Strategic Management of Human Resource: HRM Report and Analysis

This report provides a comprehensive overview of strategic human resource management (SHRM), exploring its role in aligning workforce needs with organizational goals. It delves into various strategic theories, including best practice, contingency, and resource-based models, assessing their effectiveness. The report examines best practices in performance management and reward systems, emphasizing their impact on employee motivation and organizational success. It offers recommendations for reshaping performance management, such as simplifying processes, enhancing communication, and introducing feedback mechanisms like 360-degree feedback. The report also covers employment relations and the role of actors within it, concluding with a call for organizations to set regular goals and improve feedback techniques for future success. This analysis highlights the importance of aligning HR strategies with business objectives to achieve sustainable competitive advantages and employee satisfaction.

HRM
Strategic management of human resource
Student’s name
7/28/2019

Strategic management of human resource 1
Contents
Introduction......................................................................................................................................2
Strategic theories of Strategic human resource management are-...................................................4
Best human resource practices of performance management and rewards-....................................5
Recommendations............................................................................................................................6
Employment relations......................................................................................................................7
Theoretical perspective of employment relations-..........................................................................7
Role of actors within employee relationship-..................................................................................8
Recommendations............................................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

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Introduction
Strategic human resource management aids many companies to encounter their needs of the
workers along with the promotion of the corporation’s goals and objectives. However, if we talk
about the human resource management it mainly compacts through various features of the
business that majorly affects the workers such as employing, selecting, recruiting, training,
appraisals and administration. Moreover, such management aspects also help in planning and
forming various strategies for the employees so that they can better meet the needs of the
company (Brown, 2015).
So overall, strategic human resource management highlights around the strategic objectives and
plans so that it benefits the organization for improving and developing the entire culture that
helps in fostering modernism, elasticity and competitive advantage. In a business, Strategic
human resource management highlights acceptance and involvement the various HR functions,
which further helps in formulation and implementation of the companies’ strategies by
performing various HR activities (Bailey, et al, 2018).
The benefits, which are associated with strategic human resource ensures the higher productivity,
also develops and helps in retaining the highly competent employees in the organization which
not only benefits the employees but also effects the success and growth of the organization. It
also ensures that it helps in supplying information regarding the company’s internal strength and
weaknesses so that it can further perform various strategies to be success over weaknesses.
Nevertheless, along with it, it also has certain barriers such as fear of incompetency of senior
level manager to take up various strategic steps (Tiwari, and Saxena, 2012).
In terms of association and relationship in between industry the human resource approach,
strategy and their strong relation and connection in between these two. In terms of human
resource strategy, it highlights about the involvement of managerial leadership groups
deliberating with human resource experts to develop the complementary goals for overall
business and the human resource (Daley, 2012).
Human resource strategy also helps the business to maintain its quality as well as business
productivity. Hence, by maintaining the workforce where workforces relish their huge level of

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satisfaction in job and along with it job sanctuary, which in chance helps workforce to achieve
organizational goals. Therefore, it proves that human capitals as well as human resource both are
the most valuable resource. Other than this, if we link human resource strategies with the
practices to the business results there are sound strategic reasons that why top management
executes the various HR practices such as performance management systems, organizational
designs and employees’ feedback. When all this are well designed and are professionally
delivered, leads to enhance the overall value proposition and also helps in providing key piston
that drives success (Bamberger, Biron, and Meshoulam, 2014).
Vertical alignment of various strategies helps in ensuring that all the set strategies, which are
directly related to the set goals, organization missions, vision and values. Organization at initials
set various strategies in order to see the multiple aims and the intentions and most importantly,
these approaches are to be associated to safeguard that the set possessions are applied efficiently
and set achievement goals are fulfilled or not.
In terms of horizontal alignment or horizontal integration, which highlights those companies,
decides to grow horizontally in which businesses increases its size, diversify its products and
services and their various kinds of offerings. The results of horizontal incorporation are effective
because there is the capability to yield more income together as in comparison to the complete
independently. Moreover, the newly compound corporation also censor down the charge by
sharing their technology, production, distribution and lastly research and development. Examples
of horizontal incorporation are- Facebook’s 2012 attainment of Instagram, Marriott 2016
attainment of Starwood hotel and resort worldwide in the industry of hospitality (Burns,
Goldsmith, and Sen, 2014).
The global business environment in today’s time has become increasing competitive, most of the
organization set their targets to human resource, which strategically helps in fulfilling the
competitive advantage aspect. Hence, this highlights that SHRM constantly evolve itself which
thereby helps and supports the organization by providing strategic framework and hence handles
the long term organization goals (Buller, and McEvoy, 2012).

