Strategic Human Resource Management

This report explores the concept of Strategic Human Resource Management (SHRM) and its relationship with business strategy. It discusses the models of SHRM, evaluates the specific HR practices of performance management and reward, and provides recommendations for building effective performance management. The report also examines the nature of employee relationships within organizations.

STRATEGIC HUMAN
RESORUCE MANAGMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Description on the relationships between business strategy and human resource strategy with
further explanation of vertical alignment and horizontal integration..........................................1
Critically evaluate compare and contrast the model of SHRM...................................................2
Critical evaluation on the specific HR practices of Performance Management and Reward. ...4
Recommendation to build effective performance management to deal with organisation
development and change.............................................................................................................5
TASK 2............................................................................................................................................6
Critical discussion on the nature of employee relationship within the organisation. .................6
Critically evaluate the roles of the actors within the Employment. ...........................................7
Suggestive measures for how employee participation and employee voice can contribute to
improve employment relations within organisation. ..................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic Human Resource Management termed out as practice of attracting, developing,
rewarding and retaining employees for the benefits of both employees as individuals and the
enterprise as a whole (Noe, Gerhart and Wright, 2017). Therefore, SHRM encourages the
positive work environment within the organisation. In addition to it, strategic management is
termed out as process of evaluating the best policies for a business managers to carry out in
terms to accomplish the enterprise goals and policies. This is one of the effective concept that
aids to competitive advancement that enacting the aspect of strategic management.
The aim of this report is to promote understanding of the theoretical basis of SHRM,
about the concept of performance management and reward whilst managing the employment
relations.
Furthermore, report is based on to determine the relationship between the business
strategy and human resource management with further explanation of vertical alignment and
horizontal integration. Lastly, study will critically evaluate the nature and theoretical perspective
of employment relations.
TASK 1
Description on the relationships between business strategy and human resource strategy with
further explanation of vertical alignment and horizontal integration.
Strategic human resource management defined as connection between a firm human
resource and its strategic , objectives and goals. Human resource management deals with any
aspect of a business that affects employees such as hiring, firing and benefits, administration and
training (Amberg and McGaughey, 2019). SHRM is designed to meet out the desired to assist the
firm that helps to meet out the desired goals.
Relationship between business strategy and human resource management-
Human resource management is termed out as process of bringing people and
organisation together so that goals and objectives of the enterprise can be achieved. Human
resource strategies and business plan of action of the enterprise are interrelated with one another
as this helps to bring out the desired performance. Therefore, HR function of the enterprise is
properly aligned with business strategy of the organisation.
Integration of HR strategy with Business strategy-

Human resource departments run their functions in more precise mode, strategic role
within firm and an strategy of HR affects the bottom line of business activities. Thus, HR as a
complete business strategy.
HR Strategy as business strategy- In an ideal world, there is not a line drawn in the stand
between the business strategy and human resource strategy. In addition to this, successful
business owner realize the strong connect between both of the concepts. Developing human
capital is crucial for the longevity and also provide success to a business (Stewart and Brown,
2019). HR strategy is inclusive of executive leadership terms that is conferring with HR experts
to develop complementary goals for human resource and overall business.
HR strategy and business productivity- The process as recruitment and selection of HR
department is paramount in terms to building a productive workforce. Developing the HR plan of
action for recruiting and selecting the best employees that highly affects the enterprise bottom
line (Collings, Wood and Szamosi, 2018). Thus, their main aim is to maintain the workforce in
which employees enjoy the high level of job satisfaction and security that translates within the
workforce that assist to accomplish the business goals. As per the HR experts, human resource
and human capital is the most valuable resource.
Trends affect HR and business strategy- The executive of any enterprise put their close
attention to a trend toward blending human resource strategy and business strategy. In addition
to it, Kasemsap, (2019) stated that HR technologies has become the integrated engine for
advancing the broader need of the business and this also supports the basic transaction and also
advanced the HR and business agenda for the future. Human resource information system can be
termed out as integral in the development of performance management, selection and
recruitment.
Interaction among executive leadership- The relationship between both can be identified with
help of quality of the interaction between human resource executives and other firm executives.
Therefore, the of the effective way to improve relationship between HR and c level executives is
with help of demonstrating the return on investment. It can also be inclusive of determining the
connection between reduction in employee turnover and improvement in job satisfaction as this
assist to improves the bottom line.

