Improving Organizational Performance Through Strategy and Process Management

This assignment delves into the critical role of business strategy in improving organizational performance. It examines key studies such as Yuliansyah et al.'s (2017) 'The Significance of Business Strategy in Improving Organizational Performance' and Haupt et al.'s (2017) 'Do We Have the Right Performance Indicators for the Circular Economy'. Furthermore, it explores process-performance management systems through cases like Blasini et al.'s (2018) 'Developing and Implementing a Process-Performance Management System', and performance management systems' implementation in various sectors.

STRATEGIC HUMAN
RESOURCE
MANAGEMENT

TABLE OF CONTENTS
STRATEGIC HUMAN RESOURCE MANAGEMENT................................................................1
SUMMARY.....................................................................................................................................1
Task 1...............................................................................................................................................1
Task 2 ..............................................................................................................................................6
References......................................................................................................................................10

SUMMARY
This report covers different practices of strategic human resource management and
develops strategies for development of the organisation. Human resource department is also
important aspect of the organisation as it possess the responsibility of recruiting and selection of
talented employee's and developing their skills and abilities by providing training and
development. It also focuses on the employment relation and relation between employees,
employers, trade unions and government bodies. It shows the important factors and their role in
employment relation.
Task 1
Before analysing strategic human resource management, it is best to take in consideration
practices of human resource management and comparing them effectively. HRM is well known
for recruiting and selecting, hiring best, suitable and talented candidates for the organisation. It
gives benefits such as compensation, training and development to enhance the skills and abilities
and increase their work efficiency for successful development of the organisation. Whereas, the
focus of SHRM is clearly on delegating the responsibility to the employees within the
organisation and providing them with the guidelines of the company objectives and goals to be
achieved by clear mission, vision, and values of the organisation. These practices help them in
attracting, developing and retaining the current employees and for the benefits of company and
the employees as well. Currently operating as a HRM consultant for Asda.
Relationship between the business strategy and the human resource strategy
 Business strategy of Asda
Business strategy or Strategic management helps to achieve the long-term goals and
objectives of Asda, by focusing on formulation, implementation and evaluating the cross-
functioning decisions of the company. They can achieve their strategic policies, plans and
programs by systematic allocation of resources and by maintaining a proper mission, vision and
objectives of the company and making employees aware of them. Various long-term goals and
objectives of the company are achieved in the business area of the organisation by implementing
a proper marketing strategy, productivity, advertising, customer satisfaction or support and sales
are coordinated and integrated(Tzabbar, Tzafrir, and Baruch, 2017). These business practices
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give a clear and balance scorecard for the company and benefits the organisation in evaluation of
the performance of business in terms of achieving its objectives.
It is the activity of the company at the highest level and managing it systematically, as developed
and planned by the management. It is approved by the person given authority or by the Directors
of the Board and implemented by the superiors in different departments with the permission of
their superiors or senior executive (Habib and Hasan, 2017). These practices give the direction to
organisational objectives and goals and are said to be related with organisational studies.
 Human resource strategy of Asda
Human resource department is responsible for recruiting and selecting employees with skills
and abilities required by the organisation and practices in providing training and development to
enhance their skills. It also takes care of all the conflicts which arise in the company and
provides benefits to the employees such as HRIS, bonus, and many more. Apart from this the
overall needs and requirement of the workers is also under the responsibility of HR department.
Therefore, human resource strategy is for completing the organisations goals, mission and all the
future oriented objectives of the company (Haupt, Vadenbo, and Hellweg, 2017). It also provides
the required tools and techniques and attitudes to its employees, so to align them to work in the
direction of the organisation. To enhance HR strategy, Asda takes care of the following activities
of the company:
1. Culture: It is the values and beliefs that helps in proper functioning of the company and
all the rules and regulations or the legislative activities and the managing techniques of
the organisation are taken care of.
2. Organisation: Here they give importance to identifying the type of job, organisational
structure, job description and their departments reporting schemes.
3. People:One of the most important conditionconsidered for the organisation. Asda takes
proper interest in developing the skills, employee ability and increasing their potential
and also enhances managements capabilities for its people.
4. Human Resource systems: This part is completely focused on mechanism of human
resource and also takes interest in building strategies in companies practices such as-
recruitment and selection, training and development, benefits schemes, compensation
plans and internal distribution or communication between the employee and employer
(Linder and Williander, 2017).
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(source: HR Strategy. 2017)
 Relationship-
Human resources are considered as the most important resource of the company. It is best
suitable technique in evaluating practices of employees in organisation and achieving objectives
and goals of company. It has the best impact on the functions and performance of the
organisation, so Asda implements its functions according to it. This also focuses on future
determinants of the company and its objectives and results therefore is considered as one of the
important function of organisation. The workforce of the company is managed with
consideration to SHRM techniques and implements to combine HR practices as well. From the
above discussed study, it is viewed that SHRM strategic plans and HRM needs to be linked
together. It helps in maintaining employee’s behavioural aspects and their performance for the
company is also taken into consideration. Their theories focus on controlling and regulating the
HRM behaviour of the organisation and employees together. Therefore, it also suggests that
company should make strategies to systematically control employee’s behaviour with the help of
models such as Guest model of HRM that has six dimensions of analysis in human resource
management (Leonidou and et.al., 2017). The HRM strategies, practices, behaviour outcomes,
performance outcomes and financial outcomes are properly organised within it and focuses on
the main aspects of the approach to attract commitment that has a direct relationship towards the
business. It can be controlled by providing compensation and rewards, moreover it is considered
to be traditional system but is evident in the HR practices of Asda.
