Strategic Human Resource Management

This document provides an overview of strategic human resource management, including the relationship between business strategy and human resource strategy, vertical alignment and horizontal integration, theoretical basis and models of SHRM, specific HR practices of performance management and reward, and recommendations. It also discusses the nature and theoretical perspectives of employment relations, roles of the actors within the employment relationship, changing nature of employment relations, and recommendations.

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Strategic Human Resource Management 1
Contents
Task 1...............................................................................................................................................1
Introduction..................................................................................................................................1
Relationship between Business Strategy and Human Resource Strategy...................................1
Vertical Alignment and Horizontal Integration...........................................................................2
Theoretical Basis and Models of SHRM.....................................................................................2
Specific HR Practices of Performance Management and Reward..............................................4
Recommendations........................................................................................................................4
Task 2...............................................................................................................................................6
Introduction..................................................................................................................................6
Nature and Theoretical Perspectives of Employment Relations.................................................6
Roles of the actors within the Employment Relationship...........................................................7
Changing Nature of Employment Relations................................................................................8
Recommendations........................................................................................................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

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Task 1
Introduction
The focus of the paper is to educate the reader about the information related to business strategy
and human resource strategy in an environment. The paper is going to evaluate about vertical
alignment and horizontal integration for an organization. The latter part of the paper talks about
the models of strategic human resource management and critical evaluation of human resource
practice in performance management.
Relationship between Business Strategy and Human Resource Strategy
The human resource management strategy is also a business strategy that supports the business
process in succeeding in the external market. The human resource strategy refers to the business
strategy that aligns the efforts of human resource with the business strategy. The business
strategy of the company is completed using the human resource strategy in the environment.
Both the strategies work together to comply with the business objectives in the environment.
Further, business strategy refers to the strategy that plans activities for the company and aim to
achieve the goals as well (Backman, Verbeke, and Schulz 2017). While, the human resource
management strategy refers to a strategy that is designed for long term with an aim to achieve the
goals of HRM and subsequently progress the business.
Thus, it is to be stated that final result of both approaches are same that is growth of the
company. This takes down to the first aspect to the relation between human resource strategy and
business strategy. The human resource strategy is a part of business strategy that keeps the
employees at the right position to perform certain jobs in business. The inter-relation between
both the strategies that is Strategic Human Resource Management evolves that both the strategies
creates an adequate working environment for people and helps in organizational development as
well (Brewster 2017). The human resource practice of an organization is closely related to
organizational development and organizational development is attained by the business strategy
initiated in the environment. The HR strategies keep the employees intact and focused with the
business strategy in the environment.

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Vertical Alignment and Horizontal Integration
Vertical alignment refers in competitive business strategy refers to strategic approach that helps
an organization to get full control one or more stages of distribution and process of production
the organization. The businesses that make use of this strategy to make sure that they have
complete control on the supply of stock to produce products in the environment. However,
horizontal integration in competitive business strategy is the the strategy that develops the
attainment of business activities at same level of value chain in the similar or diversified
industries (Ding, and Cai 2018). This type strategy does not focus on capturing the complete
segment instead it aims to capture the horizontal line of value chain present in the company. The
horizontal integration strategy is usually implemented by retail fast food restaurant chains that
combine with the organizations present in same industry so as to attain a bigger industry share in
external environment (Kim, and Bae 2017).
The above mentioned image clearly depicts the places where vertical alignment and horizontal
integration activities are initiated in the business. The benefit of vertical alignment is that this
type of process helps in effortless working of the supply chain management by the employees in
order to attain the expectations of the clients. This process also initiates the effective after sale
services in the environment. This process helps the business in reducing the expenses and
increasing the entry barriers as well. Further, the drawback of this process is that this process
does not focus on the core competencies of the business because it concentrates on the
integration or development of new product stream in the environment (Lin, and Wu 2014). On
the other hand horizontal integration provides the benefit to the business by aligning human
resource practices with the competitive strategies of the company. This process also helps in
increasing the competitive advantage in the target market by attaining market powers. Further,
disadvantage of this process is that there is lack of flexibility as the decisions made under this
process are rigid.
Theoretical Basis and Models of SHRM
Strategic Human Resource Management is combination of various managerial methods that
explains the process through which a company will be achieve the objectives with the help of
employees by using effective human resource strategies in the environment. Further, below
mentioned are the theories explained about the SHRM activities in the environment.

