Strategic Human Resource Management

This document provides an in-depth analysis of strategic human resource management, including trends, factors, theories, and practices. It explores the influences of external and contextual developments on HR strategies and evaluates the application of HR theories in organizational examples. Additionally, it discusses how change management models support HR strategy and the monitoring and measuring of HR outcomes for sustainable performance and growth.

Strategic Human
Resource Management

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
1.1: Determine present trends & development that are influencing HR strategy...................4
1.2: Analyse how internal and external factors are influencing HR strategies and practises.5
1.1.1 Critically analyse the influences of the external and contextual developments and
discuss how this impacts on the HR strategy of an organisation .......................................6
1.1.2 Critically evaluate the influences of key external and contextual developments,
applying relevant theories, models and concepts...................................................................6
TASK 2............................................................................................................................................7
2.1 Theories & concepts associated to the development and growth of strategic human
resource management with examples.....................................................................................7
2.1.1 Explain how human resources theory relates to practice in a specific organisational
example, identifying areas where this will differ in other organisational situations...........10
2.1.2 Evaluate how human resource theory relates to practice in a specific organisational
example, comparing and contrasting this with other possible organisational contexts.......10
TASK 3..........................................................................................................................................11
3.1 Evaluate how appropriate change management models support HR strategy inapplication
to relevant organisational examples.....................................................................................11
3.1.1 Provide valid justifications for the application of management strategies, models &
concepts, and way it is supporting HR strategy...................................................................11
3.1.2 Critique how change management strategies, models & concepts are implemented
with reference to benefits & drawbacks
..............................................................................................................................................12
TASK 4..........................................................................................................................................12
4.1 Explain how human resource outcomes can be monitored as well as measured, & apply
this to a particular organisational condition........................................................................12
4.2 Discuss & evaluate how effective human resource management & development can
support..................................................................................................................................13
sustainable performance as well as growth to fulfil company objectives..........................13

4.2.1 Make suggestions for human resource development techniques applicable in a given
condition & provide an account of how they could be applied & how they contribute to
sustainable growth and performance....................................................................................14
4.2.2 Critically reflection on how human resource monitoring & evaluating techniques
contribute to Sustainable growth & performance by addressing potential consequences14
CONCLUSION..............................................................................................................................15
REFERENCES .............................................................................................................................16
Online...................................................................................................................................16

INTRODUCTION
Strategic HRM is defined as practise that is used for development, attracting, retaining
and then rewarding of employees that can benefit both company and employees. Strategic HRM
is a coordinated and consistent efforts that is focussed on achievement of overall laid business
objectives that can lead to improvement of business performance (Boxall, 2018). Present report
is based on Trafalgar travel that is owning 40 travel brands includes hotels, operators & other
transportation companies. It is operating across 70 countries and have 40 offices across world
they are serving 1.9 million travellers annually. Presently the report is based on making a
detailed evaluation of the key external & contextual development that is influencing strategy of
human resource department in organisations. Further here is analysis of change management
models such as Nudge theory in order to make detailed evaluation of the way change is being
implemented n organisations.
TASK 1
1.1: Determine present trends & process that are influencing HR strategy
In present times organisations have to form effective strategies so that they are able to
achieve higher growth. It is crucial for the organisation to consider the feasibility of factors that
is affecting the performance of a organisation. There are some of the present trends &
development that are taking place in the external environment as mentioned below:
Changing demographics: The evolving society requires human capital professionals for
considering its effect on the business. Such as people are living longer that is resulting into older
people in overall. In Trafalgar travel there is increasing diversity that is leading to presence of
cultural differences in communication.
High competition for talent: Organisations are willing to focus on top talent because of
increasing competition in the job market. Employees are having more options and they have to
select the best available options according to the prevailing identify, benefits, social
responsibility of brands, there is need to focus on offering attractive pay benefits and growth
opportunities by Trafalgar to attract competent talent.