Critically evaluate compare and contrast the model of SHRM.
Strategic human resource management is termed out as process using techniques of HR
like training, recruitment, compensation and employee relationship that creates the stronger
organisation. As per the view of Li, Wang and Ma, (2018) stated that SHRM is one of the crucial
components that defines the Human capital as one of major component of competitive
advancement. This attracts, develop and reward and also support to retain the employees and
bring out better improvement within the enterprise.
Models of Strategic Human Resource Management-
There are number of the model of Strategic human resource management and the aspect
of Strategic human resource models are defined in the below contexted manner as are-
 The fomburn models-
It is the fist model of the HRM and this focus over the four functions and their
interrelatedness. Therefore, the four function is inclusive of selection, appraisal, rewards and
development. As per the view of Moutinho and Vargas-Sanchez, (2018) stated that these four
functions and constituent factor of HRM are highly contribute to the organisational effectiveness.
This is the model is incomplete if its focus only on four function and avoid all other
environmental and contingency components that impact function of HR.
 The Harvard model-
As per the view of Brewster, Mayrhofer and Farndale, (2018) stated that Harvard model
put their larger focus on main six critical components such as stakeholders, HRM policy choices,
interest, situational component, outcomes of HR and long term consequences within the
organisation. These are the output that flows directly within the enterprise and the stakeholders.
In contrary to Olson, Slater and Olson, (2018) stated that HR practices need to be in tune with
the HR plan of action that are invariable aligned with strategies of organisation action.
 The Guest model-
A s per the view of Meyer and Xin, (2018) stated that guest model of HR of the
enterprise takes various plan of action and this is highly connected with the demand of certain
amount of practices to implement the strategies taken by them. This model generally belongs to
evaluate the results of the strategies. Thus, outcome of this model is mainly belongs to
components as behavioural, performance related and financial rewards.
 The Warwick model-

According to the view of this model put their major focus on the macro environmental
forces and micro environmental forces. This is model that helps to bring out the streamlined
function within business activities. It is the model that based on awareness of business plan of
action and practices of HR, external and internal factor in which the things of the organisation
takes place. In contrary to Glasgow, (2018) stated that the strength of this model is as to identity
and classify the significant environmental influences on HRM. This is defined as term that maps
out the connection between the external and environmental components that has high influence
on HRM. This is one of the effective model that bring high advancement within the enterprise.
Therefore, Others model of HRM are as-
 Hard and soft model of HRM
As per the view of Amarakoon, Weerawardena and Verreynne, (2018) stated that hard
model of HRM is put their major focus on quantitative, calculative and business strategic aspect
if managing the human resource in as significant factor is way for the any other economic factor.
In contrary to Buckley Wheeler and Halbesleben, (2019) stated that soft HRM is put their major
emphasizes on the terms as communication, motivation and leadership.
 Contextual model of HRM-
As per the view of Amarakoon, Weerawardena and Verreynne, (2018) stated that
contextual model put their major focus on significance of environmental factors that is inclusive
of various variables such as influence of social, political forces and institutional etc. This model
has approach that is broader, integrating the HRM system within the enterprise in which all
activities of firm is been developed. In contrary to Amarakoon, Weerawardena and Verreynne,
(2018) stated that contextual model is inclusive of the broader set of stakeholders in formulation
and implementation of the human resource strategies. These stakeholders may be external as well
as internal and these both influenced highly by the strategic decisions.
Critical evaluation on the specific HR practices of Performance Management and Reward.
In the present era, the high degree of commitment towards the reinforcement of practices
of reward are highly aligned with other HR practices and the goals of organisation for attracting,
motivating and retaining the employees. As per the view of Buckley Wheeler and Halbesleben,
(2019) stated that efficient reward practices assist in attracting the skilled professionals who can
thrive and promote success to entity. Thus, effective reward system of the entity is deals with the

