Relationship between Business Strategy and Human Resource Strategy

This report explores the relationship between business strategy and human resource strategy and their impact on organisational performance. It compares and contrasts different SHRM models, including the contingency, universalist, and resource-based view approaches. It also discusses the critiques of these approaches.

Strategic Management
Human Resources

EXECUTIVE SUMMARY
Strategic human resource management is the important term for organisation in which
management and leader are playing important role and perform their functions effectively. In
current period, it is important to have human resource and strategies which can help to formulate
strategies and recruit right person who is able to accept challenges and ready to work. This report
is based on strategies to human resource which can help to attain the competitive sustainable
advantages by following different approaches. This also helps to maintain the good employee
relation by focusing on participation and employee voice. By using all best practices and talent
management organisation become successful to attain the business goals. equested to provide us
additional word count of 2000 words as the guidelines that are mentioned in the recently
provided feedback document were

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................1
Task 1 ..............................................................................................................................................1
Relationship between business strategy and human resource strategy .......................................1
1.1 Link between business strategy and human resource strategy ..............................................2
1.2 Compare and contrast, the theoretical basis and models of SHRM.......................................3
1.3 Critiques of the contingency approach..................................................................................4
1.4 Critiques of the universalist approach....................................................................................4
1.5 Critiques of Resource Based View........................................................................................5
1.6 Comparison between different SHRM Models: ...................................................................5
1.7 Evaluation of HR practices of performance management and reward .................................6
Task 2 ..............................................................................................................................................6
2.1 Actors within employment relation.......................................................................................6
2.2 Roles of actors within employment relations.........................................................................7
2.3 Changing nature of employees relations ...............................................................................8
Recommendation ........................................................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCE ................................................................................................................................10

INTRODUCTION
This work should not be based on the Marks & Spencer as a company that has to be analysed,
because you are operating in the HR department to give advice to companies from public or
private sector. Please read carefully the assignment brief:
The aim of this work is to provide business leaders with the knowledge and understanding of
SHRM to shape and structure debate, and facilitate their decision making, when developing an
effective HRM strategy.
It is important, that you share your knowledge and application of the approaches, companies can
use to strategically manage their Human Resources. The specific aim of this work is to promote
understanding of the theoretical basis of SHRM, Performance Management and Reward whilst
managing the Employment Relations
Please rethink all the tasks
Strategic human resource management is defining term that shows the relationship
between human resources and employees in organisations that can help to complete the task and
attain the business goals. The aim of SHRM is to understand the needs of people and provide the
kind of services to employees so they can work reach nearby organisational goals. This can help
to manage and improve the organisational performance by integrating with strategies and
planning which are important and manage the all activities (Armstrong, 2019). This report is
based on Marks & Spencer that is an organisation operating in the domain of crisis management
and disaster risk reduction. This supporting their capability development and innovation
management with the help of strategies and human resources that helps to complete the goals.
This report covers models of human resource management, relationship between business
strategy and core human resource competencies, range of SHRM policies and understanding of
HRM variables that support organisational development and change.
Task 1
Relationship between business strategy and human resource strategy
In the field of management business strategy is considered as rules and regulations in
relation to a business that uses to bring something new and different for the beneficial of
employees and organisation. In changing environment, it can be understood the strategies are the
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planning and regulation which needed to be formulate and helps to operate the business
successfully. The aim of organisation is to understand the needs of people, value and culture of
employees as they belong to other areas and increases the working capacities. This also bring
changes in existing strategies and introduces new one which can help Marks & Spencer to
improve the business performance (Gattiker and Larwood, eds., 2019).
Human resources strategy is considered as planning process that uses to identify current
and future human resource needs for enterprises in achieving goals. The human resources are the
important in organisation as it identify the required of people in organisation and give them
opportunities to manage and operate the business successfully. In other words, it is the
designation for long term plans created to attain the business goals and objectives by formulating
plans and strategies. In Marks & Spencer of Human Resource, strategies are formulated to fill
the employee's demand and completing task in certain period of time which bring improvements
and deliver the high performance. It formulates plans and strategies for the beneficial of
employees and organisation that can help to control all activities and functions by running
planning and maintain the good performance (Marks & Spencer , 2020).
