TASK 13 Relationship between business strategy and human resources. Critical evaluation of HR practices related to Performance Management and Rewards

7 TASK 28 Nature and theoretical perspective of employment relation 8 Role of actors within employment relation 10 Recommendation on how mechanism of employee participation and employee voice contribution in improving employment relation12 CONCLUSION 13 REFERENCES 14 INTRODUCTION Strategic Human Resource Management can be defined as aligning the business goals and strategies with human resource objectives which will help in improving the methods implemented and motivate employees to work harder (Punjaisri and Balmer, 2016).

STRATEGIC
MANAGEMENT HUMAN
RESOURCES

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
Relationship between business strategy and human resource strategy.......................................3
Comparison and Critical Evaluation of SHRM models..............................................................4
Critical evaluation of HR practices related to Performance Management and Rewards............7
TASK 2 ...........................................................................................................................................8
Nature and theoretical perspective of employment relation ......................................................8
Role of actors within employment relation ..............................................................................10
Recommendation on how mechanism of employee participation and employee voice
contribution in improving employment relation ......................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Strategic Human Resource Management can be defined as aligning the business goals
and strategies with human resource objectives which will help in improving the methods
implemented and motivate employees to work harder (Punjaisri and Balmer, 2016). In this
report, various models of SHRM have been discussed and the relationship between business
strategy and HR strategies have been discussed. Further a Performance Management System has
been designed for Travelodge Hotels based in UK and it has been critically analysed. Lastly, this
report will also evaluate the importance of employee relationships, various perspectives and roles
and implications of changing nature on employee relations along with employee participation
and employee voice.
MAIN BODY
TASK 1
Relationship between business strategy and human resource strategy.
Business Strategy can be defined as a properly articulated and detailed plan laying out
the plans and practices that the company intends to implement in order make optimum utilization
of the resources available to them and hence achieve the desired goals and objectives. HR
Strategy on the other hand are prepared in synchronization with the organizational aims and are
formulated in such manner that they support and act as a backup in implementing the business
strategies. In order to successfully implement these strategies, the HR management at Travelodge
Hotels can :-
Link HR strategies to business results :- By understanding what the company intends to
achieve, the HR managers can understand and build strategies accordingly which will help them
in adopting correct training and recruitment policies so that they can select those employees who
will assist in achieving these objectives.
Giving a Financial upfront to the practices adopted :- In order to simplify the process for
managers in regarding evaluation of the effectiveness of the HRM practices applied, they can
give their results a financial aspect i.e. develop rankings and scores which will help managers in
determining the effectiveness of practices adopted.
Along with the importance of linking these business strategies with HR strategies,
Travelodge Hotels uses vertical and horizontal integration techniques which assists them in
successfully implementing strategic human management practices (Das and et.al., 2019).
3

Vertical Integration involves aligning the company either with its raw material supplying unit or
with the distribution channels that company might adopt. Travelodge Hotels have appointed
separate staff maintaining their inventory and raw materials by keeping close tabs on their
suppliers and simplifying their supply chain to other hotels spread throughout UK and other
countries as well. In SHRM, vertical integration involves linking HR management with the
strategic decisions that the company takes. Horizontal Integration on the other hand involves
acquisition or takeover of other similar businesses or a separate product line. Travelodge Hotels
recently acquired Holiday Inn Hotel located at Liverpool John Lennon Airport. In SHRM
context, Horizontal integration involves coordination of the different strategies that HR
department needs to adopt in different situations.
Comparison and Critical Evaluation of SHRM models.
There are various models and theories of SHRM that can be applied in the company after
critically analysing their pros and cons and different strategic perspectives of these models.
SHRM Competency Model is the practical model which has been developed in order to increase
the professionalism of HR around the globe (SHRM Competency Model, 2019). It helps in
determining the necessary competencies and knowledges of HR, its assistance in professional
development and helps in increasing proficiency level. There are many aspects of this model.
4