performance development system of the enterprise. This is also term that helps to bring out the
performance management with help of creating the positive working environment.
According to the view of Glasgow, (2018) stated that effective performance management
is a term that deals with leadership, interpersonal relationship, constructive feedback and
teamwork. Rewards and performance management system are both interrelated concept as this
helps to motivates the people to perform their best. In contrary to Buckley Wheeler and
Halbesleben, (2019) stated that the good and effective HR practices is inclusive of keeping an
eye on term that how to provide training to existing employees and dedicate the substantial part
of the entity budget to research and development. As per the view of Buckley Wheeler and
Halbesleben, (2019) stated that employee rewards and recognition system is not just the positive
step towards the workers of enterprise. If the reward system within the enterprise executed
successfully than it proves to be the efficient tool that assist the employees to encourage and also
supports to create and bring business for the company. As per the view of Glasgow, (2018)
stated employee satisfaction, morale and engagement helps to undertake organisation policies.
Therefore, employee relation is one of the crucial aspect of the human resource strategy and
organisation success that is highly relay over productivity and engagement of company
workforce.
By valuing the efforts of the employees and to encourage their morale the entity can able
to enhance the productivity and bring reduction in attrition rate. In addition to this, employee
performance has a significant impact on the employer and employees relationship within the
enterprise. Employee relationship defined as an integral role that helps to develop and implement
performance management system. Therefore, employee relationship is termed out as responsible
term that supports to monitor performance issues and ensures supervise, managers and
employees that understand the purpose of performance management.
Recommendation to build effective performance management to deal with organisation
development and change.
Effective performance management needs a balanced approach to undertake performance
evaluation and assessment. By the use of proper performance evaluation, employers have the
chance to look over each team contribution to the particular goal (Meyer and Xin, 2018) .
Therefore, human resource managers are the crucial who assists to regulate performance
management. In addition to this, effective performance management is connected with the

constructive feedback, interpersonal relationship and teamwork. On the basis of above report, the
suggestive measure will be given to bring out the effective performance management system
within enterprise. Therefore, these are defined in the following manner as are-
 Human resource management should take the initiatives to guide the employees and
provide them proper training facilities so that they can become able to perform their as
per requirement of enterprise. This aids to create positive working environment and this
helps to bring out effective performance management system.
 Enterprise should use effective performance management tool as 360, is one of the
employee friendly as this allows to have quick and actionable reporting that assist to
foster employee development. This is the software that can be useful to both the
employers and employees to the enterprise as this aids to run business functions smoothly
and efficiently.
 In order to build effective performance management within the enterprise, the
organisation should have the use of peer reviews and 360 degree reviews as this helps to
shape the employee performance effectively and efficiently. Therefore, good performance
feedback system in the organisation aids to reinforce the strong skills set and positive
behaviours so that effective performance can be achieved.
 HR authority to the enterprise should implement the rewards and practice preemptive
management and this helps to bring out desired and effective performance. Therefore, it
can be stated that reward and incentive can also be defined as one of the effective ways to
show that organisation value the contribution of employees towards accomplishment in
goals.
TASK 2
Critical discussion on the nature of employee relationship within the organisation.
Employee relationship is defined as the legal link between the employers and employee
within the enterprise. Thus, organisation cannot perform their activities effectively without the
effective relationship within the employees. As per the view of Brewster, Mayrhofer and
Farndale, (2018) stated that human resource within the enterprise performs effectively in terms
to accomplish the one common goal. Thus, employees must be comfortable at the workplace
with one another for creating the healthy environment at the work. This is the prime duty of the
superiors and team leaders to discourage the conflicts in team and assist to encourages a healthy

