Strategic Management of Human Resources at Sainsbury's Report

This report provides a detailed analysis of strategic human resource management (SHRM) within Sainsbury's, a leading UK supermarket chain. It explores the relationship between business strategy and HR strategy, examining vertical and horizontal integration, and the application of the SHRM model. The report delves into HR practices such as performance management and reward systems, offering recommendations to enhance their effectiveness. It also covers theoretical perspectives on employment relations, the roles of employees and employers, and the changing nature of these relationships, including mechanisms for employee participation. The analysis highlights the importance of aligning HR practices with business objectives to improve overall performance and achieve sustainable competitive advantage, considering factors like employee engagement and the impact of external trends. The report concludes with recommendations to support and improve Sainsbury's performance management system, emphasizing the integration of technology, clear objectives, employee metrics, and recognition.

Strategic management
human resource

Executive summary
It has been analysis from the below report that there is a great relation between human
resource and business strategy. This report combines of Vertical and horizontal integration of
company as well as Model of SHRM. HR practices of Performance Management and Reward
Systems aids in improving performance of company. It also includes Theoretical perspectives of
Employment Relations and role of employee and employer along with changing nature of
employee relation. Mechanisms of employee participation and voice is important at working
place of company for growth of entity.

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Relationship between business and human resource strategy.....................................................3
Vertical and horizontal integration of company..........................................................................4
Model of SHRM..........................................................................................................................5
Strategic perspective of best fit, best practice and resource based view.....................................6
HR practices of Performance Management and Reward Systems..............................................6
Recommendation to support performance management system.................................................7
TASK 2............................................................................................................................................8
Theoretical perspectives of Employment Relations....................................................................8
Role of employee and employer within employee relationship..................................................9
Changing nature of employee relation........................................................................................9
Mechanisms of employee participation and voice....................................................................10
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
The strategic management human resource is important and plays integral part in the
progress of company. This will facilitate in managing workforce and management of the
enterprise. The strategic management of human resource influence overall functions of human
resource activities and practices. It is the strategy in respect of synergy effect for combining
strategy and HR management. The strategy of human resource management is the outcome of
best results that increase profit of the enterprise. It mainly purpose for line up human resource
practices to deliberately focus on the business operations and process. The strategic management
human resource aids in accomplish goal of entity with the help of smarter actions or activities of
human resource management. The chosen organisation in this report is Sainsbury. It is one of
the leading supermarket retail chain established at united kingdom in 1922 by John James. They
deliver product and services such as groceries, clothing, financial and electrical services. This
report aims towards relationship between business strategy and human resource. The report
combines model of SHRM as well as HR practices to improve performance and reward system at
workplace (Brown, 2019). This report include strategic perspective of resource base view,
contingency, best practices. It evaluate nature and perspective of employee relation along with its
changing nature. This report includes recommendation to enhance performance management and
mechanism to increase employee engagement.
TASK 1
Relationship between business and human resource strategy.
In toady competitive business world, the department of human resource plays very
strategic role in business operations (Baylisand Gray, 2018). In context of Sainsbury, the ROI on
strategic human resource management is integral part of human resource as well as business
strategy to improve its performance.
HR strategy is one of the business strategy- In Sainsbury, there is not that much
difference business and human resource strategy as both combines overall productivity and
progress of company. The strong relationship improves administration as well as processes of
HR. This aids in survival of entity in long run by the help of futuristic vision of leaders and
human resource.

