Strategic Human Resource Management

This document discusses the key trends and developments in strategic human resource management and their influence on organizational strategy. It explores theories and models related to HR growth and change management. The document also highlights the impact of internal and external factors on HR strategies, using the case of TUI, a multinational tourism and travel company.

Strategic Human Resource
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
M AIN BODY.................................................................................................................................3
LO1 Key current trends and developments that influence organization’s Human Resource
strategy.........................................................................................................................................3
External and Internal factor influence HR strategy and practices...............................................5
LO2 Theories and concepts relating to the development and growth of strategic Human
resource management...................................................................................................................7
LO3 Change management models and its support to the HR strategy.......................................8
LO4 To monitor and measures HR outcomes with effective evaluation tools.........................11
Effective HR management and development support sustainable performance and helps to
development and growth to achieve organizational objectives.................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Human resource management is the main operational function of the organization which
is focused on management, giving direction, recruitment and controlling the employee’s
activities in the organization. Strategic human resource management is majorly connecting with
the human resource with strategic goal and objectives in order to increase performance and
develop business culture with innovative and flexibly. Strategic human resource management
includes the HR function and creating company’s strategies by recruiting, selecting, rewarding
and training and development. TUI is a multinational tourism and travel company. It has a
headquartered in Germany. TUI is a biggest travel, tourism and leisure company in the world.
TUI owns hotels, travel agencies, airlines, retail stores and cruise ships. Strategic human
resource management is the great process of connecting the functions of human resource with the
strategic goals of the company to enhance performance. This report will include the current
developments and trends that influence the HR strategy of organization and also the internal and
external factors that influence human resource practice and strategy. This report will also
highlight the appropriate theories, concepts and models relating to the development and growth
of strategic human resource management of TUI organization. The report also states that how
suitable change management models support human resource strategy. This report will also
include the effective HR development and management supports sustainable growth and
performance to meet company’s objectives.

MAIN BODY
LO1
Employee expectations
Nowadays employees are better educated and more demanding and joint protests in case
of their employee expectations are not fulfilled. The HR of TUI tourism and travel company
must have to take their maximum concern on the employee’s expectations and current trends. It
required managing turnover in company through human resource training, planning etc. that are
more important in the development of the organization.
Globalization
Today’s business doesn't have national boundaries and it reaches around whole the world.
The human resource department need to effective and to ensure that employees have high skills,
knowledge and cultural capability to handle global department in the TUI travel company
(Brueller, Carmeli and Markman., 2018). This helps in achievement of the company’s goals. The
organization must have efficient and train workers to meet the globalization challenges in
tourism sector.
Technology
Technology is the most vital current trend that influences strategic human resource
management in the company and technology advancement is essential for organization. Many
computerized system is invented to assist the tourists and travellers such as online bookings,
online customized tour packages etc. in the tourism sector. All these technologies help to
simplify all HR functions in Travel Company. This system is very helpful in handling bulk of
data and the paper work that are replaced by advance technology. It can directly or indirectly
influences the HR strategy because the human resource of TUI must have to adopt this in their
strategic activities.
Changing skill requirement
Developing skilled employees is essential for TUI Travel Company. The HR should have
to concern about quality, managing, productivity and competitiveness a diverse company work
force effectively. Human resource planning strategy will have to carefully increase the skills or
knowledge shortages and deficiencies. For that Human resource department have to provide
suitable training and programs to bridge the skills deficiencies.

Work-force Diversity
Work-force Diversity is important trend in the organization. It means differences and
similarities among workers or employees in term of cultural background, age, religion, gender,
physical abilities and sexual orientation. Human resource in TUI company must be aware of the
many religion, age differences that exist in their company’s work force and create their strategy
accordingly.
Continuous improvement programs
Nowadays, human resource management plays a important role in the implementation of
continuous improvement programs in the company and many programs are helpful for
employees to understands changing work culture and policies in the company (Armstrong and
Taylor., 2020).
Health and Safety
HR should have to make their strategy by considering the health and safety of clients.
Human resource management has to continue provide health services to employees or staff or
also customers through free medical treatment and health insurance. The TUI also appoints the
supervisor that they play a main role in monitoring workers or employees for safety.
Human resource management can affected by many internal and external factors in the
business environment.
Internal factors
Internal factor can affect how well a company meets all objectives and internal factor can
influence the operations of business by both negatively and positively.
Mission- The human resource strategy and practices are affected by the mission of the company.
At various levels, mission is the justification for the existence of a firm.
Organizational culture - organizational culture is the mixer of beliefs and shared values within
a company and human resource manger should create a better and positive culture of the
organization. This culture is important for the formulate appropriate human resource strategies
and policies.
HR system–different HR system also affect the HR policies and strategies. HR system such as
creating HRD departments, quality circle, enhancing the status of employee and introducing

