HRM 325: Strategic Management of Human Resources Report for M&S

This report provides a comprehensive analysis of the strategic human resource management (SHRM) practices employed by Marks & Spencer (M&S). It begins by differentiating between business and HR strategies, examining the concepts of vertical and horizontal integration within the context of M&S. The report delves into various SHRM models, including the Harvard, Guest, and Warwick models, and explores strategic perspectives such as the best fit, best practice, and resource-based view (RBV). A significant portion of the report is dedicated to M&S's HR practices, specifically performance management and reward systems, with recommendations for improvement. Furthermore, the report investigates employee relations, discussing different theories and the evolving roles of actors in employment relationships. The report concludes with recommendations for enhancing employee voice and participation to improve overall employee relations within M&S.

STRATEGIC MANAGEMENT
HUMAN RESOURCES

Executive summary
This report shows the HRM practise which are used by M&S for maintaining the smooth
flow of work within organization. Difference between strategy and HR strategies is made with
vertical and horizontal integration. Models of SHRM are used additional best fit, best practice
and RBV approach is mention. With HR practice of performance management and rewards
system with recommendation is given. Second task shows the models and concept of relationship
with employees, various role and recommendation for employee voice to improve employee
relationship.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
1. Difference between Business strategy and HR Strategy..........................................................3
2. Vertical integration and Horizontal integration.......................................................................4
3. Theoretical basis and Model of SHRM...................................................................................5
4. Strategic perspectives of Best fit, the best practice and RBV..................................................6
5. HR practice of performance management and reward system................................................7
6. Recommendation.....................................................................................................................8
Task 2...............................................................................................................................................8
1. Employee relation and different theories.................................................................................8
2. Role of actor for employee relationship with changing nature of employment relation. .......9
3. Recommendation...................................................................................................................10
Conclusion.....................................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic human resources is the process of business activities to recruit employee a
future develop and implements the HR policies within organization. This polices address
solutions to problems which are arises from employments and management. It helps business to
achieve it objectives in a long term period by maintaining the strategic human resource
management polices within organization (Yong and et.al., 2020). Marks and Spencer is the
multinational British company which is offering fashionable products for men and women, retail
store and home products within UK and some other countries. This report shows the relationship
between the business strategy and HR strategy, models of SHRM used by company. Strategies
like Best fit and RBV used by company and specific HR practice with some recommendation.
Second task, shows the relations between employees, role and changing employment
relationship. Last recommendation for employee participation and employee voice to improve
employments.
MAIN BODY
TASK 1
1. Difference between Business strategy and HR Strategy.
There is a difference between business strategy and Human resource strategy as they both
work different in company.
Business strategy Human Resource Strategy
 Business strategy is the course of action
which is set by entrepreneur in order to
achieve objectives through making
certain decision.
 This strategy work as a master plan for
company which help M&S to gain the
competitive advantage in market
through its effective operations and
achieve the desire results (Peidaie and
Belal, 2020).
 Business strategy is majorly working
 Human resource strategy is a plan for
managing the employees to complete
the business activity.
 This strategy is being working as for
employee that include hiring and
recruiting, performance appraisal,
training and development of employee
within the company.
 Human strategy is working majorly on
the solutions for employee within
company that motivate to work