HR strategy and business productivity- In context of Sainsbury, HR recruit and select
best workforce to ensure overall productivity in business operations. Same as the business
strategy also aims toward ensuring performance improvement to achieve established target. The
HR maintain job satisfaction under employee so that they will push their limit in achieving
business objective.
Trends affect HR and business strategy- The external and dynamic trends influence
performance of Sainsbury. The leaders and executives of entity continuously modify the
practices of human resource like recruitment, selection and business strategy so that it will result
in the synergy effect in reducing trending effect in business process.
Involvement of executive leadership- This is reality check of strong bond among human
resource and business strategy to facilitate engagement of HR executives as well as company
executives (Forre and et.al., 2018). Some times HR does not involve in business decision, on
other hand company it self depreciate the value of human capital. By increasing involvement of
executives with HR, it will reduce employee turnover ratio as well as of entity.
Consideration- There are various factors that influence HR and business activities of
Sainsbury. The manager need to examine the goals of HR as well as business to avoid any type
of complexities in business operations to satisfy consumer satisfaction.
Vertical and horizontal integration of company.
The horizontal and vertical integration are one of the competitive strategies which ois
adopted by Sainsbury to enhance market position from its competitors. Horizontal integration is
concerned with the integration related with the business acquisition. This strategy aids company
in take over some other company of similar value chain in enterprise. On the other hand vertical
integration involves acquiring operations of business among same level of production. This
strategy aids company to control more stages in production and distribution level. By adopting
horizontal integration company can expand its business size and offerings to degrade competition
while entering into new market (Gregory, 2020). Where as vertical integration boost public
image of entity and increase the consumer base. The Sainsbury uses horizontal integration to
improve production as well as distribution stage as they deal in retail segment. There are several
befits of horizontal integration as it enhance market share of enterprise. As when two companies
combines all together its goods, services, technology to increase its market share and consumer
base. They get a chance to access and exploit large market and consumer base. This will

facilitate revenue and growth of company. It will decrease the operating cost of business
operations with the help of synergy effect (Holland, 2017). After implementing this strategy
Sainsbury can increase its prices and create more options to increase income of company.
Model of SHRM.
There are various model of strategic human resource management that can be adopted by
Sainsbury.
 Corporate strategy- This strategy imposed by the top management in the company to
formulated strategies of internal s well as external environment forces.
 Business strategy- After imposing corporate strategy business strategy is imposed and
formulated to achieve goal of business at each level.
 Human resource strategy- The ultimate goal of SHRM is to execute effective strategy
of human resource like planning of HR as well as job design.
 Employee separation- It is one of the strategic issue as when the employee left the
entity it will affect operations and productive level. It is essential to established strong
relation of employee and management to reduce employment turn over rate.
 Laws regulating employees- In some context SHRM have to imposed laws related with
recruitment, promotions, salary structure, working hours condition etc.
 labour relations – A good industrial relation facilitates smooth functioning of
organisation performance (Hunter, 2020). This will ensure harmonious labour relation to
enhance working environment of company. SHRM always handle healthy, positive
labour management relationship at workforce.
 HRIS- This ensure effective flow of HR strategy that aids in decision making of
business as well as HR policies. This integrate overall performance of enterprise.
 Performance management- This model ensures employment result and its performance
to accomplished future as well as current goal of company. The HR will provide
compensation and rewards on the basis of employee performance.
 Compensation- Compensation is one of the challenging function of SHRM because it
will affect the motivation as well as satisfaction level of employee. This will leads to the
excellence performance of workforce if they get appropriate amount of compensation in
return of contribution work.

Strategic perspective of best fit, best practice and resource based view.
Best fit- The best fit approach is also known as contingency approach, it is used in
combining workforce management in order to competitive strategies of business. This will raise
performance of employee as well as workforce. This will integrate HR strategies to imposed in
appropriate way in terms of organisational situational. This is perceived in respect vertical
integration to brings coordination among entity business as well as HR strategies. This approach
consist of four types of factors while imposing appropriate style like leader, subordinate, task,
and environment (Kasemsap, 2017). In Sainsbury HR strategies have to consider both the needs
of employee and management so that they will deliver best practices of SHRM.
Best practice- In Sainsbury the SHRM implement best practice approach, it facilitates
numerous activities of human resource to support organisation in achieving competitive gain
wile executing business activities and operations. But it is not necessary that other company also
perform similar as one company. This can not implemented if company have different culture,
management, style, technology as well as working practices. This ensure overall support to
enhance overall performance to handle competition in the dynamic market.
Resource based view- In context of Sainsbury, it represent fundamental change in the
approach of SHRM. It aims towards internal resources instead of external. It ensures unique and
innovative activities of HR practices. This act as origin of sustainable competitive gain from its
competitors. For gaining competitive benefit company must ensures loyalty of employees at
workplace (Leroy and et.al., 2018). Sainsbury must provide customized features to their
employee in order to improve its experience. They will make them feeling like they are not
employee, as they are business partner. Another strategy can be applied by Sainsbury to grab the
attention of best talented employee who are more precious and matter to business process.
Organisation can also delivers comprehensive advantage to employee such as flexible hours,
work form home etc.
HR practices of Performance Management and Reward Systems.
In Sainsbury, the practice of performance management and reward system implement by
human resource. The ultimate purpose of this performance management is handle organisation
expectations as well as performance of employee. This will encourage and develop performance
of individual employee along with management. It will facilitate clear vision of employee and
company to achieve long term goal of company. The advantage of delivering reward, recognition

