Strategic HRM, Wider Management Strategies, & Farmfoods Performance

This essay provides an analysis of strategic human resource management (SHRM) within Farmfoods, a British retailing supermarket chain. It examines the role of SHRM, including the use of a balanced scorecard, as part of a strategic framework. The essay explores how HRM strategies relate to broader management strategies such as customer intimacy, product leadership, and lower total cost, and how these strategies impact organizational capabilities and performance. It highlights the importance of recruitment and selection, training programs, performance measurement, and employee benefits in enhancing business productivity and profitability, linking these HRM functions to the wider business objectives of Farmfoods.

Strategic human
resource management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Role of strategic HRM including the use of a balanced scorecard as part of a strategic
framework...............................................................................................................................3
Analyse how HRM strategies are related to wider management strategies and organizational
capabilities and performance..................................................................................................6
CONCLUSION ...............................................................................................................................8
REFERENCE...................................................................................................................................9

INTRODUCTION
Strategic human resource management is defined as the framework that is related to
management of human resources and involved in developing practices in order to achieve long-
term objectives in efficient manner. Basically, it is the combination of different HRM strategies
that enables organisation to achieve competitive advantages. It is the connection of employees
and organisational strategies that facilitates them to perform defined task in most efficient
manner (Chadwick and Li, 2018). Human resource manager developed range of policies and
strategies to maximise employees contribution in towards organisation determined objectives.
Effective strategies helps organisation to run in efficient manner and enhance employees
engagement and satisfaction from their job role.
In this report, chosen organisation is Farmfoods which is British retailing supermarket
chain, established in the year of 1955 by Eric Herd. Headquarter of respective organisation
situated in Scotland and has more than 330 shops in United Kingdom. It deals in highly-
processed frozen food, so it marked as being of farm origin. This report covers roles of strategic
human resource management and use of balance scorecard as a essential part of strategic
framework. Furthermore, HRM strategies that are related to wider management strategies and
business performance are mentioned in this project report.
MAIN BODY
Role of strategic HRM including the use of a balanced scorecard as part of a strategic framework
Strategic Human Resource Management is related to managing employees within
organisation and involved in developing strategies that facilitates organisation to attain
competitive advantages than other competitors. It is the distinctive approach of employee
management that enables organisation to develop highly committed as well as capable workforce
through using integrated organisational culture like building as well as maintaining high work
performance culture. Organisation uses personal techniques hiring, rewarding and promoting
employees. Main objective of strategic HRM is to develop effective organisational culture that
motivates employees and improve their innovative skills that help business to sustain in
competitive environment (Chang, Son and Pak, 2020). Farmfoods organisation manages their

stores in well-defined manner and start with innovative idea of providing frozen food items to
customers. The idea facilitates organisation to protect food items from spoiling as well as help to
maintain nutrition level and taste of food items for longer period of time. Farmfoods HRM
department develops various policies and strategies that enable it enhance employees
engagement level and their contribution towards organisational goals and objectives.
Organisation provides rewards to employees for their excellent performance and extra efforts
that motivates them to retain with organisation for long-run.
Balanced scorecard is defined as the strategic management performance metric that is
used by the organisation to identify as well as improve business internal operations that helps to
improve organisational outcomes. The technique used to measure past performance data of
business and provide feedback to organisation that enable to take better decisions. It facilitates
organisation to attain defined goals and objectives in efficient manner and plays important role in
improving business internal operations. Improvement of business operations enhance
organisational productivity and profitability ratio (Hermans, 2018). Farmfoods use the technique
of balance scorecard to evaluate part performance and take decisions according that help to
improve overall operations of business. In balance scorecard four main aspects are included such
as learning and growth, business processes, finance and customers are explained below:
Learning and growth is defined as the activities in which training and knowledge is
provides to employees to enhance their skills and competencies that enable them to perform in
most efficient manner. It is related to how information is captured and how employees using
information to to gain competitive advantages within industry. It mainly depends on performance
of employees in organisation.
Business processes is the aspect of balance scorecard that investigates how well products
are manufactured in organisation. Farmfoods organisation ensures that best quality products are
produced by organisation that satisfy customer's needs and demands. Operational management
department of organisation track whole process to identify gapes or delays in production of
products and reduce the level of waste through implementing waste management technique.
Customer perspectives is related to measure the satisfaction level of customers with
with quality, price and availability of organisational products and services. Farmfoods provides
better quality products at affordable prices that enhances customer's satisfaction and lead