1.1 Link between business strategy and human resource strategy
Business and HR strategy are those strategy which formulated by management by
analysing the business situation and make efforts to improve the performance. It is important to
have good relation between employer and employees so they can accept the challenges and
complete the decided goals. In context to Marks & Spencer , management are defining the
relationship between business strategy and human resource strategy that are as explained:
Improving complementary goals – The business and HR strategy are using by
organisation for analysing their requirements and attain the business goals. In context to Marks
& Spencer , Business strategy is uses to attain the decided goals and HR strategy is uses to
satisfy employees who are working so they feel good and give efforts to manage all activities
(Relationship between business strategy and HR strategy, 2020).
This improves organisational productivity – HR strategy is related to identifying,
hiring, organising, directing and controlling the organisational performance in challenging
environment and maintain the all actions. In human resources department recruitment and
selection process is done by HR manager who have knowledge and skills to analysis people and
their skills that can help to complete the work and improve organisational productivity. In Marks
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& Spencer , maintaining a workforce where staff enjoy their high level of job satisfaction and job
security converted into workforce that helps to attain the business goals.
Interaction between executive leadership – The relationship between human resource
and business strategy is considered as quality of interaction among human resource executive
and other company executives. Some time, the human resource leader denied accessing to the
boardroom complain that company does not appreciate value of human capital. Therefore, by
maintaining the proper communication between other executives and Marks & Spencer
executives helps to reduce the employee turnover by improving employees job satisfaction. This
also helps to provide right answers and managing the all activities (Yong and et. al., 2019).
Bringing changes – In organisation it is important to bring changes according to new
trend and lifestyle of people that can help to manage the all activities and functions accurately.
Changes are the need of organisation which can help to satisfy the customers and improve
lifestyle. In context to Marks & Spencer , HR management bringing changes in business strategy
and human resource strategy which can help to develop the right functions and activities by
managing all performance and delivering better quality of services.
Business strategies and human resource strategy is developed to make better understanding about
the working prospect so that working efficiency and its effectiveness is developed with sustained
basis. In this different model has been used by Marks & Spencer that is as explained below as:
Separation model: It is a model that is based on traditional input and dynamics as by
following CSAR model. In this different layer is developed under which long term sustainability
is maintain with better suitability.
Fit model: This model is used by the business in order to manage and develop better
understanding about certain design and its development. It is used to enhance market appearance
in which effective changes is addressed with timely basis or as per the requirement of business.
Dialogue model: In this certain right is formulated that is division in between different
branches of business so that safe and secure space is develop by which long term benefits is
attained effectively.
Holistic model: It is a modern system that is used to make effective evaluation that is
used while making balanced principles which is followed by business in future period of time.
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HR driven model: It is a framework that is used by Marks & Spencer to
develop strategic design to ensure administer and coordinate business operation
and functions.
Explanation of vertical alignment and horizontal integration across the organization
Vertical integration is used to align vertical position that is used to make inline different
components as in systematic mode. It is used to develop and select different measure through
which drop-down arrow is developed and apply in ordinate manner. It is used by Marks &
Spencer to configure various strategies, objectives, action plan, decision-making from several
levels. On the other hand horizontal integration is a process that used to enhance production of
goods and services by managing supply chain and its effectiveness. It is used by Marks &
Spencer while making internal expansion, merger and acquisition so that market lead is
developed with suitability. In this Tesco has uses vertical integration and with this balanced
information is circulated from different departments.
Horizontal and vertical integration are form and strategies that uses by organisation in
same industry and process to production. In Horizontal, a company takeover another that operate
business at same level of value chain industry. On the other hand, vertical integration is
considered as business operations within same production level. The Marks & Spencer is
following the vertical integration where employees and HRM communicate in vertical form and
boost the profits by allowing companies to immediate access to consumers. This can help to
complete the goals and attain the business productivity by managing all activities. In Vertical
integration, management of Marks & Spencer managing all functions and activities by
formulating strategies and delivering best services (Antunes and Pinheiro, 2020).
