Strategic Human Resource Management: Business and HR Strategy Report

This report delves into the crucial relationship between business strategy and human resource management (HRM). It examines the alignment of HR strategies with overall business objectives, exploring both vertical and horizontal integration. The report compares and contrasts various Strategic Human Resource Management (SHRM) models, including the Competency Model, Michigan Model, and Harvard Model, evaluating their strengths and weaknesses. Furthermore, it investigates HR practices in performance management and reward systems, emphasizing their role in employee motivation and organizational success. Task 2 shifts the focus to the nature and perspectives of employment relations, identifying key actors and their evolving roles. It analyzes the perspectives of Unitarism, Pluralism and Radicalism and examines the changing dynamics of employment relations, considering factors such as policies and laws.

Strategic human resource management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Evaluate relationship between business and HR strategy .....................................................3
Compare and contrast models of SHRM................................................................................4
HR practices of performance management and reward .......................................................7
TASK 2............................................................................................................................................7
Nature and perspective of employment relation ....................................................................7
Identify actors of ER and their roles in it...............................................................................9
Change in nature of ER and roles of actors in it ..................................................................10
CONCLUSION .............................................................................................................................11

INTRODUCTION
For every organisation it is necessary to maintain positive and strong relation with their
employees. this is because it enables in creating a strong culture. The HR is responsible for
undertaking various practices and implementing them. Employee relations is focusing on both
the collective relationship and individual relationship within workplace as with the enhancing
emphasis on helping line managers that can establish the relationship that are on trust. Good
employee relations has a strong impact on the satisfaction of the employee as well as
commitment levels (Chowhan, Pries. and Mann, 2017). Employers must pay the attention to the
system that contributes good employee relations. this report will describe about relationship
between business and HR strategy. Also, it will discuss about vertical alignment and horizontal
integration. Moreover, difference between models of SHRM will be explained along with some
HR practices in performance management and reward. In task 2 it will be described about
perspective of employment relations and actors of ER. Furthermore, change in nature of ER and
actors in ER will be analysed.
TASK 1
Evaluate relationship between business and HR strategy
Business strategy refers to goals and objective that are to be attained. It outlines what
future goals are to be attained and who will perform what role. there are various types of
business strategy which is developed and implemented. They are corporate, operational or
strategic. In order to implement those strategy HR is required. Thus, HR strategy is developed in
alignment to business strategy. HR strategy is overall plan of business for managing its human
resource and align with business operations. the strategy consists of many things such as hiring,
training, performance appraisal, etc. However, it is identified that there is great relationship
between business and HR strategy. this is because on basis of business strategy, it is determined
that how many HR is needed, job roles, how they will be trained, etc. However, with change in
business strategy, HR strategy is modified as well (Aisbett. and Hoye, 2015).
Moreover, it is evaluated that there are different types of strategies that are formed and
implemented. But it depends on business nature and type. Besides this, there are commonly two
types of strategies which are classified as below :
Vertical and Horizontal integration

Both of these are the strategies that can be utilised through business within same
production process and industry (Horizontal and vertical integration, 2019) Within the
horizontal integration, a firm takes over other that can operates within same level within an
industrial while vertical integration includes the various operations of businesses at the same
production (Alusa. and Kariuki, A., 2015).
Horizontal
Here the firm wishes to undergoes this integration in order to enhance their
diversity ,size ,its products as well as services. It also accomplishes the economies of scale as
well as decreases the competition. Also, growing horizontally means to generate more revenue
and compete in market with rivals. this allows firm to merge with any other business. through
this, competition is reduced within industry. For instance- a retail organisation may want to
merge with other on to generate more revenue (Hassan. and Mahmood, 2016).
Vertical integration
It is a type of strategy in which organisation acquires a company which operate in same
industry. the main goal is to expand supply chain, reduce production cost, widen distribution
channels, etc. This enables in selling products directly to customers and generating profits. in this
as well there are two types that is backward and forward integration. backward is strategy where
company buys another one for acquiring input product of that company. whereas forward
integration occurs when company take control of post production process (Aisbett. and Hoye,
2015)
.
Compare and contrast models of SHRM
SHRM refers different practices and methods to attracting, developing and retaining
employees for long term. It is beneficial for both employees and employers in attaining goals and
objectives. Furthermore, nature of SHRM is related to long term focus and goal setting. Also, it
includes integration of business strategies and fostering employee skills for future. besides this,
there are several models of SHRM which is applied (Yong, and Mohd-Yusoff, 2016). Each one
differs on certain criteria. they are defined as below :
Competency model
This model identify that what is needed to become a successful HR. It defines three
things that is competency and knowledge and necessary in effective practices of HR, support HR