Best Fit/ Contingency Approaches :- Under this approach, the main objective is to interlink the
HRM practices i.e. the practices related to people management with the strategies formulated by
the company so that the competitiveness of the company can be increased and performance can
be improved. This helps in clearing the ambiguity and confusion related to different HRM
practices that are implicated in the company and ensures that all of them contribute towards
organizational development. Strategically, this practice is best for those companies which are
well versed with the requirements of consumers and employees can be trained to adopt and
implement a particular set of characteristics while dealing with the customers.
This model helps in formulating a long term view and enhances the quality of the
services provided to the customers. Also, it helps in developing innovative practices and are
extremely cost effective as company is well versed with the demands of their customers and
know how they can reduce the cost without compromising with the quality thus increasing the
profitability.
5
Illustration 1: SHRM Competency Model
Source :- SHRM Competency Model, 2019

However, this model also brings redundancy as there is no scope for inculcating changing
trends in the practices adopted by the company and hence makes the company static. Further, the
employees are not empowered enough to formulate their own decisions when facing a critical
situation and this might lead to extremely negative impact on the customer's mind (Wadhwa. and
Guthrie, 2018).
Best practice/ Universalist Approaches :- The Universal model or Best Practise models claims
that there are certain set of HRM practices and activities that are applicable universally in the
same manner and helps the companies in achieving competitive advantage. In essence, under this
model those strategies are adopted which are best suited for increasing the performance of the
company and whose adoption will help in developing a superior culture in organization and give
them competitive advantage as well. Strategically there are 7 major strategic HR practices which
help in increasing the overall performance of the company i.e. selective hiring, training, higher
rewards for higher performance, employment security, flexibility, defined career ladders and
properly classified jobs.
This model help in successfully identifying and implementing those practices which are
best suited ad complement the organization's activities and goals and is a good example of
increase the competitiveness of the company and helps in improving the quality of outcome.
On the other hand, this model can be criticized on the basis of the universal purview of
the organizations that it takes. Different organizations face different problems and they cannot be
solved by adopting these standard practices (Jiang and Messersmith, 2018). Also, it can be
argued that if a universal set of activities can be applied in all organizations then how will they
achieve competitiveness or create rarity in the products and services offered by them.
Resource Based View :- This model explores different methods using which, the HR of any
organisation can increase the competitiveness of the company in the external environment. VRIO
framework can be used to explain resource based view model:-
Value under which those methods which will help the company in increasing their revenue or
value are identified and implemented like reducing number of employees, but also focusing on
increasing the retention of employees.
Rarity under which the uniqueness of the resources that are available with the company are
identified and competitive advantage can be taken.
6

Inimitability under which the company evaluates that whether these rare resources possessed by
the company can be easily copied by the competitors and here, companies having skilled
personnel base garners highest advantage (Marchington, 2015).
Organised under which how methodological a company's practices and procedures are, is
evaluated and determined because this determines the effectiveness and efficiency of the
company's operations.
Collectively, resource based view model helps in building competitive advantage by
developing HR employed in the organization and building knowledge sets creating core
competencies but in reality this model fails to take external environment and its effect on the the
organization under its purview. The practice can be economic only when some resources are
obtained cheaply and some are build internally creating a proper balance which helps in creating
competitive advantage.
At Travelodge Hotels, the best model that will help them in gaining competitive
advantage and form adequate HRM practices is the Best Fit Model as it will help in organising
their HR activities and giving strategic benefit. However, when compared to the SHRM
Competency model, it can be ascertained that it is not practical to implement Best Fit Model and
hence for Travelodge, SHRM Model purports to be the best model applicable.
Critical evaluation of HR practices related to Performance Management and Rewards.
There has been a rising trend of giving sufficient rewards and returns to the employees on
the basis of their performance (Bratton and Gold, 2017). Performance Management can be
defined as the interaction between HR manager and an employee where the manager tries to
ascertain the standards and levels of output of an employee in comparison to the expected output
and on that basis, it is ascertained whether the employee is a good performer or a bad performer
and giving rewards accordingly. Various HR practices related to performance management
includes :-
 Developing job description with clarity and using proper identification system.
 Recruitment of those employees meeting the relevant requirement criteria.
 Offering job only to the selected candidate after proper negotiation regarding salary,
employment terms and conditions, benefits and perks etc.
 Welcoming new employees and conducting induction and training programmes.
7

