Strategic Management of Human Resources: Employee Relations and Organizational Growth

Strategic Management of Human Resources

Executive summary
This report will discuss about the employee relations and the impact of good employee relation on the
growth of the industry. There theoretical perspectives such as unitarism and Pluralism help in the
development of employee relation. Improving employee relation helps in enhancing the productivity
of the organization. The roles of the different actors of employee relation such as the employee,
manager, the employers and the managers keeps changing as per the changing nature of the employee
demands and wants. There are certain factors such as employee voice and employee participation that
helps in enhancing the employee relation of an organization.

Table of Contents
Task 1.......................................................................................................................................................4
Introduction..............................................................................................................................................4
Discussion................................................................................................................................................4
Conclusion...............................................................................................................................................7
Task 2.......................................................................................................................................................8
Introduction..............................................................................................................................................8
Conclusion.............................................................................................................................................11
Reference List........................................................................................................................................12

Task 1
Introduction
In the present scenario, the human resource management is the indispensable part of the
organizational structure as it helps in maintaining a cordial relationship between the management and
the employees (Boxall and Purcell, 2011). In this report, the linkage between the human resource
management and business strategy has been explained with inclusions of horizontal and vertical
integration. Additionally, several human resource models – best fit and best approach have been dealt
with to analyze the concept of reward and performance management. The aim of the assignment is to
discuss about the strategic management of Human Resource Department of current business
environment.
Discussion
Relationship between business strategy and human resource management
Consideration of human resource is one of the most significant components of the business strategy.
The link between the two concepts is established by referring to employee relations model, strategic
leadership. The findings of the Separation model, which considered to be the advanced model in
business strategy, states that no link exists between the two stated concepts (Bratton and Gold, 2017).
However, the Fit model negates the findings of Separation model and states that human resource
consideration stems from organizational demand and strategy formulation.
As per the Holistic model, labour markets and employees provide competitive advantage, which can
be achieved through HR strategic planning. The Dialogue model focuses on two way communication
process as it helps in strategy formulation and alternative identification. One of the most used models
is HR driven model where the strategy formulation is linked to organizational demands. As per the
model, the workforce of an organization is considered before formulating strategies of HRM
department.
Horizontal integration and vertical alignment
The effectiveness of human resource is judged based on their functions and its contributions to
achieve the organizational vision, mission and objectives. The HR functions should be aligned with
corporate identity, objectives and organizational structure. On the other hand, horizontal integration is
effectiveness of strategy after being integrated with the several company functions. This helps an
organization to provide an overall development opportunity to the employees by considering their
needs while formulating strategy.
Theoretical basis and models of SHRM