participative management in the company. (Santana, Valle and Galan., 2019)these factors are
main under HR department of the organization and also influence the HR practice and strategy.
Use of technology - one of the main internal factors affecting human resource planning and
practices in the HR department and management of company. The advance technology system
plays a essential role in the human resource practices.
Level of growth - this internal factor that impact on strategies of human resource in the TUI.
The company rate of project and current growth also improve the HR practices. Company repaid
expansion and aggressive growth may essential for human resource department to focus on
staffing and recruitment.
External factor
External factor is the factor from outside an organization that directly or indirectly affects
the company. These external factors are out of the control of the TUI travel company. It includes
economics, social, cultural, political and technological, legal factor.
Economies environment - Economic environment are a major external factor that affect the
operational activities of human resource. This factor has a large impact on the HR’s strategy and
created policies. Economic factor includes inflation rate, unemployment rate, interest rate etc.
which affects the company market rate and for this HR should have to develop effective rules
and policies in their organization.
Social and cultural environment - It is an important external factor of the business
environment. Social and cultural environment include such things as attitude, Nature, interest of
people towards the travelling and tour. So that HR of the TUI should have to take essential
concern on the many social trends and culture of people. The performances of Human resource
management are also affected by this cultural factor.
Government regulation - Laws and regulations are external factor affecting human resource
management and their practices. It is essential for the HR to adopt all HRM compliances and
regulations. Company is required to follow labor law regarding issue such as work hours, firing
and compensation and health insurance.
Technological factor -Organization needs to effective and upgraded with the new technology in
the market. The changes in the technology affects every function of company including human
resource management and its strategies and practices also. So that human resource must have to

provide proper coaching to the employees or staffs for the new technology for the improvement
of performances in the TUI travel company (Acquaah, Amoako-Gyampah and Jayaram., 2016).
External and internal factors influence HR strategies in both positively and negatively. It
completely depends upon environmental situations and organizational practises and their
compatibility with environmental situation. Some of the ways in which external and contextual
developments influences HR strategies are as follows:
 Government regulations directly impact hiring, training, compensation, termination processes
of an organization.
 Economic conditions of a country impacts ability of HR department to hire talented people
and can also help an organization to avoid economic downturn in both positive and negative
manner.
 Compensation is an internal issue which is faced by an organization which directly impacts
retaining of employees. It influences HR practises in both positive and negative manner.
LO2
Contingency theory
The contingent theory defines the relationship between the relevant dependent and
independent variable will vary according to the technology, company size, industry sector,
location and ownership. This theory implies complex interactions among human resource
management variables between HRM performance and also variables between HRM
contingency factors. Contingency theory expresses the aims, lists of activities, policies and
analysis of the TUI Company. It plays a major role to development and growth of HRM
strategies. This theory suggests that in order to be effective and must be consistent with much
aspect of the company and external environment. It is important because contingency theory
gives human resource manager a wide range of way to react and solve the problems or errors of
HRM strategies. It is also give significant direction to the HR team in their decision making. This
theory also suggest that company need to adapt effective human resource management practice
in the business strategy (Hee and Shanmugam., 2019). This contingency approach denotes
proponents and external fit to identify that this model are important suited to human resource
management.

Configurationally theory
Under the human resource management configurationally approach combined external
and internal fit as the basic for increasing and maintaining performance of the organization. This
theory is applied by human resource for achieving corporate objectives of the TUI Company
through proper business planning and strategy. Configurationally models of human resource
management is internal fit, that is the development of HR practice and appropriate of HRM, it is
suggested that external fit with the matched to the company needs of particular business goal and
strategy. This theory helps the growth and development of strategies for human resource
management (Zeijen, Peeters and Hakanen., 2018). This theory provide a huge understanding of
the company relationship between organizational performance and human resource management.
HRM configuration is a combined set of all human resource management practice and it assist to
improve the desired employees behaviour. Employees behaviours includes vertical, horizontal
and implementation indicate the HRM configuration facilities for the desired company’s
employees or staffs behaviour. Configurationally theory plays an integral role in the human
resource management for achieving strategy and development of TUI Travel Company.
Maslow theory of motivation
Maslow presents that motivation is the outcome of an individual’s attempt at
accomplishing five main needs such as social, physiological, esteem, safety and self
actualization. As per this theory, these needs can develop the internal demands by which a
person’s behaviour can influence. This theory is best because people are motivated by
accomplishing and satisfying their lower level requirements such as water, food, security and
shelter, before they can go on to the other higher level needs such as self-actualization. It plays a
vital role in the development and growth of the strategic human resource management to
motivate their employees to meet their needs.
Human resource management model
Philosophy of approach - It include how to value and treat the employees at workplace.
Policies human resource – Develops the guidelines and policies regarding HR programmes and
business issues.
Programme of human resource – Coordinates the forces to improve the change to identify
main employees related to business issues.
Practices of Human resource – Motivators in the organisation required role behaviours.

