Human Resource Management and Organizational Performance Analysis

This assignment requires a comprehensive analysis of the role of human resource management (HRM) in enhancing operational performance, focusing on automotive companies in Brazil. Utilize the provided journal articles to examine the impact of HR practices like green HRM, employee voice behavior, and high-performance work systems on organizational performance. Additionally, consider the influence of lean manufacturing and corporate social responsibility initiatives.

Strategic Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
GLOSSARY....................................................................................................................................1
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
.......................................................................................................................................................11

EXECUTIVE SUMMARY
This report based on strategic human resource management so that there will be defining
about HR consultancy of UK. In this context, will be elaborating relationship between human
resource strategies and business strategies as well as its importance or benefits for organisation
and customers. Additionally, it will defining about vertical and horizontal integration. Further,
several models of SHRM in the effective and efficient manner. Therefore, different type of HR
practices will be demonstrating as well as will give suitable recommendations to company so that
how they will re- design its performance management system.
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INTRODUCTION
In the current era, human resource management plays a significant role because it assists
to manage and control employees of organisation in an effective and efficient manner. In this
report has been chosen LOTUS HR Consultancy of UK. Basically, consultancy organisations
helps to provide better and effective directions and guidelines to company so that they will take
correct decisions. Thus, HR Consultancy emerged with management consultancy it helps to
develop healthy and effective working environment. This report will discussing about actual
relationship between human resource and business strategies as well as vertical alignment and
horizontal integration (Moutinho, 2011). Different types of SHRM models will be explained in
context of selected organisation. Additionally, several kinds of HR practices will be discussed
and provides several recommendations to company regarding the way they can change and re-
design performance management system in an effective manner. In this lights, employment
relationship will be defined as well.
GLOSSARY
LOTUS HR Consultancy is established in the UK which is one of the leading training
firm of nation. Consultancy is a professional body that provides smart and effective expert
advices. Thus, it can improve the working performance and quality of employees in an effective
and efficient manner. Basically, it dealing with management, education, accountancy, law,
human resource, marketing and so more. Therefore, human resource consultancy industries
emerged with management consulting groups (Hendry, 2012).
Moreover, business strategies can be understand as an effective management system in
which included art, science and craft. So that will effectively formulate, implement and analyse
business activities and operations in effective and efficient manner. It assists to increase
productivity and profitability as well as with the help of this company will significantly achieve
its objectives and targets. Apart from this, human resource management strategies also can be
known as a plan which helps to give directions and guidelines to implement HRM functions
within the organisation (Renwick, Redman and Maguire, 2013). Additionally, it helps to manage
and control business activities and human resources in a appropriate way. Due to this, every
employees of the firm systematically perform its tasks so that they will attain goals and targets.
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Relationship between human resource strategies and business strategies: As per
above defined human resource strategies helps to manage and control overall employees of the
organisation in an appropriate manner. As well as it assists to increase working performance and
quality of staff members. So that they will significantly perform their tasks as well as attain it’s
long and short term goals (Morgeson and et. al., 2013). At this current time period, human
resource strategies working like as an important aspect for LOTUS because with the help of this
company will significantly control several UN-necessary cost and resources. Effective human
resource strategies focus on employee performance and involvements. As well as effectively
provides training to them towards its works and tasks.
With the help of training and development programmes employees can learn how they
should perform their works with better outcomes. While employees significantly perform its
tasks then consequently increased productivity and revenue of the organisation. Thus, it is
necessary for every organisation must effectively decide human resources and business strategies
because both these aspects are beneficial for the organisation. Basically, business strategies are
helpful for organisation because it assist to achieve goals and objectives in a impressive manner.
The top management of enterprise decide business strategies for managing and controlling
activities and operations (Brewster and et. al., 2016).
Generally, Human resource is the important part for every organisation, so that there are
explaining the basic relationship human resource management strategies and business strategies
such as follows:
 Execute business polices: Top management of LOTUS made effective business and
human resources strategies for organisation. So that they can manage and control human
resources in effective and efficient manner.
