Strategic HRM Analysis: Balanced Scorecard, Strategies & Performance

This essay provides a comprehensive analysis of strategic human resource management (SHRM) and its impact on organizational performance, using Costa Coffee as a case study. It examines the role of SHRM in aligning HRM practices with business strategy, emphasizing the use of a balanced scorecard to assess performance from various perspectives, including customer, financial, internal business processes, and learning and growth. The essay further explores how different HRM strategies, such as human capital management, talent management, and knowledge management, relate to broader management strategies and contribute to organizational capabilities and performance. It concludes that strategic HRM is crucial for achieving a competitive advantage and fostering a skilled and engaged workforce.

Strategic Human
Resource Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Analyse the role of strategic HRM including the use of a balanced scorecard as part of a
strategic framework................................................................................................................1
Analyse how HRM strategies relate to broader management strategies and organisational
capability and performance....................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Human resources are one of a company's most significant assets, as they help it acquire a
competitive edge in the workplace. As a result, human resource management becomes more
important, and businesses strive to guarantee that HRM policies and practises aid in the
achievement of strategic business goals. Strategic human resource management entails aligning
HRM practises and policies with the company's business plan in order to achieve timely
implementation of the strategy (Ceruti, Williams and Bedford, 2019). Costa Coffee, an
international coffeehouse brand started in London in 1971 by brothers Bruno and Sergio Costa as
a dealer enterprise delivering coffee beans to hotel keeper and specially to the coffee shops of
italy, was chosen for this article. Whitbread bought the company in 1995. The following report is
broken into two sections. The report's first section examines the role of strategic HRM and its
relationship to broader management initiatives. The report's second section addresses functional
parts of strategic human resource management that apply to Costa Coffee employees, as well as
the company's strategic human resource policies.
MAIN BODY
Analyse the function of strategic HRM containing the usage of a balanced scorecard as portion
of a strategic structure.
The notion of strategic human resource management centres on creation and implementation
of HR programmes that aid in the removal of progress barriers and directly support the
company's strategic goals. Strategic human resource management is a forward-thinking activity
that tries to achieve the company's long-term goals using existing techniques (Chiappetta
Jabbour, Mauricio and Jabbour, 2017). The goal of strategical human resource management at
Costa Coffee is to make the existent manpower to achieve business organization goals and to
apply HR strategies that make sure the effectual conclusion of the business scheme that offers
the company's future orientation.
The goal of strategical human resource management is to improve creation, adaptability, and
structural work while also fostering a culture that is conducive to achieving organisational goals.
Another objective of strategic human resource management is to achieve a competitive edge in
the industry. Strategic human resource management plays a variety of responsibilities in order to
achieve strategic goals and maintain a competitive advantage in the industry by employing a
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skilled and well-organized workforce. The following are the functions of strategical human
resource management:
Arrangement of HRM with business plan: Strategical human resource management's
major goal is to connect human resource management scheme with the company's whole
strategical way. Several HR practices, like worker's salary, employee's prize, engagement, and
choice, must be linked to each another and business plan of company in order for the company's
human resources to contribute to the achievement of long-term business goals (Marler and
Boudreau, 2017). This Strategic Human Resource Management role at the multinational
coffeehouse chain Costa Coffee entails aligning HR practises to achieve the company's long-term
objectives, which include expanding to better locations, increasing community outreach
programmes, extending CSR initiatives, and improving consumer service. To support timely
completion of each objective, strategic human resource management must integrate HR activities
and practises with the company's long-term goals.
Employee Engagement: Other function of strategical human resource management is to
establish surroundings that encourages employees to participate in different organizational
actions. This function of strategic human resource management promotes employee participation
in various HR activities, but likewise aids the organisation in achieving its business plan through
high employee contribution. The human resources department must create the surroundings in
which every worker feels valued and believes their worker benefits the donation of an individual
(Malik, Pereira and Budhwar, 2021). In the case of Costa Coffee, effective human resource
management must concentrates on inspiring employees to take part in community betterness
initiatives and creating a work environment in which everyone take part in with happiness
company-sponsored education and CSR activities. This will assist the firm's long-term business
aims.
1. Enhance HR effectiveness: This is critical to examine and assess HR practices,
determine faults, and do something toward boosting HR potency in order to ensure that
the firm achieves the required objectives. Building effectual communicating system,
enhancing motive of employees, creating a unified imaging for the manpower, and many
more techniques fall under this category. The actions or procedures implemented to
improve HR activities vary, but the goal is to improve HR effectiveness by decreasing
defects in human resource management (Church and et. al., 2019). It aids the company in
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achieving its organisational vision and gaining a competitive edge in the market. In order
to improve HR practise, the respective firm's major practise should be to develop
effective communication channels. The basis for this statement is that Costa Coffee is a
highly employee-centric firm, with little contribution from machinery in the end product
provided to the consumer and a strong reliance on the workforce's talents in coffer
product readying and customer service to advantage consumers. The organisation will be
capable to meet commercial goals like expanding into profitable markets, improving
customer service, and successfully completing CSR efforts. This is because each
employee will be aware of their tasks and responsibilities, which will improve
information exchange among the company's many personnel working all over the world.