Process of human resource- this stage defines that how all these activities are carried out.
LO3
The effective change management models play a crucial role to assist the human resource
strategy in the TUI organization. Changes are very necessary in any business. Without the
change management model, a company cannot runs their business successfully. The perfect
change management model helps to improve the HR strategy.
The main change management model: Kotter’s 8 step change model
Kotter’s change management model is one of the best models that are not focused
towards the changes but on the people behind the changes. It plays a great role to support the
human resource strategy in the organization by implementing the changes in a very best manner.
This theory used by the TUI travel agency company to adopt great effects in their business to the
present climate.
This model has been chosen because this model can effectively support HR strategies.
This theory helps in creating hurry and develops a sense of urgency for the effective changes.
This will further help TUI in developing and supporting HR strategies in a proper manner.
This theory works by many functions such as:
 Inspiring a sense of urgency
 Developing a core coalition
 Create a strategic vision
 Getting everyone on board
 Reducing friction and removing barriers
 Emerging short term development
 Sustaining acceleration
 Implementing the changes in stone
Inspiring a sense of urgency
Firstly, the organization need to develop a sense of urgency for the change, this will
require to get the team member and motivated them to adopt (Al-Hawary and Nusair., 2017).
Developing a core coalition

In this step, the company will have to gather their stakeholders and leaders and inspire
them towards the need of change in the organization. It directly or indirectly assists in the
improvement of HR strategy.
Create a strategic vision
The main objective in this step is to be able to describe the vision and changes that
company are aiming for. HR establishes the vision for future and develops the strategy for with
the assistance of this step. This step also explains the value of changes in achieving the
objectives.
Getting everyone on board
In this step, the HR manager of the company spread their ideas and thoughts for change
to the whole organization. This part also includes the regular meeting of HR and employees to
discuss the changes and vision.
Reduce friction and remove barriers
In this step, Human resource manager should have to take necessary action to reduce the
barriers that are emerges between the implementation of changes (Jing., 2018). For example, if
the HR strategy is to develop an advance technology in the company’s operation and a worker
might not have the knowledge to use this technology, make sure that HR have reduced it as much
as possible.
Emerging short term development
In this stage, Company should have to make sure that there are short term developments
and wins linked with the changes that HR can present and praise workers for. It improves the HR
strategy by encouraging the employees towards the change.
Sustaining acceleration
This step is all about sustaining the policies and rules that HR created for the changes and
it becomes a new habit for the team.
Implementing the changes in stone
In this last stage, HR requires to make sure that the changes have been implementing in
stone in the company’s documentation and culture.
The Kotter’s theory plays an important role to support the human resource strategy. It force the
HR to create the foundation for success by inspiring sense of urgency and develop believe in the

all employees of organization regarding why change is essential. It model helps the strategic
human resource management to implement the changes in the organization with a great manner.
Lewin’s change management model
Lewin’s model is most famous approach. It divide the change process into three stages
such as unfreeze, make changes and refreeze.
This model has been chosen because this model can effectively support HR strategies
because with the help of this model HR department will be able to identify nature of conflict and
reason because of which it occurred. With the help of this strategy HR department will ask for
suggestions from the employees so that changes can be implemented in an appropriate manner.
Unfreeze
After realizing the requirement of change, the company adopt Unfreeze step to find out
how the change can be done. Unfreezing applies to the company’s perception of change and their
natural conflicts to it (Mupani and Chipunza., 2019). In this stage, everyone requires to know
what the problem is in current process, what changes are being implemented and why it’s
necessary.
Make the changes
After prepared everyone, the HR develops their changes and suggests the employees as
they adapt. Education, communication and support are important to reduce any difficulties
during the implementation of changes.
Refreeze
Once the strategic changes have been measured, tweaked and deployed as per the
feedback. The HR should have to refreeze their new status quo.
This model is very useful in the strategic human resource management because it provides a
better guideline to HR of TUI for effectively set and implement the changes for the great
development and performances of business.
LO4
Human resource management includes 10 C's such as comprehensiveness,
communication, change, competence, creativity, control, cost-effectiveness, commitment,
coherence and credibility. These principles are useful to human resource practitioners and to
define strategies human resource management in the organization.