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Strategic theories of Strategic human resource administration are-
Best practice or the universal approach is one of the easiest way to analysis the human
resource strategies. This theories application and its practices can helps in increasing an
organization performance and helps in attaining the competitive advantage. Moreover, this
theory majorly focuses over the certain practices, which helps in reinforce employees’ abilities.
It various practiced highlights about variable compensation, recruitment, training and lastly,
performance appraisal. This model basically highlights that the practices which are applied by
the organization includes the employment security, decentralized decisions- making, widespread
teaching practices, widespread sharing of monetary and performance info (Noe, et al 2017).
Moreover, the presentation of these various observes also majorly focuses more on persons with
the integrated HR practices. Such as, a company provides the extensive training to employees
which are the most beneficial aspect for organization because empowerment of employees helps
in fostering creativity as well as innovation within organization. Other than this, it also motivates
the desired behavior through the strong incentives. Therefore, all such practices encourage the
exposed communication where the workers’ contributions and ideas are stimulated (Cherian, and
Jacob, 2013).
Another theory is the contingency approach or best fit, which majorly emphases on the
significance of appropriateness of the various human resources set policies in respect of culture,
internal as well as the external atmosphere and operational processes. This model majorly relates
itself with the behavioral perspective theory in which employees behavior indulge themselves in
between the organizational strategy and the performance. Furthermore, the best-fit strategy
combines both the internal as well as external organization components. In terms of external
aspect, it majorly focuses on aligning the organization human resource practices with the set
strategies. Whereas internal fit helps in aligning the firm human resource practices with one
another. Hence, by doing this, consistency in between HR practices and organization is
maintained.
Another model highlights about the resource-based model, which mainly argues of the
maintenance of organization sustainable competitive advantage by making use of effective
management resources. These resource can be in tangible form such as technology, capital,
human and in intangible such as brand reputation, name etc. Therefore, in this organization

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majorly focuses on the uniqueness of the resources, which helps them in fulfilling in achieving
the competitive advantage. For all this, company must continuously adapts to the various
changes such as work according to the external trends, internal capabilities and along with these
they must efficiently verbalize, evaluate and implement the set strategy.
By examining all four approaches, it is seen that the best-fit approach is the most appropriate
and the most effective and efficient for the various businesses as it is helpful in attaining the
continued competitive benefit and this is all due to the connection in between the human
resource behavior, human resource practices and competitive advantage aspect. Hence, all these
approaches and model highlights that it is important to align all the activities and the HR
strategies with the business strategy in order to attain success more speedily. Along with this,
employees as the entire human resource should also be considered important, their interest
should be totally aligned with the firm interest so that employees as well as organization should
gain more success.
Best human resource practices of performance management and
rewards-
In current time every organization is highlighting their great degree of assurance towards the
strengthening of payments and performance management performs which are related with the
other practices of HR and the objectives of the association for majorly retaining, attracting and
encouraging staffs. In terms of rewards systems, it is one of the vital motivator and majorly
contributes to the improvement of the output of the workers if it is executed well.
It is always seen that an actual remuneration system helps in the betterment of the performance
of the employees at some level. Hence, organization at some particular aspect emphases on
performance-based offers and pay plenty of knowledge chances sideways with a vigorous
working atmosphere. Few remuneration packages such as variable pay, bonuses, and team based
encouragements, profit distribution and equity built incentive rewards are the reward practices
which plays a critical part in increasing the overall presentation of the workers as well as
organization reputation (Shields et al, 2015).