for contribution of employee efforts will leads towards positive aspect in the performance of
employee. If company delivers appropriate recognition or rewards in return of its performance, it
will increase motivation level of employee. This will facilitate employee performance in greater
level and enhance the job satisfaction of workforce. This is one of the effective tool that can be
used by the company to retain best talented employee. Human resource must evaluate the each
performance of employee and provides suitable rewards in return of work to increase
positiveness at workplace. In appropriate reward system in working environment of company
leads towards negativity in the minds of employee and management. This will affect the value
and productivity of company (Rosenbaum-Elliott., 2021). As employee and human resources are
valuable part of company. By implementing effective performance management practice
company can identify, measures, and create productive value performance to achieve strategic
objective of entity. It will ensure the progress and overall value of company.
Recommendation to support performance management system.
Performance management system is connected with company goals and objective. Here
are some recommendation to improve or support performance management system of Sainsbury.
Combining strategy with technology- The performance management system of
Sainsbury has its own sets of procedure. They need to combine this set of performance system
with company culture and behaviours. By this company can achieve long and short term goal as
well as sustainable competitive advantage.
Few objective but equally vital- Company must established few and simple objective
for this system rather than any complexities. They must ensure attainable and equally vital goal
for achieving productive value of employee engagement in business decision making.
Tagging employee metric in respect of company target- company must ensure
employee metric by establishment divisional goal, primary metric. So that it will provides actuall
progress and performance of employee and their contribution in achieving company objective.
Company must clear the dashboard of employee performance (Schepker and et.al., 2017). It will
aids company in achieving overall goal of company along with employee goal.
Recognise employee effort- To improve the performance management system Sainsbury
must recognise the efforts as well as interest of employee. Because it will enhance value and
culture of company. When employee feel that they are recognised and equally treated they will

push their limit to increase efficiency in its performance. This will facilitates communication in
working environment and boost the satisfaction level of employee.
Make adaptable intuitive system- Sainsbury must ensure that their system of
performance management must be adaptable and intuitive so that they can modify the system as
per the chaining environment of company. The growth of the company is directly link with the
performance of employee. So while operating any business activities they must ensure value of
organisational culture. The adaptable system brings productive value in the enterprise.
TASK 2
Theoretical perspectives of Employment Relations.
The employee relation is most important in improving performance performance and
growth of the company. The employee relation with the management and company plays core
role in industrial relation. The success of enterprise is depend on effective relationship of
employee or workforce. Healthy and positive employee relation improves the public image of
company (Widodo, 2018). Because it will increase the level of productivity in the performance
of employee. Employees are the ones who executes business operations and activities so their
relations really matters to the the performance of entity. The loyal and highly satisfied employee
always try to improve public image of company. This will facilitates consumer satisfaction at
greater level. If company fail to maintain better and healthy positive relation of employee, it will
affect the overall overall growth of company. Effective and efficient employee relation aids
company in gaining competitive advantage from its competitors. The positive employee relations
improves relationship of employee and management. This will reduce the conflicts and
confusion in the actions of employee. It will deliver appropriate direction to achieve organisation
goal of company. Sainsbury must ensure all the measures regarding safety and security of
employee. Th3ey must provide suitable compensation and perks in return of its productive work.
This will enhance the level of productivity at workplace. They can retain their talented employee
by improving motivation as well as satisfaction level of employee (You, 2021). The employee
relation facilitates the relationship of employee and employer. This will brings collaborations
and improve communication at workplace. The employee retention, satisfaction, productivity,
engagement improves the relationship of employee with its management and employer. By