1.2: Analyse how internal and external factors are influencing HR strategies and practises
Structure of a successful business is depend on utilisation of effective skills and
management strategies. The major objective of management is to focus on development of plan
that can lead to recruiting of competent talent and then retaining them for longer duration of
time. There are some of the external and internal factors that are affecting Human resource
practises & strategies as mentioned below in relation to Trafalgar tours:
External factors:
Technology: The use of updated technology can assist in sustaining of the market for longer
duration of time (Haque, 2020). With respect to Trafalgar travelsthe organisation are willing to
make attempt to adopt innovative technology to assist the HR managers in recruitment of
competent workforce. Such as there are different digital marketing channels that are used to
make the prospective candidates aware about the presence of vacancies, key requirements of a
vacant job position.
Higher competition: There is a scenario of high competition as every organisation is willing to
hire candidates with high potential. It is a external factors that is limiting the options for
Trafalgar and the top management has to make efforts to focus on attracting of candidates
according to specific skill requirement.
Internal factors:
Leadership development & learning opportunities: Organisation are concern about
development of next generation of leaders. In Trafalgar travelsorganisation is focusing on
development of research based leadership programs that can drive the process of employee
engagement, nurturing of leadership abilities and further focus on professional development of
such leaders.
Compliance and regulations: There are many different laws that are related to employment,
privacy of information. Labour practises, equality & opportunity that have to be taken into
consideration by the top management of Trafalgar so that they are able to implement solutions
for minimization of cost and focussing on having a competent workforce (Dash, 2020).

1.1.1 Critically analyse the influences of the external and contextual developments and discuss
how this impacts on the HR strategy of an organisation
In Trafalgar travelsthe strategies that is related to human capital and human resource does not
takes place in isolation. Business leaders have to make decision according to the widespread
changes & trends that are taking place in the external macro environment. For instance with the
present outbreak of coronavirus as individuals are loosing jobs that is resulting into higher
demand for job opportunities. But at same time Trafalgar is not willing to make new recruitments
because of the limited demand of travelling and tourism options for their target segment of
customers.
1.1.2 Critically evaluate the influences of key external and contextual improvement,applying
relevant concept, models and concepts
There are some of the key external factors that are affecting Trafalgar and its HR departments, it
can be analysed by application of PEST analysis as mentioned below:
Political factors: The present situation of COVID virus has resulted into a scenario of
complete lock-down and high restrictions that have been formed by government related to
sealing of borders and travel restrictions (Sparrow, 2016). This is leading to a complete downturn
of the business growth and expansion of Trafalgar travels there has been lay off of some of the
employees to save the business cost.
Economic factors: with the present COVID Outbreak there has been loss of job
opportunities and there has been reduction in the personal disposable income of people. It is a
economic aspect that is affecting the HR practises as decrease in revenue has resulted into no
new hirings for a certain time period.
Social factors: There are certain social factors that includes a complete shift in the
preferences of people. Trafalgar is using their sustainable tourism measures as a tool to create a
preferential brand by their target segment of customers. But because of the Covid situation
people are restricting themselves by focussing on travelling only for necessary purposes.
Technological factors: Technology as a tool can be adopted for the objective of speeding
up the process of recruitment and selection of candidates. Organisations are focussing on
development of measures that can assist Job seekers on using digital media sources for the
purpose of analysing the available job opportunities.

TASK 2
2.1 Theories & concepts associated to the development and growth of strategic human resource
management with examples
In context of human resource management there is need to consider some of the theories that can
assist in achievement of higher growth & success. There is need by HR managers to effectively
use the concepts and theories in order to utilise the skills & competence of their present
workforce:
Maslow Hierarchy of needs:
(Source: Maslow's Hierarchy of Needs, 2020)
Maslow hierarchy need is a motivational theory that comprises of a five tier model that is
depicted as hierarchical level in the pyramid.
Physiological needs: These refer to the biological needs that are essential for survival
such as air, food, water, clothing, sleep. In Trafalgar HR management is ensuring that such needs
of each employee are fulfilled as without them no human body can function (Jiang and Li,
2019)

Safety needs: After physiological needs are satisfied then safety and security may
become salient that is in Trafalgar HR managers have to ensure that financial security,
emotional security, social stability needs are covered.
Love & belongingness needs: Third level needs are those where HR managers of
Trafalgar have to lay emphasis that employees are able to develop social groups & interpersonal
relationships that can fulfil their social belongingness needs.
Esteem needs: It is the fourth level need that is divided in two categories esteem for
oneself and desire for reputation that is respect from other. In Trafalgar the Human resource
department has to ensure that employees are provided with the respect that can assist them in
motivating their employees.
Self actualisation needs: It is the highest level needs in Maslow hierarchy that is
referring to realisation of self potential by individuals. HR managers in Trafalgar can utilise this
factor to ensure that individual are able to realise their full potential (Turner, 2020).
Herzberg factors:
It is a two factor theory that is based on adjusting of motivation at workplace. These factors are
divided in two categories as mentioned below:
Motivators: These are the factors that can encourage employees to work harder and
maximize their contribution.
Hygiene factors: These factors may not encourage employees but if they are not present
then it may lead to employee becoming unmotivated.

