Strategic Human Resource Management: Role, Strategies, and Balanced Scorecard

This report discusses the role of strategic human resource management in improving business performance and achieving long-term organizational objectives. It explores how HRM strategies are related to management strategies and organizational performance using the balanced scorecard framework. The report also covers the importance of employee satisfaction, retention, and training in achieving organizational goals.

Strategic Human Resource
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Human resource is the most important resource for every organisation because it fulfils
workforce requirement for every department in the company. HR understands need of company
and hires right employee for the right position. This report will discuss about the role of
strategic HRM by using balance scorecard. Further it will evaluate how HRM strategies are
related to management strategies and organisational performance (Zehir, Karaboğa and Başar,
2020).
MAIN BODY
Strategic human resource management is the process of human resource which is
helpful in solving business challenges and also helps in framing long term organisational
objectives. The main function of strategic HRM is to improve the performance of business and
brings the culture which encourages innovation and motivation at workplace. HRM also provide
direction so work effective so that goal of the company can be achieved. HR improve business
performance by hiring effective workforce in the organisation. Example HR of Tesco is so
efficient that they know that which type of candidate can fulfil the needs of the company. And
they search for the skills and knowledge which can fulfil company's demand (Lengnick-Hall and
et.al., 2019). As per the strategic human resource management they suggests that employees
should have work hand in hand. When employees work with collaboration and coordination than
only company's performance can improvises.
Managing human resource functions is the important thing for the success of the
organisation. When employees are not satisfied than company will not able to retain their
employees and that will increase employee turnover. Company should have make strategies so
that they can retain their talented workforce in the company. HR of the big companies like
Starbucks makes proactive strategies and strategic planning is the responsibility of HR. HR helps
in achieving the strategic goals of the organisation. For the HR managers it is important that they
collaborate with both workforce and the line managers so that goals can be achieved. The
responsibilities which are carried by the human resource of the company are recruitment,
selection, training and performance management. It further helps to management in achieving
objectives by improving process and through innovation. The biggest benefit of strategic human

resource management is to improve the performance of the organisation by aligning with
business strategy.
With the help of SHRM company can attain competitive advantage. In many company's
like manufacturing firms, quality is depends on the HR systems. While in the service based
companies which are banking institutions HR providing training, performance management and
rewards to their employees in order to motivate them. SHRM solves employee related problems
like it helps in reducing employee turnover rate, increase employee morale and satisfaction and
reduce the rate of absenteeism. By providing training to the employees so that they can get
understanding of the job roles and work hard so that organisational goals can be achieved. If
employee will work hard than company can experience higher sales with increased market share.
Balance scorecard-this framework helps organisation in taking effective decisions. This
framework is based on four perspectives which are financial, customer, internal processes and
learning and growth. All the perspectives are important for the organisation that is why this
framework is named as balanced scorecard because it is important that these four should be
properly balanced. This framework is old but still it is helping or considered as the effective tool
for strategy implementation. In order to take the complete benefits of this framework,
organisation should have frame clear strategy which will be helpful in attaining strategic
objectives. If the organisation will implement balance scorecard framework than there are
chances that business can attain long term success (Kaufman, Barry, Wilkinson and Gomez,
2021).
For the strategic management of the company whether it is small or big this framework
helps every organisation in achieving targets. This metric is used to improve the internal business
functions so that external outcomes can be achieved. This framework also provide feedbacks to
the company. Learning and growth which is one of the perspective of this framework represents
that how properly employees are utilizing information so that company can achieve competitive
advantage. Business process helps to find out that how well items are produced. In the customer
perspective, customer experience are identified and also customer satisfaction. When customer
provide feedbacks than company can make improvements whenever required (Reade, McKenna
and Oetzel, 2019). Getting feedbacks can help company to know their customers needs.
Financial perspective which involves financial data like income, sales, expenditures etc. which

are utilizes to understand the financial performance. As balance scorecard includes all the
perspective which is necessary by the HR of the company.
Balancing four perspective of the company is essential in order to achieve growth and
success. Making strategy is the complex process and this is majorly done by the human resource
of the company. This framework helps the organisation is making effective strategies so that
company's objectives can be achieved. Learning is the continuous process and HR inspire their
employees to learn new skills so that those skills can be uses in achieving the goals of the
company (Haque, 2020). With the help of training and development company understands their
job role and also how tasks have to be accomplished. Balanced scorecard is best known as the
strategic framework.
Human resource management has become strategic in nature and it important to adopt for
fast changing environment that is why every business need employee who able to understand the
strategy and empowered for execution. Strategic human resource management helps to ensure
about the people that played vital role in order to maintain the competitive advantages of the
firm. Also, it is the internal part of the organising, planning and controlling. These parts are
classified into such categories planning are included in vision and mission of the organisation
with strategizing and goals and objectives of the company (Tambe, Cappelli and Yakubovich,
2019). Organising is related to designing the culture and building social networks. Leading is
involved with decision making by leadership, maintain the classification, motivate employees
and groups. Another one is controlling which is included process and system of HRM.
Strategic human resource team attracting only right employees by identifying the
matrices that can be helped in targeting the goals of the organisation. Elements of SHRM are as
follows such as, this is the primary source of competitive edge, there are several activities which
are important for the programmes, policies and practices that are help to gain the competitive
edge. Also helps firm to react quickly for the new challenges that are more efficient between all
other methods (Madera and et.al., 2017). This formulation is good practise of classifying the goal
and strength of the company with the strategic implementation that are express for as the process
by developing structures and allocating resources. There is difference between SHRM and HRM
such as HRM are implies the implementation for principle and managing the workforce of
company. On other hand, SHRM is aligning the strategies of business with practices and also can
attain the organisational goals. For example, HR manager of Mark and spencer are focused on

