Strategic Human Resource Management: Models, Performance & Relations

This report provides a comprehensive analysis of Strategic Human Resource Management (SHRM), defining it as the alignment of human resources with strategic goals for improved business performance. It discusses horizontal and vertical fit, emphasizing the importance of aligning HRM practices with organizational objectives. The report explores three SHRM models—resource-based view, best fit, and best practice—and their contributions to organizational performance. It also examines performance management systems, highlighting their role in guiding employee behavior and improving decision-making. Furthermore, the report delves into reward systems, emphasizing their importance in motivating employees and driving organizational change. The concept of a learning organization is introduced, along with its ability to support organizational change and development. Finally, the report briefly touches upon employment relations, including unitarism, pluralism, and Marxism, and their theoretical perspectives.

Running head: STRATEGIC HUMAN RESOURCE MANAGEMENT
Strategic Human Resource Management
Name of Student:
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Author’s Note:

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Table of Contents
TASK 1:......................................................................................................................................................2
Definition of SHRM:...................................................................................................................................2
Discussion on the two different types of fit:................................................................................................2
Three models of SHRM and their contribution to the improvement of organisational performance:..........2
Performance management systems:.............................................................................................................3
Rewards and reward system in organisations:.............................................................................................4
A learning organisation:..............................................................................................................................5
Way in which a learning organisation can support organisational change and development:......................5
Ways in which performance and reward management can bring about organisational change:...................6
TASK 2:......................................................................................................................................................6
Employment relations:.................................................................................................................................6
Unitarism:................................................................................................................................................6
Pluralism:................................................................................................................................................7
Marxism:.................................................................................................................................................7
Theoretical perspectives that underpin Employment Relations:..................................................................8
Employment relations:.................................................................................................................................8
Conclusion:..................................................................................................................................................8
References:................................................................................................................................................10

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TASK 1:
Definition of SHRM:
“Strategic Human resource management” can be defined as the connection or the link of human
resources with the “strategic goals and objectives” for the improvement of business performance and the
development of organisational culture which is responsible for fostering innovation, flexibility and finally
that of competitive advantage. In any organisation, the concept of competitive advantage is used to refer
to the acceptance and involvement of the HR functions as a strategic partner in the overall formation and
the implementation of the strategies of the organisation which involves the functions such as recruitment,
selection, guidance and the rewarding of personnel. The most important feature of HRM that
requirements to be kept in mind is that of being integrated by nature (Uysal 2013).
Discussion on the two different types of fit:
In form of a fundamental characteristic of SHRM, fit is the concept which is used to denote the
“utilization of human resources” in order to assist the achievement of the goals of a particular
organisation. According to the experts Wright and McMahan, fit is supposed to mean “the pattern of
planned human resource deployments and the activities intended to enable the firm to achieve its goal.”
According to scholars, two types of fit exist, namely “horizontal and vertical fit”.” Horizontal fit”
basically refers to the congruence among the different HRM practices. “Vertical fit” is viewed as a critical
step towards the attainment of organisational goals by the initiation of certain human resource activities
which are aligned with the aims of the firm. It is believed that the horizontal fit is useful at the time of
making proper use of the available resources. Basically it needs to be understood that the horizontal fit
refers to the harmonization among a varied nature of human resource practices while the concept of
vertical fit is concerned more with the “compatibility between the HR Practices in a systematic and
proper manner”.
Three models of SHRM and their contribution to the improvement of organisational performance:
The present situation all over the world is becoming more and more competitive and more and
more establishments are targeting the human resources as a way of the strategic gaining of competitive
advantage. The concept of strategic human resource management is a continually developing procedure
which is concerned with the provision of a strategic framework which supports the long term business
goals of an organisation. The underlying logic behind this fact is that the organisations across the world

