Analysis of HRM and Business Strategy at Morrison's Supermarkets

This report provides a comprehensive analysis of human resource management (HRM) practices at Morrison's, a major UK supermarket chain. It begins with an executive summary emphasizing the importance of human resources in business success. The report explores the relationship between Morrison's business strategy and its HRM strategy, highlighting their alignment and the connection between HR policies and the company's overall objectives. The report then delves into various strategic HRM models, including the Harvard model, Michigan model, Guest model, and Warwick model, providing critical insights into their frameworks and applications within an organizational context. Furthermore, the report discusses the theoretical perspectives of employment relations, including best fit/contingency, best practice/universalist, and resource-based view (RBV) models. The analysis covers key actors within the employment relationship and examines the changing nature of employment relations. The report utilizes academic sources to support its findings and provide a detailed overview of Morrison's HRM approach and its implications for business success.

HUMAN
RESOURCE
MANAGEMENT

Executive summary
Human resources are the most essential elements in every business or company, it is very
important for an organization to make optimum use of these resources Morrison is the fourth
largest chain of supermarkets in whole United Kingdom. Company has its headquarter in
Bradford, England. Organisation was founded in year 1911 by William Morrison.
Human resource practices of Morrison follows such process which helps employees in
getting knowledge and skills to perform activities in the organisation. There is a connection
between policies that are formed by Human resource department and company's business
strategy.
Employment Relation Act 1999 is formulated in parliament of United Kingdom that lay
the responsibility of economic stability of inflation and unemployment in the country. Citizen of
United Kingdom takes many advantages of employment rights that are included in this act. There
are various acts that are interlinked with the employment relations such as Labour Law that
regulates relations between employees and employers.

Table of Contents
Executive summary..........................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Relationship between business strategy and human resource strategy and their alignment
within Morrison......................................................................................................................1
Relationship between business strategy and human resource strategy..................................2
TASK 2............................................................................................................................................6
Critical discussion on nature and theoretical perspectives of Employment Relations...........6
Roles of the actors within the Employment Relationship with analysis of the changing nature
of employment relations. .......................................................................................................8
REFERENCES .............................................................................................................................11

