills set and knowledge that the organisation
possess. In case of Marks & Spencer, the company makes sure that they are having proper
infrastructure which can support their human resource to work on their highest capacity and will
also provide advanced technology which can help in smooth functioning of activities within an
organisation.
how HRM strategies link to wider management strategies, performance and capabilities of
organisation.
HRM strategies are an important aspect of wider management strategies as it helps the
company in having a proper plan or framework which can help them in managing the task and
processes of the company effectively (Mobini Dehkordi., Ahmadi and Delavar., 2018). These
plans help the company in enhancing the performance and productivity of their employees which
will help the company in achieving their goals and objectives. Given below are some of the
strategic HRM practices which can help the company in wider management strategies:
Internal career ladder: It refers to the opportunities that the company provide to their
employees in order to have promotions on the basis of their performance. It helps the company in
providing better pay and job satisfaction to their employees. Employees who do not seek growth
in their organisation are likely to find new opportunities in other organisations (Wandhe., 2020).
It helps the company in showing their commitment towards their employees. In case of Marks &
Spencer, the organization make sure that they are rendering opportunities to their employees
from time to time. It will assist the company in retaining their employees and will make sure that
they are working up to their optimum capacity.
Formal training system: It has been observed that when employer provide training to
their employees the employees are likely to have a feeling that they are valued by their
organisation and it will also help them in having job satisfaction as they are continuously
upgrading their skills. In case of Marks & Spencer,the company make sure that they are
providing appropriate training to their employees so that the new employees can get familiar

with the environment of the company and the existing employees can upgrade their skills and
competencies.
Employee job security: Job security is one of the most important aspect in the workings
of the employee. If the employee is not having job security then they are most likely search for
other options. It is one of the major difference between private companies and public companies
as public companies provide full job security to their employees whereas private companies
provide partial or no job security (Sarvaiya., Eweje and Arrowsmith., 2018). In case of Marks &
Spencer, the company is providing high level of job security to their employees as they
understand the concern of their employees. It is essential for the company to make sure that their
employees are loyal towards the organisation and organisation in return are providing security to
their employees.
Having an effective HRM system will help the company in bridging the gap between the
employees of the company as well as the strategic objectives. With the help of effective HRM
strategies, the company can improve their processes as well as systems of the company. It is
important for the company to have talent in the organisation as it will help the company in
completing their tasks effectively and efficiently. It is important for the organisation to bring new
talent in the organisation as it will help in bringing new and creative ideas in the organisation
which can be really helpful for the decision making in dynamic industry in which the company is
operating.

Conclusion
From the above report it is concluded that strategic HRM plays an essential role in the
workings of the company. It helps the company in creating a pool of talent for the organisation
and will also make sure that the company will be able to have a workforce which is competent
enough to complete the projects of the company effectively and efficiently. Balanced scorecard
will help the company in identifying and analysing the activities of their employees and will also
make sure that the activities and actions of employees are in full control of managers which helps
in avoiding any major mistake in the processes of the company. The strategies used by human
resource department of the company in order to create a positive and healthy working
environment is a necessity. It will also help the company in providing job satisfaction to their
employees which is necessary in order to retain the employees of the company.

References
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