Strategic Human Resource Management: Relationship and Linkage with Business Strategy

This report discusses the relationship between business strategy and human resource strategy in strategic human resource management. It explores the theoretical basis and models of SHRM, including the best practices/universalist approach, best fit approach, and resource-based view. The report also critiques the contingency approach, universalist approach, and resource-based view. The case study of Centre of Expertise is used to illustrate the implementation of these strategies.

Strategic Management
Human Resources

EXECUTIVE SUMMARY
Strategic human resource management is known as an essential term in which proper
management over the organisation is enumerated in order to attain high efficacy over
organisational functions. In the current time, this is imperative that a business is adequately
handling their human resources and other strategies so that to implement varied strategies which
are related with recruitment and accepting challenges related to business functions. This report
includes various strategies of human resource which are helpful in attainment of competitive
edge. These strategies are helpful in maintaining prominent relationship with employees by
valuing their opinions. By utilising effective practices talent can be inhaled in the business and
goals can easily be attained.

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION ..........................................................................................................................4
Main Body ......................................................................................................................................4
Task 1 ..............................................................................................................................................4
Relationship between business strategy and human resource strategy ......................................4
Link between business strategy and human resource strategy....................................................5
Compare and contrast, the theoretical basis and models of SHRM............................................7
Critiques of the contingency approach........................................................................................8
Critiques of the universalist approach.........................................................................................8
Critiques of Resource Based View.............................................................................................8
Comparison between different SHRM Models: .........................................................................9
Evaluation of HR practices of performance management and reward .......................................9
TASK 2..........................................................................................................................................10
Actor with employment relation...............................................................................................10
Role of actors with employment relations................................................................................11
Changing nature of employee relations.....................................................................................11
Recommendation ......................................................................................................................11
CONCLUSION .............................................................................................................................12
REFERENCE ................................................................................................................................13

INTRODUCTION
Strategic human resource management is defined as adoption of those strategies in
managing human resource by which goals of the company may get promoted. On the other hand
human resource management is associated with managing personnel within organisation in
which there are some functions such as hiring, recruitment, training, administration and many
more (Abubakar, A. M., and et. al.,2019). Strategic human resource management is categorised
as establishing linkage between individual performance and organisational culture in order to
foster innovation and market competitive advantage as well. HRM is included with numerous
function as HRM is emphasised on providing such facilities to employees by those high
employee satisfaction can be enumerated on the other hand strategic human resource
management is associated with long term objectives of the business and adoption of those
strategies by which the same can be achieved. This report is based on centre of expertise which
is an organisation and operating their functions at crisis management and risk reduction within
disaster. This report is covering models of human resource management in which understanding
is enumerated for HRM practices in order to support organisational development and change.
Main Body
Task 1
Relationship between business strategy and human resource strategy
Business strategy is one of the prominent aspect which is related with management and
this dimension is known as accumulation of rules and regulations for the business in order to
provide high advantages for the employees. Within dynamic environment this can be said that in
order to understand various strategies so that planning and regularising business in optimal
manner. The major aim of the organisation is to recognise needs and demands of people, values
and capacities of employees and apply the same in achieving organisational success. With the
help of these strategies Centre of Expertise may acknowledge improvisation of business
performance.
Human resources strategy: This is considered as the process of planning in which
current and future needs of human resource can be recognised in order to make path of goal
attainment (Gattiker and Larwood, 2019). The human resource are highly essential for the
business in which people are provided with opportunities to use their skills for managing and

operating business in successful manner. In other words in order to attain business goals long
term plans are created by manager plans and strategies are implemented by them. In the context
of Centre of Expertise they are formulating human resource manage' strategies in order to finish
their tasks on time and meeting their demands in appropriate manner. With the help of
formulation of plans and strategies employees are benefited by maintaining all the activities and
leading path of high end performance.
Business and Human resource strategy have direct relationship as strategies concerned
with human resource are important part of successful business strategy. Developing human
capital is significant for business longevity. As per experts, developing human resource strategy
to recruit and hire nest employees impacts on strategy of business to improve productivity. The 5
model includes separation, Fit, Dialogue, Holistic and HR Driven. These are the diverse options
available to manpower. In context to separation, role played by employees is significantly
different. It is seen that human resources are not separate from business as they contributes
widely on achieving objectives. In fit element, managers makes efforts to fit HR strategies with
strategies of business to perform actions. Further, in aspect of dialogue, managers have dialogues
with employees so to analyse their ideas to meet business strategies. The next is HR Driven that
contains predominance of business strategy. The last is holistic approach that implies close
relations among HR and employers wherein HR contributes to determine business directions that
are main in business strategy.
Link between business strategy and human resource strategy
Business and HR strategy: These are the strategies which are executed by management
in order to analyse business situation and to adopt several efforts so that to improvise overall
performance (Pius, Alharahsheh and Sanyang, 2020). This is essential that prominent
relationship are held between employees and employer so that in the situation of complexities
predefined goals can be achieved. In the background of Centre of Expertise their management
team is making effective relationship between strategies and human resource which are
elaborated as under:
Improving complementary goals: The organisation and strategies of HR are used by the
business in order to analyse overall requirements and accomplishing business goals. In the
concern of Centre of Expertise business and HR strategies are used by them for to attain goals