on the process of working through
achieving effectiveness, utilizing the
resource in appropriate manner and
meeting challenges that are faced by
company during their operation and
during market.
 This strategy is an action to attack
customers, compete with market
competitor that strengthen performance
of company and achieving the
organizational goal.
 Policies are made by top management
of company with integrated framework,
marker research to analyse the
opportunities available and to avoid
potential threat that may affect
achieving business objective
effectively. This can be given through
various manner like appraisal, training
and development.
 This policies are implemented for
smooth work flow in company from
employee side and resolve problems on
time according to policies created.
 Human resource polices are made by
HR department of company where rule,
regulation, working policies and other
possible procedure are made that
maintain the discipline within the M&S
company.
2. Vertical integration and Horizontal integration.
Vertical integration and horizontal integration is major competitive strategies that
company used by acquiring or consolidate their position among competitor. Vertical integration
is an action by company to acquire the same line of production business. This integration makes
give complete control on company production stage and distribution stage to acquiring company.
On the other hand, Horizontal integration is the process of acquiring related business by acquired
company. The horizontal integration take over another company having same level of operation
in market and value chain in industry (Ahammad, Glaister and Gomes, 2020).
Both type of integration is the way to increase the company growth in market. But both
integration have difference aspect. Vertical integration shows control and owns all part industrial
process while horizontal makes company growth by purchasing competitor from market.
Horizontal integration assist company to expand its size, reduce competition from market, new
product diversification and expand into new market. Whereas, vertical integration shows aid

M&S to increase its profits and allow them to immediate access to its customers. These both
integration are being used by M&S for strengthen their market position and increase the
distribution and production process in market (Song, and et. al., 2020). This integration overall
boost the market share of company and revenue generation through enhance sales of company.
Acquiring small or same level of business increase the customers base for M&S. However, India
and China is major vertical integration of M&S which are acquired various suppliers in this
market in order to own supply chain in foreign market for suitability of cost effective of
products.
3. Theoretical basis and Model of SHRM.
There are various models which are used by M&S to maintain the discipline and smooth
flow of work in company. These models are used according the situation arises in market and
provide a solution. There are certain flaws and benefits which may affect company in favourably
or unfavourably. These models are: Harvard Model: This models state the interest of stakeholders which include
shareholders, employees, management and government which define policies of HRM.
Also, this situational factor influence interest due to work force characteristic, union and
other factors. HR policies are influence through Situational factors and interest of
stakeholders which include core activities of HR I.e. training and development of
employee, recruitment process and rewards system of company. After, complete process
of HR polices through Harvard Model shows positive outcome of Human resource
management (Theurer, and et.al., 2020). This includes retention of employee, cost-
effectiveness and commitment towards company to accomplishment of task. HRM
polices are developed for long term consequence which implied on company,
management and individual employees. Outcome of company directly flow into M&S
and its stakeholders. However, this affect the company as, external practice are also
involved and may affect the company policies. The Guest Model:This model is developed by David Guest in 1997. This models shows
that, HR managers had specific strategy to begin which demand practice further at a time
of execution and ultimate results received from them. These outcomes involve,
behavioural of employees, performance, rewards and appraisal. This model emphasizes
the major six components which are HR outcomes, HR practice, performance results,

behavioural outcomes and financial consequences. The behavioural outcomes are the
employee commencement towards M&S, quality work and flexibility to adopt changes
during situation which are impacted through HR practice. These practices are connected
with HR strategies which ultimately connected to organizational strategies. The M&S is
to follow the model in order to maintain the quality of fashionable products and retail
products that are offer to consumers. This help M&S to motivate employee and create
more effective working in company.
 The Warwick Model: In this model, five major elements are being considered by Hendry
and Pettigrew. These elements include outer context (external environmental forces)
Inner context (micro environmental forces), Human resource content, Human resource
context and business strategy content. The strength of this model is that they identified
and classified important environmental influences on HRM. It shows the impact of
external factors which affect M&S human resource management to adopt changes in
context. M&S achieve the alignment between the external and internal context to achieve
the performance and growth (Heeringa, and et,al., 2020). This model take lots of time for
knowing the internal and external factors that influence the HRM of company. While it
help company from loss and minimize the affect of changes adopted.
4. Strategic perspectives of Best fit, the best practice and RBV
There are many strategies which are followed by company strategic perspectives.
Through various approaches M&S follow these strategies in order to gain the best employee and
effective working for them. This approaches are : Best fit: The best fit approach shows the importance of HR strategies are appropriated to
certain situations and circumstances faced by M&S. This strategy includes the culture,
external environment and operational of company. HR strategy take both organization
and its people working for company. Some of the cases are found that best fit is more
important than best practice approach. As the external environment is very dynamic,
company by face many situations that can affect company and increase the chances to
duffer if not considered within time framework (Scully-Russ, and Torraco, 2020). The Best Practice: This approach is the set of guideline of company, ethics of
organization towards working and ideas that shows the prudent course of action during
situation faced by company. The Best practice is established through authorities which