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 Vertical alignment and Horizontal integration of the company:
1. Vertical alignment: In this strategy one or more stages of production or
distribution is completely controlled by the organisation. Asda takes on full
control of supply of products and delivering it to the stores by considering vertical
integration. It also takes help of this alignment in the distribution process of the
product. For example, Asda makes plan to take control over the retail supermarket
and establish its business in other countries also and establishing 50 supermarkets
within 5 years. Their purpose is to make changes in the practices of the business
by exploring the change in the work environment and its customer relation,
employee satisfaction and supply chain. With these set targets they have
successfully established their business in other countries as well(Pati and
Bandyopadhyay, 2017).
2. Horizontal integration of Asda: This is also one of the competitive strategy that
is considered by the organisation. It is related with the business activities that are
of the same level or at the same value chain in the business or industry which is
similar to the business. It takes control of the market in other countries by
considering merger or acquisition to develop in new market. For example: Asda is
the acquisition of Wal-Mart and is developing its business in different countries,
also it owns financial and mobile services under its name.
 Strategic Human Resource Management Models:
These models are implemented with a secure design and considering organisations behaviour to
deliver and reach to the desired outcomes with the available human resources. Some of its
models are discussed below:
1. Corporate strategy- This strategy is helpful for the management at the upper level. It is
developed at the top level and formulated to the lower level to successfully implement it
and to compete in the business market. They consider both internal and external
environmental forces before implementing any strategy. Internal factors are those that are
formulated in the strategy as it has an important role in the corporate strategy as well as
business strategy. The human resources required to complete the task are also evaluated
from this (Blasini, Leist and Merkl, 2017). Raw materials, SWOT analysis helps in
creating opportunities for the business. It is also affected by the external environment or
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the external forces in the business and the market. Outside competition and rules and
regulation formulated by the government also affects the business strategy.
2. Business strategy- The next model of SHRM, it is implemented in different business
departments of the companies’ practices after the formulation of the business strategy.
The strategies of different departments are taken care by the business firm and are
implemented as per the requirement of the organisation. It helps in developing relation
between the organisation departments to reach the organisational goals and objectives.
3. Human Resource strategy: Important function of SHRM, and focuses in approaching to
the best HR strategy in accordance to planning and designing the job approaches. It is
implemented with the legislative regulation incorporated by the upper management in
relation to achieve the desired outcomes (Holmbacka and et.al., 2017). It takes care of the
employee's satisfaction by their needs and requirements. A systematic job design is
required in the business market to reach to the appropriate position.
Source
 Evaluation of HR practices of performance management and reward:
This approach carries out the best suitable HRM practices for the organisation. The most
appropriate practices for the performance management and reward are carried by the following
practices:
1. Job security- Asda, takes it as an important practice of the organisation and give
commitment to the employee's job security seriously and managing the performance
affectively and provide them reward in return with employment security and increment. It
is against in favour of the workers right for their work and contribution given in the
company. They focus on enhancing the skills of the employee's and their employment
satisfaction and the service they provide in return of the income they earn(Korff,
Biemann and Voelpel, 2017).
2. Selective hiring- The organisation cannot afford to hire the wrong candidate after taking
into consideration of the huge amount spend in hiring process and training programs.
They focus on increasing the profitability and decreasing the people cost by hiring the
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best employee in the very first attempt. Asda believes in using the easy to use system that
enables them to hire the most suitable candidates.
3. High bonus on affective performance- The give rewards to the employees in return of
their affective performance and compensation for their valuable contribution. They focus
on employees first, customer second, a healthy relationship with the employees will
increase customer loyalty according to them (Groen, Wilderom and Wouters, 2017).
They pay high remunerations or bonuses for their performance in the company. They aim
at employee’s satisfaction and these compensations are given so that employees would
work affectively and benefit organisation with their performance.
Conclusion
The human resource strategy and business strategy in Asda are parallel in working as
compared to the performance of the employees and for the growth of the organisation. They
contribute in evaluation of the performance and getting benefits for the satisfaction of their
employees and their attitudinal behaviour to manage in the company.
Task 2
Nature and theoretical perspective of employee relation
It is the relation in terms of the employment that is created in between employees,
employers, trade unions and government in regular period. The workforce relations and relation
between employee behaviour and trade unionist are given by the three perspective as they
provide special offer of perceptions, these are Unitarism, Pluralist, and Radical. They are based
on their assumptions as Unitarism is based on oneself assumption. It gives the harmonious and
integrated ideal of the organisation as one. It is considered in two important implications of
approach, first is in between the employee conflicts or dissatisfaction with the management.