along with satisfying their employees. By these efforts value can be received from employees
and all the business activities can be managed in sufficient manner.
Improves organisational productivity: HR strategy is associated with identification of
organisational performance, hiring of employees, directing and controlling them for making
them sufficient for dealing with challenging environment. Within the department of Human
resources, recruitment and selection processes are performed in order to finish given task and
improvise productivity. In the context of Centre of Expertise their workforce is being managed
so that to make them capable of achieving overall objective of business.
Interaction between executive leadership: The relationship between human resource
and business strategy is considered as one of the prominent interaction which is associated with
quality. At some point of time human resource manager is denying access to the boardroom of
the business in which human capital is not appreciated. By having appropriate communication
with various executives of Centre of Expertise employee turnover can be reduced and at the
same time high job satisfaction can be enumerated. This is helpful in providing correct answer so
as to manage the whole activities and creating a linkage between business and human strategy.
Business and HR strategy: These are defined as the strategies which are implemented
by management in order to analyse business situation and to put varied efforts so that to enhance
overall performance (Shao, 2019). This is highly important that relation between employer and
employees are held to be good so that goals and objectives can be achieved in proper manner. In
the context of Centre of Expertise their management is making high efforts for maintaining
impactful relationship with their employees. Some of the approaches which are used by them are
enumerated as under:
Improving complementary goals: The business and HR strategy are used by businesses
for the major purpose of recognising requirements of individuals and to make path of goal
achievement. In the context of Centre of Expertise they are using business strategies in order to
achieve business goals and similarly HR strategies are used by them to obtain high job
satisfaction as well. These efforts are helpful in managing each activities of the business in
appropriate manner along with attaining high sufficiency.
Improves organisational productivity: HR strategy are useful in recognising
opportunities for enhancing organisational performance. In the current scenario market is highly
dynamic so due to this business actions are required to be maintained and the same are required

to be controlled. In the department of human resource process of recruitment and selection is
taking place by HR manager who are having adequate knowledge and skills by which overall
organisational productivity is received. In the context of Centre of Expertise in order to attain
high job satisfaction the management is associated in managing people in appropriate manner.
Interaction between executive leadership: The human resource strategy and business
strategy is linked in such a way that interaction between HR manager and other employees in
qualitative manner. On the other hand in order to maintain healthy relationship with major
executives this is certain that their feedbacks are taken on time. This is helpful for Centre of
Expertise to render high job satisfaction to their employees and minimise employee turnover as
well. This is essential within organisation that proper communication can be established so that
any grievance can easily be heard and solved as well (Brewster, Gooderham and Mayrhofer,
2016).
Introduce changes: In a business organisation changes are the aspect which are related
with market trend and these are required to be included n business activities so that to manage
those activities in equitable manner. For any business change are treated as need of the
organisation and these aspects are helpful in providing high satisfaction to customer. In the
background of Centre of Expertise HR management of the organisation is proactive regarding
change and by implementing robust HR strategy better quality services can be rendered and
overall performance.
Explanation of vertical alignment and horizontal integration across the organization
Horizontal and vertical integration are known as the strategies in which production
process can be improvised and within industry these strategies are used. Vertical integration is
linkage among business and human resource related strategy. Where as horizontal integration is
all about linkage of all policies as well as practices of human resources together. In Centre of
Expertise, vertical integration is related to effectiveness of human resource and it is the degree
wherein HRM practices, contributions and so on are aligned with strategic management
processes and strategic objectives. Within horizontal a company is taking over another business
of the same level. Similarly vertical integration is considered as association of varied type of
business organisation in which communication can be established within same level. Centre of
Expertise is using vertical integration in which vertical communication is settled within

