Unit 21 - Strategic Human Resource Management

Unit 21 - Strategic Human
Resource Management

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
Current trends and developments that impact on organisation’s HR strategy.............................3
External and internal factors influence HR strategy and practice................................................5
LO2..................................................................................................................................................7
P3 Theories and concepts related to growth and development of strategic HRM.......................7
LO3..................................................................................................................................................8
P4 Change management models support HR strategies.............................................................8
LO3................................................................................................................................................10
P5 Method to monitor and measure HR outcomes....................................................................10
P6 HR management and development support sustainability of employees performance and
growth........................................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Human resource management is responsible for planning, recruitment and selection of
appropriate candidate within firm for achievement of organisational objectives. Human resource
manager also organise raining and development programs on regular basis to enhances their
performance and productivity. Thus, strategic Human Resource Manager is responsible for
coordinate goals of different department and company goals. It also monitors, supervise and
ensures that objectives of company are aligned with its mission, vision and values. This report is
about Marks and Spencer that is retailer company which operates its business's across various
nation which was founded by Michael Marks and Thomas Spencer in 1884 in Leeds. This report
covers currents trends and development and various internal and external factors that influence
organisation's HR strategy. Various theories, models and concepts have been explained that are
used for growth and development of strategic HR manager. It also included various measure and
method to evaluates performance of HR manager of Marks and Spencer. At last, it explains
about effective HR management and development supports performance and growth of
employees in order to meet predetermined objectives of company.
LO1
Current trends and developments that impact on organisation’s HR strategy
Due to digitization and globalization HR manager needs various update technology and
digital app in order to connect with people. It helps in building close relationship with employees
by continuous monitoring and supervising activities of individual in the organization for
achievement of desired goals (Trinquart and et.al., 2016). Thus, various currents trends such as
digitization impact on Human resource strategies to motivate and influences employees to work
effectively for common objectives of firm are as follows:
Employees experience: Now a days HR are more concerned about enhancing the performance of
employees by continuous monitoring and supervising activities of person. Therefore HR manger
need various feedback tool, effective and advance communication tools in order to know about
grievance, problem and work performance of employees within firms. It helps HR manager of
Marks and Spencer in forming various strategies for influencing employees to work effectively
for growth and success of company in the industry. HR manager of M&S can also used advance
technology in order to identify various requirement for better working environment so that
employees can improve their performance.

Advanced People analytic: There are various innovation and update tool in order to analysis and
evaluates performance of employees such as SAP success factor. Cornerstone and Oracle.
Various updation in technology helps in enhancing employees performance and productivity by
using collected data to analysis various ways that can motivate individual to work hard for
growth of company (Grace and et.al., 2017). Some tools have advances features that helps in
employee retention predictors thus reducing burden of HR of M&S to form various strategies in
order to motivate employees to work hard.
Learning management system: It is another recent trend that impact on HR strategies making
such as learning skill and abilities of employees. Despite high knowledge and experience of
employees learning skill are also important part in decision-making of HR as if the employees
have learning ability they can easily adapt to various changes of environment. Therefore,
learning management system helps in tracking learning abilities of employees and help HR
manager of M&S in framing various policies and strategies to enhance ability of employees to
learn things quickly and easily without much resistance.
Digitization rewards and recognition: One of the most fast growing trends in increasing
digitization rewards and recognition of employees that helps in triggering more performance of
employees within organization. Motivating employees through social media is one of the biggest
factor that influenced individual to make some more extra effort in order for achievement of
company goals. Therefore, HR manager of firm by using social media to recognize its efforts is
able to meets the needs of employees and motivate other people in the organization to work hard
so that they can be recognition in same manner.
Bio-metric system: It is another most trending method that helps HR manager of company to
easily collect data related to attendance of large number of employees working in organization.
Chance of fraud reduce by using biological markers to identify employees through their finger
prints thus it helps in reducing cost and efforts of HR manager of Marks and Spencer (Jagan,
Park and Papathanassoglou, 2019). It helps in maintaining proper and accurate data of
information about number of employees present on an particular day within firm.
Target recruitment: Another method that impact on practice of HR manager is the way the
recruit and select employees within firm. M&S manager use social media and cognitive
technology to recruit and select appropriate candidate for right position in the company. HR can