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Other than this, an well-organized management of the system of reward within the organization
also affects the performance, likewise, reward system helps in encouraging the sense of
ownership among many employees. Reward system also helps in facilitating the long-term focus
with the continuous improvement; it also helps in reducing service-operating cost. Moreover, it
also build the sense of teamwork, improves the employees sense towards work, which they all
perform. Few well-known companies or the organization believes in the reward systems such as
Apple, Mahindra and Mahindra , general mills prize their workers for achieving the new talents
which enhance certain worth of the employees presentation and also to the organization overall
performance. Other than this, there are some other companies too who believes in rewards
systems like by providing recognition awards they win the employees commitment and attains
the long term beneficial results, financially as well as reputation in the entire market (Martín et
al, 2013).
Recommendations
Certain recommendations are formed in order to reshape the performance management system in
order to maintain the organizational expansion and transformation, such as-
 While redesigning the performance management process, keeping it simple strategy
will works great! If a company redesigns the process and if they introduce the
overcomplicated changes, then people or the employees will be unable to work in
flow or the process. Hence, praising the simple things and allowing people to give
and review feedback, integrating seamlessly with people’s workflow and removing
the heavier process so that people could work in a simple environment (Maier,
2017).
 Other than this, the organization needs to focus on increasing demand of the
communication aspect amongst the entire teams. All the employees should be
involved in the decisions in the newly formed performance management process.
Hence, continuous communication leads to more success of organization (Le, and
Pastukhova, 2018).
 Introduction of the new feedback system within organization such as 360 degree
feedback aspect which allows the people to give an all-round view rather than

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focusing over the single person viewpoints such as manager or supervisor. Hence,
such step makes an organization to head towards all-round approach and along with
this; they can gain valuable insights into the various leadership skills which will
further it will be easier for an organization to climb the ladder of success (Le, and
Pastukhova, 2018).
 For the future success, every organization needs to set some regular and the useful
goals, As goal setting is highly important for every organization. Right from keeping
employees on track, motivated, aligned with work, helping team members all such
aspects are need to be considered to future organizational success. So to keep up
with the goals it is significant to emphasis on upcoming accomplishments, various
ways to keeps employees motivated, engaged so that they work more actively than
before and finally leads towards their own success as well as organizations success.
 Lastly, organization should improve 360-degree feedback technique. As feedback
aspects helps the organization for the further betterment or helps in increasing the
state of the company. Similarly, by introducing the upward feedback concept within
the organization, which will leads to the improvements and much clear insight, more
opportunities to talk in front of top management and honest work will be given,
which will surely leads to the success of the organization at the larger pace (Le, and
Pastukhova, 2018).
Employment relations
An employment relation refers to the business’s struggles to achieve the connection in between
the managers and the workforces. Other than this, there are many organizations which are
withstand with a good operative associations platforms which delivers the unbiased and the
reliable action to all the workforces so that they can perform more dedicatedly and trustworthy
towards the business’s operations (Gabarro, 2014).
Theoretical perspective of employment relations-
Unitarism aspect- This theory majorly focuses on solving the workstation fight, which is not an
unavoidable trait of the connection between the worker and the owner. The occupation

