Strategic Management of Human Resources

This document discusses the strategic management of human resources and its significance in achieving organizational goals. It explores the relationship between HR strategy and business strategy, analyzes the theoretical perspectives and models of SHRM, and evaluates the nature and theoretical perspective of employment relations. Additionally, it provides insights into HR practices of performance management and reward.

Strategic management
of Human Resources

EXECUTIVE SUMMARY
Strategic HRM is designed or developed to help organisations to best run into their needs
and wants of their employees to promote organisational goals and objectives in proper manner.
HR strategy is one of inbuilt part of successful enterprise strategy, business managers realized
the significance of well trained and motivated employee force to achieve organisational financial
gains and stability in positive manner. There are various kinds of strategic perspectives to accord
with the time and resources to gain optimum outcomes. In order to employee relations that
create positivity and motivation level of employees by managing relationships in both of them.

INTRODUCTION
SHRM is an kind of active management of group which needed reasoning leading and
planning methods or structure to access in finer wants of employees. Respective practice affect
the way things and attributes are done at the business site from improving hiring process and
training programs of employees to various techniques and disciplines. Respective report is based
on the Next Plc which is an British multinational clothing, footwear and home products
headquartered is in Leicestershire. This report incorporated for the purpose of research and to
produce an informative and advisory paper that proved beneficial for both private and public
organisational leaders in proper manner. This assignment covers the kinship between the
enterprise strategy and HR strategy by elaborating vertical and horizontal integration across the
organisation. Further it includes critically analysis of strategic perspectives of various approaches
of HRM to gain optimum outcomes. It also includes nature and theoretical perspectives of
employment relations with critical evaluation of changing nature of respective practices.
TASK 1
Strategic HRM is an crucial branch of HRM which is a totally new field and parent
discipline of HRM elaborate connection in between HR by meeting with goals for improving the
performance and way of work for achieving innovation, reliability and to gain competitiveness.
There are close relationship in between HR strategy and business strategies as Human
resource contributes by using their skills and competency for achieving organisational goals and
objectives. In context of Next Plc possess strong human resource strategy by aligning business
strategy to attain their mission and objectives in better manner (Ansoff And et.al ., 2018.). The
major aspects of effective HR strategy are fair recruitment, training and development and
retaining quality employees so on. To attain organisational strategy it is very much necessary to
cling with HR strategy can be possible after selecting right person. With advancement of
technology and advent of global economy Next Plc majorly rely on the skilled workforce for
achieving mission and to gain competitive advantage. In recruitment policy of Next Plc when in
their organisation employee quit from the job not always replacement is required. In that respect
a part time employee could take place of employee or their works and duties shared among
existing work force.

With help of training and development organisational strategy could be align with human
resource strategies. In order to if employees are not so much capable to contribute one of their
best efforts in achieving organisational strategies then training and development plays very
crucial role (Bailey and et.al ., 2018. . By comparing with standards set by them they provide
training to employees to perform in best manner all major works and activities to accord with
mission and objectives of organisation. So it can be said that organisational goals and objectives
should be align with the Human resource management strategies to remain always competitive in
the marketplace.
Vertical alignment:
Vertical alignment refers to Configuration of organisational strategies, tactics, objectives
and action plans for taking important decisions at every tier of an organisation (Boon and et.al .,
2018. ). Alignment in itself dictate about lined up all works and activities from one another with
the help of external reference. By using vertical alignment an organisation can aware about their
goals by understanding them in proper manner and contribution of an individual to achieving
business objectives. In context of Next Plc they configure the various works and activities by
aligning organisational goals and objectives by sharing the roles and responsibilities to the
organisation as well as individual in order to remain competitive in business environment.
Horizontal integration:
When an organisation aimed to grow by optimising horizontal integration, their major
aim is to change a related organisation in the very industry. Organisation opt it to achieve the
objective of increase their size, to diversify their products and services they offered and for
economies of scale so on. For an example a department store aimed to merge with similar kind of
business in another nation to operational their business overseas. In context of Next Plc they
aimed to enlarge business opportunities after conducting the research and development on
regular basis in order to remain competitive in business environment for gaining potential
outcomes.
Compare and contrast the theoretical basis and models of SHRM:
In theoretical perspective of SHRM denotes the four major perspective that includes fit
perspective, functional perspective, economic perspective and typological perspective.
Fit perspective:

Respective appearance helps to match organisational internal resources and competencies
with opportunities available before external environment to grab it in positive manner (Brewster,
Mayrhofer and Farndale, 2018.). In context of Next Plc they evaluate their core competencies
from within the employees, infrastructure, brand value and many more. After gaining important
insights about organisational core competency they put one of their best efforts in right direction
so that desirable outcomes should be incurred positively. So it is very crucial for an organisation
to access core competency that enables in achieving desirable outcomes. In order to there are
various perspectives that needed to be considered that are functional, economic and typological
in order to gain potential outcomes.
Functional perspective:
Functional department states that organisation can perform in best manner when each and
every department contributes one of their best efforts for maximising their contribution by
extending their area of expertise in positive manner. With the help of it organisation can gain one
of best products and services with practices to encourage employees in giving their best.
Economic perspective:
Economic perspective denotes about that human resource are one of most unique and
distinguishable source to gain competitive advantage. With the help of it organisation can gain
important insights regarding their employees motivation level and contribute for that.
Typological perspective:
In typological perspective consist of three kinds of strategies that are Inducement,
investment and involvement which create a distinctive image in marketplace by create value of
employees.
Model of SHRM:
Michigan model of SHRM described as an Hard HRM model because it emphasise on
treating employees as an important source to achieving organisational goals and objectives
(Buckley And et.al ., 2019.). The major strength and limitation of that approach is that they
focus on organisation and way to respond on rational manner to its external environment. They
majorly focus on level of organisation by drawing some kind of attentions on formal strategy,
structure and culture within the organisation.
The Michigan model of SHRM focus on the various kinds of strategies related with the
organisational structure by contrasting with kinds of kind of HRM activities such as assortment,

classification and rewards with process to gain optimum kinds of outputs. All these major
attributes in SHRM that defined by respective model helps to gain important insights about both
inside and outside environment of the business to amend within the business. In context of Next
Plc by using respective model of SHRM they build various kinds of strategies and tactics in
order to examine the factors which directly influence on their business decision making such as
internal and external business environment to bring out crucial advantages in positive manner.
Respective model define the inner and outer factors of HRM in a triangle that are as
follows:
in it economic forces, cultural forces contributes towards achieving the operation and strategies,
organizational structure and manage the HR in proper manner.
The major similarity in both the theoretical perspective and models of SHRM that both
are focus on the management of Human resource and pay attention on the way to enhance their
productivity level ( Chelladurai and Kerwin, 2018.). Both are focus on internal structure and
proceedings within the organisation to coordinate each and every aspect in proper manner.
The dissimilarity in theoretical perspective and SHRM model that Michigan model considers
human resource as an tool to gain profitability from them but theoretical perspective focus on
completing all kinds of needs and wants of employees so that they feel motivated and
encouraged to contribute one of best efforts.
The strategic perspective of best fit/ contingency:
The concept of Best fit one of best recognized approaches of HRM which claims about
effectiveness of HR strategy after integration of business environment in positive manner
(Collings, Wood and Szamosi, 2018). By close link in between the strategic management and
HRM after accessing the extended version of vertical integration in organisation and its HRM
policies and practices. In context of Next Plc best fit approach helps to set the good HR practices
and relatively organisational performance to gain optimum kinds of output. With the help of it
organisation can direct their employees in order to achieve goals and objectives. On other hand if
not properly align in firm then employees not able to understand their relevance to contributing
one of best efforts. In context of Next Plc they provide training and development to their
employees in order to give one of their best efforts for organisation as well as self development
in positive manner. To best fit the organisation it needs to be choose one of best strategy for
gaining potential outcomes.