 Giving appropriate rewards, recognition and promotions as per the performance of
employee.
 Conducting exit interviews so that correct reasons for leaving can be determined
(Ogunyomi and Bruning, 2016).
Although, these systems help in increasing the employee satisfaction and implementing
strategic HRM policies but there can be various negative implications of these practices like
demotivating the employees and creating resentment in them. When employees are given
rewards the HR should ensure that there is no biasness or unjust practices while giving such
rewards and appraisals and it should be given only to those employees who actually deserve
them. Because, there is usually a negative perception in the employee's mind regarding the HR
practices adopted and especially at floor level where the labourers or lower level workers work.
In order to improve their performance management practices, they can be integrated
with learning and change management at Travelodge Hotels by designing an appropriate
performance management system :-
Planning for success :- In this stage, mangers and employees simultaneously agree the output
and performance of an employee and the standards that he should be achieving. By ensuring the
necessary learning and development an employee will be given, the company will be able to
focus on creating competent employees (Brewster and et.al., 2016).
Progress Review and managing feedback or success :- The next step is to regularly monitor the
performance and compare actual performance with the standards established and the areas
requiring improvement are identified and performance plan is adjusted accordingly.
Evaluation of performance :- After the review period gets over, manager and employee
collectively redraft the work accomplished with the standards and come to an agreement on a
new performance plan thus repeating the cycle.
TASK 2
Nature and theoretical perspective of employment relation
Employment relation can be defined as the interaction between various actors in the
organisation(Employee relation, 2019). Employment relation consist of three actors which are
the state, management/employers and employees/union. They all play different roles which
affects the employment relation(Bruun and et.al., 2017). All the three actors work together with
8

the set of rules in order to develop better relationship and to share proper understanding between
the actors.
Now a days employee relation has been replaced by the industrial relation in order to defined
relationship between employer and employees. Employee relation focus on individual as well as
on collective relationship within the workplace(Bahli and Rivard, 2017). Therefore Travelodge
also try to focus on maintaining a healthy relation between employees and employer of the
organisation.
Travelodge ensures to maintain good relationship between colleagues in the workplace.
Also company tries to make the good working environment in workplace therefore it is required
by the employees to share a healthy relationship with each other. A healthy relationship within
employees will help company to deliver their best performance.
Positive aspects of employment relation in Travelodge:
 It helps in better communication in the organisation
 It also helps in managing trust between employees
Negative aspects of employment relation in Travelodge:
 The major disadvantage of employment relation is that it the increase in employee
involvement creates risk and the gap or line between top management and employees
become blurred.
 The process of decision-making becomes complex and lengthy as more communication
and discussion are to be made in order to reach at final decision.
Theories of employment relation:
Agency theory: This theory is also known as principle agent theory. According to this theory the
principals which are owners and managers should develop ways in order to monitor and control
activities for their staff or employees. Agency theory suggests that their might be a problem
between principals and the agents therefore it is necessary that principals sets clear objectives
and should try to monitor the performance to make sure that objectives of organisation are
achieved(Bosse and Phillips, 2016).
However the Travelodge principals which are top management sets the goals along with
the guidelines in order to avoid any type of misunderstanding between the objective which top
management want to achieve and employees who need to complete the project properly.
9