The balanced scorecard is an integral aspect of an organization's strategy framework.
Corporate management is a difficult field to master because business performance may be
measured from a variety of angles. The balanced scorecard is a tool that helps companies
evaluate their performance from four viewpoints that are crucial to their success. Customer's
point of view, financial visual aspect, internal point of view, creativity and development view are
the four views. Restrictive performance of firm signal allows corporation to concentrate on key
arena while avoiding information overload (Naim and Lenka, 2017). Furthermore, managers
have the ability to see multiple parts of the organisation at once, ensuring that policies purpose at
enhancing achievement in one region don't impede growth in some other areas. This instrument
is in use to assist HR administrators at Costa Coffee in evaluating work of the firm from many
perspectives to acquire a comprehensive scene of the company's present and upcoming condition
in a framework of strategic human resource management. The following is an example of how a
balanced scorecard can be used to Costa Coffee:
Consumer's point of view Objective: By developing diet-friendly items, the goal is to increase customer retention
and attract fitness-focused customers. Target: Obtaining health-conscious consumers in both the domestic and international
markets is the goal. Initiative: To retain a fitness-conscious customer base, prepare items with healthy
ingredients and give discounts.
Internal business perspective
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 Objective: The goal is to improve the efficiency and quality of consumer services at each
location. Target: The goal is to improve the efficiency of each branch's consumer services and
employee production. Measures: Incorporation of cutting-edge communication technologies to ensure that staff
members at each outlet are in sync (Boudreau and Cascio, 2017). This will improve
efficiency and make it easier to provide effectual customer care to each one of customer. Creativity: To construct a digital connection system at every division to make sure that
every customer receives effectual service, and instruct customers to utilise technology
digitally to enhance division result.
Learning and growth perspective Objective: Through R&D, combining digital connection system into multiple channels
and establish a healthy line of product. Target: With the support of R&D, the goal is to integrate digital technologies and
introduce a health-based product range. Measures: Measures include establishing relationships with health-conscious suppliers
and investing in digital technologies at each Costa Coffee location. Initiative: Employee training programmes to familiarise employees with the preparation
of health-related products and the use of digital communication networks are being
implemented (Suba, Inayath Ahamed and Priya, 2021).
Financial perspective Objective: For improving the earnings from the old period and to check that profits from
healthy lines of product are generated. Target: To grow margins of profit by 20% and achieve a 20% return on investing
healthy product line. Measures: Optimising the marketing mix for a fresh product line's return on investment,
as well as to thoroughly study the financial equity and identify appropriate financial
support.
 Initiatives: To concentrate on cost reduction in order to boost profit margins.
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Analyse how HRM strategies relate to broader management strategies and organisational
capability and performance.
Human resource management methods used by businesses are linked to broader
management strategies, have an impact on organisational performance, and aid in the
development of organisational capacities. Several human resource management techniques are
detailed here, along with their relationships to broader management scheme, execution, and
organisational abilities:
Human Capital management: This HR scheme focuses on checking that employees have
the skills needed to help the company succeed. This HR strategy is implemented in three stages:
workforce acquisition, workforce management, and workforce optimization (Chadwick, 2017).
This HR strategy aids businesses in acquiring, examining, and reporting the information which
guides value-added individual management, strategical investment funds, and functional
decision-making.
The implementation of this HR strategy is critical to the company's overall management
strategy since it directs the acquisition, retention, and development of value-added employees
(Mokhalles, Sultana and Ahmed, 2019). In the case of Costa Coffee, this technique aids in the
recruitment and retention of high-value employees, allowing the organisation to efficiently
implement diverse business plans. The goal of manpower optimization to make sure that every
person is extremely expert, who can improve the abilities and presentation of the organisation.
Talent management: Attracting and retaining skilled employees is at the heart of the
talent management idea. This aids in the development of a highly skilled workforce and ensures
that the company's present and future human resource needs are met. This HR strategy is linked
to broader management strategies since it aids in the development of skilled employees who stay
with the organisation for extended periods of time (Prastiwi, Ningsih and Rianita, 2018). This
improves organisational performance and assures the long-term recruitment of highly skilled
individuals. In the framework of companywide management plans, talent management is critical
for the implementation of diverse business objectives since it develops a dedicated workforce. A
talented management plan ensures the development of a trained and devoted workforce, allowing
other organizational-wide management functions to be completed more quickly. In the case of
the multinational coffeehouse chain Costa Coffee, implementing a talent management HR
strategy will assist the company in developing a skilled workforce on a global scale, allowing it
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to complete wider management strategies with ease, improve organisational performance, and
develop organisational capabilities.