Resource based view(RBV):
Resource based view is a important theory that considered material and root age as an
superior to perform in best manner (Hoye and et.al ., 2018.). If a resource possess VRIO attribute
then the organisation can be able to gain competitive advantages in positive manner. In context
of respective firm they look inside their organisation to gain competitive advantage rather then
looking at competitive environment for it. It is a kind of contemporary theory which provides
insights regarding the strategic and structure concerns. The major drawback of respective model
that its core logic contains circular reasoning by specification in between rent and resources.
Critical evaluation of HR practices of performance management and reward:

In today's competitive world HR department showing the broad degree of earnestness
towards re-enforcement of reward exercise that are straight with kinds of other HR practices and
objectives of an organisation for attracting, retaining and motivating employees.
Reward management:
Reward schemes one of most important HRM practice for attracting and retaining
employees by determining pay in proper manner. In HRM the “Pay” is a sensual matter in both
theoretical and practical perspective (Meyer and Xin, 2018). In order to payment for an
individual denotes contribution in respect of organisation to motivate and encourage to devote
one of their best efforts. On other hand there are some kinds of deficiencies of reward
management that it increases cost and takes too much time in planning and execution of it in
proper manner. With help of functional perspective organisation can plan rewards as per the
functions perform by an employee in an organisation.
Performance management:
Performance management is the group which is useful to measure execution of employee
in organisation. Each employer perform same task in different manner. There are various ways
to value action of an individual such as answer, profit-making and many more (Moutinho and
Vargas-Sanchez, 2018.). It provides opportunity to evaluate and review own skills and
competencies on basis of it organisation provides rewards or bonuses that helps to motivate an
individual. There are some disadvantages of performance management that hinders self interest
of employees that employees quit by unfair results and misleading information affect the review
of an organisation to get better outcomes. In context of Next Plc they use respective HRM
practice to encourage and motivate employees in positive manner. By using typological
perspective organisation can involve their employees that assist in accessing performance of an
individual to get optimum results.
The major recommendation for the performance management plan for an organisation
that they have to engage their employees and bring diversity in their works and activities by use
open communication. Open communication helps to share all views and opinion in
organisational development and self development. They have to encourage employees to adapt
dynamic environment by providing training and development to them.
TASK 2
Nature and theoretical perspective of employment relations:

The employee relations refers to the companies efforts to manage and coordinate
relationships in between the employer and employees to gain competitive advantage (Paauwe
and Boon, 2018.). With the help of good employee relation program employer can be able to
treat fairly and consistently with employees that they will be committed regarding job and
loyalty towards organisation.
Nature of employee relations:
Employee and employer relations are the result of good employment relations in the
industry. It can not be possible without the two parties which is employer and employees. It is
the industry which creates the setting for employer and employee relations in better manner.
In respective practice both individual relations as well as collective relations exist. In individual
relations consist of relations in employer and employee (Steiss, 2019.). On other hand in
collective relation rely in between the employers association with the trade unions and role of
state to regulate relations.
The relation in both employee and employer is very complex in nature and multi
dimensional in nature. Respect practice is not only limited with the relations in trade unions and
employer but extends to relationship in employee, employer and in government. It controls or
regulate both structured and unstructured relations in achieving the best outcomes in positive
manner. So it is very much important for an individual as well as organisation to coordinate each
and every activity in proper manner. In context of Next Plc they provide fair incentives and
wages to their employees in order to they can give one of their best efforts in organisational as
well as self development in positive manner. They involve their employees in decision making
process that bring not only creativity but also create sense of urgency within the organisation.
Theoretical perspective of employee relations:
To understand the employee relations there are various kinds of theories and practices
that are as follows:
Unitarist, pluralist and Marxist perspectives defines and analyse the employee relations by
providing kinds of interpretation regarding workplace conflicts, responsibility of union and job
regulation many more.
Unitarist perspective:

As per respective perspective of employee relations, organisation detailed as an integral
and harmonized part of people with organised one commitment culture. In it system emphasise
on sharing the mutual purpose with each other to attain their mutual goals and objectives.
Pluralist perspective:
from respective perspective of Employee relations which states that organisation build
with kinds of sectional groups (Stewart and Brown, 2019). Each group possess their own legal
loyalties and goals and put efforts to achieve them. In context of Next Plc management and trade
unions are the two extraordinary sectional groups in their organisation which come under
pluralist perspective.
Marxist perspective:
Marxist perspective also known as radical perspective which reveal the nature of
capitalist society. The main gist behind this theory that work place relations are in against the
history. In it conflict perceived as an inevitable result.
The one of the best perspective is the Pluralist that helps to build a positive work environment in
the office premises for healthy relationship in between the employee and employer which is very
much important for organisational as well as individual development and encouragement. By
using the management and trade unions organisation can be able to maintain the positive
relationship within the employees that proved beneficial not for organisation but also for
individual in positive manner. As trade unions work in interest of employees so that they can
give one of their best efforts in organisational development.
Role of the actors within the employment relationship:
In perspective of employment relationship there are three main parties that are directly
involved in maintaining the employment relationship that are as follows:
Employers:
Employers are major actors in the employment relationship as they have right to hire and
fire the employees (Terziev, 2018). In that regards they by sharing the role and responsibilities
by accessing their skills and competency and then hand over works and functions in proper
manner. By fair wages, compensation they build motivation and encouragement in employees in
giving their best.
Employee:

Employees are important part of employee relationship in which they seek to amend
terms and conditions of their occupation. By exchanging their views and ideas to bring
improvements. They are major part of employee relations as they obey policies and procedures
that are implied by employer and share roles as assigned to them. They contribute in building a
healthy work culture by coordinating with one another. In context of Next Plc they they create
sense of belongingness by work together in proper manner.
Government:
The central and state government coordinate and regularise the industrial relations by
creating laws, rules and agreements that brings harmony in works and activities of an
organisation for attaining desirable goals and objectives.
All these actors in employee relations are very much important as they contribute one of their
best efforts in organisational as well as individual development to gain optimum kinds of output
(Stewart and Brown, 2019).. Contribution of all these actors in employee relations helps to
motivate employees and enhance their retention ratio to gain maximum outcomes.
Changing nature of employment relations:
Employment relations changes drastically due to the problems faced by managers and
change in business environment. In early time management era manager work with the exclusive
equipments and data but as kinds of changes occurs in today scenario. These changes creates
some kinds of issues or concerns such as cross training, personnel management and
interdepartmental communication and many more. Changes occurs in workforce as their
ambitions and working patterns are totally different from traditional working force. Nature of
work also changes that affect on the employee relations in adverse manner due to different shifts,
time duration affected and create a gap in strong relationship with each other. As employees in
ancient times work in a team and work in self interest of one another but in today's world
employees work for their own development not for organisational enhancement. In context of
Next Plc by using the various kinds of theories and practices they able to build positive
employment relations that are crucial part of organisational success in positive manner. So it is
crucial for organisation to evaluate the gaps so that they can perform in best way within
organisational environment.
Employee involvement and participation in which people have an impact on the decision
and actions which affect on their jobs (Terziev, 2018). Employee voice is very crucial attribute

some organisation grant permission to employees to share their views and opinions and some
not. By giving rights to share their opinion personnel feel motivated and encouraged in giving
their best. When organisation helps to employees in building a positive work environment in
which they contribute one of their best efforts that automatically contributes towards strong
employment relations in context of organisation.
If employee participate in major decision making then they become gradually loyal
towards organisation and it also bring innovative ideas in to the organisation which helps to gain
competitive advantage. To improve employee relationship in context of Next Plc they organise
time to time various kinds of events in which every employee participate in a team that creates
sense of belongingness in one another. By enhancing participation of employee and provide
opportunity to share their ideas and views is one of best way to amend employee relations in an
organisation.
So from the above description it has been summarised that employees is one of best
assets for an organisation and organisation have to put efforts towards encouraging employees to
gain potential outcomes.
CONCLUSION
By this assignment it has been concluded that HR is one of important assets that
contributes in organisational development by identifying and executing organisational goals and
mission after matching capabilities as per the demand of environment. There is a close kinship in
business plan of action and HR strategy as they work for each other in achieving common goals
and objectives. By using various strategic perspective such as best fit approach organisation align
their goals and objectives with various tactics within the business environment. Employee
relations are very much important to encourage and motivate worker by characteristic their
hidden wants to satisfy them accordingly.