Strategic Human Resources Management

This article explores the role of strategic human resource management (HRM) in organizations. It discusses the importance of aligning HRM with organizational strategies, the effectiveness of Balanced Scorecard in monitoring and improving performance, and the implications of HRM strategies on organizational capabilities and performance. The case study of Tesco, a large retail organization, is used to illustrate these concepts.

Strategic human
resources
management
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Role of strategic HRM................................................................................................................3
Balanced score card.....................................................................................................................4
Balanced score card in modern business organisations..............................................................5
HRM strategies and management and organizational capabilities and performance..................5
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
The strategic human resource management refers to managing human resource in the
organisation strategically. It is the combination of strategy and management where the focus is
on achieving success in the organisation (Armstrong and Taylor, 2020). It is the deployment of
capable and competitive employees strategically to have the integration of culture, resources and
success in the organisation. The responsibility of the HR in the organisation is impactful when
they are strategically using it. Tesco is the retail outlet of UK which was founded in 1919 and are
the biggest supermarket chains having operations in many countries. The report includes the role
of strategic HRM and its effectiveness on Balanced scorecard, modern business organisation and
the wider implications of strategies and the capabilities of the organisation.
MAIN BODY
Role of strategic HRM
Strategic HRM focuses on managing the staff according the the strategies of the
organisation and selecting the committed employees who are capable of fulfilling the goals of the
organisation. It focuses on the administrative activities of dealing with employees and helps them
in achieving productivity.
From the point of view of Das and Kodwani, Strategic HRM is the concern of the top
management in the organisation where there is the integration of HR with the strategies of the
business. The organisations should be flexible in making the strategies because the external and
internal environment is changing and the employees are affected by the changes which is the
most important assets of the organisation. The strategies are made to hep the employee grow and
learn the requirement of the market. The human resource can make a difference in the
performance and success of the organisation so the strategies should focus on getting the best
from the employees and making it beneficial for them. The goals of the organisation should
fullfill the goals of the employees.
Tesco is the large organisation and have 2318 stores with more than 3 lakh employees.
The nature and size of the organisation made it important for them to have good strategies which
are focusing on benefiting the employees as the operations of their stores will be conducted by
them. The organisation's role in building a strong strategic HRM is to improve the performance
of employees and integrating the work with maximum productivity. It is helping Tesco in
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enhancing productivity and capabilities and reducing the employees turnover. They are providing
the open environment to employees where they can have the discussion and solving the problems
which are impacting the performance. The e,employees are dedicated to work because of the
environment provided by Tesco which is flexible to be changed according to the market.
The strategic human resource department helps the human resource department and the
other operational department of the organisation (Das, 2019). The most important role of the
HRM is planning, recruiting and motivating the employees. It is important to achieve these
responsibilities for the managers and they should communicate it to the employees to make it
easy for them to have the strategies for achieving it.
Balanced score card
Balanced scorecard is an effective way of translating the business strategies and HRM in
practice which was formed by Robert Kaplan and David Norton for controlling the corporate
finance. It is focussing on connecting the financial position of the organisation with the future
strategies. It is a complex method of monitoring and controlling the management activities
according to the business strategies. There are many benefits of Balanced score for Tesco like it
is the measurement instrument which will help in the total quality management and managing the
human resource.
There are four perspective of Balanced score card like the financials, the customers,
learning and growth and business processes. It monitors the performance of the organisation and
improves it to achieve the goals of the organisation (Al Adresi and Darun, 2016). These
perspectives should have objectives, can be measurable, should have initiatives and targets. The
financials of the organisation contains the data which are important to analyse the position of the
organisation and to improve the profits. The business perspective have information of the
business strategy and the process of operating the strategies. The customers details like the
behaviour of customers and trends that can satisfy the needs and the learning and growth
perspective helps to analyse the competitive advantage for the organisation.
Balanced score card in modern business organisations
There are four perspective of the Balanced score card and they are in specific order that
contributes to the strategic objectives to ave a successful vision and ,mission of the modern
organisations. The objectives of the organisations are linked from downward to upward and
make it important for the organisations to monitor it.
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Tesco is a modern organisation with powerful operations. The investment in the lower
level of the organisation will make affect the top level in achieving profits (DeCenzo, Robbins,
and Verhulst, 2016). Balanced score card helps them the strategic decision making and helps in
building the strong strategies of the organisation. It will motivates the employees to perform
better and helps in making the strategies. The strategic objective of the organisation can be
applied to al the levels of the organisation and it will be based on the balanced score card.
From the point of view of Jiang and Li, the result of the balanced score card demonstrate
the improvement in the activities of the organisation and its performance. The improvement in
the performance is based on the motives and strategies of the organisation and helps them in
achieving success. It will help the organisations to make clear strategies and the result of the
balanced score card is the better performance. They are the motivating factors for achieving
success and they will help the organisations in explaining what is important that should be
improved. It will help the organisations to decide who will perform the work and helps them in
measuring the productivity of the organisation.
This strategy is used by many organisations and will make the decisions and it should
connect the HR practices with the strategies of the organisations. The success of the HR
strategies will have the impact on the performance of the organisation.
HRM strategies and management and organizational capabilities and performance
The strategic HRM provides flexibility in practice and it is important to have a work life
balance. The management of the organisation will be able to change the strategies of the
organisation according to the business strategy. The flexibility can be determined as functional
flexibility where the employees are shifted from one position to other based on the requirement
of the HR. The strategic HRM helps the organisation in financial and operational flexibility.