include governing bodies or regulator. It is an overall framework of different situations
that is faced by company like furnished to employees in a manner to complete their
individual task in effective manner (Cuskelly and et,al., 2020). It also considered the
safety and security of employee while performing the task. This bet practice is also
considered as Benchmark to attain the aim and objective of one company by considering
top organization.
 Resource based View: This models looks as a key to superior firm performance. This
approach is developed to achieve the competitive advantage by looking the sources of
M&S company internally in spite of looking outside the organization to gain competitive
advantage. According to this model, external opportunities are more feasible by using
existing resources in different manner in spite of acquiring new skill for each opportunity.
Resources are given major role in assisting company in order to achieve organizational
performance. This model includes two type of resources which are tangible which are
physically present in company and used by employees to gain output and intangible
which are not physical present in company but having assert of company like goodwill
and patent of products. Resources based value considered two major assumptions which
are heterogeneous which is different from company to company and include resources
like skills and capability of employees. Second assumption is not mobile and do not
move from company to company majorly in short run.
5. HR practice of performance management and reward system.
M&S human resource management is majorly focused on the commitment toward
reinforcement of reward practice which are connected with other HR practice and to achieve the
goal employees re attack, retain and motivate employees. Efficient reward practice assist
company to attract professional employees who can performed within the performance based.
This increase the productivity of employees and if this practise implement properly (Nagano,
2020). As efficient management system is having beneficial effect upon performance in many
other ways. It builds a strong relationship between employee and management, build a sense of
ownership among employees, may facilitate long term focus with continuousness improvement,
reduce cost, operating cost, minimize employee dissatisfaction and promote team work.
Basis for rewards include employee stock ownership and profit sharing in company.
Rewarding to employee at milestone awards to achieve the highest target or bonuses to employee

which help them to make the motivation and improve performance in company. This sometime
increase the cost of company as they have to give incentives and bonus to all employee that
motivate them and others to get the benefits from company.
6. Recommendation
To improve the performance of employee in M&S, they should design or redesign
performance management system by:
 Target are set for each employee on daily and weekly basis that help company to known
about employee performance and how much target employees are doing for company.
M&S can also identify the level of employees and their ability to performance in market
with different situation.
 This also leads to known about the development required by employees for number
performing in different market changes and ability to adapt new changes. The training
process are being developing according to objectives and challenges that can be faced by
employee for performance.
 It also assists people to reward this employee who achieve target or performance
effectively in company by reducing cost and gain high outputs.
Task 2
1. Employee relation and different theories.
Employee relation are very important for company to maintain relation within
organization. The good relation make employee satisfied and happy to work with organizations
and increase the productivity of working (Darwish, and et.al., 2020). For this, HR adopted
certain practice and policies to keep employee happy and satisfied with management and with
company. Line managers are more ficus on relationship between employee and management to
accomplish of task in smooth manner, for maintaining relationship with employees, manager
adopt two ways. First is to adopt new polices are suggested to adopt by company from managers.
Second, manager used certain theories of employment relationship to suggest polices. These
theories are: Unitarism Model: This model shows that workplace conflict is not an inevitable
characteristic of the employee and employers. The employment relationship is important
for M&S to maintain and survival of organization in market. The conflicts are emerged

