Strategic Human Resource Management: Models, Performance Management, Rewards, and Employment Relations

Running head: STRATEGIC HUMAN RESOURCE MANAGEMENT
Strategic Human Resource Management
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1STRATEGIC HUMAN RESOURCE MANAGEMENT
Table of Contents
TASK 1:.........................................................................................................................................................2
Definition of SHRM:.....................................................................................................................................2
Discussion on the two different types of fit:..................................................................................................2
Three models of SHRM and their contribution to the improvement of organisational performance:...........2
Performance management systems:...............................................................................................................3
Rewards and reward system in organisations:...............................................................................................4
A learning organisation:.................................................................................................................................5
Way in which a learning organisation can support organisational change and development:......................5
Ways in which performance and reward management can bring about organisational change:...................6
TASK 2:.........................................................................................................................................................6
Employment relations:...................................................................................................................................6
Unitarism:..................................................................................................................................................6
Pluralism:...................................................................................................................................................7
Marxism:....................................................................................................................................................7
Theoretical perspectives that underpin Employment Relations:...................................................................8
Employment relations:...................................................................................................................................8
Conclusion:....................................................................................................................................................8
References:...................................................................................................................................................10

2STRATEGIC HUMAN RESOURCE MANAGEMENT
TASK 1:
Definition of SHRM:
“Strategic Human resource management” can be defined as the connection or the link of human
resources with the “strategic goals and objectives” for the improvement of business performance and the
development of organisational culture which is responsible for fostering innovation, flexibility and finally
that of competitive advantage. In any organisation, the concept of competitive advantage is used to refer
to the acceptance and involvement of the HR functions as a strategic partner in the overall formation and
the implementation of the strategies of the organisation which involves the functions such as recruitment,
selection, guidance and the rewarding of personnel. The most important feature of HRM that
requirements to be kept in mind is that of being integrated by nature (Uysal 2013).
Discussion on the two different types of fit:
In form of a fundamental characteristic of SHRM, fit is the concept which is used to denote the
“utilization of human resources” in order to assist the achievement of the goals of a particular
organisation. According to the experts Wright and McMahan, fit is supposed to mean “the pattern of
planned human resource deployments and the activities intended to enable the firm to achieve its goal.”
According to scholars, two types of fit exist, namely “horizontal and vertical fit”.” Horizontal fit”
basically refers to the congruence among the different HRM practices. “Vertical fit” is viewed as a critical
step towards the attainment of organisational goals by the initiation of certain human resource activities
which are aligned with the aims of the firm. It is believed that the horizontal fit is useful at the time of
making proper use of the available resources. Basically it needs to be understood that the horizontal fit
refers to the harmonization among a varied nature of human resource practices while the concept of
vertical fit is concerned more with the “compatibility between the HR Practices in a systematic and
proper manner”.
Three models of SHRM and their contribution to the improvement of organisational performance:
The present situation all over the world is becoming more and more competitive and more and
more establishments are targeting the human resources as a way of the strategic gaining of competitive
advantage. The concept of strategic human resource management is a continually developing procedure
which is concerned with the provision of a strategic framework which supports the long term business
goals of an organisation. The underlying logic behind this fact is that the organisations across the world

3STRATEGIC HUMAN RESOURCE MANAGEMENT
are utilizing newer and pioneering technologies in order to give “qualitative low cost solutions” and are
also trying to administer the individual assets much more efficiently.
The “resource based view model” focuses on “leveraging of the competitive advantage” through
both tangible as well as intangible organisational possessions. There are questions concerning the best
method of achieving SHRM. Evidence points to the fact that that firms do not usually adopt a solo style
of management and it is likely that they use a blend of different outlooks for diverse groups.
The “best fit” approach puts forward the concept that the strategic HR should be inextricably
linked to the formulation and functioning of strategic corporate as well as business objectives. This is
supposed to mean that the HR strategy is concerned with the matching of the employee’s role and
behaviour with the mission, goals and the values of the company. In case the business strategy of an
organisation is focussed on the deliverance of a high quality service then the HR strategies and the
policies need to focus on the employees. This can be achieved by a rewarding attitude and behaviour
which matches this specific approach.
The “best practice” model of SHRM claims that there are certain HR activities which
unanimously support the companies in getting a certain competitive advantage irrespective of the
organisational setting or industry. It basically aims at those particular HRM practices which can be
applied in most of the organisational contexts in order to increase the performance which helps in the
production of a better outcome. This model is sometimes however criticised because there might be a
deterioration of employee collaboration. The models are however influential apparatus for shaping f the
human resource management process. There might not be any absolute judgements on which approach
works best but the best fit models works better overall as it has a great amount of appeal to the HR
practitioners. It helps in the positioning of the first level strategic partners in the procedure of
administrative verdict making.
Performance management systems:
A well trained talented and skilled workforce is the key to any organisation. Performance
management is responsible for guiding employee behaviour in order to align with the goals of the
organisation. This happens because the job responsibilities and the expectations are clear and can often
lead to an increased amount of productivity. Better information results in improved compensation and
decisions for promotion (Bach 2013).
A proper performance management system helps an organisation with employee decision-making
and employee development. verdict making uses the assessment information as a means for the pay