Comprehensiveness - the human resource management strategy of a company must include all
the aspects of people management and starting from recruitment to post-separation programs in
the company (Boella and Goss-Turner., 2019).
Credibility - the human resource practice must develop trust between top management and staff
and to inspire employee's belief in human resource strategies.
Communication - human resource management should be understood the objectives of the
organization and to accept by all employees in operation of the company.
Cost-effectiveness - the HRM practice must include the promotion and reward system in a very
fair manner.
Creativity - human resource management practice also include creativity. it is the competitive
benefit of the company and it is unique strategies for human resource.
Coherence - human resource management practice must have to conduct the HRM initiatives
and activities significantly for the whole organization (Willian and et.al., 2018).
Competence - HRM strategy practice will be important a way that the company becomes
competent to achieve its goal and objectives with the support of person competencies.
Control - human resource management practices must ensure that the performance of HR in
company is consistent with business objectives.
Change - this is the best practice for HRM strategy for the continuous development and
improvement that is vital for survival in organization.
Commitment - human resource management practice must encouraged and committed to
employees to motivate them to achieve company's goal
A specific organizational situation such as
For example the TUI arranging a big campaign of recruiting and selection of talented and
skilled employees, in that Situation Company can use 10 C's model of HRM to monitor and
measured the activities and function of human resource. With this model company can identify
that the HR has specified quality or not, these quality are comprehensiveness, communication,
change, competence, creativity, control, cost-effectiveness, commitment, coherence and
credibility (Matilu and K’Obonyo., 2018).
Human resource management helps the companies to meet the needs of the employees or
workers and deal with many key aspect of the organization such as recruitment, training,

development, management, administrative etc. human resource management plays important role
in the organization and involving many HR functions is the implementation and formulation of
the company. HRM also include strategies human resource management to create a link between
company’s objectives, goals and strategies. So, SHRM has a essential role in the organization.
Human resource plays a vital role to develop the company policies and also in its creation and
implementation. HRM is the main part for the achievement of the company goal and objectives.
It is focus on hiring and recruiting the good employees and providing training and development
for the successful business of organization (Sheldon, Della Torre and Nacamulli., 2019). HRM
of the TUI should have to evaluate many programs and strategies on a regular basis for the
effective development and growth of the company and also it will develop the sustainable
performance of business operations.
Human resource management uses the effective opportunities and talent from the market
to make effective and strong department in the organization. It plays a curial role in the TUI
travel company and helps to achieve goals and objectives by creating unique features and
policies for tourist and travellers. Strategies human resource management provides effective
control and minimizes the adverse effect of the company. It provides a high assistance for the
better workplace in the organization and also manages all the tasks ands operations of the
workers. Human resource department develop its plans for the development organization and
also ensure a better chance of company success and increase the efficiency. Strategic HRM also
play a major role in the organizations towards the analysing the company threats and
opportunities existing in the environment and implemented the strategies in it’s formulation.
Ithelps to reduce the wastage of resources and take very less time to indulged into the taken
decisions and create a framework for communicating with other and personnel. Human resource
management is essential for the implementation of effective strategy for the company.
It is executing human resource practices and policies that produce the behaviour and
competencies of employee (Chidi and Egboka., 2017). Human resource management activities
include structure, strategy, performance, knowledge management and matching the company
resource for future requirement so it is managed effectively in the company. In the organization
human resource plays a significant role for the better improvement and higher growth in the
business. The aim of strategies human resource management is to improve the company
performance and provide innovative idea and gain competitive benefits for successful business.

Human resource management strategies combine all companies’ management activities
into an integrated and organized program to meet the all strategies objectives of the TUI
Company with the help of which company can obtain sustainable performance and growth.
HR monitoring techniques helps an organization to maintain overall quality of the work done by
employees, it helps in maintaining effective communication within employees of an
organization. This further helps the organization in identifying issues that can be faced by the
organization in a much better manner.
Sustainable growth
It is the attainable growth that every organisation could maintain without indulging into
issues.
The importance of HRM in sustainable growth and business performances
Human resource management plays an effective role in the sustainable growth and
business performance. It assists in improving the performance by dividing the work or operations
according to the skills and knowledge of employees. It also helps to save unnecessary expenses.
It helps in sustainable growth by investing in the professional growth and development and
generating a leadership solution for a long period.
10-C checklist
For the evaluation of contribution of human resource management, 10-C checklist of
HRM is the effective model. Through this model, organisation can measure the performances of
HR and others. 10-C includes the comprehensiveness, communication, credibility, creativity,
cost effectiveness, competence, control, coherence, commitment and change. All these qualities
are checked up to evaluate the performance of an individual.
CONCLUSION
From the above report, it is concluded that the strategic human resource management has
an important role in any organization. The effective SHRM develops a better business
environment in the organization. It improves the work performances of employees and also
encourages them towards the achieving business goals and objectives. The many internal and
external factors of the business environment affect the HR strategy so that HR should have to
develop predictable nature to reduce that diverse impacts and take competitive advantages from
the whole market.

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