Strategic HRM Report: Sainsbury's Business & HR Strategies, HRM325

This report examines the strategic human resource management (SHRM) practices of Sainsbury's, a major UK supermarket chain. It begins by defining SHRM and its alignment with business strategy, exploring vertical alignment and horizontal integration. The report then evaluates theoretical models of SHRM, including the best fit/contingency theory, best practice/universalistic approach, and resource-based view, comparing and contrasting their applications. Specific HR practices, such as performance management and reward systems, are evaluated, followed by recommendations for improvements. The report also investigates employment relations, including theoretical perspectives like the unitarist and pluralist perspectives, and analyzes the roles of actors within the employment relationship. Finally, it provides recommendations for enhancing employee participation and voice to improve employment relations within the organization. The report aims to inform business leaders about effective SHRM strategies.

Hrm325 strategic
management human
resource

Table of Contents
INTRODUTION..............................................................................................................................3
TASK 1............................................................................................................................................3
Explanation of relationship between business strategy and human resource strategy with
explanation of vertical alignment and horizontal integration in organisation. (400)...................3
Evaluation, comparison and contrast of theoretical models of SHRM........................................4
Evaluation of specific Human Resource practices of Performance Management and Reward...7
Recommendation.........................................................................................................................7
TASK 2............................................................................................................................................8
The nature and theoretical perspectives of Employment Relations.............................................8
Evaluate the roles of the actors within the Employment Relationship
with analysis of the changing nature of employment relations...................................................9
Recommendations for mechanisms of employee participation and employee voice which
contributes in improving employment relations within organisation........................................10
CONCLUSION..............................................................................................................................11
REFERENCE.................................................................................................................................12

INTRODUTION
Strategic human resource management can be defined as the link between company's
human resources and its strategies and goals. The management ensures that the goals of human
resource reflects and works in direction to achieve goals of the organisation. The department
utilizes the skills and knowledge of human resource department and make sure that other
divisions get more effective (McCleanand Collins, 2019). The company selected for this report
is Sainsbury which is second largest chain in the supermarkets of United Kingdom. It was found
by John James Sainsbury and includes brands like Argos, Habitat, Nectar and TU. The report
focuses on the relationship between business strategies and human resource strategies, the
theoretical models of SHRM. Evaluation of human resource practices of performance
management and reward. Apart from this it also consistent nature and theoretical perspectives of
employment relations and roles of actors within employment relationship are also identified.
TASK 1
Explanation of relationship between business strategy and human resource strategy with
explanation of vertical alignment and horizontal integration in organisation. (400)
Business strategy in the field of management can be defined as the rules and regulations
with the relation to business which may bring something different and new for the benefits of
employees and company. Were as the human resource strategy means the process of planning
that is used to identify present and future human resources requirement in organisation to achieve
set goals. With reference to Sainsbury the following is the relationship between business strategy
and human resource strategy:
 Improves organisational productivity- The process of recruitment and selection of HR
department overrides productive building of workforce. For Sainsbury, development of
human resource strategies for recruitment and selection of best employee may affect the
company's bottom line (Das, Das, Sundaray and Sahoo, 2019).
 Executive leadership interactions- The quality of interaction between the HR
executives and other executives of Sainsbury define the relationship between human
resources and all over business strategies. There are times when the human resources
leaders of company deny access to boardroom and complain that organisation is not

appreciating value of human capital. Return on investment in human resource activities
can improve relationship between HR and executives.
 Develops Strategies and Solutions- The HR department and management team of
Sainsbury cooperate for the development of effective program for training employees,
performance appraisal and rewards to employees. Management development is also
necessary component for this process. For the management training- organisations
development, employee selection and recruitment with manpower planning are key
components which helps in getting solutions (Moussa, Garcia-Cardenas and Benrimoj,
2019).
Vertical alignment strategies are those which has goal to relate directly with
organisations mission, vision and values. With these strategies Sainsbury can indicate how it will
achieve goals and objectives. It has been seen that companies formulate several strategies which
they can implement to meet multiple objectives and goals. Strategies for vertical alignment are
formulated by top authorities and people at bottom level perform activities according to that so
that business strategies can be accomplished properly. While for proper execution of those plan
of action the human resources has to have proper knowledge about the manager they have to
report (Machta and et.al., 2019).
Horizontal integration ensures that all the strategies are working together and do not
have competition. When the business strategies of company are established to look at the big
goal, integration ensures that one part of organisation is not inadvertent and inappropriate to
impact the ability of achieving strategies of another part of enterprise. In Sainsbury the people
who work at same level are treated with equality as the manager make them feel that the work
done by each employee is important for company. This is necessary so that the business
strategies can be achieved by company with the people who are effective enough for company
and have full skills and knowledge of workplace (Hansman, Hjort, León-Ciliotta and Teachout,
2020).
Evaluation, comparison and contrast of theoretical models of SHRM.
Strategic human resource management ensures that the management goals are achieved
with proper strategies and with effective work of human resource of company. There are certain
theoretical models which can help Sainsbury to attain its goals and objectives which are as
follows:

 Best fit/contingency theory- This theory considers effectiveness, HRM must take care of
other aspects of organisation or external environment. Contingency decisions within
HRM has taken on the basis of internal and external fit. External fit works with vertical
alignment were HRM practices watch the firm's strategy and environmental conditions
while Internal fit refers to horizontal alignment as they work together deliver the same
desired achievement (Gulshani, 2019).
 Best practice/universalistic- The model can be described as HR methods and systems
that have universal and positive effects on organisational performance. The purpose of
this model is personal development, better performance, higher productivity of firm's
employees. It refers to those practices which enables any organisation to attract, employ
and develop enough capable and motivated employees. These practices helps any firm's
to achieve its goal in expected manner.
 Resource based view: It is a managerial framework used to determine the strategic
resources which a firm can use to achieve the substantial goal. Its organisation's potential
to achieve the competitive advantage. The model is takes an “inside view” or firm's
perspective about organisation success or fail in the market place. Most companies
develop their strategy by analyse external environment. While many companies ignores
internal strengths and weaknesses, but balance strategy should reflects both views
(Ablah and et.al., 2020).
The following is the comparison between these theories:
Basis Best fit theory Best practice Resource based view
Definition This approach
emphasizes
importantly on HR
strategies which can
be appropriate
according to
circumstances of
It is universal
approach which is
based on the premise
that picks the most
effective HR practices
and policies which
depends on matching
Its a model that
focuses on the
resources which are
key to superior
performance of
company.

organisation like
culture, operational
processes and the
external environment.
them to organisations
environment.
Advantages This approach in
Sainsbury gives values
to the managers
understandings,
knowledge and
leadership styles
which lets them in
taking different
decisions which may
depend on different
situations.
It establishes
companies own
practices for its area of
expertise to make
everything work
smoothly and
efficiently.
It helps in attaining
current strategy with
value creation and
implementing the
present and possible
future competitors.
Disadvantages It is a complex
approach as
suggestions are vert
simple but when they
are implemented
practically it becomes
complex for
Sainsbury.
It arises difficulties
when the managers ho
beyond the
straightforward
practices.
Vagueness of
terminology is
associated with this
theory, apart form this
there are some
methodological issues
which hinders the
working of Sainsbury.
Apart form the above comparison, these theories have some contrast which are as
follows:
 All these theories can be used for managing organisational activities which can help in
increasing the work and control it within company.
 Sainsbury can used any of these approaches to solve any situation, for HR issues and
while managing tasks which will provide competitive benefits.

 Overall these theories focus on increasing profitability and productivity within
workplace.
Evaluation of specific Human Resource practices of Performance Management and Reward.
A part of HR works on regulation of performance management. They create space where
the managers and employee's can do work and perform according to their abilities but with right
strategies. The following are strategies which can be used for effective performance management
for which rewards can also be given to employees of Sainsbury:
 Communication of company's goals and objectives for performance- Employee's of
Sainsbury can not meet the performance expectations if they do not have clear outlines
which makes them step towards the performance management. The leaders must convey
all the details to its employees which may help them and also communicate with them
about the working strategies. When the employees working according to set standards of
company they can be rewarded by leaders. This would motivate the employee and make
them effective towards their work (Dubey and et. al., 2019).
 Utilization of performance management software's- Every company now a day
utilizes the performance management software which is effective at is offers traditional
reviews and 360s, it is employee-friendly and has easy-to-use interface. The software
helps both the management and employees to stay on top with their work for smooth
functioning and be effective all the time (Whitfield, 2019).
 Setting regular meetings to discuss outcomes and results- It is also known as progress
report which sets time of meeting with the team members and report about the things
which are going in company. It can be held on weekly or monthly bases which may
ensure that team is present and progress feedback is more accurate which allows leaders
to make plans which well make them move forward.
Recommendation.
For performance management system the human resource management is recommended
to implement the above stated HR practices can support the organisational development. With
effective communication of Sainsbury's goal and objective the leaders can make employees
mission clear about the working of company. While by utilization of performance management
software the work process of leaders can be made easy and fast and by setting regular meetings
employee's can get to know the effectiveness of their work.

TASK 2
The nature and theoretical perspectives of Employment Relations
Employment relation is defined as activity which is requires in every business for the
purpose of increase workings and maintaining effective working environment. For organisation it
is important to understand what employees wants and how they can be satisfied that can help to
maintain the good relations and increases the performance. By managing positive and
constructive employee relation companies hope to keep employees loyal and more engaged in
their work. For instance Sainsbury is larger size organisation where number of employees are
working collectively by managing good relation and solve problems of each other. The
management of organisation are applying different type of techniques and theories which can
help to operate and regulate the business continuously.
Theoretical perspectives of employment relation are as:
Unitarist perspective: This theory involves set of assumptions and values that are
holding conflicts in relation to workplace in not inevitable and states the characteristics of
relations between managers and employees. According to this theory conflicts in organisation
can be arises periodically and may create the problems while working. The management of
Sainsbury can use this theory analysing conflicts and solve them properly with the help of
rendering services. This covers scientific management theory, human relation theory and human
resource management that all are important in business organisation as it fill the employee's
needs and arrange them in relation to activities that can help to complete task effectively. The
management of chosen industry is playing important role as they decide the goals and assign
work between employees, managing human resources and getting the work done effectively
which improves business performance.
Pluralist perspective: This theory is related to assumption and values of workplace as
conflicts are inevitable. In this people thoughts that perception is the view that states organisation
are complex social construction which are made of different interest group. Whenever nature of
factor and industry seen as invariably then management and employees constitute two groups
that can help to maintain the conflicts and increase the performance. This theory argued that
potential for conflicts are providing a spur to managers by introducing innovation and new
technological methods for handling problems and producing best results by managing each task
and activity. The management of Sainsbury can use this theory for dealing with industrial