1.2 Compare and contrast, the theoretical basis and models of SHRM
Comparison among distinct SHRM models
Basis of comparison Contingency model Universalist model Resource based view
model
Definition The model says that to
become effective,
HRM is required to be
Universalist model is a
perspective that posits
best HR practices and
It is a forward
integrated concept that
emphasis towards
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consistent with another
aspects of business or
external environment.
implies policies as
well as strategies that
are independent for
determining
performance of
organisation.
input resources for
attaining identified or
desired objectives,
Benefits In Marks and Spencer,
application of
contingency approach
allows managers to
make changes in
policies as per
pertaining situation.
Universalist model
helps managers of
Marks and Spencer to
apply best practices of
selection, training and
others so that
employees improve
their skills and
continuously perform
best for showing
effective contributions.
The model sees all the
organisational
resources as assets that
motivates resources to
contribute in superior
performances of
entity.
Drawbacks The limitation of
contingency approach
is that it is a complex
approach that is
critical to apply.
Furthermore, the
approach makes
circumstances
complex for managers
of Marks and Spencer.
It is evaluated that the
best practice approach
limits learning which
derail organisation and
leads to negative
impacts towards
success, specially
when the employees
who are responsible
lacks attention towards
associated dynamics.
The criticism of the
model is that it is
complex to determine
suitable analysis level
because of broad
number of resources.
The theory creates
inabilities to compile
study for measuring
performances.
Contrast
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 All three approaches are uses to manage the organisation and control each activity
that can help to increase the workings.
 The Marks & Spencer uses Contingency, Universalist, and Resource Based View
approach to solve situation, solving HR issues and managing the task that
provides competitive benefits.
 To increase the productivity and profitability of workplace.
1.3 Critiques of the contingency approach
Best Fit/ Contingency approach: This is also known as situational approach that is uses
by organisation to solve the critical situation which arises in workings and needed to improve the
business performance. This theory suggest that management should use appropriate style of
management by matching with situation and helps to solve the problems. In Marks & Spencer ,
management uses contingency approach by selecting an appropriate management style for
solving the low productivity problem which can help to formulate strategies and make right
decisions (Pröllochs and Feuerriegel, 2020).
Critiques
 This approach suffers from inadequately of literature which are not spelled out
various types of actions and create different situations.
 It is difficult to empirical testing that does not provide right solution.
 This create complexities in knowing the situation and select a best management
approach that affected productivity.
1.4 Critiques of the universalist approach
Best Practices /Universalist approach – This approach is based on two fits external and
internal which is known as best practices. In external fit management of Centre of Exercise has
to do with HR strategy that fits with requirement of business strategy which is related to vertical
integration. On the other side, internal fits stating the horizontal integration that suggests HR
policies and activities fits together so that they can make mutually reinforcing and helps to take
the competitive advantages effectively.
Critiques
 This is time taken approach that consume much time to recruitment and selecting
the right people in organisation (Boon, Den Hartog and Lepak, 2019).
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 This can increase the dissatisfaction and demotivation between employees which
can affected the business productivity.
1.5 Critiques of Resource Based View
Resource Based View: This defined as managerial approach which is uses to determine
the resources which can be exploit by a firm in order to achieve sustainable competitive
advantages. This model states what resources are available in organisation and how they can be
organised that can help to improve the business profitability (Pius, Alharahsheh and Sanyang,
2020).
Critiques
 Imitability of resources where Marks & Spencer can face the losses the
opportunity of gaining sustained competitive advantages.
 Resources can be complex for social where organisation is not able to manage and
influence resources and culture.
1.6 Comparison between different SHRM Models:
Contingency Universalist Resource Based View
It is an approach that is used
by business and its
management while developing
and implementing various
ideas in formalised manner.
In support of this approach
“best practices” is processed
under which wider range of
challenges and issues are
resolved on timely basis.
It is an approach that is used to
measure various resources so
that valuable, rare, imitate and
difficult position is attained by
making long term success.