Exchange theory: This theory explains organisational behaviour in terms of rewards and costs
incurred in interaction between employees and employers. According to this theory people will
do analysis in order to find that what benefit they will receive from others if they maintain
relation with them(Blau, 2017). This theory focuses on four concepts which are:
Rationality: People make choices about relationship by rational decision making. The people
will make their decision by ordering priorities. The priority set by different employees make a
huge difference in the type of relationship they have in workplace. For example an individual
who set their priorities on factors such as group achievement, teamwork, are more likely to make
the business successful.
Rewards: The other way of creating positive relationship is by providing rewards. According to
this theory it is more likely that people build relation if they feel that some rewards will be
received by them(Griffis and et.al., 2016).
Friendliness: the theory also emphasis on maintaining friendly environment in workplace. If
employees feel that working environment will be hostile to them than they seek out better
relationship.
Socialization: It totally depend on the kind of relation employees have within the organisation, if
the employees has good relation in the workplace than the chances of continuing working by
employees in organisation increases. Positive employee relation within workplace helps in better
employee retention.
The Travelodge may contains some employees from the above categorise.
Role of actors within employment relation
In order to have a good employee relation it is required that all the three actors contribute
their best in employment relation as the role of all the three actors helps the organisation to
maintain good working environment which in result help companies to increase it productivity
and achieve success.
However with the changing nature of employment relation performance related pay has
been introduced and as a result of this now a days no longer roles and responsibilities are well
defined. The expectation from employees has been increased. A multitasked employees and a
person who can relocate are more in demand. Many factors which contribute to work related
psychology for example opportunity for promotion, status and increase in salary are no longer
guaranteed.
10

The change in nature of employment relation has affected the performance of employees
up to some extent. The competition has increased between the employees which creates the work
environment more competitive.
The actors of Travelodge are employer/management, employer/agent and state which
helps company to achieve success. The role of actors in employment relation within Travelodge
are:
Role of employer:
 Create policies in order to make a good working culture within the organisation by
following laws such as equality law, discrimination law, minimum wage law etc.
 Support employees to come up with new and innovative ideas and opinions
 Conducts meetings and allow its employees to take part in decision making process to
reach at better decision and make employees feels belonged to the organisation
 Organise cultural programmes of different culture so that all employees from different
culture feel comfortable in the organisation
 Provide employees free medical facilities, health check-ups on weekly basis
 As there is increase in competition due to change in employment relation the employer
however tries to maintain good relation by involving employees in various team building
activities such as sports so that rather than competing with each other employees can
understand the importance of working in a team.
Role of employee:
 Employees participate in the decision making process
 All employees put their effort to take part in all the activities which company performs
such as sports, annual programmes, seminars, training programmes etc(Punjaisri and
Balmer, 2016)
 The employees tries to work in a team so that organisational goal can be achieved
 Every employee of organisation has a clear vision which is set by the top management
and that is working in a team and moving together which motivates employees to move
in team
Role of state:
 The government of UK ensures that all the companies operating in country follows the
companies act 2006
11

 The government promotes safe working environment for the safety of employees as well
as employers which in turn helps in maintaining high employment rates
Recommendation on how mechanism of employee participation and employee voice contribution
in improving employment relation
According to Boxall and Purcell, employees voice can be defined as the process or
structure which enable or sometimes enable empower employees, to contribute in decision
making. It can be defined as an ability of employee to influence the actions of an employer.
While employee participation can be defined as a process where employees participate in
the decision making process rather than following the orders by top management. Employment
participation is a way of supporting employees empowerment at work place(Irawanto, 2015).
In Travelodge employee participation and employee voice should be encouraged as it will result
in better employment relation within the organisation. Some recommendation for improving
employment relation within the organisation are:
 Employees should communicate their views relating to any issue to the employer as it
help employee to better understand the problem from which employees of the Travelodge
is suffering from. If the employees communicate their problems to employers it will help
them to create a better relation with employees(Ruck, Welch and Menara, 2017).
 Despite of the fact that employee voice and participation plays an important role in
organisation many employees does not contribute in team and organisational discussion.
Therefore it is essential on the side of employer to make employees take part in the team
discussion which will helps employees to understand each other even better.
 The employees participation and voice does not only helps in individual capability of
employee but it also helps in employees engagement as well as employee retention in the
organisation. For example Travelodge can allow its employees to talk openly it will
create a trust level to employees and they will feel more valued and connected to the
leaders or managers of an organisation.
 Business need to be based upon the ideas of its employees. This is the reason why
crowdsourcing and open innovation are becoming so much important now a days.
Therefore companies should try to motivate its employees in participating and bringing
new innovative ideas to the organisation.
12

