Impact of High Commitment HRM Practices

This assignment examines the influence of High-Commitment Human Resource Management (HRM) practices on organizations. It analyzes how different HR functions, as described by the Ulrich model, contribute to employee satisfaction and performance. The report delves into the challenges faced by line managers in implementing these practices effectively. Additionally, it explores the theoretical perspectives behind strategic HRM and the impact of external forces on HR strategy.

Strategic Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Presenting some HR policies and practices within an organization.......................................1
2. Describing some external forces and its effect upon strategic decisions................................4
3. Presenting how HR functions are organized and policies are delivered.................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Strategic Human Resource Management is the practice for attracting and developing or
retaining the employees for the benefit for both employees and the organization. The report main
aim is to understand the importance of human resource in the company and their practices which
helps to lead a business at further level of success. The chosen company for this report is Kering
and Asos which are top most fashion company in UK. Kering provide luxury goods which focus
on fashion, leather and jewellery and watches while Asos is one of the top online company in
UK whose mission is to become number one shopping destination for fashion lovers.
Report presents HR policies which are used by Human resource of the company by using
some theoretical concept such as high commitment HRM and further it describes specific
external forces that affect business performance. In addition to this, report also analyses how the
HR functions are organized and policies are delivered.
1. Presenting some HR policies and practices within an organization
HR policies and practices are help to build best in industry and provide direction to
perform well for a company. These are establish framework which help to manage people or
employees which cover how a business recruits its staff by make sure that employees should be
clear about the procedures and rules. In Kering and Asos, there are such policies which are help a
firm to develop a better culture and it is quite necessary for both organizations to have such
policies which actually reflect the business standard and provide consistency (Noe and et.al.,
2016). There are some HR policies and procedures which are al;so followed by Kering and Asos
and these are as mentioned below:
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High Commitment HRM (HCHRM): It emphasizes personal responsibility and empowerment
of the employees at all level rather than focusing on one high power. This practice is also
followed by Kering such that this practice is actually emphasizes that all the work is done or
completed but the work is done in such a way that the employees are enjoy to do it. That is why
human resource management of the firm develop an organizational design, business process and
goals or measures which are aligned trough a winning strategy (Gould‐Williams, 2014). If such
type of environment is there then the employees are easily raises their production level.
HRM practice also consist training and development, compensation and performance
appraisal which helps a business to lead in forward direction. On the other side, Asos is also
follow this strategy because it helps to satisfy the needs of their customers by designing best
outfits for their customer so that it will help to raise the sales of a firm. In addition to this, it has
been analysed that high commitment HRM also implies a long term employment relationship
which is quite essential in order to meet out the demand of the users. The biggest advantage of
using HCHRM is that it will be positively associated with perceived organizational support and
also help to use better organization structure (Boon and Kalshoven, 2014). That is why both
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Illustration 1: HCHRM
(Source: High Commitment HRM, 2017)

Kering and Asos's HR uses High commitment HRM in order to lead a business at further level of
success.
Best Fit HRM: This model also emphasizes that the HR strategies and the organization
strategies must be aligned and at that time, best fit approach is used to achieve the aims and
objectives of a company. Further it also consist model which is as mentioned below:
Life Cycle Model: This model states that a firm development is takes place in four
different stages i.e. start-up, growth, maturity and decline. In the same way, HR strategies are
also changed and product also goes through this different stages of life cycle in order to meet out
the expectation of their customers. Similarly, Kering and Asos is also uses this approach such
that in start up phase, the HR policy would be informal or narrow but as the business is expanded
then it this strategy comes in growth stage, which requires induction of new employees and
organizational structure becomes more complex. At this time, it needs more formal management
and HR hire specialist in order to cope up the situation who provide different innovative ideas at
every level (Kim and et.al., 2019).
On maturity stage, HR also retain the resources which are used in the growth phase so
that they can be used for further development and in last stage, which is one of the biggest
challenge for the firm because the business goes in downside and at that time HR should take
some steps to move in upward direction.
Hard and Soft HRM: Hard HRM is a staff management system in which the employees
are considered as a resources which needs to be controlled in order to achieve the best possible
profit and gain high competitive advantages. But on the other side soft HRM means that the the
employee or workers are consider an important resource for a company's growth and it also
motivates their employees in order to achieve the goals and objectives. Kering uses soft HRM
practices because the HR of a firm also provide reward to the employees and have an open
communication with their employees in order to reach a proper solution. Company also involved
their employees into a decision making process and even pay extra for their higher performance
in a form of bonus and promotion.