the manpower’s developing, hiring and retaining them in order to make them efficient for
increases the sale of the organisation. SHRM is workforce of company that can be managed
proactively.
Management strategies are related to the processes of business that are using for ensure about the
activities that aligned for mission and objective of the organisation by knowing about the
strategic plan (Hecklau and et.al., 2017). Both the strategies have focused on the goal of the firm
in the different direction approaches. Organisational performance refers to the analyses the actual
output with the companies intended goal and objectives. The impact of human resource
management on the organisational performance in the training, education and development that
are influence in positive manner by performance of business entity and also enlarging the
proficient by encouraging the flexible learning. It helps to increased the commitment and
motivation that are also impacted positively. Employees are happy for working in the company
in an accomplish manner, also utilise the knowledge of employees. At some point organisation
wants to develop by changing the environment as externally in order to maintain the new
competitors, market change, technology.
The process of organisation development on the basis of need analysis by some tools such as
future state analysis, strategic review, Pestle and SWOT etc. Another one is gap analysis which
can be analysed by the ISO, force field analysis, TQM etc (Salamzadeh, Tajpour and Hosseini,
2019). Wide strategy of organisation is customer intimacy, service or product leadership with the
lowest total cost. Also, there are four major phases of strategic management such as formulation,
implementation, modification and evaluation which can be heled to enhance the productivity of
the business in order to hire these employees who have great efficiency of doing work with the
proper time management. Organisation capabilities is a combination of unique process, skills,
human capabilities and technologies that can be helped in differentiated the company. These
capabilities are created for the internally so that it can be difficult to replicate by others. All the
things are differentiating the firm from others in order to execution of the strategy. The
combination of these skills is help to invest in the outcomes of training, staffing, communication
and compensation etc (Sultanii, 2020). This is also analysed that people and resources are meant
to be work together so that they can accomplished and emerged when organisation delivers the
combined competencies and ability of the individuals. There are several factors of organisation
capabilities which are very important to adopt such factors are, responsiveness and flexibilities,

competitive advantages, knowledgeable workforce and improved the customer relationship. As a
model it has many forms like, structures, aligning people, system, technologies, culture etc. For
building the capabilities there are as transformation, fosters transformation and the change which
is very important for and organisation. It has been identifying that organisation capabilities are
help the strategic human resources management in which it is included all the related activities
such as performance appraisal, recruitment, learning and development, succession, compensation
planning etc (Asfahani, 2021).
CONCLUSION
It has been concluded that human resources management is very important for the
organisation in order to make them efficient and effective so that it can help the firm in context
to competitive advantages. Moreover, it is designed to maximize the performance of the
employees and as well as improve the productivity of the company. Further, it has been analysed
that strategic human resources management is a process of connection between the
organisation’s objectives and strategies, goals and objectives. Lastly, summarising the role and
capabilities of the performance of the organisation’s strategies.

REFERENCES
Books and Journals
Asfahani, A., 2021. THE IMPACT OF MODERN STRATEGIC HUMAN RESOURCES
MANAGEMENT MODELS ON PROMOTING ORGANIZATIONAL
AGILITY. Academy of Strategic Management Journal, 20(2), pp.1-11.
Haque, A., 2020. Strategic HRM and organisational performance: does turnover intention
matter?. International Journal of Organizational Analysis.
Hecklau, F. and et.al., 2017, December. Human resources management: meta-study-analysis of
future competences in industry 4.0. In Proceedings of the International Conference on
Intellectual Capital, Knowledge Management & Organizational Learning (pp. 163-174).
Kaufman, B.E., Barry, M., Wilkinson, A. and Gomez, R., 2021. Alternative balanced scorecards
built from paradigm models in strategic HRM and employment/industrial relations and
used to measure the state of employment relations and HR system performance across
US workplaces. Human Resource Management Journal. 31(1), pp.65-92.
Lengnick-Hall, C.A. and et.al., 2019. Something old, something new: Reframing the integration
of social capital into strategic HRM research. Academy of Management Perspectives,
(ja).
Madera, J.M. and et.al., 2017. Strategic human resources management research in hospitality and
tourism: A review of current literature and suggestions for the future. International journal
of contemporary hospitality management.
Reade, C., McKenna, M. and Oetzel, J., 2019. Unmanaged migration and the role of MNEs in
reducing push factors and promoting peace: A strategic HRM perspective. Journal of
International Business Policy. 2(4), pp.377-396.
Salamzadeh, A., Tajpour, M. and Hosseini, E., 2019. Corporate entrepreneurship in University
of Tehran: does human resources management matter?. International journal of
knowledge-based development, 10(3), pp.276-292.
Sultanii, L., 2020. The Relationship Between Strategic Human Resource Management and the
Organizational Commitment: The Case of Azerbaijan. Economic and Social Development:
Book of Proceedings, 4, pp.63-70.
Tambe, P., Cappelli, P. and Yakubovich, V., 2019. Artificial intelligence in human resources
management: Challenges and a path forward. California Management Review, 61(4),
pp.15-42.
Zehir, C., Karaboğa, T. and Başar, D., 2020. The transformation of human resource management
and its impact on overall business performance: big data analytics and AI technologies
in strategic HRM. In Digital business strategies in blockchain ecosystems (pp. 265-
279). Springer, Cham.