easily check, monitor and supervises organization and its competitors strategies and employees
satisfaction through public review on various sites.
HR manager by using previous experience of employees can evaluates and analysis
practices that it needs to improve in order to motivate and influence employees within firm.
Advanced people analytical can also be used by HR manager of Marks and Spencer by maintain
record of performance so that it can plan for growth and development of individual that are
working with firm. Biometric technology can be installed by company to maintain accurate data
of employees for satisfaction of needs and demand of individual by paying fair compensation.
M&S HR manger by using social medias can reward and recognize performance of employees.
Therefore it can be stated that HR manager by using innovative practice is able to meet needs of
various individual and motivate them to work hard.
5 P’s Model
HR manager of Marks and Spencer can use 5P’s model to effectively perform various
function within company such as process, people, performance and purpose and principle.
Purpose of HR manager is to achieve vision and mission of company so HR by analysis and
evaluating employees experience is able to improve its strategy and motivate employees. HR has
to follow various principles of Marks and Spencer’s such reward and recognizes employee’s
efforts so it can use digital media to reward employees within firm. Process refers to system and
activities performed by HR manager of M&S such as it has use Biometric system to effective
manage attendance of people and perform its activities. Management of people can be done by
HR manager by using learning management system so that it can form strategies as per learning
ability of people. Performance of employees can be measured through continuous monitoring by
using of innovative technology in order to improve their performance.
External and internal factors influence HR strategy and practice
Human resource department plays an important role in functioning of company as they
recruit and plan for most valuable resource that helps in effective utilization of other resources
such as convert input into output. HR manager is also affected by various internal and external
factors of environment such as labor relation, legal compliance, level of growth and operation's
of business's and updation in technology of the company. Therefore, various internal and
external factors that influence HR strategy and practices with M&S company are as follows:

Internal Factors: it includes policies, mission, organization structure, culture that impact and
influenced HR manager of M&S that is explained below:
Policies: Company makes various policies and procedure in order to perform various function in
the organization so that it can achieve objectives in an effective manner. M&S is large
organization with definite rules and policies that need to be abided by employees while
performing various function within organization (Fox, Scanlan and Stanton, 2017). HR also have
to recruit, promote and plans for training and development of employees as per policies of
company so that it can gain competitive positioning in the market.
Organization structure: It also influenced decision-making of HR manager of M&S as it defines
the way employees of company communicate with each other and their interrelationship, role
and responsibilities within firm. It helps in build efficient and effective team that work together
for common goals of company. As marks and Spencer has functional organization structure so
each function and operation of employees is supervised and monitored by HR manager of the
company. It helps in effective coordination of different department and function of employees
for growth of firm.
Culture of organization: There are number of employees with different culture, beliefs and
values so HR has to identify all such culture, values and belief of people in order to motivate
them to work hard. So that M&S can grow and expands its business's in the new market by
attracting new products and satisfying needs of customers in effective manner. M&S employees
are highly skilled, knowledgeable and motivate that helps in effective coordination of large
employees towards company objectives.
External factors: Various external factors that influenced employees decision-making are
legislation, demographic structure, economic condition and technological advancement.
Pestle model
Pestle model can be used to find external factors that affect operation of company
Political factors: HR manager of Marks and Spencer has to follow policies and procedure of
government for smooth operation of business. Such due to Brexit government of UK is forcing
companies to hire large number of employees so HR manager has to abide such laws for
effective operation. So it has negative impact on company as it forced and influence to hire large
number of people. At the same time its helps in bringing new blood within firm and innovation
thus best outcome of HR effort can be result.

Legal laws: HR manager is responsible for complaining with various legal laws made by
government of UK for smooth operation's of business's within industry. It cannot terminate any
employees without proper reason as it is against the law of government. Such laws are made by
government in order to ensure safety and security needs of employees so that they are not
discriminated on the basis of caste, religion and gender (Dingemans and et.al., 2016). HR
manager of M&S has to ensure implementation of all such law while planning for growth,
development, training, promotion of employees within organization. Thus, HR of company has
to perform function as per legal laws made by government for growth and success of Marks and
Spencer in the industry. Thus, it restrict function of HR to perform independently as it has to
abide laws of government. At the same time HR by following legal laws is able to motivate
employees so that they work hard and helps in growth of company.
Economic Condition: Another aspect that impact on HR decision-making is economic condition
of country in which company operating its function. As economic of UK is suffering from
situation of recession and high employment rates thus HR can easily attract large number of
people to come and joined company for achievement of organizational goals. It helps in reducing
cost of firm and helps HR in recruiting and selecting the best candidates within minimum
compensation to enhances company profit margin. Therefore, it influences decision-making of
HR by provide various option to choose large number of people for effectively utilisation of
resource of company. Employees of company are demanding high compensation and salary thus
recession has increased cost of company and HR effort to plan way to motivate employees. So it
has impacted positively and negatively on HR decision making.
Technological factors Continuous innovation and advancement in technology influence
decision-making of HR department as it have to find various ways in order to reduce cost and
save money. It evaluates and analysis various changes in technology that can minimize number
of employees to perform particular task within firm. It also plans for training and development of
people because of new and innovative technology so that they can easily and quickly make
effectively utilization of available resource. Therefore, it helps in reducing cost of production
and increase in profitability of M&S and impact on HR decision-making. HR plans to enhance
knowledge and development of employees as per technology development for growth of
company. But most of the employees resist to such changes so HR has to put extra effort so that
it has to plan way so that they can motivate to improve their performance.