Knowledge management: Knowledge management is the process of defining,
systematising, sustaining, and disseminating knowledge and experience among a company's
workforce. This HR strategy strives to improve the company's performance by creating,
acquiring, capturing, sharing, and utilising information (St-Hilaire, 2020). This HR strategy is
extremely advantageous to a business since it offers every person in the company with expertise,
allowing them to make good conclusions and execute day-to-day chores very quickly. This HR
strategy is critical for the successful implementation of larger management scheme since it aids
in the collection, storehouse, and dispersion of expertness needed to achieve various
management objectives. This HR strategy helps the company boost staff productivity, acquire
and store organisational knowledge, and face diverse hurdles on the way to success, in addition
to better decision making.
In the case of Costa Coffee, implementing this HR approach will assist the organisation in
generating and storing expertise and information gathered from the company's global operations,
which are used to meet growth problems. Additionally, personnel from all around the world will
leverage this experience to efficiently achieve broader management goals. Understanding
management aids in the acquiring and preservation of knowledge, that improves the working and
capacities of an organisation.
CONCLUSION
It is concluded from the above report that strategic human resource management is
beneficial to businesses since it aids in the achievement of strategical enterprise goals.
Additionally, different functions in strategic human resource management, such as employee
appointment, HRM coalition with business strategy, and HR effectiveness improvement,
strategic human resource management aids in the achievement of endless business objectives and
the firm's upcoming direction of business. Additionally, being an effective tool for providing HR
managers with a holistic view of various business perspectives, the balanced scorecard is also an
effective tool for developing a strategic human resource management strategy that aids the firm
in achieving multiple company objectives at the same time. HR strategies developed by
businesses are vital in improving organisational performance, strengthening organisational
competencies, and are linked to the company's overall management strategies.
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REFERENCES
Books and Journals
Boudreau, J. and Cascio, W., 2017. Human capital analytics: why are we not there?. Journal of
Organizational Effectiveness: People and Performance.
Ceruti, M., Williams, A. and Bedford, D., 2019. Strategic Affinities and Alignments.
In Translating Knowledge Management Visions into Strategies. Emerald Publishing
Limited.
Chadwick, C., 2017. Toward a more comprehensive model of firms’ human capital
rents. Academy of Management Review, 42(3), pp.499-519.
Chiappetta Jabbour, C.J., Mauricio, A.L. and Jabbour, A.B.L.D.S., 2017. Critical success factors
and green supply chain management proactivity: shedding light on the human aspects of
this relationship based on cases from the Brazilian industry. Production Planning &
Control, 28(6-8), pp.671-683.
Church, A.H and et. al., 2019. Introduction and overview to The Handbook of Strategic 360
Feedback.
Malik, A., Pereira, V. and Budhwar, P., 2021. HRM in the global information technology (IT)
industry: Towards multivergent configurations in strategic business
partnerships. Human Resource Management Review, 31(3), p.100743.
Marler, J.H. and Boudreau, J.W., 2017. An evidence-based review of HR Analytics. The
International Journal of Human Resource Management, 28(1), pp.3-26.
Mokhalles, M.M., Sultana, F. and Ahmed, T.Z., 2019. Effectiveness of Mid-Day Meal Scheme
(MDMS) in Primary Schools. Journal of Strategic Human Resource Management, 8(1),
p.13.
Naim, M.F. and Lenka, U., 2017. Talent management: A burgeoning strategic focus in Indian IT
industry. Industrial and Commercial Training.
Prastiwi, N.L.P.E.Y., Ningsih, L.K. and Rianita, N.M., 2018, October. PENERAPAN
STRATEGIC HUMAN RESOURCE PRACTICE BERBASIS TRI KAYA
PARISUDHA UNTUK MENINGKATKAN KINERJA KARYAWAN LPD
KABUPATEN BULELENG. In Prosiding Seminar Nasional Ilmu Terapan (SNITER)
2018 (Vol. 1, No. 1, pp. D03-1). Universitas Widya Kartika.
St-Hilaire, W.A., 2020. Key-synergies between strategic resources and operational tool
orchestration for organization development. Journal of Management Development.
Suba, M., Inayath Ahamed, S.B. and Priya, B.S., 2021. Green-Hrm a Strategic Move Towards
the CSR Through Green Employee Performance. M. Suba, SB Inayath Ahamed and B.
Shanmuga Priya, Green-HRM A Strategic Move towards the CSR through Green
Employee Performance, International Journal of Management, 11(11), p.2020.
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