in their personal growth and development and support business in setting of method and
practices to identify HR leaders. The model is base of talent management as it focuses on overall
HR life cycle. moreover, it makes sure that HR is having relevant skills and capabilities as well
as knowledge to solve issues of employees. There are various components in this model that are
ethical practice, relationship management, leadership, HR expertise, etc.
Michigan model
This model was developed by C Fombrun, Noel and M.A in 1984. it identifies
relationship between HRM and business strategy. The model state that how HRM activities can
be designed according to organisation strategy. It is divided into two section that are HR strategy
and HR cycle. the first section provides a framework through which policies can be formed by
deriving it from organisation strategy (Cristiani. and Peiró, 2015).. in second one it consists of
HR function such as hiring, performance appraisal, training and development, etc. furthermore,
model is one way fit between HRM strategy and its policies. alongside, model focuses on HR
policies and systems that are integrated with business strategy. However, there are some
managerial implication depicted from model such as it emphasis on individual and organisation
performance, policies and practices, etc.
The Harvard model –
It was developed by Michael and Richard Walton that state that stakeholder interest
highly impact of HRM practices and policies. moreover, it emphasis on environment and
situation factors that shape HR strategies. thus, model state that HR practices are highly
influenced by internal and external environment. apart from it, there are two other elements as
well that is :
The situational factors are internal and external factors like technology, management philosophy,
social ethics, etc (Pham, Tučková. and Jabbour, 2019). .
Stakeholder interest that is goals of trade union, associations, etc.
However, model categories HRM polices into 4 themes that are HR flows (recruitment,
section, training, etc.) reward system, employee influence and work systems. in this the
managerial implication defined are model allow HR manager to develop HR strategy. also, it
provides insight for HRM practices to be taken.

Comparison of model
Michigan model The Harvard model
It does not include any philosophies, interests
and assumptions.
In this philosophies, interests and assumptions
are taken into consideration.
It is a one way fit model between HRM and
business strategy.
It is a two way fit model between HRM and
business strategy.
The managerial implication defined from it are
on individual and organisation performance,
policies and practices, etc (Saridakis, Lai. and
Cooper,2017).
Here, managerial implication is it provides
insight for HRM practices to be taken.
Critical evaluation
The harvard model is the best from all the above model as it si known as the tow fir model. it
emphasis on environment and situation factors that shape HR strategies. thus, model state that
HR practices are highly influenced by internal and external environment. Also internal and
external factors like technology, management philosophy, social ethics are impacted by thei
method.
Strategic perspective of best fit, best practice and resource based view-:
The strategic perspective to Best Fit approach mainly considers the significance that ensures
that HR plan of actions are appropriate to undertake the circumstances of the enterprise. It is
inclusive of the culture process of operational activities and external environment working. It is
model that propose the reward system and this must be alignment with organisation business
plan of action in terms to accomplish the competitive advancement.
The strategic perspective of Best practice can be defined as to maintain as alternative and his
is compulsory legislates standards that is mainly based on tools as benchmarking and self
assessment. This is public health plan of action that is highly supported by evidence that
determines the impact and effectiveness. However, best practices cover the Human resource
management actions and processes. It defines that HR needs to put focus on the both need of the
enterprise as well employees.

