Relationship between Business Strategy and Human Resource Strategy

This document discusses the relationship between business strategy and human resource strategy, with a focus on Marks & Spencer. It explores the concepts of vertical alignment and horizontal integration in the company. The document also covers the theoretical basis and models of Strategic Human Resource Management (SHRM) and the HR practices of performance management and reward. Additionally, it provides recommendations for designing or redesigning a performance management system.

Strategic Management
Human Resource

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Explain the relationship between business strategy and the human resource strategy...............3
Vertical alignment and Horizontal integration across Marks & Spencer...................................4
The theoretical basis and models of Strategic Human Resource Management (SHRM)...........5
HR practices of Performance Management and Reward............................................................6
Recommendation for design/re-design a performance management system..............................8
TASK 2............................................................................................................................................9
Discuss the nature and theoretical perspectives of Employment Relations................................9
Identify the roles of the actors within the Employment Relationship.........................................9
Analysis of the changing nature of employment relations........................................................10
Recommendation for mechanisms of employee participation and employee voice.................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic Human Resource Management (SHRM) is a techniques adopted by modern era
business managers and leaders where, they develop a connection and alignment between
company's strategies and the workforce. The method of SHRM is used with the motive of
inducing innovation, gaining a competitive edge and bringing more flexibility in company's
culture and structure (Delery and Roumpi, 2017). The phenomena is responsible for changing the
workplace into a competent one where desired objectives are fulfilled and company's needs are
satisfied. The report is carried out on Marks & Spencer a British multinational retailer which was
founded in 1884 and located in Leeds, UK. The company deals in retail industry offering goods
like Clothings for men, women and kids, home appliances, accessories and daily merchandises.
The report covered in two parts considering and collecting number of information on different
potential aspects of Strategic Human Resource Management (SHRM).
TASK 1
Explain the relationship between business strategy and the human resource strategy
Business strategy is basically a guide or a blueprint of the activities and procedures the
entity is undertaking for fulfilling their short term objectives and reaching to the ultimate goals.
Likewise, Human Resource Strategy is a plan developed by managers and leaders for leading
staff keeping up with company's need of workforce and experts. HR Strategy is sub section of
Business strategy and shares a strong alignment or connection. Thus, the same is presented in the
next section below in context of Marks & Spencer (Moutinho and Vargas-Sanchez, 2018) .
Human Resource Management is a functional unit in an organisation playing critical
role in growth and success. Every well known business organisation in business world operating
from any location around the globe has a capable HR team taking care of workforce related
chores and satisfying company's appetite of employees and experts. In relation with Marks &
Spencer a global leading retailer who has high brand value and goodwill. The diverse nature of
the entity showcases the need and importance of an effective HR strategy as well as HRM.
Strategic HRM offers this opportunity to management of Marks & Spencer for aligning
overall business strategy and HR policy. SHRM is a phenomena which is concerned with
adopting and developing a connection between business strategy and HR management plans for
effective and potential results and for higher productive performances of staff members.

Business strategy of Marks & Spencer has to be strong and air tight which is then converted into
processes and procedures that are executes by the workforce or employees. Thus, business
strategy has to be integrated with the HR plans and policies for hiring, selecting, retaining and
managing people efficiently. For the same, few business aspects shows relationship between HR
and Business strategies: Implementation of policies- In every organisation and here in Marks & Spencer policies
are developed by top level management and devised with the overall management
perspective of the company. The same policies are further communicated to HR unit of
Marks & Spencer who are responsible for enforcing those in workplace leading to
effective management of workforce and workplace both (Lasserre, 2017). Management and Control- Business strategy is a wholesome blueprint involving sub-
sections and parts. HR strategy is also a part of it in which effective implementation of
business polices and procedures prescribed in business strategy document results in
higher management and control over staff as well as all the functions involved in Marks
& Spencer.
 HR strategy under Business Strategy- As mentioned HR strategy is a sub part of overall
business actions and plans. Therefore, they automatically develops a relationship amongst
each other and interrelates at all stages that is at planning, executing and controlling. The
effectiveness of business strategy is contributed by the productive results of other sub
units and of which HR strategy is also a part bringing connection and linkage.
Vertical alignment and Horizontal integration across Marks & Spencer
Horizontal Integration in HRM refers to creating efficiency of available human
resource by developing congruence between HRM policies, practices and execution of these
policies for optimal utilisation of Human resource and their development as well (Ansoff and et.
al., 2018).
On the contrary Vertical Integration is concerned with effectiveness Human resource in
which practices, roles and contributions of HRM are interlinked or aligned with Strategic Human
Resource management process and making contribution to the ultimate goals that is vision and
mission of company.
In context of Marks & Spencer, both horizontal and vertical integration of processes will
be bringing higher performances of employees as their effectiveness and efficiencies are