It is usually refer to sustained
amount of idea that is
developed as with the
immediate changes so that
various circumstance has been
changes as per suitability.
It is used to induce recruitment
and selection, training and
development, motivation of
employee's and many other
aspect as well through which
applicable changes is
implemented in timely basis.
It is an strategic approach
under which long term
sustainability is achieved by
which capabilities of business
is increases in constraint mode.
As shown above all three approaches such as Best Fit/ Contingency approach, Best
Practices /Universalist approach, and Resource Based View approaches are different that can
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help to run the business or a workplace. All three approaches are using for different purpose such
as Contingency uses to solve the situation and working accordingly. The best practices is uses to
solve all problems which are facing by employees and needed to solve by Human resources
management. And last resources-based approach is uses to analyse resources and utilise them
properly which can help to operate and continue the business activities.
1.7 Evaluation of HR practices of performance management and reward
` According to Darling and et. al. (2019), it is evaluated that bets practice of performance
management and rewarding is using peer review as it fosters management of performance ion
effective manner. Along with this, there are other practices such as pre-emptive management and
recognition, offering frequent performance feedback, communication details of working and so
on. As per Armstrong (2019), it have been evaluated that performance management boost
productivity and engagement of employees with the company.
In contrary, Pröllochs and Feuerriegel (2020) says that rewarding generates confidence
and morale of employees that encourages them to retain in the company and keeps them happy
and loyal.
It is recommended to Marks and Spencer that it should apply objective setting, 360
degree and self appraisal methods for managing performance and rewarding its people. However,
managers of Asda are suggested to use competency based assessment, rating scale and self
appraisal methods.
Recommendation
Therefore, from the above it has been recommended that to clients of Marks & Spencer
to make the uses of performance and reward management system that can help to evaluate
employees performance and give them rewards on the basis of their performance which
motivates them and increases the workings. By using performance management system
management can deliver the quality of products and services that increases number of clients and
increases business activities. There are different ways of designing performance management
that should be uses by Centre of Exercise to increase the performance and complete the task. In
this, management are responsible to evaluate the situation that arises while working and make
the uses to Best Fit approach solving them. Moreover, employee relation is highly needed to
maintain good performance and increase the profitability as it helps to analyse the situation and
provide suggestion what needs to do and how. If there are good relation between employer and
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employees, then all activities as well as task can be performed effectively and increase the
profitability.
Task 2
Nature and theoretical peerspectives of Employment Relations
2.1 Actors within employment relation
In business organisation it is important to have an human resource, who can build the
good relations with employer and employees. This is link between employer and employees that
ca help to getting the work done and maintain good performance in challenging environment.
For completing task and attaining the business goals HRM is playing important role as it analysis
the needs of employees, reason of dissatisfaction and formulate strategies which can help to
develop the right services and manage all activities. This person is having power and ability to
accept the challenges and maintain higher performance in challenging business environment. In
Marks & Spencer , human resource management is a person who conduct the analysis and get
employees needs which can help to develop the right products and services that increases
business performance and productivity.
Employee relations means having good connection with employer and employees that
make feel important part of organisation and give contribution in organisational activities. It is
true that employees are assets of company who are playing important role by using their skills
and capabilities to perform well. In Marks & Spencer , employee’s relation is helpful that can
help to contribute in organisational activities and improve the business profitability. The nature
and theoretical perspectives of employee relations are as defined:
Unitarist Perspectives – The employees’ relation is considered as one of cooperation in
which employer and workers are seen as same team and same family. In this, company attaches
much importance to mutual cooperation and share the information as mutual purpose. In Marks
& Spencer , employees and employers are working on common purpose and complete the
workings by managing and working individually (Meijerink and Keegan, 2019).
Pluralist Perspectives – This means organisation is made up of different various
sectional groups. Each group is having legal loyalties, goals and leader who guides employees to
bring changes and deliver the best quality of products and services. In Marks & Spencer , trade
unions are acting as lawful delegation of employees according to their skills and abilities that can
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help to complete work. In this, conflicts are solving by collective bargaining, sharing information
and positive feedback which can help to increases the working.