RBV with VRIO is termed out as the Resource based view that mainly focuses on managerial
attention on the enterprise internal resources in order to identify the assets, capabilities and
competencies with the potential to deliver supportive and effective competitive advancement
(Cristiani. and Peiró, 2015). This is defined as one of the internet tool as that determine the
internal resources of organisation and put major focus on organisation core resources and
capabilities. Here, VRIO is used with RBV model.
HR practices of performance management and reward
Human resource involves various practices that are essential for the business enterprise
for maintaining the business stability. These practices also helps organisation in achieving their
goals and objectives. HRM practices involves hiring, recruiting, training, development programs,
motivation employees and rewarding them. HR department is required to appoint best employees
having the knowledge and skills of their profession. This process involves appointing candidates
add value to the business and help them in achieving their goals. They have to conduct timely
training programs for their employees for enhancing the knowledge and skills. They have to
analyse the performance of employees who are putting full efforts for increasing the
productivity. They should motivate them by giving incentives and rewarding (Pham, Tučková.
and Jabbour, 2019).
Reward management system
It is a system that consist of evaluating and controlling the workers remuneration as well as
compensation as well as other advantages for the staff members. The aim of the reward
management is to create as well as operate a rewarding structure efficiently for any firm. It can
helps the firm to attract new staff members, builds honestly and loyalty, creates a healthy
environment as well as encourage the employees towards positive institutes. Firms provides
Monterrey and Non Monterrey rewards to their staff members such as discounted health check-
up,vocational holidays and many more.
Recommendations
 It must be recommanded that managers linking rewards with performance.
 It is also recommender that hire the employees as per their efficiencies such as they can
hire Right candidate for right Job.

 It is also recommanded that there must be training provided to the current employees also
known the new employees as current employees also make ware about the new
trends,new rules and regulations.
TASK 2
Nature and perspective of employment relation
The nature of ER is to maintain relationship between employee and employer. It also
includes both individual and collective relation (Ogunyomi. and Bruning,2016). here, individual
is related to employees whereas collective is related to industry, trade union, etc. ER concept is
complex as the relation are not limited to employees but also to government. It is analysed in ER
is dynamic and changes with change in policy, law, etc. of industry. However, there are different
perspective of ER which defines it. The perspective varies and is applied in different context.
These are been developed in context of ER. they are defined as below :
Unitarism
It is the relation of employees that refers to the harmonized and integrated system within
a firm. This dimension focuses on more on strategic and integrated frameworks that lay
emphasis on the shared interest at workplace as well as commitment of the employees. Here the
perspective is considered as one of the key employees frameworks within the human resource
management. Unitarism focuses on the new challenges regarding the government and trade
unions to adjust within a new working environment. According to the Unitarism it provides the
responsibility of management to oversee and control conflicts. It states that arises of conflict due
to the lack of presentation regarding policies ,lack of information through management. It is also
identifies the source through which arises of conflict as the employee not the management. Thus
there are several conflicts occurs from management by policies, guidelines, objectives, relations
as well as implementation of polices . Thus, Unitarianism limit the influences that plays by
management within the conflict of staff.
Pluralism
Pluralism explains the reality of the individuals having various world views such focuses
on the way they regard the world as well as how they live. There are various things that impact
the world view such as culture, geography, politics ,geography and many more. Some
individuals sees the world from the perspective of the religion as some of them have secular

values when organizing centre. Differences also exist in culture from one nation to the other.
Such as population of one nation have different varieties of political beliefs, variety of religions,
cultural identities and political beliefs. So several individuals will agree that democracy is the
founder of democracy as according to that it is considered as a belief where democracy creates
a balancing structure between the various group in society. Thus as per the pluralist the
government takes the mediator between all the several groups in a society (Manafi. and
Subramaniam, 2015).
Marxist approach
Marxist approach is quite similar to the pluralist as according to it conflicts that are arises
between the employees and employers are unavoidable. This approach claims that the power can
be sustain to the individuals who mean to the production. According to this theory conflict will
regularly takes place between the employees and employers because of their basic dissimilarities.
Here the employees and employers are opposed because they are opposed to cooperate. Trade
unions are seen both as weapon to bring regarding social change and labour reaction regarding
exploitation through capital. Within this approach the concern regarding wage related disputes
are the secondary disputes. Trade union focusses on increasing the position of employees in
capitalist system as for the approach of Marxist all the strikes are falls under political. The
pluralist approach is quite supportive of capitalism and at the same time focuses on the
participation of the employees, cooperative work culture as the industrial relations cannot be
accepted to Marxist (Ogunyomi. and Bruning,2016).
Identify actors of ER and their roles in it
In ER there are many actors that play vital role in it. These actors work together to develop
as employee relation system. Basically, the actors are government, trade unions, associations,
etc. Each one plays a different role in it. There are the major components of the Employment
relations such as employer, employees and government.
Employees
They are considered as one of the most affected one of the Employee relations system prevalent
within the firm. Staff members which have various characteristics such as their commitment
regarding the firm and organization as well as their social background and educational
background, their attitude towards the management as well as participate within firm while the