 Manage and control: With the help of effective business and human resource
management strategies, company can control and manage business activities and
operations in an impressive manner. It assist to develop healthy working environment
within the organisation (Haines III, Jalette and Larose, 2010)
 HR strategies and business productivity: HR strategies assist to increase productivity
and profitability of business firm. So that, HR department of organisation focuses on to
hire applicable and suitable candidates in company.
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 Developing business strategies and solutions: The management and human resources
department of LOTUS should work together and effective in nature so that organisation
can effectively introduce and conduct better training and developing programmes for
employees. So that they can significant perform its tasks.
Vertical alignment and Horizontal integration:
Horizontal refers to, when an organisation merge with same type of company. One of the
major reason behind this integration enterprise seeks to be set a position in competitive market
place. For example, if LOTUS merge with same kind of HR Consultancy Company so that can
be known as horizontal integration.
Apart from this, Vertical alignment refers to some effective and appropriate strategies
which can be used by LOTUS for increasing business activities and operations in a significant
manner. Basically, this alignment helpful for company because it assist to minimizing cost as
well as increasing productivity and profitability of firm. Thus, both these are beneficial for
organisation because it assist to increased productivity and profitability of company in a
impressive level (Jabbour and et. al., 2013).
Theoretical basis and models of SHRM:
The strategic Human resource management means a relation of Human resource related
to the strategic objectives to know about the organisation culture, make some improvement in the
level of performance etc. in HRM, there are some main elements are included like for an instance
recruitment, training, selection, development, payroll etc. Some of the models related to the
Strategic Human Resource Management mention:
External environment- This environment impacts a lot on the business strategy as well
as corporate. In this some factors are included for an instance government regulations, legal
factors, social, technological, environmental factors. These all are not controllable by business
organisation (Ijose, 2010).
Internal environment- This type of environment plays a necessary role at the time of
developing the business and corporate related policies or strategies. The management can control
and managed the internal environment. In this environment includes customers, staff members,
suppliers etc.
Business strategy- The top management of cited business enterprise formulate the
business strategy, so that all workers can work in a systematic manner. An effective business
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strategy will be helpful to firm in achieving the goals and aims in specific time period (HOW TO
CREATE SIMPLE BUSINESS STRATEGY, 2017).
HR strategy- Its main motive is to prepare a well-defined and specified Human resource
strategy for integrated approaches of job design as well as job evaluation (Messersmith and
Guthrie, 2010).
HR practices of Performance management and reward: For every business firm, it is
required to be adopt and use effective reward system and HR practices within the organisation so
that they can motivate its employees towards its tasks and objectives. With the help of better
reward system employees will significantly perform its works as well as systematically achieve
pre decided targets. Basically, HR practices included several aspects such as training and
development, recruitment and selection, directing, controlling, managing and so more. All these
practices are helpful for every organisation because it assist to increase working performance of
employees as well as aids to increase profitability of the firm.
In the context of performance reward system, it is one of the major aspect for every
business firm, with the concerning of preparing and implementing appropriate strategies and
polices within the organisation. Thus, major aim behind adopting this system is to reward people
fairly and effectively as per their value. Apart from this, it carried out of analysing and
evaluating employee remuneration, rewards and other benefits for staff members. There are
different type of reward system which can be used by selected organisation such as follows:
 Financial reward package: Employees of the company get financial benefits in the form
of salary or commission. This system used by the business firm as per the employee’s
work quality and involvement.
 Direct financial compensation: It is similar like compensation system, thus in this
rewards aspect employers directly pay to their employees. Therefore, there are included
hourly wages, salaries, bonuses, tips and commission.
 Indirectly financial defence mechanism: In which not concluded direct pay systems of
the rewards. This reward aspect is the form of compensation thus it can be understand as
a portion of contract of staff members. It covers leaves of absence, benefits and
retirement polices and plans.
 Non- financial method: It is another reward concept because in which not carried out
monetary terms. This type of compensation system more effective for employees because
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due to this they feel comfortable such as achievement awards, team leadership chances,
prizes, gift cards, new work place, separate cabin and so more.
