Strategic Management of Human Resources

Strategic Management of
Human Resources

Executive Summary
Strategic human resource management is a concept in which strategies of human resource
strategies are linked with strategies of organisation. This report will discuss about different
concepts and elements of strategic human resource management. Employment relations refer to
relationship that is shared by employee and employer in a setting of workplace. This report also
has discussed about employment relations and mechanism that can be utilised to improve
employment relations. This report has discussed about different models and theories of strategic
human resource management, that are best fit, best practices and resource based view. This
report also discussed about changing nature of employment relations, that involve what has and
how employment relations have changed.

Table of Contents
INTRODUCTION...........................................................................................................................4
Task 1...............................................................................................................................................4
Relationship between business strategy and the human resource strategy..................................4
Vertical alignment and horizontal integration.............................................................................5
Theoretical basis and models of SHRM......................................................................................6
Strategic perspectives of Best fit/Contingency, Best Practice/Universalist and Resource Based
View, (RBV)................................................................................................................................6
Specific HR practices of Performance Management and Reward...............................................8
Recommendations........................................................................................................................9
Task 2...............................................................................................................................................9
The nature and theoretical perspectives of Employment Relations.............................................9
Roles of the actors within the Employment Relationship.........................................................10
Changing nature of employment relations.................................................................................12
Recommendations......................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Strategic human resource management (SHRM) can be defined as practice through which
organisations link strategic objectives of organisation with human resource and human resource
functions. This also involves improving performance of business and develop organisational
culture that foster innovation, flexibility and competitive advantage. Strategic human resource
involves several concepts and theories that organisation can utilise to strategically manage their
human resources. This report is aimed at informing, structuring debate and enlightening business
leaders with theoretical basis, models and practices of SHRM. Further, this report will promote
understanding of the theoretical basis of SHRM, performance management, and rewards and
management of employee relations. Overall, this report is divided in two parts in which first task
will discuss about different concepts and theories of SHRM and other will discuss about
employment relations and different actors and their role within employment relations.
Employment relation is an important part of human resource management and report based on
human resource will also discuss about employment relations.
Task 1
Relationship between business strategy and the human resource strategy
Business strategy is the strategy on the basis of which complete organisation is operated
and human resource strategy is one through which human resource in organisation is managed.
In order to ensure successful execution of business strategy is important that human resource
strategies are linked with organisational strategy. According to contingency theory it is business
strategy and human resource strategies are strongly linked and related to each other. This means
that as per contingency theory business operations and their success is contingent upon external
and internal factors (Gupta, 2016). As per this approach business strategies are based on external
factors and their success is based on developing internal factors accordingly. Human resources
are internal factors and this expresses relationship between business strategy and human resource
strategy. This theory also states that human resource strategy should be in alignment with
business strategy in order to achieve competitive advantage and increase organisational
performance. Relationship between business strategy and human resource strategy brings