Strategic HR Management and Employment Relations at M&S UK

This report delves into the strategic human resource management (HRM) practices and employment relations at Marks & Spencer (M&S). It examines the relationship between business strategy and human resource strategy, vertical and horizontal integration approaches, and relevant strategic human resource theories and models, including the Organizational Human Capital and Change Theory and the HR Value Chain model. The analysis further considers contingencies, universalist, and resource-based views in HR strategy implementation. The report assesses M&S's performance management and reward systems, the nature of employment relations, and theoretical perspectives such as the Marxist view. It highlights the importance of strong employee relations, trust, and training for maintaining a competitive edge and ensuring a healthy work environment. The report concludes with recommendations for M&S to enhance its HR practices and overall organizational effectiveness.

STRATEGIC
MANAGEMENT HUMAN
RESOURCES

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Relationship between Business strategy and Human resource strategy......................................3
Vertical Integration and Horizontal Integration...........................................................................4
Strategic Human Resource Theory and Model............................................................................4
Contingencies, Universalist and Resource based view approach................................................5
HR practices for Performance Management and Reward............................................................6
TASK 2............................................................................................................................................7
Nature of employment relations...................................................................................................7
Theoretical perspectives of employment relations......................................................................8
Recommendation.........................................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The connection between the organizations human resources and firms strategies, goals
and objectives are strategic human resource management. The work of strategic human resource
is to make sure that there is flexibility in advance, innovation and competitive advantage which
organization can gain for themselves in market. Marks & Spencer which was established in 1884
is a public limited organization and has its headquarters in London, UK. As of 2020, net income
of organization is £27.4 million and is serving worldwide which is making company be able to
compete in market effectively. The further report would consist of relationship between business
strategy and human resource strategy, vertical and horizontal integration, best fit and
contingency practices of organization. Report would also be covering nature and theoretical
perspective of employment relations, changing nature of employment relationship and
recommendation which business must follow so that there is going to be effective functioning in
organization.
TASK 1
Relationship between Business strategy and Human resource strategy
Business strategy are decisions and actions which are taken for firm so that the objectives
and goals of organization can be achieved and organization will be able to compete in industry
effectively. Business strategies are used so that firms will be able to attract more customers
which is going to be good for competitive working. Clear communication and direction in the
organization would be well maintained and performance of M&S can improve effectively in
market.
Human resource strategy is present in organizations to be able to maintain the human
capital overall which is going to make business activities be achieved. The direction for all
activities is going to be set when this HRS is being used in the business which includes, hiring,
development, compensation and performance appraisal (How to Create a Human Resource
Strategy, 2020). HRS has to incorporate judgement of the senior management of organization so
that there is going to be effective working and brand image in market can be increased.
Overall no business will be able to survive in the market without having a strong business
strategy for human resource strategy for handling human capital of firm. Both functions are

important in the firm to make it function smoothly and efficiently for gaining competitive
advantage and is present in M&S.
Vertical Integration and Horizontal Integration
 Vertical alignment
To have a control on suppliers, retail locations and distributors which is going to improve
value chain and supply of organization, this strategy is used in that situation. This is very
beneficial since cost for transportation is reduced and improves efficiencies as well. Drawback of
this alignment is that company will have to invest a lot of capital amount. M&S would be able to
improve their working and organization will have a lot of improvement overall if this factor is
used effectively. There are two types of vertical alignment which is present, backward and
forward integrations (Yilmaz and Kitapci, 2017). Forward integration is going to be very
appropriate for Marks & Spencer to be able to gain a competitive advantage since this integration
is going to help with controlling purchasing of direct distribution or supply of their products in
market.
 Horizontal Integration
Horizontal integration is used to make goods and production level of organization
increases at the same part of supply chain. This businesses can do with getting in internal
expansion, merger and acquisition. This process is going to reduce competition in business but
drawback from this integration is that organization gets inflexible and managing becomes a task
for firm. This is a suitable factor when business is growing in market and organization will be
able to improve there drawbacks effectively.
Strategic Human Resource Theory and Model
Organizational Human Capital and change Theory
To advance their goals and objectives of organization there must be good knowledge and
skills which need to be present in organization. It is important for organization to have right
recruitment and employees in firm so that it is easy for the organization to be able to perform
effectively in market.
Change theory is a model which businesses in market use so that there would be effective
working which is going to be present. There are a lot of changes which come in business so that