(Source- Windust, 2017)
For increasing working performance and quality of employees training and development
practice can be used by LOTUS within the business firm. Thus, with the help of effective
training and development programmes and activities employees can learn how they should
perform their tasks as well as how they can attain its targets and goals in effective and efficient
manner. Thus, when employees significantly perform its operations and tasks then consequently
increased productivity and profitability of organisation as well as company will get success.
Apart from this, HR department of the company focus on to adopt and use better reward system
within the organisation (Redesigning performance management, 2017). Because with the help of
this company can effectively motivate to employees towards its targets as well as they can
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Illustration 1: Performance management

enhance its confidence level. While employees motivated and highly confident for their works
and performance then respectively get success and achieve targets in effective and efficient style.
Thus, effective HR Practices and reward system helps to motivate and increase moral of staff
members so they will effectively perform their operations due to this respectively increased
productivity and profitability of company. It is necessary for every organisation must be choose
appropriate and effective HR practices and reward system within company.
Re- design a performance management system: For every business firm to design or
re-design performance management system is not an easy concept because company's
profitability and productivity depends upon this aspect. Thus, appraisal system of the company
directly can impacts on promotional opportunities, relationship between employees and
employers, payroll and so more. Performance management helps to define how to manage and
control performance of employees of the company. So that they can attain their decide targets
and objectives in effective and efficient manner. Therefore, before designing performance
management system have to be select effective performance strategy. Basically it included five
strategies which are explaining under follows:
Keep it simple: For any kind of innovation and modification have to be include persons
in new process of company. In the organisation there can be carried out several sources to
motivate persons such as take effective reviews, eliminate unnecessary things, reduce cost,
decrease workload and so more (Ployhart and Moliterno, 2011).
Have a purpose: Before developing performance management system thus have to
clarify actual purpose and objective behind this system. Additionally, it should be discussed with
its team members or employees of the organisation.
Ditch top down only feedback: In the context of performance management system must
be take 360 degree feedback from persons with the help of this can get several ideas and views
from staff members.
Introduce upward feedback: It is necessary 360 feedback not only gathered by team
members as well as should be taken from staff members. Thus, it is one of the best chance of
LOTUS to develop opportunities for build effective communication system.
Set regular, useful goals: Effective setting of goals and objectives is plays important
role for every organisation. Because with the help of this company can significantly motivate and
increased their confidence level towards its tasks and objectives.
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Nature and theoretical perspectives of Employment Relations
Employment relation describes as the legal link among employees and employer, who are
working together in an organisation (Kersley and et. al., 2013). This arises at the condition when
an individual perform various work or services under certain situation in terms for getting
remuneration. It is a key point of interactive policies, rights and obligations that are created
among employer and employee. Employment relation can be considered as an effective
communication and behaviour among employee and their employer which are related with
employees’ rights, obligation and happiness in any particular job. An effective employment
relation helps in increasing the performance of firm through implementing better understanding
between employees and employer. In today's scenario mostly organisations are focused on
establishing good relationship among their staff members who are working for attaining similar
goals and objectives. For better understanding of employees relationship some theories plays
most significant role, which are describes as under:
Unitarist Perspective: A unitarism can be describes as a important aspect which assumes
that each individual in a firm is a part of a team which is created for some kind of common
purpose. This perspective is depend on some assumption that the organisation is an incorporate
and integrated group of people with single loyalty and authority structure. It can also describes as
the set of some common goals, values, interest and objectives that are shared by all employees
who are available in similar organisation. Firms attaches more importance to mutual
participation, thus all staff member in an organisation share some similar purposes. In this
perspective is as similar as paternalism which plays most essential role in generating loyalty of
all employees towards their work or organisation (Bach and Bordogna, 2011). Due to integration
of various applications and emphasises, the management of this kind of organisations are
outstanding and attractive. This approach is widely used in developing an effective industrial
relations. In this some major implication are included, which are describes as below: Trade Union: It is considered as unnecessary aspect in business firm. This always work
for employees benefits for this company try to establish an effective relationship among
management and employees.
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 Conflicts: Through this dissatisfaction level among staff members goes very high and it
may cause differences between employees and management at the working environment.