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Best Fit Model
The strategic perspective of SHRM talks about the contingency theory as this theory lays
emphasis on human resource strategies that need to be constant within the context of a business.
The best fit in an organization can be achieved through the vertical integration of HR practices
and the business. The three different types of models used in the process are lifecycle, strategic
configuration and competitive strategy (Marler, and Parry 2016). Further, the lifecycle model
explains the four stages of life of an organization that are start-up, growth, maturity and decline.
Further, a strategy configuration elucidates that the company can gain effectiveness in the
environment by inclining strategy configuration with the business strategies. Lastly, competitive
strategy clarifies that there is presence of three strategic aims in an association that are quality,
innovation and cost leadership. The business constantly performs job to attain these objectives in
the environment (Rathi, and Lee 2015).
Best Practice Model
The best practice model is dependent on the approach that HRM practices are universal and these
practices are best to deal with any kind of situation in the business environment. It is also
expected that if a company make use of this type practice then it will surely get lucrative in
external environment. Further, the details of the best practices is mentioned below:
 Selective Hiring
 Self-managed teams
 Training staff to increase their skills and motivate the workforce
 High compensation and contingent on performance
 Employment security
This model was also stated wrong by various practitioners as they said that a single set of
guidelines and procedures cannot say that they are enough for the business process to grow.
Every business has its own situations to tackle and it should not be right to say that these
activities will remove the issues caused to a business (Taylor, Doherty, and McGraw 2015).
Resource Based View

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The RBV analysis is one of the most important aspects for formulating an effective business
strategy. The RBV model includes all the aspects that establish a solid identity for the company
in the target market. They are the basic source of profitability in the business and it also helps the
management in understanding a relationship between resources, competence and profitability of
company (Noe, et. al., 2017).
Specific HR Practices of Performance Management and Reward
In order to manage the performance, the companies should make use of the following practices:
Provide training and developmental programs: Training and development is regarded as one of
the best way of human resource management strategies in an environment. The company can
easily make the employees understand about the requirement of the business and job description
as well.
Reward Success: The Company should provide rewards for performance management to the
employees in the company. Financial as well as non-financial forms are two ways in which the
company can provide rewards to the customers in internal environment.
Give Actionable Feedback: Actionable feedback helps the staff to analyse the areas where the
company need to work and rectify them as well. Feedback will help the organization to guide the
employees to monitor their performance and increase profitability as well. Actionable feedback
will also help the managers to keep an eye on the activities of the employees and provide the
suggestions to increase the productivity (Bailey, et. al., 2018).
Make Adequate Use of Technology: The technology is a resource that helps the companies to
increase the efficiency and deliver greater productivity as well. By using efficient technology,
employees can easily attain the targets defined.
Recommendations
Thus, in the fact should be noted that the above mentioned paper represented the importance of
different types of model in initiating success for a company in the target market. It is crucial for
the companies maintain effective performance management system for the business so that the
employees can efficiently work towards the growth of the business. The below mentioned is the

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model of performance management system that is recommended to the company to grow and
succeed in the target market.
The performance management system is a framework that helps an organization to management
HR activities related to performance management is such a way that employees are satisfied and
efficiency is received to the company in the target market. The company should make use of the
360 degree feedback, individual development plans, supervisor ratings, list of accomplishments
etc. to analyse the areas of growth for the employees and incentivize them accordingly
(Hollenbeck, and Jamieson 2015). The performance management system established by the
organizations should be reliable, fair and it should include standards to uplift the interest of
employees in the business. The PMS should be designed considering the SHRM process of the
company (Cascio 2015).

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Task 2
Introduction
This paper guides about the theoretical perspective and nature of employment relations in an
organization. The paper explains the roles of different factors of employment relation with
analysis of varying nature of employment relation in the current environment. Recommendations
are provided to the company on the mechanism of employee participation and ways in which
employee voice contribute the improving the employment relationship with organizational
context (Ferguson 2018).
Nature and Theoretical Perspectives of Employment Relations
Employment relationship acts as a legal bond between employer and employee of the company.
This type of connection exists only when a person executes an action under certain conditions
with an aim to attain remuneration in return. This type of relationship happens when people
together performs certain tasks with the objective of achieving attractive returns from the
business. Below mentioned are highlighted few theories of employment relation that are used in
the society:
Pluralist Perspective: In this type of perspective, a company is segregated into various sections
and groups; every group has its own rules, guidelines, goals and leadership rules to follow.
According to this type of perspective, trade union is the considered as the most important group
present in the environment. According to this type of theory, the major role of management is to
coordinate and not enforce the employees present with them (Burke 2017).
Unitarist Perspective: According to the unitarist perspective, an organization constitutes to group
of individuals working all together with coordination in one culture. In the perspective of this
side, mutual cooperation is much more important in an organization. This perspective resembles
to the paternalism that shows high requirement of loyalty within the organization. The
management of this type of organization are highly efficient because its emphasis on the core
people and function of the company. Also, it should be noted that conflicts in an organization are
inevitable and a part of disruption as well (Shields, et, al., 2015).