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association in the organization is the main aspect for the survival of the organization. In this it is
seen that conflicts may arise periodically which arises in between the employers and the
employee and gets cooperative at some particular time. Therefore, this conflict is raised due to
some reasons such as personality disorder, wrong recruitment, a major communication gap, poor
communication, inappropriate promotions and lastly, deviance of dissidents. Hence, if an
management should ensure that further they promotions will be made fair and recruitment are
made wisely then organization will be realized from the many conflicts within the organization
(Herriot, 2013).
Pluralism- this theory mainly highlights about the relation of employer and employee conflicts.
Hence, if we talk about the difference between the unitary and pluralist is that pluralist operates
on the basis of business organizations which handle the multifaceted societal structure that are
made of the various interest groups. Hence, this highlights that management and employees
having their different points of values and objectives and therefore it results in different pint of
authority and also get prone to battle over the responsibilities and the distribution of the
payments. Hence, when the organization identifies and accepts the conflict then they regard it as
a vigorous organizational action. This is because; at this time, workers do share their complaints
and looks for the best outcomes as possible (Kehoe, and Wright, 2013).
Marxism- The last and the final theory of employee relation highlights that this theory majorly
highlights about the class battle in the capitalist civilizations due to the substantial interest
between the proletariat and the bourgeoisie. In this, proletariats are the wage laborers that are
working to create goods and amenities. The bourgeoisie is the presiding class or the proprietors
of the creation and such wealth through the generation of the profits that is made out of the work
done by the proletariat.
Role of actors within employee relationship-
Employee relationship comprises of three major actors, which are categorized as workforces or
the unifications, organization or the managers and lastly the state. Hence, all are having different
roles, which majorly affect the employment relations. If we talk about employees or the unions,
they do not receive their proper payments or the working conditions. Hence, unions is an
organization of the workers which seeks to improve the social being of its customers through

Strategic management of human resource 9
their effective actions. Therefore, all such things states that unions gets better deal with the
employers rather than each employ (Wagner, Ullrich, and Transchel, 2014).
Another is the employer or the management, which hires the workers, decides their particular
workings and the tasks, pays and incentives. For all this, employers or the management takes
extreme measures to ensure that employee would receive the beneficial alliances with major
focus on effective communication aspect. Other than this, the part of the management is to
inform the changes made in the employee relationships, offer advices, and train them to solve the
raised issues within the organization (Kramar, 2014).
Lastly, the state or the government officials which mainly comprises of central and state
government influences and along with this, they also regulates the industrial or the employers
and employee relationships through regulation of the general laws, agreements, awards, bonuses,
rewards of the courts. Moreover, this aspect or the parties also include the third parties and the
labor and tribunal courts. In this, it is also seen that administration and its interventions expect
taxes in arrival for the amenities in providing the allowing surroundings for the creation for
possessions and facilities in the societies (Van Wanrooy, et al, 2013).
Recommendations
There are various ways like such as employee participation and employee voice, Human resource
access, effective communication, providing training and development sessions and much more,
which can majorly contribute in improving relations within the organizations.
 Firstly, if a company gives employees access to be decision makers, this small act goes in
a longer way in convincing people and helps the employees in encouraging open
communication in the organization.
 Other than this, in organization employers and the management both should make
employee feel more valuable. By actually doing that irrespective of their real excellence
of work, they will feel pleased of their outcomes. Hence, for future appreciations for
well-done jobs makes them feel more motivated and majorly affects their future workings
and organization overall performances (Anitha, 2014).

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 Inspiration and rewards encourage employees to set stretch their goals, goals that are
difficult yet achievable. Therefore, by the adoption of gold, silver incentives for the
employees helps in fulfilling the corporate goals along with the corporate values. Not
only this, the relations among with the employer and the employee will also enhance
cause of good performance and active response for the future targets.
 Offering career development is also one of the best ways to recover the presentation of
the workers. Such as donation mentorship programs which clips workers to higher –
accomplished complements. Other than this, a certification program also helps in
building relations and helps workforces to develop in their goals of career.
 Lastly, one of the greatest operative customs to reinforce the employer- employee
relationship, HR needs to increase the quantity of individual interaction with the workers.
Therefore, the best performs for worker relation contains making human resource more
available to workers. Hence, worker relation manager improve the relationships and
modify certain HR departments for future betterment of the overall performance (Marler,
2012).
Conclusion
This entire report majorly highlights about the employer- employee relationships which majorly
affects the within workings of the organizations. Certain theories in context of employment
relationship works differently in different organizations. Not only this, business strategy and the
various human resource policies work greatly in improving the relationships among the members
of the organization and finally lead to the success of the organization in longer run. Certain
recommendations such as focusing on the rewards aspects, focusing on career development
enhancements which will surely leads to the betterment of the employee- employer relationship
and largely affects the workings of the organizations.

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