Pluralist perspective: Lotus HR is made up through different sectional groups. As per the
perspective of Pluralist each team has its goals, legal loyalties and leaders. This perspective is
categorised among two remarkable section such as trade union and management. The trade union
are performed as lawful delegates of staff members and the major job responsibility of
management are not controlled and enforced but coordination and persuasion is needs to be
there. In this issues are inevitable and problems are resolved by collective bargaining. Conflicts
are arises due to integration of bad things (Zumbansen, 2011). Some implications are there of
this approach, which are describes as under:
 In Lotus HR there is mismanagement of work arises due to lack of coordination among
employees and employers.
 Issues are uncertain elements which are needs to be resolve by firm in order to carry out
their business activities in effective manner. The cited firm use various external forces for
making an effective solution of problems.
Role of actors within employment relationship
Employment relation is combination of three major aspects such as employer, employees
and government. These all three elements plays most significant role in establishing an effective
relationship among organisational people in order to attaining desired goals and objectives.
These are describes as under:
Employees: They can be measured as most essential assets if firm. They are responsible
for each activities which are assigned by them as per their skills and ability. Employees are
focused on putting their best efforts in order to achieving goals and objectives of firm, so that
organisation can reach at competitive advantage. It is the major responsibility of staff members
to adopt efficient changes and new environment at work place so that they can improve their
skills and ability of working through applying new innovative tools and ideas. Workers should
establish an effective relationship with each other, so that work has to be done with more
coordination. It is required for employees to work according to the rules, policies and plans
which are created by top management of firm.
Employer: The major responsibility of manager is to hire well educated and skilled
people in their firm in order to carry out business activities in right direction. They also perform
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the duty to terminate or fire people who are not working well in firm. Employers are mainly
concern on providing flexible working environment to their employees, so that they can work in
effective manner (Eabrasu, 2012). The higher authority of Lotus HR is focused on providing
training and development session to their new and existing employees for improving their
performance at work place.
Government: It is the major responsibility of government to create rules, plan and
policies for effective working of business activities. Government introduce some acts like equal
opportunities act, discrimination act and health and safety in working environment act, these acts
are helpful in creating an effective and discrimination free work place.
Changing nature of employment relation
In any kind of business organisation issues and conflicts are unwanted, it can arise any
time anywhere. In an organisation issues are faced by managers and higher authority. In this
modern scenario, the environment of business change rapidly due to changes arises in business
environment. Most of the staff members are not feeling comfortable in new working
environment. It is not easy for them to manage their self in changing working environment in
effective manner. In the previous timing tasks and duties are done with the help of old
equipment, system, machinery and tools. In this present time higher authority has to face various
issues related with cross training, personal management, interaction among different departments
and communication (Morrison, 2011). Sometime managers are facing issues in collecting proper
and relevant data regarding organisational overall performance, this may create dissatisfaction
for employees as well as firm. There are some factors which can affect the changing nature of
employment relation:
 Managing expectation of employees and employers
 Changing working environment
 Changing nature of employees
 Performance appraisals
 changing arises in work force
 Changing occurs in techniques and tools.
Employee’s participation and their voice
In all business activities, the participation of employees are required for performing
different tasks in most efficient manner. Employees participation can be describes as the process
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of contributing their potential for creating an effective decision which is essential for
organisational overall performance (Ng and Feldman, 2012). Employee’s voice is an essential
key in this changing business world. It can be describes as the process of communication in
which employees give their thoughts, opinion and suggestion on employment relation. It
employees raise their voice in positive manner than issues can be resolve in effective manner.
Each business organisation is focused on establishing an effective communication
channel among their employees and higher authority in order to resolving the issues and conflicts
which are faced by employees at work place. It is a best to communicate with their subordinates
who are contributing their best work place in order to gaining high profit and growth for
company. Employees can be considered as the most essential resource of firm and taking
effective part in decision making. With the help of an effective communication channel
employees can easily share their thoughts and ideas to their supervisors in order to establishing
effective and efficient changes at work place. Firms are concern on establishing effective relation
among their employees in order to taking an effective decision about the terms which are
beneficial for firm and its growth.