decision-making process. Staff members who participate through trade unions. Trade unions are
considered as strong emotional and political overtones from the point of view of employees.
Employer
They are considered as second party after employees as they are represented through
management. Thus, management becomes accountable regarding several stakeholders within a
firm that involves staff members. As they are sustaining and creating the motivation of
employees. It assures commitment from staff members as well as achieves the higher level of the
efficiency. It also provides the members of the firm regarding issues relation to the employee
relations (Giauque,Anderfuhren-Biget. and Varone, 2019)
Government
Government's role can be change in addition to the changes within the employee relations that
can be changes within the management perspective and employee relations. The system of the
employee relations matters through the employers and employees. But nowadays the attitude of
the government changes within the changed constitutions regarding the conflicts between the
employers and employees. Government intervention becomes a reality over the time as the
intervention of the government becomes widespread within HR matters. They are tries to
regulate the relationship of employers and employees as well as keeps an eye regarding group.
This kind of relationship is maintained by labour court ,wage boards, industrial tribunals and
many more.
Change in nature of ER and roles of actors in it
It has been identified that role of actors are changing due to change in legislation and
employment. However, the changing nature of ER is described as :
Working hours – This is changing in ER as new laws and policies are formed regarding
working hours. Now, ER has formed guidelines to be followed by employer. In this working
hours are specified that is 8 hours. so, role of trade union and employer is to ensure working
hours are completed by employees (Plaskoff, 2017).
Maternity and paternity leave – it is related to maternity leave granted to women employees by
employer. So, here role of association and government is to provide maternity and paternity
leaves to employees. they monitor employer records and ensure that women employees are
granted maternity leaves.
Recommendation

 It is recommended that employee must a fair as well as treatment through the
management. Thus it the duty that the managers as they treat their employees within a
fair manner. It is strongly recommended that managers must avoid the favouritism of the
employees.
 It is also recommended that there must be a maintenance of the continuous interaction
with the staff member. As keep them updated regarding the polices of the firm,
procedures as well as decisions of the firm. It is highly recommended that the employees
must be well-informed as these are the employees that can makes sound decisions as well
as productive and motivated.
 Workers must be rewarded as well as appreciated for accomplishing the targeted
meetings and targeted tasks as this will encourage them as well as they are become more
loyal towards the firm and work together as a team.
 It is recommended that boosting the employee feedback as it will makes the managers
aware regarding the concerns of staff members as well as their view regarding employer.
 It is highly recommended that as an employer be friendly with the employees not over
friendly. Try to build the rapport with the staff members ,the employees feels more
comfortable with the managers.
 Do not make the employees more job monotonous as keep their job more challenging and
more interesting as it can be done by delegating the staff members more responsibilities
involving the training of the staff members.
CONCLUSION
From the above it had been summarized that HR strategy is overall plan of business
consists of hiring training. Horizontal means to generate more revenue compete with rivals.
Vertical integration enables in selling products directly to customers and generating profits. It
also focused on Competency model defines personal growth and development base of talent
management relevant skills and capabilities to solve issues of employees. Michigan model
focuses on HR policies and it emphasis on individual and organization performance.
Furthermore, it also Unitarism focuses on more on strategic and integrated frame works focuses
on the new challenges adjust within a new working environment. Pluralism world view some
nation have different varieties of political beliefs, variety of religions,Marxist approach concern
regarding wage related disputes all the strikes are falls under politically identify actors of ERE

employees have various characteristics social background, their attitude towards the
management. Employer becomes accountable regarding several stakeholders and assures
commitment staff members. Government regulates the relationship of employers and employees
and Er and roles such as Working hours Maternity and paternity leave and many more

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