Social factors: It is another factor that impact on decision-making of M&S is demographic
structures of UK in which M&S operates (Marler and Boudreau, 2017). As HR as per
demographic structure has to plan for various compensation benefits and incentive in order to
motivate and influence employees to work effectively for achievement of organizational goals.
As there are large number of younger generation in UK so HR manager has to think of ways that
influence, motivate and attract people to work effectively for achievement of company goals.
Compensation plans and incentive is also to be attractive so that more and more people can
joined company and work with growth and success. Thus, it has increase cost of recruit of people
and had adversely impact on profitability and cost. At the same time social factors helps in bring
new innovation and blood within firm.
LO2
P3 Theories and concepts related to growth and development of strategic HRM
Human resource is also knows as personal administration that means before activities were
limited to hiring, evaluating and providing attractive compensation to employees.
Previously no focus was paid to maintain relationship among strong relationship among
employees but now strategies are made to effectively coordinate work of different
individual. Now HR is process that is not only related to recruitment and selection but also
plan for growth and development of employees.
Strategic Human resource development has come from personnel management that s mostly
concerned with administration and implementation of various policies of company so that
employees can effectively work toward a common goals. Thereby growth of strategies has
developed so that important resource of company that is human can be effectively managed.
Strategies HRM management refers to effective management of human resource of firm in order
to achieve desired objectives of company. There are three concepts related to development and
growth of strategies HRM such as high commitment management, high involvement and high
performance management. Therefore, its helps in meeting companies set vision and mission by
effectively utilizing capabilities and human resource of M&S. Thus, theory is used for growth
and development of human resource strategies are as follows:
Resource Based View: It helps in finding and evaluates that resources of company that helps in
gaining competitive advantages in the market by continuous growth and innovation. This
theories analysis various internal resources of firm that help M&S in increasing profitability and

sales volume by effectively satisfying needs of customers (Heidari and et.al., 2019). It also
explains that employees of company are able to exploit available opportunities in the best
possible manner so that it can achieve its objectives successfully. It is further classified into 2
types of resources such as tangible and intangible.
Tangible resource: It included resources such as Building, machinery, equipment that helps in
growth and success of company. Such resources can be easily copied by other competitors, so
they are not good for gaining long run competitive advantages. Thus, HR manager of M&S plans
to make effective utilization of resources by recruiting, hiring effective and high skilled
employees.
Intangible resources: Such resources that are intangible in natures such as goodwill, trademark
and brand image of company in the market that helps firm in gaining competitive positioning.
HR manager of M&S plans to motivate employees so that they can work hard in order to build
strong brand image of company in the market. Employees of M&S are high skilled and
determined so that company can grow and expand its business's across nation and enhanced their
profitability and volume of sales.
Heterogeneous: Every company have different types of skills, capabilities and resources that
helps in utilizing available opportunities in the most effective manner for growth of company.
M&S is a large organization with high experienced and knowledge employees that work
continuously for firm growth in environment. HR strategies is to motivate employees, so they try
to avoid conflicts and make optimum utilization of resources so that firm is able to maintain its
standard and quality of products and services in order to satisfy needs of customers beyond their
expectancy. Thus, HR strategies helps in effectively utilization of mix of all resources and
increase in performance of employees that promote M&S to expands its business.
Immobility: Resources of firms such as brand image, trade marks are immobile so M&S HR
strategies to influenced employees to work effectively so wastage of raw material can be
reduced. It helps in increasing brand image by satisfy and retaining employee's loyalty so that
they can work effectively together for building strong brand image in the industry (Bai and et.al.,
2018). HR strategies to provide good working condition and better relationship between
employees helps in reducing conflict and marketing of company image by employees to other
people in UK.
VRIO frameworks:

It is also used by HR is order to not only help company in gaining competitive
advantages but to also helps in growth and survival or sustainability of company. VRIO
framework helps HR manager in identifying and evaluating resources as valuable, rare, costly
and imitate. Such as employees of M&S are valuable, but they are not rare at the same time they
cannot be imitated and but employees may have similar skill and knowledge. Thus, HR strategies
of M&S to develop and maintain effective team, recruit highly skilled and knowledge employees
so that they can help company in differentiating itself from other competitors. HR main efforts to
retain employee's satisfaction and loyalty by continuous motivating them to work hard so that
organizational goals can be achieved. Thus, such growth and development theroy used by HR
manager of M&S helps in creating and maintaining strong and successful team that work
together in order to take advantage of opportunities and faced numerous challenges in the most
effectively manner. So it can be stated that high performance of employees and effectively
strategies of M&S help it to grow and expand business.
Flexible working arrangements: HR manager of M&S have ensured that employees have
provided good and supportive working environment so that they can perform different task.
Working environment of company is changing so that employees can easily adapt to external
changes of business and contribute towards overall growth of firm.
Performance management: HR is also responsible for management of performance of each
employees within M&S as it can reward or punish, or uses different motivational tool in order to
enhance performance of each individual.
E-recruitment: Due to development in technologies HR manager have planned to use more of
e-recruitment approaches so that right candidate can be selected for right position. E- recruitment
has helped in reducing cost of hiring and availability of various candidate that are suitable for
specific position.
540 performance appraisal of employees: It can be stated that HR manager of M&S is also
responsible for appraisal of employees so that they can be motivated to work hard for growth and
success of enterprise. Each individual within firm is motivated on the equal basis so that they can
be inspired to put their best for achievement of company goals.

LO3
P4 Change management models support HR strategies
Change management model helps in bringing new changes within firm so that company
is able to expand its business's across worldwide. As there are various changes in environment
that impact on functioning of company, so they need to analyses and monitored in order firm
gain competitive position. Therefore, HR manager of M&S uses changes management model
that have appropriate structure and frameworks to bring changes within organization so that
company can differentiate it from other competitors in the industry. It can also be explained that
change management support HR in framing various strategies such as planning for training and
development of employees so that they can easily adapt to recent changes in the environment. It
also helps HR manager is preparing plans and deciding role and responsibilities of each
employee within firm (Halson, 2019). It can be illustrated through a model that is used by Marks
and Spencer to bring necessary changes as per requirement of situation so that firm can survive
as well as expand its business's operation's. Therefore, Lewin's Change management model is
explained below that support HR strategies in order to increase employees performance and
productivity.
Lewin's Change management model: It is one of the famous and most used model by most of
the HR in order to frame appropriate strategies in order to various changes of environment. It is
classified on the basis of three stages such as Unfreeze, change and refreeze that helps in
bringing new change within firm.
Unfreeze: It is stage where firm prepared itself to incorporate various change in order to meet
customers demand and recent trends in environment. But it is difficult to bring changes as many
of the employees within firm try to resist so HR has to form such strategies that break such
resistance. HR has to motivate and explain employees about why its is important for company to
bring change and the way it can benefit to both employee and employer of company. Thus, it
supports HR strategies formation as it can finds way to motivate employees so various changes
in the firm.
Change: It is stage where M&S leader and HR work together so that people of organization can
easily adapt to new changes and happenings. HR has to plans for roles and responsibilities that
each individual needs to play so that firm gain its objectives. It has to think about way that needs
to quick and open communication between employees so that decision are taken within

appropriate time so that M&S become one of the leading company in UK. It support strategies of
HR by knowing them about various changes to be brought so that it can think of ways to
influence and motivate employees.
Refreeze: It is last stage of change management model in which most of the employees have
expected various changes of environment so its is knows as refreeze. As again HR manager has
to plan for strategies that influence people to work together effectively and efficiently so that
company can grow in long run. HR manager also make strategies that explains people about
changes are to be implemented continuously and creating a feeling of belongingness so that they
put more hard efforts for firm objectives (Addy and et.al., 2019). Thus, it can be stated that this
models support HR in strategies formation by informing about various changes and preparing it
in advance that fins way to motivate and influence people so that they can easily adopt so such
changes of environment. It supports HR strategies such as in defining roles and responsibilities
of each individual, the way they will communicate with each other and method of motivation and
training to be given to employees.
Another model that can be used that support HR strategies such as
Nadler System Model:
This model stated that manager of company has to consider four factors in order to
effectively influence and manage employees within firm. Informal organizational structure so
that they can easily communicate with each other and motivate to work in pleasant work
environment but at the same time formal organizational structure should be there to avoid
confusion among employees within M&S. Manager should explain about each other roles and
responsibilities of individual working within work and task to be assigned for effective
coordination.
LO3
P5 Method to monitor and measure HR outcomes
HR outcomes should be measured and monitor so that company is able to analysis and
evaluates the way it is able to motivate and influence employees within firm. It also helps in
identifying the factors that impact HR strategies and its outcome at the same time helps what
weakness of HR strategies that had result in less output from employees of company.
Continuous measurement and monitoring of HR strategies is able to make necessary changes and
improve its plans so that employees of M&S are highly motivated and influenced to work for