On the other side, Asos uses hard HRM scuh that the firm operates its business online
and they also treat their employees as a resource who help them to achieve the highest profit and
a high competitive advantages. The company only wants to complete the task on time and there
is no difference in decision making to replace a broken machine and replace a person when they
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do not needed any more. Even the firm also do not pay any financial reward to their employees
which is not good for the company's financial performance.
2. Describing some external forces and its effect upon strategic decisions
HR main purpose is to recruit the best candidate for the welfare of the company but there
are some factors that also affect the business in adverse way. These factors directly affect the
company's financial position and also effect the HR strategic decisions. These external factors
are as mentioned below:
Employment market: It is one of the most affecting external force that directly affect
the business in negative way such that as the Kering and Asos is operated in fashion industry and
also needs highly qualified employees who will easily support the business and helps in
maximization of the sales with profitability. In UK, the employment market is increases because
of skilled labour force and high educated people. The country also provide different job
opportunities to those people who actually wants to earn and feed their family in order to fulfil
their needs. In the same way, Kering and Asos is also had skilled labour force who provide the
best quality of products to their customers. HR of the company also monitoring the performance
of the employees and provide different training session to them in order to raise their working
performance (External forces that affect HR strategy, 2018).
Political factor: This factor directly link with the government policies such that if there
is any fluctuation in the policies of government then it directly affect the financial position of the
company and as a result, the customer buying power also affected. Beside this, when there is
increase in tax rate then it creates pressure of HR of the company to adopt new strategy which
also help to meet out the expectation of the customers and compliance with all the government
policies. For example, if the government in UK impose high tax rate on fashion industry, at that
time the HR of Kering and Asos has to increase the cost price of the product in order to
compliance with the law and meet out the needs of their customers. On the other side, if the firm
did not adhere to such rules and regulations which are made by the government then a company
can be fined extensively which may cause a bad impact upon the company's financial position.
Workforce Demographics: In the working area, old generation retire and new
generation enter, then the HR department should also used different strategy in order to attract
new set of candidates. As the employment market is diverse, therefore HR must hire in different
way with variety of compensation packages (Wright and McMahan, 2018). Therefore, the HR of
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the firm should use different strategy in order to attract wide range of employees so that it will
help to cope up with this external force. This factor also directly affect the company's HR
strategic decision directly.
Technology factor: This is another crucial factor which also affect the strategic decision
in adverse way. In this competitive world, there is a need to cope up with all strategy in order to
provide the best quality of products to their customers. In addition to this, new technologies also
require high HRM professionals who have enough knowledge in order to train their employees to
perform well. At that time the cost of the firm is also increases which fluctuate the financial
position of the company. Therefore, this factor affect the HR strategic decision and also affect
the position of the company in negative way.
Economy: Another biggest external factor is the shape of the current economy.
Economic factor not only affect the talent pool but also affect the ability of HR to hire any
candidate. In this factor, the slight fluctuation in the economy of the country also affect human
resource management in adverse way (Huselid, Jackson and Schuler, 2017). For example, if
there is a recession in the country, at that time, HR of a firm has to be strict for their decision and
tighten their budget, eliminate some projects and wait for some time until the things are
improved. On the other side, when the economic condition of the country is under control then
HR has to make those strategies which help to expand the current business and grow the business
at further level of success.
3. Presenting how HR functions are organized and policies are delivered
HR plays an important role in the success of a business. As HR main function is to recruit
the best candidate for the welfare of the firm and also help to increases the working performance
of the employees. It has been analysed that Ulrich model is the best and effective approach
which is specially design to organize human functions. Its main aim is to be able to develop
policies and also provide support by different business units with shared services.
Kering did not follow Ulrich model, as the firm have potential employees and also
provide different trainings sessions in order to foster up their skills and performance through
sustainable manner. Quoted firm also uses global, digital and sustainability which support the
HR strategy (Turner and et.al., 2019). The main idea behind their HR strategy is to flourish
through accessing and sharing with other people, in addition to this, the firm is also provided
different compensation packages to their employees in order to deliver all HR functions. On the
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other side, Asos is uses Ulrich model in order to deliver the functions which helps to create the
unified structure which deliver the values and also define a clear role for the HR and further
helps to create high competitive advantages.