explored and developed further. The concepts are related with Strategic Human Resource
Management that is a connection with policies and strategies of Marks & Spencer bringing a
aligned structure or procedure for carrying out all the activities related to the end goal and
strategic objectives. This demonstrates the relationship between SHRM and business policy
which are ultimately related with HR strategies and polices of Marks & Spencer that are
introduced and induced in the organisation for potential performances of staff for extracting
higher level of productivity through their performances and completion of tasks (Leskaj, 2017).
The theoretical basis and models of Strategic Human Resource Management (SHRM)
Strategic Human Resource Management (SHRM), is a systematic action plan that is
considered and executed by human resource team and managers in order to effective
management and development of workforce and labour working within firm and executing. Key
objective of SHRM is to align and interlink HR policies and overall business procedures for
ensuring effectiveness and efficiency in organisational performances and profitability. A very
common model of Strategic HRM which most organisations and business owners use is
comprises of 13 sub models or components which are combined together to make one constituted
and composed working model for the company (Lazareva, Anopchenko and Lozovitskaya,
2016).
HR plays the most vital role in number of areas and in number of cases which requires
strategic thinking and approaches to be adopted for effectual results to be gained. In Marks &
Spencer as well the human resource team and management make use of such Strategic HRM
practices and model for a balanced and potential leadership being provided to staff and people
are kept motivated and satisfied with the job role. Moreover, once the model is carried out
strategically it offers effective implementation of HRM activities and completion of tasks. The
model is as follows:

Illustration 1: 13 Models of Strategic Human Resource Management, 2020
(Source: 13 Models of Strategic Human Resource Management, 2020)
The figure of SHRM model which all the 13 components showcase the aim of the model
which is to strive towards building and maintaining a healthy environment for workforce and
effectual labour management relationships that is employee relationships. The factors like
training, staffing, compensation, performance management and labour relations adds value to the
aim of the system. Moreover, the information systems of HR are used for making comparisons in
actual and expected performance of staff providing clarity about the strengths and weaknesses of
workforce as well as making appropriate changes in the organisations actions for higher benefits
and productivity (Aguinis, Edwards and Bradley, 2017). Thus, with prominent help and
potentials of SHRM Marks & Spencer can ensure its effectiveness as the procedures and actions
are effectively implemented and executed within and outside the company's surroundings.
HR practices of Performance Management and Reward
Performance management and Reward is a one of the key HR practice that is part of
HR policies and strategy. Performance management and Reward are motivative and encouraging
initiative undertaken by human resource department of organisations in order to keep people
aware about their value for the firm as well as their expertise. Both the practices are involved in
Marks & Spencer's HR strategy and part of fundamental operations of the firm. In Marks &
Spencer employees are rewarded and their performances are managed on several basis such as on

the quality of performance, time period and goals achieved or even on the basis of employee's
engagement in the operations. Rewarding employees is a basic act that enables the managers and
leaders to make personnel understand their worth and value of their expertise. This is an action
which enables staff to gain knowledge about their personal strengths and higher insight about
themselves. Thus it is recognised as self motivating technique as well which develops higher
level of motivation amongst labour themselves (Ginter, Duncan and Swayne, 2018). The
company Marks & Spencer make use of number of rewarding and performance management
techniques which are as follows:
FINANCIAL TOOLS: Incentives- This is financial rewarding tool which is presented to employees in monetary
units. Incentives are majorly given to workers for their limit less and unbounded
performance. That is in simpler words incentives are part of performance management
scheme in which employees are awarded and presented extra money for the work
performed after their working hours that is for extra work they do.
 Compensation- The next rewarding phenomena which is being used in Marks & Spencer
is compensation, another monetary benefit presented to employees in exchange of their
efforts and expertise. Compensation is covered by bonuses, extra salary or wages and
travel packages and many other units (Armstrong, 2019).
NON FINANCIAL TOOLS: Performance Appraisals and Recognition- This is a non monetary based rewarding and
performance management technique utilised by HR mangers of Marks & Spencer.
Through performance recognition and appraisals managers present quarterly and yearly
awards to staff members in different categories according to their performances,
engagement and work related tasks completed.
 Promotions- This is the most common performance management and rewarding practice
in which employee is offered higher position in organisation on the basis of their
performances and results provided. Promoting employees form their position to the
higher place is an effective tool as it enables the management to rise employee motivation
as well as offer them better relationships with one another as communication increases
and worker is satisfied with the job and working environment.