predetermined objectives of firm (Xue, 2017). Various method used to measures and monitor
performance of employees are collection of data and statics related to:
 How many employees are happy and satisfied to make more effort for Marks and
Spencer?
 Rate of absenteeism and employment turnover?
 How many employees are trained and work effectively so company achieve its
objectives?
KIP, employees satisfaction index, employee productivity rate and absenteeism rate are
some of the tool that is used by company in order to measures HR effectiveness. Various tools
that are used to measure HR performance in Marks and Spencer company are as follows:
Employees satisfaction Index: Such method can be used to evaluate and analysis level of
employees satisfaction that helps in measuring the way HR strategies had work to influence
people within firm. Employees satisfaction index was high in Marks and Spencer that means
people are high satisfied and happy to work together for common goals.
Employees productivity rate: HR manager strategies can also be measured and monitored
through productivity rate of employees (Helbig and et.al., 2017). High productivity rates of
employees stated that HR strategies are innovative and inspiring that motivate employees to
work hard for growth and success of Marks and Spencer.
Employment turnover and Absenteeism: It is another technique that is used to measure
employees performance is rate of employment turnover and absenteeism. M&S have highly
motivated, skilled, knowledgeable and experienced employees that are working within firm since
many years. Work environment of M&S is also good that helps in effective coordination and
cooperation among employees so desired objectives are achieved. Thus, such techniques help in
evaluating HR practices and helps in growth and success of company.
Quality improvement: HR outcome of M&S can be measured through improvement in quality of
products and services and better ways to satisfy needs of customers.
Quality assurance: M&S has well known brand image to provide qualitative products so it can
be analysis that HR strategies has effective worked.
Quality control: HR outcome can also be analysis by evaluating reduction in wastage products
and economic of scale as it stated that employee are effective working for organizational growth.

P6 HR management and development support sustainability of employees performance and
growth
Sustainable growth refers to such growth of company that stay for long period of time
due to effective strategies and policies that helps motivating employees to work effectively for
achievement of organizational goals. HR manager by improving performance and productivity
of employees is to promote growth and success of company for longer period of time. HR helps
in growth and sustainability of business by continuously monitoring performance of employees
and motivating them to work hard for common goals. Therefore it can be stated that HR helps in
growth and sustainability of business and helps in gaining competitive advantaged by improving
performance of employees.
Various techniques that are used by HR Manager of Marks and Spencer in order to
enhances employees performance and growth are as follows:
Providing security to employees: HR of Marks and Spencer ensures security and safety of
employees within organization thus able to meet needs of each individual and motivate them to
work hard so company grow in the industry (Mozgovoy and Mettler, 2019)..
Selective hiring: HR have to choose appropriate candidates for right position so that employees
can easily and effectively perform each and every function within limited time and cost. HR
manager of M&S uses various tool and techniques in order to select appropriate candidate for
right position. It conduct writing, oral test and personal interview, medical test before selecting
candidates to work effectively for achievement of company goals.
Fair compensation: HR of M&S also provides fair and equal compensation to all employees to
motivate them to work as a team for common goals and objectives (Panda, 2016). Attractive and
fair compensation and incentives attract large number of employees to add more effort so that
company able to expand its market shares.
Performance of HR can be evaluated through:
Key performance indicators: Such are used to evaluate performance of company and its
employees that helps in gaining competitive position in the industry. KPI of M&S stated that
employees of company are highly skilled and knowledge that promote growth and success of
company for longer period of time.

Benchmarking: It is used to compare performance of company with other competitors in the
market so M&S by continuous innovating its product is able to satisfy needs of customers and
enhance its market share.
CONCLUSION
From the above report it can be concluded that various trends and development
influences organization HR strategy. It can also be explained that both internal and external
factors influence HR strategy and practices. Theory and concept are used for growth and
development of strategies HRM that helps in motivating employees to work effectively. HR
outcome should be monitored and measured in order to effectiveness of strategies that is used by
Human resource management. Lastly it can be concluded that various technologies helps in
effective HR management and development of performance and growth in order to meet
organizational objectives.

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