Beside this, there are many companies who also invest lot of amount on HR
infrastructure but due to lack of talent and skills the company did not manage the system in well
manner. Therefore it is also recommend to both the firm to use Ulrich model in order to deliver
all the HR functions to their customers as well as employees (Chams and García-Blandón, 2019).
In addition to this, the organizations should also look into Ulrich model as a standard and also try
to innovate some creative design which help to reach at further level of success and raise the
profitability as well.
Role of line manager in the delivery of HRM: A line manager is a person who directly
manages employees and operations of a business in well and effective way while reporting to
higher authority. As HR department is consist of various functional areas and that is why Line
manager in HR department also supervise these specialist and then report to HR (Macke and
Genari, 2019). the role of the line manager is varies from one department to another such that
when a new candidate enter into the working area, line manager provide them training sessions
because they are specialist in the this area. To deliver the best HRM, line manager also hire the
supervisor who help their employees to perform well and also monitor whether they satisfy the
needs of their customers or not.
As HR main function is to recruit the best candidates for the vacant seats and at that time
the line manager of the company helps them to take better decision for the welfare of a firm. As
they have good management skills which help them to manage entire work and also sort out
many issue related to employees. In this way line manager help HR to take better decision and
also translate the policies into day to day practices (Bratton and Gold, 2017). Beside this, line
manager also takes feedback from their employees in order to cross check that they are
comfortable with the working environment or not.
Challenges: With limited resources, the line manager faces issue to deliver or organize
HR functions. Time management is the another issue which line manager faces and beside this,
due to employee resistance which may lead to ineffective communication also creates another
obstacles for line manager. Due to shortage of highly skilled labour force the employees also did
not get enough training sessions and as a result, the production level of the firm also affected in
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negative way. The HR of the firm also continuously creates pressure in order to minimize
expenses and maximizes the output (Bailey and et.al., 2018).
CONCLUSION
By summing up above report, It has been concluded that strategic human resource
management perform a crucial role in the success of a business. As report concluded that through
high commitment HRM, HR of Kering and Asos will easily maintain employee relationship and
also gain trust which help to reach the success. On the other side report also concluded hard and
soft HRM are another HR policy which are also used by the quoted firm in order to reach further
level of success. In addition to this, report concluded that there are various external factors that
affect the HR strategic decision such as employment market and political and economic factor
also affect entire business and also pressurise Hr of the firm to take some strict action in order to
cope up with this situation. Moreover, report also concluded that by using Ulrich model,
different HR functions are easily deliver to the employees and also describe the role and
challenges which is faces by line manager in order to organize HR functions.
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REFERENCES
Books and Journals
Bailey, C. and et.al., 2018. Strategic human resource management. Oxford University Press.
Boon, C. and Kalshoven, K., 2014. How high‐commitment HRM relates to engagement and
commitment: The moderating role of task proficiency. Human Resource
Management.53(3). pp.403-420.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Chams, N. and García-Blandón, J., 2019. On the importance of sustainable human resource
management for the adoption of sustainable development goals. Resources, Conservation
and Recycling.141. pp.109-122.
Gould‐Williams, J., 2014. The effects of ‘high commitment’HRM practices on employee
attitude: The views of public sector workers. Public Administration.82(1). pp.63-81.
Huselid, M. A., Jackson, S. E. and Schuler, R. S., 2017. Technical and strategic human resources
management effectiveness as determinants of firm performance. Academy of Management
journal.40(1). pp.171-188.
Kim, Y. J. and et.al., 2019. The effect of green human resource management on hotel employees’
eco-friendly behavior and environmental performance. International Journal of Hospitality
Management.76. pp.83-93.
Macke, J. and Genari, D., 2019. Systematic literature review on sustainable human resource
management. Journal of Cleaner Production.208. pp.806-815.
Noe, R. and et.al., 2016. Human Resources Management: Gaining a Competitive Advantage,
Tenth Global Edition. McGraw-Hill Education.
Turner, M. R. and et.al., 2019. Corporate implementation of socially controversial CSR
initiatives: Implications for human resource management. Human Resource Management
Review. 29(1). pp.125-136.
Wright, P. M. and McMahan, G. C., 2018. Theoretical perspectives for strategic human resource
management. Journal of management.18(2). pp.295-320.
Online
External forces that affect HR strategy. 2018. [Online]. Available
through:<https://study.com/academy/lesson/external-factors-impacting-hrm.html>.
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