Recommendation for design/re-design a performance management system
Performance management system is a administrative tool or an approach which is used
for effective measurement of employees performances and management. Marks & Spencer make
use of different tools and techniques to manage workforce performances and develop positive
attitudes in them for the firm and towards their job roles. The market is changing, trends are
evolving that brings in number of evolution in HR practices as well. Thus, the HR team of Marks
& Spencer also have to update their systems as well. Thus, redesigning or designing of
Performance Management System is a compulsory approach too. It is a tedious and a chaotic
task for the team but have to be undertaken for running the firm in the most effectual manner
through appropriate strategies and actions. The whole redesigning/designing process of
Performance Management System of Marks & Spencer is as follows: Keep it simple- The first stage is of keeping things simple where employees are engaged
in the operations, basically in the whole redesigning process for gaining insight about
their expectations and aligning them with market changes. The brings in feasibility in the
Performance Management System and keep workforce encouraged (Baumgartner and
Rauter, 2017). Define purpose- The next step is where management and HR teams defines the purpose
underneath for modifying the Performance Management Systems and clearly stated in
front of employees to keep them informed. 360 Degree Feedback- The personnels opinions and views are necessary which makes it
important for management to take feedbacks form staff members. Introduction of upward feedbacks- Once employees feedbacks are collected then higher
managerial level staff is asked to share their views and ideas as well through upward
feedbacks.
 Stipulating goals- Here at the last stage, management is encourage the staff and other
members for emphasising over company's goals and performances while completing
tasks and related duties for effective completion of chores and timely achievement of
goals.

TASK 2
Discuss the nature and theoretical perspectives of Employment Relations
Employee Relations is a concept highlighting over the efforts both management and
individuals take for building effective relations with one another and for developing longer term
bonds (Bergh and et. al., 2016). The term employee relations refers to strong bonds developed
between employers and employees which provides fruitful outcomes to the parties and proven to
be beneficial for everyone. The major benefit provided by employee relations to company is of
retaining staff of longer term and for employees its provides them higher job satisfaction and
ease while working in a healthy and safe environment. There are basically three perspectives of
employee relations and these are elaborated below in context of Marks & Spencer. Unitary- The first perspective is concerned with integration of efforts made by manager
and employees towards the objectives. Everyone has their knowledge and experiences
which develops a separate thinking and opinions form one another. The first perspective
has two clear implications that is Conflicts being arose amongst individuals and
employers of Marks & Spencer and the other one is involvement of Trade Unions for
safeguarding the employees form any violation of their rights and authorities (Durand,
Grant and Madsen, 2017). Pluralist- Marks & Spencer is a large organisation which has number of employees and
departments working for a particular objective and intentions. The major group pertaining
to their perspectives are Trade Unions and Top Level Management. Both are performing
different roles, management team is using methods to develop relationships such as by
effective communication and other. On the other hand, Trade union is acting as staff
representatives and make use of unique approaches to death with the scenario.
 Marxist- This perspective showcases the company's aim of maintaining effectual
industrial relationships. This is a beneficial perspective offering in depth evaluation of
socio-economic dimensions that acknowledges the social disputes and class relationship
by chronological development.
Identify the roles of the actors within the Employment Relationship
The actors here are referred to those three parties or individuals who holds major
contribution to employee relations. These are Employees, Employer and Government who

makes efforts and enable the management and employees to be more connected and develop
better bonds. Employees- As known fact, that employees, workforce, labours, personnels etc. are the
one who execute all the plans and strategies of management in the real practical world
and faces all the consequences. Employees have the right to enjoy a healthy workplace
environment and are responsible too for the same. The workers are expected to work with
their utmost potentials and fulfil all their chores requirements in time for higher level of
performances and results to be gathered. Employer- They are the ones who have established the company and are conducting all
the actions to take the firm towards success and growth. Employers brings the best
employee's and experts for the completing number of required tasks and attaining goals.
They are responsible for keeping staff happy and satisfied by using the best developed
Performance Management System and policies (Belias and et. al., 2017).
 Government- The governments role is unique too, a external party which directly do not
influence the relationships but introduces laws and regulation for protecting employers
and employees from any misconducts. Formulation and implementation of these laws and
regulations within the company makes it easy for employers to develop relations with
staff and make them feel comfortable in the given business environment.
Analysis of the changing nature of employment relations
The modern era and modernisation of business world have introduced number of changes
in industries and according to which development is taking place with improvement and
improvisation. Business environment is evolving and bringing drastic revolutionary changes
which keeps on changing the work place condition in which people operates and functions are
performed. In regards to this, management as well as employees both faced huge problems but
do have enough opportunities to grow and move towards higher success levels. There are
number of internal and external factors that exist in business surroundings and that imposes
influences over individuals performances as well as organisational performances too (Boon and
et. al., 2018).
Thus, this showcases the impacts over employee relations as well either negative or
positive. Earlier, practices which were undertaken by management of Marks & Spencer for
keeping staff motivated and perform in best manner were directive approaches. But in today's

