Strategic Human Resource Management

Strategic human resource management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Evaluate relationship between business and HR strategy .....................................................3
Compare and contrast models of SHRM................................................................................4
HR practices of performance management and reward .......................................................7
TASK 2............................................................................................................................................7
Nature and perspective of employment relation ....................................................................7
Identify actors of ER and their roles in it...............................................................................9
Change in nature of ER and roles of actors in it ..................................................................10
CONCLUSION .............................................................................................................................11

INTRODUCTION
For every organisation it is necessary to maintain positive and strong relation with their
employees. this is because it enables in creating a strong culture. The HR is responsible for
undertaking various practices and implementing them. Employee relations is focusing on both
the collective relationship and individual relationship within workplace as with the enhancing
emphasis on helping line managers that can establish the relationship that are on trust. Good
employee relations has a strong impact on the satisfaction of the employee as well as
commitment levels (Chowhan, Pries. and Mann, 2017). Employers must pay the attention to the
system that contributes good employee relations. this report will describe about relationship
between business and HR strategy. Also, it will discuss about vertical alignment and horizontal
integration. Moreover, difference between models of SHRM will be explained along with some
HR practices in performance management and reward. In task 2 it will be described about
perspective of employment relations and actors of ER. Furthermore, change in nature of ER and
actors in ER will be analysed.
TASK 1
Evaluate relationship between business and HR strategy
Business strategy refers to goals and objective that are to be attained. It outlines what
future goals are to be attained and who will perform what role. there are various types of
business strategy which is developed and implemented. They are corporate, operational or
strategic. In order to implement those strategy HR is required. Thus, HR strategy is developed in
alignment to business strategy. HR strategy is overall plan of business for managing its human
resource and align with business operations. the strategy consists of many things such as hiring,
training, performance appraisal, etc. However, it is identified that there is great relationship
between business and HR strategy. this is because on basis of business strategy, it is determined
that how many HR is needed, job roles, how they will be trained, etc. However, with change in
business strategy, HR strategy is modified as well (Aisbett. and Hoye, 2015).
Moreover, it is evaluated that there are different types of strategies that are formed and
implemented. But it depends on business nature and type. Besides this, there are commonly two
types of strategies which are classified as below :
Vertical and Horizontal integration

Both of these are the strategies that can be utilised through business within same
production process and industry (Horizontal and vertical integration, 2019) Within the
horizontal integration, a firm takes over other that can operates within same level within an
industrial while vertical integration includes the various operations of businesses at the same
production (Alusa. and Kariuki, A., 2015).
Horizontal
Here the firm wishes to undergoes this integration in order to enhance their
diversity ,size ,its products as well as services. It also accomplishes the economies of scale as
well as decreases the competition. Also, growing horizontally means to generate more revenue
and compete in market with rivals. this allows firm to merge with any other business. through
this, competition is reduced within industry. For instance- a retail organisation may want to
merge with other on to generate more revenue (Hassan. and Mahmood, 2016).
Vertical integration
It is a type of strategy in which organisation acquires a company which operate in same
industry. the main goal is to expand supply chain, reduce production cost, widen distribution
channels, etc. This enables in selling products directly to customers and generating profits. in this
as well there are two types that is backward and forward integration. backward is strategy where
company buys another one for acquiring input product of that company. whereas forward
integration occurs when company take control of post production process (Aisbett. and Hoye,
2015)
.
Compare and contrast models of SHRM
SHRM refers different practices and methods to attracting, developing and retaining
employees for long term. It is beneficial for both employees and employers in attaining goals and
objectives. Furthermore, nature of SHRM is related to long term focus and goal setting. Also, it
includes integration of business strategies and fostering employee skills for future. besides this,
there are several models of SHRM which is applied (Yong, and Mohd-Yusoff, 2016). Each one
differs on certain criteria. they are defined as below :
Competency model
This model identify that what is needed to become a successful HR. It defines three
things that is competency and knowledge and necessary in effective practices of HR, support HR