CONCLUSION
It is important for organisation to have relation between business strategy and human
resource strategy the reason behind this is that it help organisation to remove outdated and
inefficient HR policies from the organisation and introduce the policies which helps to make
better workplace environment and help in improving employee relation. Various models of
SHRM helps organisation to identify and analyse the opportunities and threat, to create clear
business strategy as well as clear vision for the organisation. As employees are the most
important resource behind organisation success therefore it is required by HR department to use
different HR practices within the organisation mainly practices which is related to performance
reward and management. The employment relation is one of the important factor for an
organisation as it can either improve or spoil relationship between employees in organisation.
Also employees participation as well as employees voice contribute in order to improve
employment relation. Therefore it can be seen how SHRM are important in an organisation.
13

REFERENCES
Books and Journals
Bahli, B. and Rivard, S., 2017. The Information Technology Outsourcing Risk: A Transaction
Cost and Agency Theory-Based Perspective. In Outsourcing and Offshoring Business
Services.(pp. 53-77). Palgrave Macmillan, Cham.
Blau, P., 2017. Exchange and power in social life. Routledge.
Bosse, D.A. and Phillips, R.A., 2016. Agency theory and bounded self-interest. Academy of
Management Review, 41(2). pp.276-297.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Brewster, C., and et.al., 2016. International human resource management. Kogan Page
Publishers.
Bruun, N. and et.al., 2017. The European Social Charter and Employment Relation. Bloomsbury
Publishing.
Das, S., Das, K.C., Sundaray, B.K. and Sahoo, C.K., 2019. Strategic Human Resource
Management and Employee Satisfaction: A Case Study. Training & Development
Journal. 10(1). pp.55-67.
Griffis, H.M. and et.al., 2016. Employment and residential characteristics in relation to
automated external defibrillator locations. American heart journal, 17. pp.185-191.
Irawanto, D.W., 2015. Employee participation in decision-making: Evidence from a state-owned
enterprise in Indonesia. Management-Journal of Contemporary Management
Issues, 20(1). pp.159-172.
Jiang, K. and Messersmith, J., 2018. On the shoulders of giants: a meta-review of strategic
human resource management. The International Journal of Human Resource
Management. 29(1). pp.6-33.
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.
Ogunyomi, P. and Bruning, N.S., 2016. Human resource management and organizational
performance of small and medium enterprises (SMEs) in Nigeria. The International
Journal of Human Resource Management. 27(6). pp.612-634.
14

Punjaisri, K. and Balmer, J., 2016. Brand value co-creation with employees through the Leader-
Member Exchange theory: the case of a corporate brand.
Ruck, K., Welch, M. and Menara, B., 2017. Employee voice: An antecedent to organisational
engagement?. Public Relations Review, 43(5). pp.904-914.
Wadhwa, P. and Guthrie, J.P., 2018. Strategic human resources management and organizational
effectiveness in hospitality settings. American Journal of Management. 18(1). pp.10-24.
Online
SHRM Competency Model. 2019. [ONLINE]Available
through :<https://www.shrm.org/learningandcareer/career/pages/shrm-competency-
model.aspx>
Employee relation. 20189. [Online] Available through
<https://www.managementstudyguide.com/what-is-employee-relations.htm>
15

16

17