business world scenarios have changed and now people expects to be heard and valued rather
than guided on a particular path through others. This implies the need for change and adaptation
of employee engaging practices for motivating staff and keeping them happy while working
towards the goals and ultimate objectives of the firm.
Recommendation for mechanisms of employee participation and employee voice
Employee Participation and Employee Voice is the change brought and introduced by
modern business practices and revolution. In above segment it is identified that nowadays
techniques to keep staff enthusiastic for work and their job roles have changes and evolved.
Today employees have to be heard and be considerate about the way they wants to work and
how creative they can become to render their best of expertise and knowledge (Engert, Rauter
and Baumgartner, 2016).
In relation to this management and leader of Marks & Spencer also have to conduct in-
depth discussion meeting for gathering information about their employee's perspectives and
views. As well as, another techniques for increasing employee's engagement and keeping them
informed is of collecting feedbacks and gaining idea about their opinions about the respective
decision company is about to make for future processing and functioning.
CONCLUSION
The analysis and discussion conducted in above sections of the assignment summarises
the importance and significance of HR strategies and policies in overall firms strategies and
plans. It is being acknowledged that compensation, rewards, recognition, performance appraisals
and incentives are some of the best HRM activities and procedures managers and leader
undertake for keeping people or employees of the firm motivated and retaining them for longer
period of time within the entity. Moreover, HRM model applied showcases its potentials towards
encouraging healthy and happy employee relationships. In the second segment of the report it is
identified that entity leads itself towards success and growth with contribution of two major
factors that are satisfied workforce and healthy relations with employees and labour force. These
action enables the firm in aligning the attributes, attitudes and behaviours of individuals in the
direction of company's goals and strategic objectives.

REFERENCES
Books and Journals
Aguinis, H., Edwards, J. R. and Bradley, K. J., 2017. Improving our understanding of
moderation and mediation in strategic management research. Organizational Research
Methods. 20(4). pp.665-685.
Ansoff, H. I. and et. al., 2018. Implanting strategic management. Springer.
Armstrong, M., 2019. Strategic human resource management. pdf drive. Com.
Baumgartner, R. J. and Rauter, R., 2017. Strategic perspectives of corporate sustainability
management to develop a sustainable organization. Journal of Cleaner Production. 140.
pp.81-92.
Belias, D. and et. al., 2017. Human resource management, strategic leadership development and
the Greek tourism sector. In Tourism, culture and heritage in a smart economy (pp.
189-205). Springer, Cham.
Bergh, D. D. and et. al., 2016. Using meta‐analytic structural equation modeling to advance
strategic management research: Guidelines and an empirical illustration via the strategic
leadership‐performance relationship. Strategic Management Journal. 37(3). pp.477-497.
Boon, C. and et. al., 2018. Integrating strategic human capital and strategic human resource
management. The International Journal of Human Resource Management. 29(1). pp.34-
67.
Delery, J. E. and Roumpi, D., 2017. Strategic human resource management, human capital and
competitive advantage: is the field going in circles?. Human Resource Management
Journal. 27(1). pp.1-21.
Durand, R., Grant, R. M. and Madsen, T. L., 2017. The expanding domain of strategic
management research and the quest for integration. Strategic Management Journal.
38(1). pp.4-16.
Engert, S., Rauter, R. and Baumgartner, R. J., 2016. Exploring the integration of corporate
sustainability into strategic management: a literature review. Journal of cleaner
production. 112. pp.2833-2850.
Ginter, P. M., Duncan, W. J. and Swayne, L. E., 2018. The strategic management of health care
organizations. John Wiley & Sons.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Lazareva, E., Anopchenko, T. and Lozovitskaya, D., 2016, August. Identification of the city
welfare economics strategic management innovative model in the global challenges
conditions. In Proceedings of the 3rd International Multidisciplinary Scientific
Conference on Social Sciences and Arts SGEM (pp. 3-10).
Leskaj, E., 2017. The challenges faced by the strategic management of public
organizations. Revista» Administratie si Management Public «(RAMP), (29), pp.151-
161.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Online:
13 Models of Strategic Human Resource Management, 2020. [Online] Available Through:
<http://bankofinfo.com/13-models-of-strategic-human-resource-management/>