(Source: Herzberg’s Two Factor Theory of Motivation: A Simple Summary, 2020)
In Trafalgar motivating factors will be assisting the human resource department to form
policies that can help them in enhancing the present contribution level of employees. On other
hand HR managers have to form strategies to ensure that hygiene factors are present in the
organisation otherwise it may lead to dissatisfaction on part of their employees.
There are two basic strategies that includes enhancing positive employee experience and
high amount of employee engagement as a requisite for ensuring that there is presence of a
motivated workforce.

(Source: Theory X and Theory Y of Motivation by McGregor 2020)
Theory X and Y
McGregor Theory X and Theory Y are the two aspects that can be used by Human
resource managers for maintaining of their workforce (Alomari, 2020).
Theory X: It assumes that the primary sources of motivation in every organisation is
monetary and second is security. It is divided in two approach the hard approach of motivation
is relying on coercion, micromanagement and string control. Soft approach is for seeking
harmony and returning to employees the required cooperation. In Trafalgar employees can be
kept motivated by keeping their performance level maintained according to their job roles &
duties. On other hand they can be offered harmony that can assist them in smoothly performing
their job roles.
Theory Y: It focuses that self actualisation and self esteem needs are continuously taking
place that can never by completely satisfied. In Trafalgar there can be application of some
principles that includes delegation, job enlargement to broaden the scope of employees jobs,
participative management that is consulting employees in decision making and performance
appraisal as a strategy to set the requisite objectives. HR managers can participate with
employees in the self evaluation process.
2.1.1 Explain how human resources theory relates to practice in a specific organisational
example, identifying areas where this will differ in other organisational situations
There are certain HR practises that has a direct relation with employee satisfaction. Such
as in Trafalgar there is no prevalence of flexible working practises that may lead to a situation of
high dissatisfaction of employees at some point. Where as In Airbnb the employees are provided
with flexible working practises that is the Airbnb culture is driven by inspiring mission that is
filled with building of autonomy and trust (Vanderstraeten, 2018). The employer is proving their
employees with a culture of freedom, entrust with creation of real value. It is leading to its
employees focussing on taking more initiatives and self driven efforts to perform their assigned
roles (How Airbnb Became The World’s Best Place To Work, 2019).
2.1.2 Evaluate how human resource theory relates to practice in a specific organisational
example, comparing and contrasting this with other possible organisational contexts
There are different human resource practises that are adopted by the human resource
managers according to specific requirement. For instance there are different Performance

appraisals techniques that are used by Trafalgar in order to appraise performance of their
employees based on psychological appraisals that is used to determine the hidden potential of
employees. In this there are seven major components that are used for analysing the present and
future competence of a employee. In Airbnb that is one of the major competitors of Trafalgar the
performance appraisal technique that is used by employer is 360 degree feedback. According to
Lenny Rachitsky who has been working as a former product lead at Airbnb timely performance
review system is a technique that is used for developing performance appraisal measures (The
Power of Performance Reviews: Use This System to Become a Better Manager, 2020).
TASK 3
3.1 Evaluate how appropriate change management models support HR strategy in application to
relevant organisational examples
Nudge theory:
It is a theory that was proposed in US behavioural economics that can be applied for
enabling & encouraging groups, people and self. It is a theory that is based on developing a
understanding, exploring and then explain the present influences on people behaviour in a
organisation. It is a theory that is used by Human resource managers in order to focus on
improving the level of understand of Heuristic influences on human behaviour that is related to
changing people. There are many changes that are part of a organisation and may impact the way
authorities and leaders are believing people are thinking and then acting in a particular situation.
Nudge theory is a sophisticated approach that can be used by the HR department of
Trafalgar in order achieve change by using several means that includes direct instructions
reinforcement of change in a forceful manner (Emeagwal and Ogbonmwan, 2018). In present
case of employees there has to be use of encouraging techniques is that employee resistance to
change can be minimized. There are basically two types of change sin a organisation that
includes:
Enforced change Nudge techniques
It is forcing methods that include direct, drastic
and required determined efforts for change
Nudge methods are easy for people so that they
can imagine the doing of task with less
disruption.
“Forcing methods are liable and Nudge methods are tactical, indirect and less