employees in order to boost overall profit of the business and meet demands of their ultimate
customers as well (Chatterjee, 2016).
Compare and contrast, the theoretical basis and models of SHRM
Best practices/ Universalist: It is one of perspective of Strategic human resource
management which is supported by evidences of its impacts as well as effectiveness. In Centre
of Expertise, managers follows practices given by Pferrer for making the company a successful
organisation. Specifically, these practices are selective hiring, reduction of status differences,
sharing information, employment security, extensive training,contingent compensation, self
managed teams and decentralisation. These practices helps managers to continuously perform
best and show profits year on year.
Best fit approach: In general level, best fit is also termed as contingency approach which
is based on the company that picks effective HR policies addition to practices which depends on
matching them to environment of company. In Centre of Expertise, best fit approach provided by
Schuler and Jackson for devising and executing HR strategies that are built on competitive
advantage are followed. This helps in identifying relations among behaviour of employee and
three dominant strategies that are cost reduction, quality improvements and innovation.
Resource based View: It is said to a managerial framework that determines strategic
resources which an organisation exploit for achieving sustainable competitive advantage. In
Centre of Expertise, managers follows Berney's “Firm Resources as well as sustained
competitive advantage as pivotal task in emergence of resource based view. As per VRIO
framework, the key resources of the company are human resources, technological capabilities,
intellectual potentials and supply chain.
Critiques of the contingency approach
Contingency approach: This is known as situational approach which is helpful in
solving complex situation and to improvise business performance as well. This theory is
suggesting appropriate style of leadership in which major problems are solved in effective
manner. In the context of Centre of Expertise is using this style in order to attain high
productivity and execute strategies in appropriate manner.
Critiques
 This approach is dealing with inadequate literature in which business operations
are facing various difficulties.

 It is complex to test right solution for the business.
 This is creating high complexities in recognising situation in order to select
prominent approach which is affecting productivity.
Critiques of the universalist approach
Universalist approach: This approach is having two dimensions in which internal and
external practices are used. In external approach Centre of Exercise is making high end business
strategies in which vertical integration is properly executed. Similarly internal approach is
associated with horizontal integration in which HR policies are suggested in order to take
advantages over competitive edge (Järlström, Saru and Vanhala, 2018).
Critiques
 This is a time taken approach in which right people are recruited at proper place.
 This may enhance dissatisfaction and demoralisation within employees.
Critiques of Resource Based View
Resource Based View: This is defined as the approach which is determined within
resources which is exploited by Centre of Exercise in order to attain competitive advantages.
This model states controlled by the organisation so that to enhance profitability and productivity.
Critiques
 imitation of resources within Centre of Exercise is facing high losses of
opportunities in which competitive advantages can be attained.
 Resources are complex for society ad these are influencing culture in prominent
manner.
Comparison between different SHRM Models:
Functional SHRM content
model
Organisational SHRM
Process model
The HR value chain model
This is associated with HRM
practices which is related to
development stage.
This is known as the process in
which planning for goal
achievement and to run
business in effective manner.
This is used for operating
business by delegating
activities in various categories
like HRM activities and HRM
outcomes.
This is linked with This model is uses to enhance This is helpful in measuring

accumulation of information
which is helpful in performing
all the activities in prominent
manner.
organisational effectiveness by
integrating the strategic
planning and management
functions.
business performance which is
focused on activities in order
to perform functions in
effective manner.
Evaluation of HR practices of performance management and reward
This is being analysed critically that HRM practices are adopted in order to manage
performance and attaining high rewards. These activities are essentially used by the management
and HR manager so as to enhance overall performance. For Centre of Exercise in order to
analyse employee performance they are using both managerial approaches. On the other side
reward management practices are used so as to boost employee performance and job satisfaction
to their staff (Ayaz and Kulualp, 2019).
Recommendation
From the above scenario this can be recommended that to customer of Centre of Exercise
performance management and reward management systems are required to be used so that
employee performance can be boosted which is actin as most motivational force. By using
performance management approaches quality products can be delivered by which business
activities can be boosted so as to attain high ratio success.
TASK 2
Nature and theory perspective of employment relations
Actor with employment relation
In the business or organisation this is important to engage human resource within
operations and functions of company. It also generate better relations between employer and
employee's. With generating the link between all engaged workforce it is easy to complete all
work in challenging environment. It is evaluated from the statements of Jackson, Schuler and
Jiang (2014) that nature of employee relations is a linkage among employers and employee. It is
the effort of entity to manage relationships at workplace. Employment relations is
multidisciplinary academic field which studies complex interrelations among superior,
subordinates and other personalities. It also lead employee's to enhance more motivation among