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Marxist Perspective: According to this type of perspective, the nature is revealed to the capitalist
society. It is also called radical perspective which believes that these perspectives of internal
organizational relations that are in contradiction to the history as this finds out the inequalities
that are present in the society. According to this viewpoint, inequality is present in the process of
employment relations in the community (Petrou, Demerouti, and Schaufeli 2018).
Thus, it should be noted that there is a significant difference between all the three perspective as
the unitarist perspective argues on the statement that the reason of conflict is communication
breakdown and interpersonal friction while the Marxist perspective enlightens the conflicts
between capitalist and the labour. Lastly, pluralistic perspective focuses only of the effective
work done by the employees in an organization. A constant fact according to all the three
perspectives is: there is presence of conflicts that are inevitable and all such perspectives have
their own ways to tackle with the conflicts (Bailey, et. al., 2017).
Roles of the actors within the Employment Relationship
Employer/ management, employee/ trade union and the state are the three major actors present in
employment relationship process. The objective of the trade union and the worker is to
contribute important skills and competencies to the company with an aim to produce efficient
goods and services. While, the role of management or the employer is to create and amend
provisions and rules for the employees, concentrate on finances, raw material and production of
goods of the company. Thirdly, the role of state of government is to monitor the activities of the
employer in such a way that the company do not condemn any law or regulation and in case if
they do, then adequate and measurable actions are taken against the action (Jørgensen 2017).
All the actors present in the relationship that their own differential importance and role to
comply with. These roles cannot be interchanged by any legal body present in the environment.
All the actors have to perform their role differently and positively so as to make the employment
relationship work in an organization. Further, it should be noted that under this process, the work
of the employee or trade union is scrutinized by the employer or management and the work of
management is monitored by the government or state in which the company is operating its
functions. The employers benefit the employees with rewards and punish them with penalties
while the government do the same with the company by providing subsidies and tax penalties
(Blyton, and Morris 2017).

Strategic Human Resource Management 9
Changing Nature of Employment Relations
The only thing in a business environment that is constant is change, rest all the things are
changeable. The companies present in the business environment many times face difficulty in
operating its business functions due to diversified circumstances present in the environment.
Further, it should also be noted that in most case the external environment is fluctuating due
which the business develops the need to change the internal environment as well. Thus, it can be
said that the internal change is driven by the external changing environment (Wallace, et. al.,
2016). In some situations, the managers can be right at their respective places while taking a
decision for business but in many situations, they might not be able to take the right decision.
Further, it should be noted that globalization process plays the lead role in changing the face of
employment relations in the environment. The process of globalization changes the face of the
environment by making the countries and industries more close to each other and increasing the
supply of resources as well. Thus, it can be seen as the responsibility of the manager to initiate
changes in the environment according to the trends present in the worldwide market (Bell,
Bryman, and Harley 2018).
There are various challenges that are faced by the managers in initiating activities for personnel
management, diversifying the job scope, implementing cross training and interdepartmental
communication. Irregular flow of information and increasing costs act as a problem for the
managers and the employees in initiating the personal objectives in business environment. With
the improper flow of information in the organization in inward as well as outward direction, the
management faces difficulty in attaining all the information required for completing in the task
due to which the work in completed ineffectively. Further, the business also faces difficulty in
managing the workforce diversity in the environment as due to this aspect the employees get to
work with different kind of people that give rise to conflicts. With the implementation of
globalization and open markets, the companies face cultural challenges, difference in interest and
opinion. This increases the level of changes occurred in an organization for the purpose of
employment relations (Bogers, Foss, and Lyngsie 2018).
Further, the above mentioned segment explains different forces present in the environment that
initiates changes in employment relations in an organization. Increasing demand of people in an
organization or the customers might bring shift in the requirement. The industries in the external

Strategic Human Resource Management 10
environment is fluctuating with little changes due to which companies also face the difficulty to
stable the business structure and initiate an effective flow of work. With an aim to manage the
changes and align the interest of customers as well as employees in the business functions, the
companies should focus on effective human resource management strategies to initiate
employment relations (Calvino, and Virgillito 2018).
Recommendations
The fact is true that employment participation and employee voice can help the company to
improve the process of employment relations in an organizational context. As communication is
the most important key to solve the issues present with an organization, so implementation of the
process of communication can effectively help the HR manager to solve the conflicts and initiate
stability at workplace. Further employee participation in an organization is very important as its
helps the management to involve employees in business functions and create a bond with them.
This process will help the management to attain the perspective of the employees of the company
along with their expectation from business.
Employee participation can alone reduce major problems of employee relation as it can develop
a sense of solidarity under the employees for the organization. If the employees of the company
are vocal about their rights and responsibilities, then the organization get the ease to make them
understand what they need to do and what they should get from the organization. Along with
this, effective communication can make all the parties listen as well as understand the
expectations that they have from other party and work on them effectively. Thus, it should be
noted that all these aspects effectively help an organization resolve the conflict of employment
relation in an organization.
Conclusion
Thus, concluding the above mentioned factors, it should be noted that strategic human resource
management is a strategic collusion of human resource activities along with business strategies
in an organization. The paper represented the relationship between HR strategies and business
strategies along with vertical alignment and horizontal integration in Competitive Business
Strategy. It also evaluated models of performance management in SHRM. The latter par

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concluded the importance of employment relations in an organization along with role of actor
and changing nature of employment relations.

Strategic Human Resource Management 12
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