adopting positive perspective of employee company generate more income and profit as satisfied
employee will try to push their limit to satisfy target audience.
Role of employee and employer within employee relationship.
The relation of employee and employer plays great role employee relationship that
manage or monitor different teams in the enterprise. The healthy and positive relation of
employer and employee affect the productive and value of company in good context. Where as
negative and unhealthy relation influence the performance of company in poor context. Both
depend on each other to deliver best outcome for company growth. The employer motivates the
employee to push their limit to increase value of company and aids in achieving organisational
goal. They act as a role model and motivator in the organisation that improve employee skills
and knowledge. Where as highly satisfy employee become more loyal towards company as they
improves good public image and increase profit of the company. Employee helps company in
accomplish competitive gain. Positive relation of employee and employer increase delegation
and reduce conflict among business operations at workplace. In context of Sainsbury they are in
good position to maintain balance within employee and employer relation. As company believe
that human resource, employee and employer are valuable part of company. This is the main
reason of company success. The employer act as a leader who continuously encourage the efforts
of employee and same as with employee they also continuously try to improve its performance to
satisfy target consumer (Mechanism of employee voice, 2021). This will enhance good public
image of entity and generate more revenue.
Changing nature of employee relation.
There is rapid change in the nature and employee relation after fourth industrial
revolution. The significant change has been seen in the working conditions of employee hours,
office working situation, arrangement of works. The full-time, part time, family business occurs
that lead towards changing characteristics of employee in professional ways. With the emergents
of fourth industrial revolution lots of changes occurs in working procedure and method of
employee arrangement in respect of professional, families, stakeholders and societies. The
relationship between employee and employer must consider familiar relationship at the working
place. The changing environment of employee facilitates changes in professionalism to gain lots
of benefits like social security. Health care, working flexibility, paid leave, predetermine
vacations. All of these changes leads towards the change and redefine the meaning of employee

relation. It signify worker or workforce management as a professional means of employee as
well as employer. This process leads towards redesigning and re framing several norms,
procedure, structure that is essential to examine need and rights of the working condition of
employers and employee (Strategic human resource management, 2021). This will improve the
engagement of employee as well as employer. Most of the countries are trying to modify new
reality changes with the changing practices of employee relation in terms of laws, social and
work arrangement. These changes whole scenario and impact the employee relation so that they
can deliver productive solution to the industry.
Mechanisms of employee participation and voice.
The employee participation and voice is one of the effective mechanism through which
employee can share its thoughts with employer. This will affect the matters in respect of working
condition in the company environment. In context of Sainsbury this mechanism is adopted to
build open as well as generate trust among employers. This will aids employee along with
employers. In respect of employer, the effective mechanism of employee participation, voice
help in developing creativity and innovation. It will improve overall performance of company.
On the other hand for employee this mechanism enhance job satisfaction in order to improve
great value in its performance. This will generate more better chance and scope for the growth
and development of company along with employee. It will identify various perspective or
purpose in entity and changing nature of employee relation.
CONCLUSION
From the above report it has been concluded that strategic human resource management
act as linkage between strategies and human resource management activities that boost business
performance as well as growth of entity culture to gain competitive benefit. In the enterprise,
strategic human resource management refers involvement in the activities of human resource in
strategy formulation as well as executing enterprise strategy in functions of HR like recruitment,
selection, training, development, compensation and rewards, perks etc. This will identify and
exploit external scope and threats in order to transform these factors in favour of enterprise. It
helps entity in analysing strength and weakness and ensures high productivity to meet the
expectations of target consumer. This is the foundation to established strong performance of

business activities. It will ensure and facilitates scope of business success and accomplished pre
determine target. This will synchronise overall activities of business and human resource to
deliver innovative and productive goods and services to potential audience.

REFERENCES
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Online
Mechanism of employee voice, 2021. [ONLINE] available through <
https://www.cipd.asia/knowledge/factsheets/employee-voice#gref >
Strategic human resource management, 2021. [ONLINE] available through <
https://www.deputy.com/blog/7-steps-to-strategic-human-resource-management >