between employee and employers frequently while working. This conflicts can be raised
through poor communication, wrong recruitment, inappropriate promotions etc. Pluralism Model: This shows the assumption that business organizational are complex
social structure that are divided by different groups. These groups are basically
management and employees (Budd, 2020). They both have different values and ability of
towards objectives. This is often said as a healthy activity as one of the party accept guilt
and work forwards accordingly.
 Marxism Model: In this theory, conflicts between the class arises in capitalist society due
to different internet proletariat and bourgeoisie. The proletariat is the labour class which
produce goods and service. While bourgeoisie are the ruling class I.e. owners of the
production and gain profits through working of Proletariat.
2. Role of actor for employee relationship with changing nature of employment relation.
To maintain the relationship between management and employee there are many actors
which played an important role in company. Relations are maintained to achieve the objective
through working of employees and increase the efficiency by connecting them and motivating
them that increase the working performance of employee. These actors played with the changing
nature of employment relationship and include:
 Employees: These actors are working together for a same company in order to achieve
common objectives. Relationship between employees in company is very important
factor as they assist each other for work and complete task on time. They have formal and
informal relationship between each of them which shows strong bond between each other
that motivate and satisfied in organization. However, this relationship change with time
according to their position and authorities they are having which sometime create
problems like ego, respect and other conflicts (Duggan, and et.al., 2020).
 Employer: This is a person who carries out the whole organization and earn profits from
employee working. Salary is being given to employees by employers for work they
performed. The relationship can help to make growth in company and build a string
network by employee with other business people. While, there can be only formal
relationship is created by employees that cannot be made outside organization.
 States: The government of country help employee to protect their rights and increase the
safety and security issues which are working in country with organizational. The state

hep employee to maintain the relationship between organizational and with government
by providing various laws on organization that give benefits to employees. These are
laws of country that are implemented on organization which are working in country.
Some of the laws are labour law, employment law, rights and standard for employees in
organization law, are some of the major laws which make relationship between
government and employee. However, there is no personal relationship between each of
them and only official revelation is created (Oruh and et,al., 2020).
 Markets: This is the market where employees found there opportunities through their
skills and ability. Employers select the best suitable employees from the pool of
employees which have more skills and ability. The relationship between market and
employee is being maintained officially that help employee to get further employment.
Whereas, this market charges employee with monthly or annually that increase the
expenses of employee and make relation only after fulfilling the charges of this market.
3. Recommendation
Employee Voice is an important aspect for organizational to know the problems and
challenges that are facing by employee in organization. This assist company to maintain the
relationship between employees and management and move towards company vision and
objectives. Employee voice include the suggestion, problems, feedbacks to management
regarding policies and procedure that is followed by company. Some of the recommendation for
improving the employee voice and create strategies to make relationship between employees and
employers.
 Company should take regular feedbacks from employee regarding work and polices
which are implemented by company for employees and management. This will feel
importance to employee as their views regarding decision are being taken by company
which makes them satisfied and motivated (Budd, 2020).
 Face to face session by HR Manager with employees should be done in company. This
not only makes employee motivate but also help company to know the real problems
which are faced by employees during their working.
 A proper et of channel for communication should be there that crate easy flow of
information to top authorities and fast resolving of problems are done by company.

 Consulting problems with their superior help company to know the real problems and
solution which need to be find out for maintaining employee relationship and control that
problem in the future.
Conclusion
The above report shows the practices of M&S that is followed by company in order to
achieve the objective through creating business strategies and HR strategy. Vertical and
horizontal alignment are being also done by M&S for enhance the growth and size of company.
The models which are used by Strategic human resource management to maintain the employee
motivated and satisfied. Further, best fit and best practise help company to face different
situation and makes changes according to environment including RVB. Lastly the HR practise of
performance management and rewards system which is used by company to encourage employee
for better work and recommendation to improve the performance management system. On the
other side, second task shows the models of employee relationship with employee and other
actors which are faced by employee during high working. Lastly, recommendation are bing made
for better employee relationship through participating and employee voice.