relationship among the employees. According to the view of Moutinho and Vargas-Sanchez,
(2018) stated that healthy relationship within the enterprise can be defined as a long way that
assist to motivates the employees and enhance their confidence and morale. On the other hand,
the productive employment relationship can be termed out as the equally manage the relationship
with the workers and aids to resolve the conflicts that is impacting the growth of the enterprise.
The main role of Human resource within the enterprise is to look over the activities of the
enterprise that is impacting the activities of the enterprise and to keep monitoring on the
employment relationship that may affect the working activities of the enterprise (Olson, Slater
and Olson, 2018). In order to earn the high amount of the profitability the higher authorities of
the enterprise needs to look over the relationship of workers and take initiatives to maintain
diverse relationship that helps to bring out the productive result. Thus, it can be stated that the
one of the main aim of employee relationship within human resource management is to maintain
the solid working relationship between the employers and employees. Therefore, strengthening
the employer and employee relationship within the enterprise aids to bring out the desired work
performance.
Critically evaluate the roles of the actors within the Employment.
Human resource managers plays the crucial role in term to binding the employee together.
They are the individuals that undertake those activities that assist to strengthening the bong
among the employees and bring them closer. As per the view of Li, Wang and Ma, (2018) stated
that it is the core responsibility of human resource management team to organise the various
events like spots, green day and annual day etc. Therefore, employee must be encouraged to take
the participation in these kind of the circular activities as this bring out positive workforce
environment. In addition to this, the HR with coordination with team leader needs to display the
names of the top performers every-month on the firm's notice board. HR act as responsible
authority to undertake the operational activities of the enterprise in effective and efficient mode.
By putting eyes on the working of the employees of entity aids to build positive work force
environment. It is one of the effective that helps to bring out the positive workforce environment
within the enterprise.
Therefore, HR professional needs to handover the small trophy as token of the
appreciation and this can be one of the effective way to appreciate the employees. In contrary to
Collings, Wood and Szamosi, (2018) stated that employee relationship is defined as that

discipline with the human resource that aids to connects with each aspect of employment. To
build better employment and employment relationship the main role of Human resource
managers is to identifying and resolve workplace issues that is concern with complains of
discriminatory employment practice, sexual and unlawful harassment that bring out better
performance within the enterprise. As per the view of Kasemsap, (2019) stated that Human
resource managers of the enterprise should assume the responsibility to build better work
performance within the enterprise by maintaining cordial relationship of employers and
employees.
Suggestive measures for how employee participation and employee voice can contribute to
improve employment relations within organisation.
On the basis of report the recommendation has been given to show that how employee
participation and employment relationship helps to bring improved employment relationship
within the enterprise. Thus, its defined in following manner as are-
The working of the enterprise can be improved with effective capability of employees that can
be further enhanced by better HR and management process. This can be one of the effective to
build better practices within the enterprise.
Employee engagement and participation within the enterprise helps to bring out the positive
working environment that leads to have higher productivity, improved innovation and a raft of
the benefits. It is one of the effective things that helps to bring out better performance
management system.
CONCLUSION
From the above report it can be aforementioned that Strategic Human Resources
Management is inclusive of future oriented process of developing and implementing HR problem
that address the business problems and directly contribute to long term business objectives. The
present study has covered the significance of understanding of the theoretical basis of SHRM,
and concept of performance management and reward programmes to managing the employment
relations.

Furthermore, report has covered the strategic and human resource management with
further explanation of vertical alignment and horizontal integration. Lastly, study has also
focused on nature and theoretical perspective of employment relations.

REFERENCES
Books and Journals
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competitive advantage. New York, NY: McGraw-Hill Education.
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human resource management. The International Journal of Human Resource Management.
29(1). pp.34-67.
Amberg, J.J. and McGaughey, S.L., 2019. Strategic human resource management and inertia in
the corporate entrepreneurship of a multinational enterprise. The International Journal of
Human Resource Management. 30(5). pp.759-793.
Stewart, G.L. and Brown, K.G., 2019. Human resource management. Wiley.
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approach. In Human Resource Management (pp. 1-23). Routledge.
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and knowledge management in modern organizations. In Advanced Methodologies and
Technologies in Business Operations and Management (pp. 879-891). IGI Global.
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Glasgow, K., 2018. A strategic model of temporary staffing. Routledge.
Amarakoon, U., Weerawardena, J. and Verreynne, M.L., 2018. Learning capabilities, human
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Buckley, M.R., Wheeler, A.R. and Halbesleben, J.R. eds., 2019. Research in personnel and
human resources management. Emerald Publishing Limited.