Relationship between Business Strategy and Human Resource Strategy

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