relation issues, minimising the level of workplace conflicts etc. This also encourages employees
to work fairly in order to get higher outcomes. More than this, it involves system theory and
strategic choice theory which uses to reduce problems and increase production with the help to
maintaining relations (Kochan and et.al., 2019).
Marxist perspective: This theory is related to study of sociology that facilitate
development and cultural activities of organisation. This theory can be uses by Sainbury in stage
of development by creating sources for society and come in to conflicts with existing relation of
production. In this, management brings new ideas and thoughts that can be uses to increase the
organisational performance by reducing conflicts, developing good relations and assigning the
work between all staff. This involves labour process and Feminist theory or maintaining good
behaviour and increase performance.
Evaluate the roles of the actors within the Employment Relationship
with analysis of the changing nature of employment relations
Employees: This is important factor in employment relation as they are those people who
understand the organisational goals and perform their roles effectively. In Sainsbury, employees
are playing important role as they share their thoughts and problems with employer which they
are facing and get better solution that deliver good performance.
Trade Unions: This is association of workers who performs a legal unit and working
collectively in order to attain common goals. This factor is playing important role in employment
relation as leader of Sainsbury understand the goals and assign work between all employees as
per their skills that can help to attain the common goals and objectives. This factor is highly
important as leader is the strength of union that provide guidance and assistance how they can
manage their work and encourage them to work more effectively (Ho, Wang, Ho-Dac and Vitell,
2019).
Government: In business and employment relation government is another factor that
should be consider while running a business. This allows many business to regulate and expand
their business in other country and contribute in economy. In context to Sainsbury, employer is
following all government regulations that are related to employee benefits and improving
economical condition which increases business performance and profitability in changing
environment (Whitfield, 2019).

Therefore, from the above discussion it has analysed that employment relation is
important in any organisation as it motivate the employees to accept challenges and work more
effectively by arranging all work activities. Employees, trade union and government is playing
important role in changing nature as they understand the goals and give their contribution in all
activities in relation to business by working properly which can help to increase the sales and
profitability.
Recommendations for mechanisms of employee participation and employee voice which
contributes in improving employment relations within organisation.
Mechanism of employee participation means the sharing of activities of employee with
other employees. When the employees are formed as a term, then they are responsible for
completion of goals or the work in Sainsbury. In a team a forum is provided where employee can
suggest ideas which can make the term more efficient towards work and help in making
decisions. It does not matter that level of employee's involvement is more or less, all team
members are encouraged to participate.
Mechanism of employee voice states the means by which employees can communicate
their points to the managers and leaders which may influence the matters that affect the working.
This helps in building open and trust worthy relationship between employers and employees
which can contribute towards organisations success. It contributes to innovation, productivity
and improvements in organisation for the view point of employers. For employees it results in
increased job satisfaction, greater influence and good opportunities for the development in
company (Ho, Wang, Ho-Dac and Vitell, 2019).
With the help of this two mechanisms the employment relationship within organisation can be
improved as follows:
 Increased productivity- It is fact that when tasks are performed with more dedication
and involvement, the employees become more clear with their thought process. So the
employers of Sainsbury can increase their productivity of employees with proper
guidance.
 Enhanced morale- It is the overall emotion and satisfaction of employees with their jobs
and workplace. These aspect of employees can not be fulfilled when the culture of
organisation does not give any importance to involvement of employee.

 Ensures that leaders set right tone and climate- The impact of employees voice is
indirect because the leaders interact with employee's less often than the managers of
company. The actions which are taken by leaders and their decisions males filters with
are downwards to the organisational works which is spread across the organisation.
 Encourage leaders to participate in trust building conversations- It suggests that ever
leaders has pride of having open door which helps them in getting honest answers from
the employee's which may be caused due to inherent mismatch in the power and
authorities (Kochan and et.al., 2019).
CONCLUSION
From the above project report it can be concluded that strategic human resource
management is connection of company human resources with the strategies, objectives and goals
of organisation. It aims to advance flexibility, innovation and competitive advantage. The
relationship between the business strategies and human resource strategies interrelate with the
vertical alignment and horizontal integration of the organisation. Their are some theoretical
models of SHRM such as best fit theory, best practice theory and resource based view. Apart
from this the nature and theoretical perspectives of employment relationship are different. Their
are some actors who play their roles within the employment relationship to analysis the change
in nature of employment relations.

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