there would be better operations and compete effectively and have smooth functioning as well.
M&S uses Kurt Lewin change theory model to be able to get in changes in organization
effectively and make the employees adapt to them also effectively so that there is going to be
better performance overall (Ibidunni, Ogunnaike and Abiodun, 2017).
This model can help the business to know issues which are going to come in future and
what possible problem solving measures which organization can take for an effective working.
Cost saving process is going to be involved in this model and pressure on employees is also
going to be lower in firm which makes the productivity and operational performance effective
and efficient.
SHRM Models- This is a model to make working of the organization effective so that long term
goals and objectives of organization can be achieved. Further report is going to discuss factors in
detail.
Standard Causal Model of HRM
This model is starting fro business strategy and ends with HR processes with financial
performance in market. HR practices which include hiring, compensation and appraisal are the
outcomes to commitment, engagement and quality outcome in organization.
HR Value chain model
This HR value chain was established by Paauwe and Richardson in 1997 and discusses
the HR operations. This model divides HR in two categories which are HRM activities and HRM
outcomes. M&S is using and following both of them which is HRM activities which are day to
day activities which being recruitment, training, compensation and succession planning. This is
going to be measured by HR metrics and training is going to be faster and recruitment cheaper
company profits from it (5 Human Resources Models Every HR Practitioner Should Know,
2020). HRM outcomes is to achieve HRM activities daily so that there are going to be higher
results. Outcomes includes higher satisfaction of employee, retention, motivation and presence.
Contingencies, Universalist and Resource based view approach
The HR strategies become more effective in nature when internal and external
surroundings of organization are involved in them so that there is going to be effective working.
HR strategies will have to be implemented in organization according to the employees of

organization so that there is going to be better results overall which would be smooth functioning
(Best Fit And Best Practice Perspectives For Hr Management Essay, 2020).
The drawback of this model is that it is very complex in nature though it is easy to
understand but when it comes to practicality of practices there are a lot of improvement which
organization needs to consider. There are universal practices of HR which can be implemented in
organization so that there would be effective working and improve the performance in business
as well.
There are a lot of model which business can use in organization so that there is going to
be better understanding of internal factors so that there is going to be better operations which is
going to be present. VRIO framework is used by M&S so that there is going to be efficient
working and this framework understands value, rare, imitability and organization. Identification
of these resources is going to make organization be able to function and operate effectively in
organization (Koseoglu, 2016).
HR practices for Performance Management and Reward
Currently M&S is showing higher performance management in organization which is a
great factor for organization. Having good communicating in firm which is going to make the
performance of organization better which is good for overall performance in achieving market
objectives as well which is going to make brand image better. There is good feedback
improvement of employees as well which is present in organization which makes level of
competition effective.
M&S is having 360 degree evaluation for employees so that they can be rewarded in
organization accordingly so that results are going to be better. Politics in organization is being
maintained so that appraisals can take place effectively and employees do not find it de-
motivating for working and trust level of them in business (Thoman and Lloyd, 2018). There set
desire goals and objectives which are present in business therefore it is important for
organization to have these factors in organization so that there is going to be an improvement
which would be present.
There are regular meetings which M&S is having in internal factor which is going to get
in clarity of working for employees. Training for employees is also done on those bases making

working of organization better and modification is going to be present as well. The company will
be able to improve on their functioning if this factor is going to be present in organization and
make M&S be able to achieve all objectives which are present in market (Sunahwati, Maarif and
Sukmawati, 2019).
TASK 2
Nature of employment relations
There has to be effective relationship with the employees in organization so that there are
going to be higher results which would be present. There is a standard and reputation which the
organization has gained in market for themselves over years of experience and that needs to be
maintained which would make the business be able to operate effectively. There is a common
ground which employees and employers of organization need to have so that there is going to be
effective working in business (Brewster, 2017). Managers and leaders are key people who can
make productivity and operations of organization be maintained so that performance does not get
affected and customer's needs, expectations and demands are being fulfilled from time to time.
Trust level of employees has to be present in company only then business will be able to operate
effectively and efficiently in the market again so that results are going to be higher.
There has to be good trust relationship in business so that there would be effective
working which is going to be present in business. HR of M&S is working on building a strong
relations in internal factors of organization making the productivity of organization increase. The
competition in market is increasing that needs to be improved by getting in strong relationship
between employees and their engagement with firm as well (Natroshvili, 2019). Employees are
backbone of business which is why it is necessary to make organization get higher and stronger
internal factors. Training is provided to employees of M&S from time to time which is going to
make organization gain competitive advantage as well as organization to get higher profit
margins. Employees of M&S are provided with benefits as well for efforts they put in the
organization making firm have good performance.
There are a lot of conditions which have to be implemented for employees in M&S so
that reputation and brand image in market is going to be intact for higher performance of them
and increase productivity. Existing performance of M&S is very good in this competitive market
making the performance increase and is effective for long run of business in market. By