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are utilizing newer and pioneering technologies in order to give “qualitative low cost solutions” and are
also trying to administer the individual assets much more efficiently.
The “resource based view model” focuses on “leveraging of the competitive advantage” through
both tangible as well as intangible organisational possessions. There are questions concerning the best
method of achieving SHRM. Evidence points to the fact that that firms do not usually adopt a solo style
of management and it is likely that they use a blend of different outlooks for diverse groups.
The “best fit” approach puts forward the concept that the strategic HR should be inextricably
linked to the formulation and functioning of strategic corporate as well as business objectives. This is
supposed to mean that the HR strategy is concerned with the matching of the employee’s role and
behaviour with the mission, goals and the values of the company. In case the business strategy of an
organisation is focussed on the deliverance of a high quality service then the HR strategies and the
policies need to focus on the employees. This can be achieved by a rewarding attitude and behaviour
which matches this specific approach.
The “best practice” model of SHRM claims that there are certain HR activities which
unanimously support the companies in getting a certain competitive advantage irrespective of the
organisational setting or industry. It basically aims at those particular HRM practices which can be
applied in most of the organisational contexts in order to increase the performance which helps in the
production of a better outcome. This model is sometimes however criticised because there might be a
deterioration of employee collaboration. The models are however influential apparatus for shaping f the
human resource management process. There might not be any absolute judgements on which approach
works best but the best fit models works better overall as it has a great amount of appeal to the HR
practitioners. It helps in the positioning of the first level strategic partners in the procedure of
administrative verdict making.
Performance management systems:
A well trained talented and skilled workforce is the key to any organisation. Performance
management is responsible for guiding employee behaviour in order to align with the goals of the
organisation. This happens because the job responsibilities and the expectations are clear and can often
lead to an increased amount of productivity. Better information results in improved compensation and
decisions for promotion (Bach 2013).
A proper performance management system helps an organisation with employee decision-making
and employee development. verdict making uses the assessment information as a means for the pay

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increases, promotions, transfers and reductions in force. Performance development uses the appraisal
information for guidance in training, job experiences, mentoring and other developmental activities
(Buckingham and Goodall 2015).
It is considered that a pre-requisite for success is getting commitment and support from
executives at all possible levels. This is responsible for putting across a strong message internally as well
as externally regarding the valued behaviours. In case the organisation does not have a strong
performance management culture, then enlightening the executives on the important role and
responsibilities in leading the process is important. The way in which this can be achieved is the
involvement of the crucial individuals in the design and the implementation process. Another method is to
pilot the new system with the executive team. In order to implement a new system successfully, there
needs to be a communication with all the employees regarding the advantages and rationale for a new
system. There needs to be a constant review of the procedure to ensure that it is successfully
accomplishing the desired objectives (Taticchi, Balachandran and Tonelli 2012).
For the creation of a skilled and empowered workforce, organisations need to go beyond the
review of employee achievements. The judgement need not be the sole focus of a performance system, it
should also emphasize ongoing support and improvement. A successful performance management system
will ideally help un driving business results and profitability, improve management and coaching,
promote job satisfaction and motivate the workforce overall. It needs to be remembered that the sole
objective of a “performance management system” is to promote and improve the overall employee
effectiveness. With the support of the executive team and coaching, employees need to meet their
company and career objectives. Therefore performance management is a crucial tool for the companies
who desire to increase productivity and profitability (Van Dooren, Bouckaert and Halligan 2015).
Rewards and reward system in organisations:
In a broad sense it can be stated that the performance evaluation and reward systems are
considered for employee progress and raising a sense of enthusiasm for the purpose of achieving better
and much more perceptible results. Goals can be reached by giving organized feedback at the time the
effects of partisanship and errors which come from it. The entire purpose of the reward system is to boost
productivity and the quality of work in an establishment.
In organisations all round the world, the concept of reward systems are established practices
possessing certain common and specific characteristics as the system need to be company-specific. It is
necessary to focus on the specifics of a particular organisation and also the organisational culture at time