Marxist Perspectives – This is also called as radical perspectives that states the nature of
capitalist society. This thinks that relations of organisation are against the history and managing
the all activities effectively. This can help to improve the business performance by accepting
challenges and delivering best quality of services to all employees. By applying this perspectives
employer of Marks & Spencer tries to maximise the profits by paying workers as little as they
can strive for monopoly for controlling the prices. In this, employees believe that they are most
important part of production and seek to get fair share of profits.
Therefore, different perspectives in relation to employees’ relations are uses to maintain
the good performance by working collectively. This can help to improve the productivity and
profitability by sharing information and delivering best quality of services.
2.2 Roles of actors within employment relations
Employment relationship is the activity in which employer and employee are working
collectively for attaining the common goals and objectives. If there is good relation between
employer and employee, then they can manage the workings and improve the performance. In
Marks & Spencer , HR manager and leader are considered as main actor in the employment
relationship as they analysis the needs of employees who are working in enterprises and provide
the kind of products and services. Whenever new technology and innovation is introduced by
management then leader is playing important role by providing them training and development
programme that make them confident to accept the challenges and complete the workings.
Leader is the person who understand problems of employees and provide them best solution
which can help to make feel good and increases morale to work more (Abubakar and et.
al.,2019). Employee: For effectively developing the employment relations it is effectively it
becomes the responsibility of employees to develop healthy relations which is useful in
smooth running and functioning of company. It is also helpful in accomplishing
prominent functioning and potential performing to accomplish the significant goals and
objectives. Its purpose is to develop and maintain the strength of employers and
employees by resolving and identifying the workplace issues which is useful in
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identifying the morales and employee satisfaction in terms of supporting others to
perform with full potential. Employers: In terms of developing effective employee relations, it is important to have
proper support of employers and supervisors which is useful in improving the overall
performance and helps in developing personality and career of their fellow ones. Along
with this, employers are also important in terms of supporting their overall targets and
objectives which is useful in achieving and getting their desired outcome. In terms of this,
Marks & Spencer has potential and efficient employers who take care of their employees
and fellow ones which is useful for company itself to retain them for longer period of
time and making them more efficient to perform with full potential. Government: For prominently developing employee relations, government plays an
important role which is useful in supporting and taking care of prominent individuals
who effectively perform in company in terms of making them feel secure and safe within
an organisation. For this, it is also essential for the government bodies to offer them
effective and beneficial services which is helpful in terms of developing effective
services. In terms of respective company, government plays an important role which is
useful in making employees feel safe and secure and it is also useful in developing
effective relations to retaining them for long period of time.
 Trade Union: This unit plays an important role in terms of sustaining and enhancing the
conditions and structure of company by undertaking the terms and conditions to work in
collective manner considering their members to bargain in collective way. For this, trade
unions also tends to offer prominent reward and recognition which is essential for the
collective bargaining and also helps in protecting the rights, interest and authorities of
employees. In terms of Marks & Spencer , the prominent objective of trade union is to
regulate the employee relations in terms of bargaining regarding the negotiation and pay
and other beneficial conditions of employment which is effective in developing healthy
and effective employee relations.
2.3 Changing nature of employees relations
Identifying and resolving workplaces issues – In organisation, employment relation is
important as it uses to identify issues and resolve the workplaces issues which can help to
develop the right products and services. In Marks & Spencer , HR manager identify the issues
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ewhich arises while working and formulates strategies for solving the issues and improving
business performance.
Measuring employee satisfaction and morale – For organisation it is important to
understand what employees wants and how they can be satisfied which can help to provide the
kind of motivation in order to improve the business performance. In Marks & Spencer , leader is
playing vital role as they measure the employee's satisfaction and morale that can help to manage
the good performance and providing support to attain the business goals.
Providing support and managing performance as well as system – In organisation,
managers are arranging training and development programme which can help to complete the
work on time and manage the performance along with systems. In Marks & Spencer , manager
analysis performance and provide support so all working can be done and maintain the
performance efficiently in changing environment (Kim and et. al., 2019).