business towards success (Kooij and Boon, 2018). Respective organisation collects customer's
feedback regarding organisation existing products and services.
Financial data such as business sales, income and expenditure is used by organisation to
evaluate business performance. Farmfoods uses this aspect of balance scorecard to to ensure
effective utilisation of financial resources and investment to generate higher profits. Respective
organisation ensures effective implementation of financial metric through maintaining financial
ratio, income targets and preparing budget. It enables organisation to lead business in right
direction and ensure optimum utilisation of resources.
Role of strategic human resource management
Drive business towards success through effective recruiting and selection: Strategic
human resource management plays important role in recruiting and selecting suitable candidates
who are able to perform business operations in efficient manner and contribute in attaining
business goals and objectives. Human resource managers of Farmfoods, conducts recruitment
and selection process to hire appropriate and skilled employees who are able to handle different
types of customers and handle their problems in efficient manner (Lim, Wang and Lee, 2017).
After selection of employees organisation provides them training to conduct business operations
in efficient manner. Strategic HRM facilitates organisation to organisation to recruit talented
employees and retain them with organisation for longer period of time.
Develop policies for improve workforce abilities: Strategic human resource management
department develops various policies and strategies to improve employees skills, competencies
and abilities that enable them to perform determined task on time with great efficiency.
Farmfoods concentrates on providing training and development programmes to employees on
regular bases that enhance their understanding and awareness regarding new trends in retailing
industry and improve their skills that enable them to work with more effectiveness. Development
of employees are measured by the growth and learning aspect of balance scorecard metrics
(Mariappanadar, 2019). This aspect of employment policies enhance multiculturalism at
workplace that enables organisation to work in proper manner with diversify employees who
come from different background and culture. Balance scorecard facilitates organisation to
identify the requirement of training to improve performance level of employees for gaining
competitive advantage.

Provide compensation and benefits to employees: Strategic HRM plays important role
in organising resources properly that enable organisation to attain defined goals and objectives
on time with great efficiency. Finance is the major resource of an organisation that ensure
smooth working of business activities. HRM department ensure that fair compensation and other
administrative benefits are provided to employees that boost their morale to work efficiently.
Farmfoods organisation's HR department develop various strategies to provide effective
compensation to employees that enhance their satisfaction level with specific job role and
organisation. Organisation uses finance aspect of balance scorecard to make sure that effective
compensation and other benefits are provided to employees that improve their engagement with
business.
Analyse how HRM strategies are related to wider management strategies and organizational
capabilities and performance
Human resource management strategies plays important role in managing organisational
employees and resources in appropriate manner to enhance business productivity and
profitability ratio. Basically, HRM strategies concentrate on improving skills, competencies and
abilities of employees to improve their working performance and gaining competitive advantages
than other competitors (Op de Beeck, Wynen and Hondeghem, 2017). In business various HRM
strategies are implemented such as recruitment and selection, performance evaluation of
employees, provide training, growth opportunities and various others. Whereas in wider
management strategies is related to analysing ways that enable organisation to attain defined
targets and objectives in efficient manner. Wider strategies are mentioned below:
 Customer Intimacy: Customer intimacy is defined as the process of understanding
behaviour, buying pattern and view point of customers during purchasing particular
product or service from market. For the success and development of business, it is
necessary to analyse actual need, demand and preference of customers and provide them
products accordingly.
 Product or service leadership: Product and service leadership consist providing
innovative products and services that attracts large customer base towards organisation
and attain the objective of higher profitability. Organisation gain competitive advantages
in market fro other competitors through providing differentiated products that are not
available in market.