workforce for accomplishing company goals and objectives according to decided strategy. Some
activities are mentions as below that increase organisation performance and productivity,
 Employee relation- It means to generate better interaction among employee's and
employer so it is easy to provide right direction among all department to
accomplish company goals and objectives in an appropriate manner as the theory
and nature of organisation relates with employee's relations.
 Unitarist perspective- Employee relation is considered as managing and
operating better cooperation in which workers and employers work with the same
team as well as family. In this, organisation also attach all important and mutual
cooperation which share important information with company purpose.
 Pluralist perspective- One of the most important perspective for organisation
related with various groups (Delery and Roumpi, 2017). There are different
groups exist which provide legal loyalty, leader and goals which bring essential
changes for delivering better quality products and services.
 Marxist perspective- It is also recognised as the radical perspective which states
the nature of capitalist society. This define relations of organisation is contradict
with history of all activities. This also improve business performance by accepting
all challenges that is used for delivering best quality of services. Moreover,
through applying all perspective employer make perspective that maximise profits
of worker by controlling company price.
In the last, with the analyse of different perspective and their relation with employee's it
is easy to maintain good performance by completing work in a collective manner. It also helps to
enhance profitability of business through managing all task with accurate information. This is
also used to deliver high quality services to all individuals.
Role of actors with employment relations
Employment relationship is defined as an essential activity in which employer and
employee's perform their work in an organised manner to complete all task according to goals
and objectives of company. In an organisation, the main actors of employment relation are
employees, trade unions, government and so on. The In the context of centre of Expertise, HR
manager as well as leader consider as a main actor related with employment relationship as it is
used to analyse needs of workforce (Boon and et. al., 2018). This also refers company manage is

managing all perspective with those enterprise that makes better kind of products and services.
Along with this both innovation and technology are also introduced by the management as leader
plays an important role to provide development and training programme as it is used for making
confidence about challenges that is used to complete all work in an appropriate manner. Leader
are those person who understand all problems of workforce as it helps provide best solution that
helps for making better perspective that increase morale of employee's for completing work in an
organised manner. The other actor is government which sets minimum employment wages and
policies for employees in the company.
Changing nature of employee relations
Identify and resolving internal issue- In a business, employment and workforce relation
work as an important perspective that solves and identify all issue related with organisation.
From perspective of Centre of expertise, HR manager monitor different challenges that helps in
solving issue for improving the company performance.
To measure employee satisfaction- This is important for business to analyse and
understand workforce requirements. With understanding the needs and wants of employee's it is
easy for workforce to provide all motivation related aspects that enhance workforce performance
(Sikora and Ferris, 2014). Moreover, leader plays and important role to improve and measure
workforce morale by deciding different benchmark.
Recommendation
By the interpretation of above discussion this is recommended to workforce that
management focus on all employee relations that generate conflicts among employer and
employee's. Along with this by changing the nature of employee's cost of operations is increases
if changes are not able to generate coordination among team members. This is also used to
manage all profitability of employee's and it is used in managing participants and employee
involvement that is used to contribute and improve employee's relations (Walk, Schinnenburg
and Handy, 2014). Example- by getting feedbacks from employee's organisation is able to
manage positive environment among organisation. Training and development programme
undertake another mechanism that helps to deal with issue by increasing motivation of
employee's. Further, trade union is the another factor that plays an important role as it provide
right to employee's for generating better participation among all ideas and views as it improve
existing performance of company.

CONCLUSION
From the above report this can be concluded that human resource management is an
essential aspect of the business which is associated with recruitment, organisation, direction and
monitoring of various organisational activities. This is prominent that business and HR strategies
are made in impactful manner so that good relationship with employees can be obtained which
are assisting the business in attaining long term sustainability. Various models and theories are
used by which performance of the business can be ascertained and these are helpful for the
management in obtaining effective relationship with their customer and employees as well.

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Online
Centre of Expertise. 2020. [Online]. Available through:
<https://www.driver-project.eu/centres-of-expertise-coe/>