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of planning, understanding and interpretation of the system. After the establishment of an effective
system in place for the measurement and evaluation of the employee performance, there is the need to
suitably reward the employees who have been performing well consistently. The performance rewards
can include compensation, benefits and perks, recognition and appreciation.
Rewards need to be scaled according to the accomplishments and applied consistently across the
organisation. The major reason behind the concept of reward management is to give the employees
tangible reasons to continue to improve their performance and assist the growth of the company. It is the
organisation’s duty to ensure that the employees are involved in the proceedings of the company in the
sense that they know what exactly is needed to earn specific rewards. The reward system also needs to
match the demographics of the employees.
Other than individual achievements team work is also crucial to the success of any organisation.
Therefore companies need to ensure that teams who perform well are duly rewarded and appreciated. In
case there are certain members of team who performed more than the others there need to be a team/
individual reward system to help in the prevention of any sort of resentment among those team members
who have achieved more (Rabl et al. 2012).
A learning organisation:
“A learning organisation” is actually the name given to an organisation which helps in the
learning of all the employees so that the company can continuously transform itself. A learning
organisation is something which is formulated as a result of the pressures which are being faced by the
companies at present for allowing them to remain competitive in the current day business environment.
The concept of a learning organisation was held as a panacea for organisational success in a dynamic and
global economy. The concept is extremely relevant in the present scenario due to the increasing
complexity and uncertainty of the organisational environment.
Way in which a learning organisation can support organisational change and development:
Continuous improvement programs are sprouting up all over as the organisations try to better
themselves and gain a particular edge. It is impossible for an organisation to grow without learning
something new each day. It is believed that erudition establishments are skilled at certain crucial activities
which involve systematic problem solving, experimentation with newer and better approaches, learning
from own experience and past history, learning form the experiences and best practices of others and
transferring knowledge quickly and resourcefully throughout the establishments. Thus these companies

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become successful by bringing about organisational change and they integrate the activities into the fabric
of day to day operations and help in the management of their own proceedings in a much more effective
manner (Fındıklı, Yozgat and Rofcanin 2015).
Ways in which performance and reward management can bring about organisational change:
High and proper performing organisations manage their systems and practices of rewards in such
a way that enables them to predict properly what innovations are likely to work best and to ensure that the
functions which they are endorsing deliver the expected results. Reward systems involve “various awards,
recognition, promotions, reassignment, non-monetary bonuses” which are linked to the performance of all
employees. Rewards are crucial motivators and their effectiveness depends on three factors namely the
drives, performance value and the satisfaction value of the goal objects. Financial incentives are
connected much more effectively with the basic motivation or for deficiency needs. Thus rewarding
employees by both monetary and non-monetary benefits is a crucial way in which their performance and
contribution to the organisation is appreciated.
TASK 2:
Employment relations:
Employment relations are basically defined as the performance and the announcement between an
employee and their employer specifically concerning with the employee rights and happiness in their
respective jobs. The concept of employment relations involve the communication between the
management and the employees concerning “workplace decisions, grievances conflicts, problem
resolutions and issues of collective bargaining”. Employment relations involve the complicated and
compelling area of study which involves the relationships with the employers the employees and the
government on a regular basis. There are different perspectives namely unitarism, pluralism and Marxism
which explain the different situations which occur in the organisational scenarios.
Unitarism:
This perspective is basically based on the assumption that the organisation is simultaneously the
unitary perspective organisation which is integrated as a “happy family” along with the management and
other members of the staff sharing a common purpose, with emphasis on mutual cooperation. In such
cases the stakeholders also possess a common set of values, interests and objectives. There is a certain
paternalistic approach in this particular concept as it relies on the loyalty of the employees, being
predominant managerial in both the application as well as emphasis. This particular perspective can be