maintaining employee relations in organization there would be safer and healthier environment
for employees to work within and that is good for a long run (Sarker and Rahman, 2018). There
are several rights which are being implemented in the organization so that results are going to
make results better and productivity increase for higher profitability in firm.
Theoretical perspectives of employment relations
The unending class distribution which is present in business is Marxist theoretical
perspective for employment relationship with needs to be maintained. This is not at all a good
factor for the organization because firm will not have a healthy environment for employees to
work within and that productivity and operations of M&S will get affected overall. Marks &
Spencer has got a strong belief and value in organization so that they will be able to operate
effectively in market so that organization will be able to capture market share. Capitalism in firm
will have to stop which is going to make organization have better interaction and all employees
also have to be involved in tasks equally which is going to make the working environment more
effective and efficient (Georgiev, 2017). More ideas and creativity can rise in the firm which
would make organization have unique factors in market so that they can have loyalty of
employee. Conflicts which are rising in M&S can be controlled as well which is good for overall
development which can match expectations and demands of customers on time.
Feedbacks of employees are taken so that company can get in improvement which is
going to be good for overall development of organization. The pressure also from employees has
to improve so that the performance level is going to be better and organization will be able to
operate effectively and employees would give in their personal best. The organization has to take
measures to be able to survive in market because the company is increasing and that factor needs
to be controlled so that company will be able to operate effectively. Employees have to be given
promotions on bases of their performance and the efforts they are putting in the organization so
that organization will be able to gain profitability in bazaar (Jalagat, 2016). Communication can
make the working more fluent and performance is also going to improve when there is a better
sense of direction which is going to be present and M&S working and focuses on this factor so
that the business will be able to grow effectively in market. There are a lot of conflicts which are
present in M&S which have to be resolved on time otherwise they can lead to major issues and
problems in organization in future. When there is going to be good relationships conflicts are

going to reduce and organization will be able to gain a healthier environment for employees to
work within. Surroundings of M&S are improved and are in favour of employees so that they
would be able to give in their personal best and gain personal advantages from M&S as well in
return.
Recommendation
It is very important that employees of organization are involved in the decision making of
the organization so that there is going to be effective working which is going to be present.
Feedback from employees can be taken in this factor and make the working effective and
moulding decisions accordingly is essential in Marks & Spencer. Satisfaction of employees is
important so that there are going to be higher results as well. This is going to make M&S be able
to maintain their reputation and standards which they have gained over time with experience,
knowledge and skills (Papa and et.al., 2018). The good and services have to be developed
according to customers but also according to employees as well so that there is going to be a well
maintained quality which would be present. When there is going to be good equality and fairness
in organization then employees will automatically feel accepted and gain trust on firm to give in
their best. Systematic working is essential in M&S so that employees know what is expected out
of them and employees would be able to give in their personal best. M&S need to maintain high
performance for themselves in market so that company will be able to gain a advantage for
themselves and since competition is increasing the organization must find it easier to be able to
operate (Delery and Gupta, 2016).
The contract of M&S needs to improve and develop with time so that organization can
have higher performance and engagement of employees which is good for standards of company.
Contracts in market also keeps on changing with time therefore M&S will also have to make sure
that they are developing this factor effectively as well. Employees are paid according to efforts
they are putting in company so that the best results are provided in the competitive market which
is increasing rapidly. Motivating employees from time to time which is going to make the
productivity and operations of organization also increase the balance between personal and
professional life of employees as well. The employees have to find a balance in their work and
personal life which is going to improve their satisfaction level which is going to make
organization have better outcome. There has to be good distribution of the roles and

responsibilities of work as well and communication will help organization to be able to do this
effectively which is good for a long run of the business in the market (Mustafin and Ignateva,
2016). With good explanation of the work roles to each and every employee there must be good
transparency level in the firm as well so that there is going to be effective working which is
going to be present. The services is automatically going to improve if the work force is going to
be well motivated and company is going to gain the advantage from it so that there would be
effective working.
CONCLUSION
From the above report it can be concluded that businesses in market will have to have a
strong human resource management and strategies so that the organization will be able to
develop in market. Clear communication and training is going to help organization be able to
achieve the objectives and targets of the organization and make company gain a competitive
advantage as well. Employees are the backbone for productivity and operations which is why it
is essential for business to take measure for human capital to be able to operate effectively and
smoothly. The management of the organization must take effective measures to be able to
operate effectively and efficiently so that business will be able to compete and increase their
sales. There has to be good productivity in organization since the demands of customers is
increasing and it is essential for business to fulfil those and make the company have higher
results.

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