 Lower total cost: Organisations are involve in lowering the prices of products to become
lower cost producer in market. It helps business attain higher profitability objective
through providing products at lower price than other competitors (Podgorodnichenko,
Edgar and McAndrew, 2020). To become lower cost producer, organisation ensures
effective utilisation of resources and eliminating unproductive steps in production that do
not ass any value in product and enhancing cost.
HRM strategies are linked with wider management strategies:
 Customer intimacy and recruitment and selection: To achieve customer intimacy
Farmfoods organisation adopts recruitment and selection strategy. It facilitates
organisation to appoint talented employees who are able to deal with customers in
efficient manner and resolve their problems. Skilled employees serves better quality
services to customers that enhances customer's satisfaction with organisation and retain
them for longer period of time. Respective organisation hire employees on the bases of
their skills and competencies.
 Lower total cost and training: Organisations have objective to achieve success through
provide quality products and services at lower price that attract customers. Organisation
provides training to employees that improves their skills and competencies and enable
them to enhance their working performance through ensuring proper utilisation of
resources. Farmfoods organisation regularly conducts training sessions to enhance their
understanding regarding production and provides development opportunities that
motivates them to improve their productivity.
 Product or service leadership and performance measurement: Organisation can
attain the objective of providing differentiated products to customers through measuring
performance of employees on regular bases. It ensures that employees are working on
right direction that is decided by organisation. HR managers of Farmfoods measures
employees performance and provide them feedback for their improvement (Renkema,
Bos-Nehles, and Meijerink, 2020). There are various performance measurement
techniques are adopted by respective organisation such as self-evaluation and monitoring
that ensures that employees are working on right track.
Thus, it clears that HRM strategies are linked with wider management strategies to attain
organisational goals and objectives on time with more effectiveness. Human resource strategies

plays important role in improving business capabilities and performance. Link between both
factors are mentioned below:
Recruitment and selection: Recruiting and selection is the process that facilitates
organisation to gain talented employees who enhances overall capability and performance level
of organisation. Skilled and capable employees are able to perform defined task on time with
more effectiveness that enhances organisational productivity and profitability ratio.
Training programmes: Farmfoods organisation provides training to employees to
enhance their understanding regarding business procedure that enhances their performance.
Organisation provide on-job training to employees that enables them to understand how to
handle customers and store items. Training as well as development opportunities enhances
employees capabilities that enhances organisational productivity and profitability ratio.
Performance measurement and record keeping: Organisations measure performance
of employees on regular bases to ensure that they are performing well to attain business goals
and objectives. Farmfoods organisation implements 360 degree evaluation technique that help to
measure performance level of employees from all aspects like how employees are behaving with
their colleagues, clients, managers and others. After recording employees performance, managers
provide feedback to employees for improving their performance (Shin, Jeong and Bae, 2018). It
enhances overall organisational performance and capabilities.
Providing security and other benefits to employees: Organisation provides various
benefits to employees such as insurance facilities, effective compensation facilities and various
others that enhance satisfaction level of employees and build trust. Farmfoods maintains good
relation with employees through provide various benefits that improve their performance and
help to attain determined goals and objectives.
CONCLUSION
From the above report, it is concluded that human resource strategies play important role
in managing employees and resources in organisation. These strategies includes training and
development, recruitment and selection and compensation that helps business to run business
operations in efficient manner and attain goals and objectives. Balance scorecard is defined as
the tool that is used to measure success of HR strategies. HRM strategies are interrelated with
wider-organisational strategies and business performance and capability. It helps organisation to
attain defined goals and objectives on time with full effectiveness.

REFERENCE
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