Strategic Human Resource Management

RUNNING HEAD: Strategic Human Resource Management
Strategic Human Resource Management
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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

Strategic Human Resource Management 2
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.

Strategic Human Resource Management 3
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.