Another is trade union's existence which is not considered as important as the employee's loyalty
and organisation relation is considered as mutually exclusive (Greenwood and Van Buren,
2017). The pluralist perspective of the organisation is divided into powerful sub groups, they are
loyal in their existence and they are capable of setting their objectives and build separate leaders.
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Marxist approach is much wider in terms of its scope and takes in consideration of all the actions
and explains organisation with mobility theory. The change is considered utmost and at the
requirement of change the organisation and society accepts the change. It also believes in social,
political and economic perspectives rather than only focusing on industrial relation in
organisational job perspective. Unitarist perspective: It is the situation where the company is at the same position with
reference to its assumptions. The unitary perceptive of the company can be any of them
as incorporate or harmonious completely with the ideal relation to family. Therefore, in
due respects the managers and other members of the staff share their ideas and views to
reach a common purpose, they form group actions and aims at building common goals
and objectives. It focuses on two important implications which forms such as conflicts in
relation to workers dissatisfaction and misunderstanding between employee and
management relationship. The working environment of the company is affected due to
conflicts and is considered as an irrational activity for the company. The second, in this
the group of employees and trade unions in respect is considered as unnecessary as the
relationship between company and employee is true. The approach can be used to figure
out the relation between industry and its environmental conditions and in terms of current
situation and previous situation (Hoogervorst, 2017). Pluralism perspective: In this perspective, the organisation is perceived in its existence
with combination of small groups, every group has its own rights and their own aims and
objectives or leaders. In the twentieth century, this perceptive includes a huge distribution
of power and policies for the society, managements ownership alteration, modification in
political environment and conflicts in business. The pluralist companies is combined of
various techniques of trueness and group powers, trade unions and other governmental
interests. In these situations, the organisation approach takes into consideration the
problems related to managers and employees and dissatisfaction among them over the
profitability margin as normal and inevitable. According to this perspective, management
in the organisation and problems related to conflict at the workplace is considered as both
rational and inescapable from different role of trade unions and management. This
perspective also consider that workers have interest and loyalty towards the company in
comparison to the management.
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 Marxist perspective: This perspective is in the wider range and reaches to the prominence
and is significance that collective action and company define in relation to mobility
theory. It mainly focuses on the social group profoundly and its manufacturing,
distribution and exchange system. It can be recognised as both political and as
sociological, particularly as far it attempts to remain systematic and objective rather than
normative. Based on this perspective, the conflict is systematic and essential for the
organisational development. The perceptive does not examine the relationship in the
industry inside companies job system but in rules and regulation and policies which
defines enterprise relation in social, economic and political terms(McArdle, 2017).
Roles of actors within Employment Relationship
Employment relationship is the communication between any of the actors, there are
basically three major actors such as employees or unions, management or employers and the
state.
 Employers: They implement different types of legislations with the labours and vice-
versa. They recruit and fire them from the organisation as per their rights. Management
has the control to affect employee’s performance and participation or their interest by re-
creating their right to delegate again and diminish or abandon the industry or by
upgrading new technology in the organisation (Pimperl, and et.al., 2017).
 Employees: They want the company to bring change in the working condition of the
organisation and enhance and improve their employment criteria. They also seek position
in the organisation and want a place in decision-making process of the company. They
want to increase their rights to exchange ideas and new techniques and their right to
grievances. Apart from this, they combine together and form unions and stand against the
management with these unions for their rights.
 Government: The state and the central government develops the industrial laws and
legislations, agreements, awards and influences them to regulate court proceedings. They
also possess third party decision-making process and relation with labour and tribunal
courts (Borgonovi and et.al., 2017).
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Scope: The daily association of the industrial management and their concept on industrial
relation that has a very wide context in relation to employee's and employer relation. It enhances
to run the organisation in the systematic manner that may regenerate in the area of marketing,
price fixation, quality control and maximising profit. The issues related in this scope includes
Machinery for dispute settlement, standing orders, workers participation in management, unfair
labour practices, collective bargaining etc.
Mechanism of employee participation and employee voice:
The voice term is considered for covering a big variety of processes and organisational
structures that provide power to employees and this process directly enforces them to contribute
in decision making process of the organisation. The employee's participation and involvement in
the organisation is considered as the voice found in the practices (Groen, Wilderom, and
Wouters, 2017). Further, a strong voice is represented by the employee's participation in the
organisation working. Another form states that employee's involvement refers to less voice as it
relates to practices which solicit the employees voice. The benefits of their voice are that there is
no requirement to have a contradiction between the voice to increase in the competition. The
arrangements are as essential in order to maintain the quality and effectiveness to report to the
identified mechanism. Therefore, it is concluded that organisation requires focusing on
employee’s welfare and their satisfaction. In case of any type of conflict between employees and
then they can consider it with the help of negotiation process. Apart from this the organisation
can focus on developing healthy relationship with the employees with relation to carrying out
effective business practices.
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Online
HR Strategy. 2017. [Online]. Available through <http://post.techcurry.co/hr-strategy>.
[Accessed on 5 October 2017].
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