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helpful in the identification of the industrial relations and their climate within specific types of
organisations. In the company context, this perspective is an important theoretical device for the
examination of the managers attitudes and perceptions (Edwards 2017).
Pluralism:
In this context, the organisation is considered to be comprised of powerful as well as divergent
sub groups where each has certain legitimate loyalties and have their own set of objectives and leaders.
The most important sub groups in the “pluralistic perspective” comprise of the management and trade
unions. This perspective involves a “vast distribution of authority and power in the society” and there is
also importance given to the “ownership separation from management” and “political separation and
industrial conflict” in certain cases.
The most important fact to be considered in this aspect is that the individuals and the
organisations have groups comprising of their own aims and interests and leadership. These aims often
compete and cause several problems and tensions which need to be managed effectively. This point of
view puts forward the idea that the management employee conflict is both rational as well as inevitable. It
basically rises from the different roles of the managerial as well as employee groups (Edwards 2017).
Marxism:
This particular perspective is broad and greater in scope and also gives emphasis on the
importance of collective action and organisation which is needed. It is believed that when the Marxist
perspective and beliefs change the organisation and society will also change as a whole. These views
basically discuss the capital society in a deep manner and the production, distribution and exchanged
system are also discussed deeply. According to this particular perspective the fiscal inequalities exist in
case of wider social conflict and more specifically within the arena of industrial relations and industrial
conflict. The Marxist perspective is also referred to as the radical perspective in certain cases. This
outlook basically helps in revealing the nature of the capitalist society. It helps in putting forward the
view that the workplace relations are against common history (Edwards 2017).
There is a difference between the three perspectives as they have different understandings against
the concept of conflict. There is a rather derogatory perspective to the concept of the word conflict in the
first case, the reasons being agitators, interpersonal friction and breakdown of communication. It does not
actually refer to the solution. The pluralist view focuses on the collective bargaining as the means in
which conflict can be tackled. It focuses on the importance of conflict management. The Marxist

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perspective on the other hand is extremely radical and it puts forward the idea that the inability of conflict
comes from the inequalities of powers caused by capitalism exploitation (Bach 2012).

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Theoretical perspectives that underpin Employment Relations:
An important theory which has a perspective on the employment relations is that of the systems
theory. It is basically an alternative method for understanding, managing and planning in organisations.
Employee relations are basically a human resources discipline which is concerned with the strengthening
of the bonds between the employers and their employees. The systems theory is a method of analysing
and giving sufficient thought into the operations of the companies. The theory states that “organisational
success relies on the synergy, interrelations and interdependence between the different subsystems.
Interdependence and interrelationships are also a large part of the systems theory. Since humanity is
designed to be social the concept and understanding of interdependence among employees and groups
effortlessly fits into this particular framework” (Siebert et al. 2015).
Another important concept or theory in this regard is the contingency theory. This is also an
important part of the systems theory. It puts forward the idea that “the ideal structure and form of any
system depends on the dynamic of internal subsystems. The organisational structure cal also have far
reaching effects on the relationships of the companies with their respective employees” (Van Wanrooy et
al. 2013). The best nature of the organisation and the organisational structure depends on the relation
between the managers the owners as well as the employees. No particular organisational structure can be
considered to be the very best as it is dependent on the nature of the organisation and its constituents. The
personalities of the owners and the workers help in the determination of the structure which is best for the
organisation (Lee et al. 2012).
Employment relations:
There are different types of employee relations which are witnessed in the labour unions, staff
committees, members of different unions and so on. There are diverse interests which are seen in such
cases (Donaghey et al. 2014). Sometimes the relationship in such unions can be highly adversarial. In
case the working relationship is improved, employers and unions can gain much more out of their
interactions. Organisations and employee unions can work in harmony if only there is an
acknowledgement that each person has a valued purpose in the team and in the organisation as a whole
(Nicholson 2017).
Conclusion:
There needs to e a proper balance between the practices in any organisation and also within the
teams to ensure the proper running of the company. There might be different points of view of the

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members and the managers but every situation needs to be considered from the organisational perspective
and therefore there needs to be a situation where a consensus can be reached in each decision. Every
organisation is faced with distinct challenges of its own and it is desirable that the internal problems do
not in any way harm the overall organisational objectives. A proper balance needs to be maintained in
giving responsibilities to each of the members of the organisation to ensure that it runs smoothly and there
are no issues in the organisational structure and employment relations.

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