From the point of view of Brewster the employer can hire the part time employees to
reduce cost and increase in organisational capabilities and performance. This will increase the
functions in the organisation and reduces the liability and responsibilities. They will not have to
be dependent on the worker and will have manpower. It is important that they understand the
strategy and the culture of the employees, the competencies of the employees should be
according to the skills and the leadership and behaviour of the employees. The leadership and the
behaviour of employees will have consistency in the attainment of the goals of the organisation.
The success of the employees is connect to the success of the organisation. The strategic HRM
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will enable the organisation to obtain and retain the employees, committed and motivated
employees and it will contribute to profits and high performance and development. The human
resource of the organisation should have the capabilities to achieve profits and they should be
productive, it will maintain the long term relationship between employees and the organisation.
The employees have the diverse culture and they have different needs which will be
satisfied by the organisation and the HR should make the strategies to achieve it. It is a strategic
decision of the organisation to manage the most important asset and motivating them to perform
better. The employees should work individually or together to achieve the goals of the
organisation which will help them in increasing performance and managing the capabilities.
From the point of view of Mondy and Martocchio, the work of the HR in an organisation
is not limited to the the selection of employees but defining the roles and responsibilities which
will help them in giving better performance. The role of strategic HRM is focusing on
management of the employees contribution and transformation and change and they should help
the organisation in achieving the goals.
The employees of Tesco and its management believes in the goals of the organisation.
The employees are important to them and they are willing to work because of their experience
with the organisation. The HR is focussing on selecting the experience employees to increase the
satisfaction of the organisation and the productivity will increase. The policies and the practices
of Tesco will help them in achieving the competitive advantage and manages the human resource
effectively. They invest in the human resource to increase the benefits and profits of the
organisation as the satisfaction of the employees of Tesco is connected with the success of the
organisation.
Tesco is a large organisation providing various goods and services and it is growing at a
large scale. The recruitment and selection is important for the organisation they are focussing on
employees which will help the organisation in satisfying customers (Baldi and Trigeorgis, 2015).
They want to maintain the labour cost which is helped by the strategic HRM. They have “talent
planning” which will help them to select employees according to the policies of Tesco. It
includes the selection planning and analysis of the supply of employees in the organisation. The
performance of the employees are monitored by the HR manager and they have to evaluate it to
give the rewards and compensation in the organisation. The process of planning the activities,
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observing the performance, improves the capability and performance of the employees is the
most important factor of the strategic HRM.
The implication of strategic HRM is to maintain the long term relationship between the
employees and employers. The coordination between the HR practices and the strategies of the
organisation will help them achieve success and maintain the productivity of the employees
(Marchington, 2015). The role of the HRM is to motivate the employees to perform and make
them feel that they are important for the organisation and the strategies of the organisation
should make the policies for the employees. It is the unction of the organisation which will have
the sustainable growth and management will be benefited by the successful strategies of the
organisation.
The employees are working at all the levels of the organisation and they should be
motivated because they will help the organisations to achieve profits. The modern organisation
should understand the capabilities of the employees and they should be motivated to work at
their best so that they can improve the productivity. The employees should be systematic so that
they can have good communication and the satisfaction of the employees should increase profits.
The external and internal environment of the organisation have an impact on strategic HRM
because managing the human resource and the strategies according to the needs should be at the
best interest of the organisation.
CONCLUSION
From the above essay it is conclude that the focus of the HRM practices should be
towards helping the employees improving the productivity of the organisation and creating a
positive environment. The strategic HRM should benefit the lower level employees as their
performance will help the productivity of the top level employee to improve. The strategies of
the organisation should attract the employees and the HR should make the decisions based on the
goals of the organization. The strategic HRM is the process in which human resource of the
organisations managed to achieve the goals of the organisation and they are increasing the
productivity of the employees. The importance of the human resource for the organisation cannot
be described as the organisation is working because of the employees and they should be
motivated to achieve profits.
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REFERENCES
Books and Journals
Das, R. and Kodwani, A.D., 2018. Strategic human resource management: a power based
critique. Benchmarking: An International Journal.
Jiang, K. and Li, P., 2019. Models of strategic human resource management. Sage handbook of
human resource management, pp.23-40.
Brewster, C., 2017. The integration of human resource management and corporate strategy.
Policy and practice in European human resource management, pp.22-35.
Mondy, R.W. and Martocchio, J.J., 2016. Human resource management. Pearson.
Armstrong, M. and Taylor, S., 2020. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Das, R., 2019. Diversity management as a strategic human resource agenda: critique and
roadmap. Strategic HR Review.
Al Adresi, A.S. and Darun, R., 2016. Enhancing Employee’s Trust and Commitment through
Strategic Human Resource Management: A Literature Review. International Journal of
Academic Research in Business and Social Sciences. 6(5). pp.413-426.
DeCenzo, D.A., Robbins, S.P. and Verhulst, S.L., 2016. Fundamentals of human resource
management. John Wiley & Sons.
Baldi, F. and Trigeorgis, L., 2015. Toward a Real Options Theory of Strategic Human Resource
Management. In Academy of Management Proceedings (Vol. 2015, No. 1, p. 14862).
Briarcliff Manor, NY 10510: Academy of Management.
Marchington, M., 2015. Human resource management (HRM): Too busy looking up to see
where it is going longer term?. Human Resource Management Review. 25(2). pp.176-
187.
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