confrontational to provoke resistance. confrontation.
3.1.1 Provide valid justifications for the application of management strategies, models &
concepts, and way it is supporting HR strategy
Nudge theory has been emerged in 2000 as a radical approach that is used by HR
management of Trafalgar to influence their employee by having proper interaction with financial
systems, savings, pensions, healthcare that will lead to improvement of life. Nudge techniques
and principles are now very significant to that are assisting HR managers in communication,
motivation of their employees. It has affected the methods and thinking of changing and
motivating people.
3.1.2 Critique how change management strategies, models & concepts are implemented
with reference to benefits & drawbacks
The change management strategies in a organisation are based on implementing it
according to specific requirements of organisation (Rees, and Smith, 2017).. Here is traditional
directed intervention that was earlier used in organisation based on rules, legislations, laws,
judgemental,policing, enforcement, negotiate, pull. Another intervention is modern that is based
on nudge theory and includes non judgemental, facilitation, assistance, translation, enable,
understand, educating, self discovery in Trafalgar.
TASK 4
4.1 Explain how human resource outcomes can be monitored as well as measured, & apply this
to a particular organisational condition
Performance monitoring and measurement help a business entity to gain insight about
where it lacks & what are the main areas they require to improve. Along with this, it aid in
bringing effective changes according to the needs which has positive effect on the overall
performance of the organisation (Rees and Smith, 2017). There are different approaches because
of which outcomes can be monitored as well as measured in an effective manner, which are as
follows:
Benchmarking: Herein, a benchmark is set by the business entity and according to it the
activities are executed in a proper manner with an objective to meet with the standards and

achieve objectives as well. The higher authorities of Trafalgar make use of such approach by
undertaking all the duties & by review them timely and effectively. Moreover, it help business
entity to gain favourable and positive results in an appropriate manner.
Best fit perspective: HR techniques needs to assess and identify the specific needs of
both company and the employee as well. Along with this, best fit perspective methods describe
the significance which guarantees that HR methodologies are appropriate and suitable for the
conditions. Along with this, it is significant for Trafalgar to create effective strategies which
assist in better engagement as well as control of staff members by which human resource
outcomes can be measured.
10-c Checklist of Human Resource management: HRM professionals proposed
different models for translating, clarifying and advocating human resources approaches and
practices into a particular system (Emeagwal and Ogbonmwan, 2018). In addition to this, it is
undertaken as an effective model of human resource management and also consider as minded
and inclusive model through which HR outcomes is effectively monitored & evaluated in a
proper manner.
4.2 Discuss & evaluate how effective human resource management & development can support
sustainable performance as well as growth to fulfil company objectives
Sustainable growth is termed as an economic growth that can remain continue over
longer period of time without using non-renewable resources and developing intolerable
pollution. Along with this, assessment and control of activities is required for the advancements
& attainment of objectives. It is analysed that human resource management identifies the
requirement of surroundings that is important for the growth and sustainability as well.
Moreover, it is significant for a company to deal with the environmental problems as it help in
raising the brand image at marketplace and maintain of performance level in an appropriate
manner.
For instance, reasonable improvements in a company is adopting strategy for achieving
long term objectives and fulfil the set targets. Along with this, the long haul input guiding a
business entity to raise a yield within relation of hierarchy objectives and goals which is an
unmistakable interaction of practical human asset and authoritative execution. It consist of
different advantages that is mentioned below:

Analysing performance gaps: HR professional emphasis on making adjustments so that
change is accepted in an effective as well as efficient way that leads to execution of activities
which is advantageous for the organisation in long run (smail, Abdelrahman and Majid, 2018).
The managers of Trafalgar is mainly emphasis on creating plans in order to identify gaps for
better execution of change. This help organisation to deal with situations and challenges which
take place in the future.
Providing employee retention: It is important for a company to engage its staff
members that mainly take place by analysing their needs & fulfil them timely and effectively. By
giving the rewards and job security to staff members, an organisation is able to develop
confidence and morale of staff members which positively influence on the profitability and
performance level. It is stated that raise in the performance of staff members aid business entity
to sustain at marketplace for longer time period and gain higher growth as well as development.
This further help in developing value in market because of which respective organisation is able
to achieve objectives.
4.2.1 Make suggestions for human resource development techniques applicable in a given
condition & provide an account of how they could be applied & how they contribute to
sustainable growth and performance
It is significant for an organisation to develop and formulate HR development techniques
as it ensure higher growth as well as development. It is suggested to respective organisation to
provide training session to its staff members as per their requirements as it help them to enhance
skills, competencies and performance of employees to execute the task in a proper and effective
manner. This can be applied by HR department by first analysing the requirement and then
communicate it to employees in a proper manner. Moreover, the human resource department can
analyse and monitor the performance of staff members with the help performance evaluation
techniques. This help in gaining insight about the weaknesses that can be improved by using HR
techniques. Moreover, the organisation needs to focus on developing good relation with its staff
members so that they can take interest in the activities and properly execute them. Furthermore,
allow employees to take decision help in developing morale of staff members that leads to
retention and satisfaction of staff members. All this will directly leads and contributes to
sustainable performance as well as growth.

4.2.2 Critically reflection on how human resource monitoring & evaluating techniques
contribute to Sustainable growth & performance by addressing potential consequences
It is critically evaluated that HR monitoring and evaluating techniques such as
benchmarking, 10-C checklist allow a business entity to analyse the performance of employees
that is where they lack and what are the improvements they needed. In addition to this,
improvement of performance of staff members allow organisation to execute all the activities
and operations in a proper manner which in turn contributes to sustainable performance as well
as growth.

CONCLUSION
From the above made discussion it can be said that strategic HRM consist of different
practises that are used for the purpose of retaining and attracting of competent employees in a
organisation. Different motivational theories such as Herzberg theory, Theory X and Theory Y
can be applied in organisations for the purpose of managing overall downforce. There are many
different factors that are part of the external and internal environment which are posing a impact
on the functioning of Human resource department of the organisation. Nudge theory is very
effective in analysing the way change process can be effectively implemented in a organisation.

REFERENCES
Books and Journals
Alomari, Z., 2020. Does human capital moderate the relationship between strategic thinking and
strategic human resource management?. Management Science Letters, 10(3), pp.565-574.
Boxall, P., 2018. The development of strategic HRM: Reflections on a 30-year journey. Labour
& Industry: a journal of the social and economic relations of work, 28(1), pp.21-30.
Dash, S.S., 2020. Behavioural Economics: A New Driver of Strategic HRM. NHRD Network
Journal, p.2631454120977240.
Emeagwal, L. and Ogbonmwan, K.O., 2018. Mapping the perceived role of strategic human
resource management practices in sustainable competitive advantage. Academy of
Strategic Management Journal, 17(2), pp.1-19.
Emeagwal, L. and Ogbonmwan, K.O., 2018. Mapping the perceived role of strategic human
resource management practices in sustainable competitive advantage. Academy of
Strategic Management Journal, 17(2), pp.1-19.
Haque, A., 2020. Strategic HRM and organisational performance: does turnover intention
matter?. International Journal of Organizational Analysis.
Ismail, A.I., Abdelrahman, S.E. and Majid, A.H.A., 2018. Closing strategic human resource
management research lacunas with mediating role of employee creativity. Academy of
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Jiang, K. and Li, P., 2019. Models of strategic human resource management. Sage handbook of
human resource management, pp.23-40.
Jiang, K. and Li, P., 2019. Models of strategic human resource management. Sage handbook of
human resource management, pp.23-40.
Rees, G. and Smith, P. eds., 2017. Strategic human resource management: An international
perspective. Sage.
Sparrow, P., 2016. Strategic HRM, innovation and HR delivery for human resource
management, innovation and performance. In Human resource management, innovation
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Stewart, G.L. and Brown, K.G., 2019. Human resource management. John Wiley & Sons.
Turner, P., 2020. Engagement Driven Strategic HRM. In Employee Engagement in
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Vanderstraeten, A., 2018. Strategic HRM and performance: a conceptual framework. Macmillan
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Online
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reviews-use-this-system-to-become-a-better-manager/>
How Airbnb Became The World’s Best Place To Work, 2019[online], Available
through<https://www.livingroomanalytics.com/how-airbnb-became-the-worlds-best-place-
to-work>