In terms of Marks & Spencer , the effective nature for the employment and work is
effective in terms of developing healthy relations in rapid manner. For this, the effective impact
on the labour, market and standards of economy is effective in terms of assessing the prominent
rights and protection. For this, the challenge which is faced by respective company is to
encourage the uniqueness and creativity in terms of delivering the positive result for the
competitive and sustainable social market economy. Along with this, the changing nature of the
employment and work is prominent in terms of informing the European Union employment
policy.
Recommendation
From the above mentioned data, it has been concluded that strategic human resource
management is the direct connection between an organisation's human resource and its goals,
objectives and strategies. There are some recommendations to the companies regarding the
strategic human resource management. These are:
Marks & Spencer must recruit experienced and talented employees because it support
them in completing of all tasks and activities within limited time period. This will also support
company in accomplishment of competitive advantages successfully. Therefore, it is the role of
human resource manager to hire talented candidates for the specific job. There are different
advantages of hiring talented workforce retaining the top talent, better hiring, understanding
employees better, better professional development decision, right person in the right job,
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improved productivity, increased performance etc. These are major benefits of talented
employees that turn to help Marks & Spencer in attainment of strategic goals in successful
manner.
Unilever is another organisation for example. They must provide training to employees
according to their wants. This support in increment of knowledge or understanding among
employees that turn to assist company in its growth and success. There are different advantages
will be gain by company if they provide necessary training to their employees. These benefits are
higher capacity for the adoption of new methods and technologies, assist companies keep pace
with changes in the industry, increase job satisfaction and morale, lower employee turnover etc.
These are major advantages that will helps Unilever plc in accomplishment of competitive
benefits successfully and in less time. For example: Unilever must provide 360 degree appraisal
to the employees that will be essential in increment of employees performance. This will also
assist company in maintaining of strong relation with employees and also reducing the
employees turnover.
ASDA is another example for recommendation. It s retailer and require for retaining
employee in the workplace. Company face high employee turnover because of gender
discrimination. In order to overcome this issue, human resource manager must develop an
effective strategy such as equal pay, Equality, act 2010, proper training etc. These are effective
strategies that must be use by ASDA for retaining talented employees in the workplace. This will
helps company in its growth and development and also support them in achievement of better
advantages. Retaining worm employees in the workplace. HR must provide equal pay, provide
training and provide benefits. This turn to assist company by improving performance and also
improving brand image in the market. Therefore, retention of women employees is more
beneficial and essential for the growth and development of company in the national as well as
international market.
From the above discussion it can be recommended that management should mainly focus
on changing nature of employee relation which can create the conflicts between employer and
employees. The result of changing nature of employee relation is increases cost and less
production, which affected the profitability negatively. Marks & Spencer is using different
mechanism of employee participants and employee voice that can help to contribute to improve
the employee’s relations. For example, getting feedback from employees is a good mechanism
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that can be uses by HR manager to maintain the good employees’ relations in changing
environment and complete the works. Training and development programme are another
mechanism that can be uses to satisfy the employees and increases their confidence level to work
more. Whenever organisation bring changes and new process then it creates a difficulty for
employees to work with new methods that creates conflicts and misunderstanding between
employees due to voice and language issue. This problem is also solved by management by
communicating properly and providing a course of language that can help to deal with issues and
increases the motivation level by solving the issues (Shao, 2019).
Trade union is another actor which is playing important role that give rights to employees
for participating in organisational activities and employees’ voices which can help to get new
ideas and views to bring improvements in existing performance. As employees are giving their
views and participants, they feel good resulting contribution in employment relations. In other
words, employee voice and participation are an opportunity for workers who are working in
organisation and bring the improvements in their working by accepting changes and managing
all activities effectively.
CONCLUSION
From the above report it can be concluded that human resource management is the
activity and process which is uses to recruit, organise, directing and controlling the
organisational activities. This is important for management to analysis the business strategies and
HR strategies which can help to get the higher outcomes and maintaining good relationships.
Different models and theories are uses by management for analysing performance and running
the functions appropriately. Different theoretical perspectives are uses to maintain the good
employee relations.
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