It is required for manager or higher authority to identify the basic needs and wants of
employees in order to satisfying them in most efficient manner. Manager have to evaluate the
issues which are faced by employees at work place needs to be resolved in appropriate manner,
so that work can be done in significant manner.
If in an organisation any kind of misbehaviour arises, than employees can raise their
voice for solve them, so that work can be done in smooth manner. Employees are very much
close to the organisational activities, so they known in which sector firm needs to make changes,
so they are able to provide proper ideas about changes at work place. With the of effective
employees relation people work with more coordination and implement their best after
discussion about the needs and wants of task.
CONCLUSION
From the above mentioned study, it can be concluded that human resource management
and strategies played significant for every organisation. Because it helps to managed and
controlled human resources in effective and maleficent manner. This project based on LOTUS
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HR Consultancy Company in this context has been defined relationship between HR strategies
and business strategies as well as has been explained benefits of them. Additionally, has been
demonstrated vertical alignment and horizontal integration for LOTUS HR consultancy.
Therefore, different SHRM models has been elaborated in a systematic manner as well as
defined about HR practices and given appropriate recommendations for performance
management and reward system to organisation.
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REFERENCES
Books and Journals
Bach, S. and Bordogna, L., 2011. Varieties of new public management or alternative models?
The reform of public service employment relations in industrialized democracies. The
International Journal of Human Resource Management. 22(11). pp.2281-2294.
Brewster, C. and et. al., 2016. International human resource management. Kogan Page
Publishers.
Eabrasu, M., 2012. A moral pluralist perspective on corporate social responsibility: From good
to controversial practices. Journal of Business Ethics. 110(4). pp.429-439.
Haines III, V. Y., Jalette, P. and Larose, K., 2010. The influence of human resource management
practices on employee voluntary turnover rates in the Canadian non governmental sector.
ILR Review. 63(2). pp.228-246.
Hendry, C., 2012. Human resource management. Routledge.
Ijose, O., 2010. Strategic human resource management, small and medium sized enterprises and
strategic partnership capability. Journal of Management and Marketing Research. 5. p.1.
Jabbour, C. J. C. and et. al., 2013. Environmental management and operational performance in
automotive companies in Brazil: the role of human resource management and lean
manufacturing. Journal of Cleaner Production. 47. pp.129-140.
Kersley, B. and et. al., 2013. Inside the workplace: findings from the 2004 Workplace
Employment Relations Survey. Routledge.
Messersmith, J. G. and Guthrie, J. P., 2010. High performance work systems in emergent
organizations: Implications for firm performance. Human resource management. 49(2).
pp.241-264.
Morgeson, F. P. and et. al., 2013. Extending corporate social responsibility research to the
human resource management and organizational behavior domains: A look to the future.
Personnel Psychology. 66(4). pp.805-824.
Morrison, E. W., 2011. Employee voice behavior: Integration and directions for future research.
Academy of Management annals. 5(1). pp.373-412.
Moutinho, L. ed., 2011. Strategic management in tourism. Cabi.
Ng, T. W. and Feldman, D. C., 2012. Employee voice behavior: A meta‐analytic test of the
conservation of resources framework. Journal of Organizational Behavior. 33(2).
pp.216-234.
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Ployhart, R. E. and Moliterno, T. P., 2011. Emergence of the human capital resource: A
multilevel model. Academy of Management Review. 36(1). pp.127-150.
Renwick, D. W., Redman, T. and Maguire, S., 2013. Green human resource management: A
review and research agenda. International Journal of Management Reviews. 15(1). pp.1-
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Zumbansen, P., 2011. Neither ‘Public’nor ‘Private’,‘National’nor ‘International’: Transnational
corporate governance from a legal pluralist perspective. Journal of law and Society.
38(1). pp.50-75.
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Redesigning performance management, 2017 [Online]. Available through:
<https://www.cognology.com.au/redesigning-performance-management-key-trends-of-
2015/>. [Accessed on 5th October, 2017].
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