INTRODUCTION
Human resources are the most essential elements in every business or company, it is very
important for an organization to make optimum use of these resources. This department hires
new people, give training to them and make their salary slips etc. Overall it is designed for the
well being of employees in the company. In this present report Morrisons has been chosen for
assessment, Morrison is the fourth largest chain of supermarkets in whole United Kingdom.
Company has its headquarter in Bradford, England. Organisation was founded in year 1911 by
William Morrison. This report will focus on Relationship between business strategy and human
resource strategy and their alignment within Morrison. Along with that, it will also cover
different Models of Strategic human resource management. Furthermore, Critical discussion on
nature and theoretical perspectives of Employment Relations will be described briefly.
TASK 1
Relationship between business strategy and human resource strategy and their alignment within
Morrison.
Human resource refers to the employees who are employed in an organisation, it is very
necessary to manage and control these resources in order to accomplish various functions of the
company (Armstrong and Taylor, 2014). Human resource department is an important part in
every enterprise that helps in developing, managing and controlling an effective workforce that
assist the organisation to achieve its goals and objectives.
This department in a company is formed for well being of employees. HR manager should
ensure that all workers are paid on time and their salary should be given to them without being
bias.
Every company has their own plans and strategy to achieve business objectives and goals.
Business strategies
These are those decisions or actions which are taken by every organisation in order to get
a specific direction for achievement of aims. These are the master plans which are prepared by
management to compete in market and carrying operations in effective manner. There are three
levels of business strategies.
Corporate level strategy: It is the overall outline of business that is being prepared. At very
basic level, this strategy is prepared to know that what kind of business company should get
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engage in, market it will operate in and ways to enter in to that market. It is formed by top level
management for expansion and growth of existing business venture.
Business level strategy: It is made by general managers of the company for a particular business
which helps in knowing the tactics that will be used for a specific market (Reiche and
et.al.,2016) Smaller units are studied for making business level strategy.
Functional level strategy: These strategies are formed at every level in the company. It involves
functional areas like marketing and production for which strategies are formed.
In every business, various strategies are required because a single strategy is not enough
to perform all work that is the reason Morrison follows all the three levels.
Human resource strategy
Human resource strategies is adopted by companies which aims at segregation of entity's
employees, structure and system by coordinating all the actions to achieve goals and objectives
of a business venture. These gives a path to workers that in what direction they to work and also
helps in knowing about the entire work culture.
Relationship between business strategy and human resource strategy
The link between practices of human resource department and its business strategies is
connected in so many ways (Collings, Wood and Szamosi, 2018)Main goal behind this
alignment is to make the best use of human capital for the purpose of increasing company's asset
so that stakeholder can get major benefits. Below are some major relationship between Human
resources strategies of Morrison and its business strategy.
Human resource practices of Morrison follows such process which helps employees in
getting knowledge and skills to perform activities in the organisation. There is a connection
between policies that are formed by Human resource department and company's business
strategy. Morrison management values their human resources so that they can contribute more to
the organisation (Albrecht and et.al., 2015). Morrison has achieved superior outcome by
coordinating both policies together.
Every company should manage their talented employees in such a way that they get job
satisfaction along with performing knowledge based work. Morrison has followed such Human
resource practices that it helps in achieving objectives of the organisation. While hiring people
for work for vacant position, it should be ensured that they are talented enough to perform the
task in the company. Managing talent in such a way that they can give their best is the major
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work of human resource department. Workforce should perform well, employees should make
establishment different from their competitors across all over the industry.
Vertical alignment and horizontal integration
Vertical alignment means all employees from CEO to a small factory work understands
the objectives of company and all works in such a way that goals can be achieved. Morrison
follows this where company is vertically aligned in which all employees understands their role
that how they can contribute to the company.
Horizontal integration means all managers and other employees of same level in different
departments contributes in achieving goals of company (Marchington and et.al., 2016). They all
are treated equally who works at same position in different department of a company.
Models of Strategic human resource management
Following are the models which are given below describes the strategies are the
analytical framework formed for achieving organisational objectives.
Harvard Model of strategic human resource management
This the most famous model of strategic HRM which was given by Michael beer which is
more analytical in nature. This model says that shareholder and every employee all are equally
responsible and important in influencing results of a company. Critical analysis of this model has
showed that it is deeply rooted in human relations tradition. Team work plays a great role in
motivating employees and it also develops good working culture in a company. Human resource
of a company should be treated with respect as they contribute in increasing productivity of
company. So Harvard model says that human resource are the one who helps the company in
competitive advantage so they should be treated as an asset of the company nor as the cost to the
organisation (Models of Strategic human resource management, 2017)
Matching model of strategic human resource management
This model was given by Fombrun Tichy which is also named as Michigan model of
HRM. This focuses more on all the Strategies formed by HR and the business organisation. It
says that all the employees who are given some or the other tasks should be as per their skills and
knowledge. Human resource department of the organisation should ensure that workers matches
with the job which is being offered to them. Strategies should be formed in such a way that it cn
count requirements of employees to complete the work on time. This model majorly focuses on
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four functions and else it let go all other environmental factors that effect functions of human
resources.
The guest model of Strategic human resource management :
This model was given by David guest in the year 1997. This connects with both hard and
soft approach of HRM. Model says that HR manager of a company has designed some strategies
Which helps in giving outcomes to the company. These model has some components which is in
a particular sequence.
 HR strategy
 HR practices
 HR outcomes
 Behavioural outcomes
 Performance results and
 Financial consequences.
The Warwick model of Strategic human resource management :
This model of HRM was given by Hendry and Pettigrew of Warwick. The have said that
there are five elements which will be defined under this approach. Following elements are
mentioned below.
 Outer Context
 Inner Context
 Business Strategy Content
 HRM Context
 HRM Content
This model makes awareness of all the strategies that are formed in a business. Major
focus is to classify that human resource management has major influence of all environmental
factors. This model defines the connection between all environmental external elements. HR
department has to adopt all the changes and should apply it while making strategies for the entire
department.
As per Collings, Wood and Szamosi,(2018) models of strategic human resource management
says that practices followed by HR department should be such that overall company can achieve
its goals through that. It even focuses on selection of such workforce which suits their job role.
They can perform the assigned task on timely basis. Overall environment whether it is internal or
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external also affects the practices followed by HR of Morrisons. Development and rewards
always motivates employees in performing better so HR should always give appraisals to
workers for their performance. It will give growth to company and take it to another level.
Whereas, Bratton and Gold (2017) says that different models of HRM strategies says that human
resources also can effect company in negative way. If department will not choose right person
for work then it will be a big loss for company when work will not be performed on time.
Strategic perspectives of Best fit/Contingency, Best Practice/Universalist and Resource
Based View, (RBV)
Best fit model says that both the strategies that is HR and organisation should be
connected with each other. In other words, HR strategies should be such that it can get fit in
every situation that comes in Morrison. As per Kramar R (2014), This practice will help in
changes that are faced by company because HR strategies has to focus on organisational as well
as needs of employees. Whereas, Wehrmeyer (2017), This model has limitations too, because at
the time of contingencies in Morrison, HR of company will not be able to change entire system
and it will not be able to adjust completely. Human resource practices of Morrison follows such
process which helps worker in getting knowledge and ability to execute activities in the
administration. There is a connection between plan of action that are formed by Human resource
department and company's business strategy. Morrison governance values their human resources
so that they can contribute more to the organisation. Morrison has achieved better outcome by
coordinating both policies together
Best practice model says that there are certain activities of HR department like training to
new joinee or development which helps companies in reaching to a different level. It also says
that competitive advantage can be achieved due to the practices that are followed by HR. as per
Kramar R (2014) There is a strong connection between practices of HR and organisational
performance. Human resource department of Morrisons hire people who fits for the job and give
them training for enhancing their skills and performance. Different development programs of
company results in achieving organisational goals in some or the other way. But this model has
some drawback too as per Cooke, Saini and Wang, (2014) Human resource focuses on team-
working for better and productive work which will give growth to the company.
RECOMMENDATION
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 Morrison management system should communicate their goals to employees in
very effective manner. Which will result in improvement of employees
performance and their contribution towards achievement of organisational goals.
 Feedback should be taken from stakeholder which includes employees, customers
and shareholders of the company. Every feedback must be taken seriously so that
improvements can be made for better working.
 Regular meetings can be taken with employees so that there ideas and
recommendation can be implemented for changes and better working in the
company. Meetings can be held on weekly or monthly basis. Even employee
problem should also be discussed in meeting and steps should be taken for that
issues which they are facing in the company.
 An effective relationship among employees leads to a good cooperation among
workers and managers of the company. They should motivate employees by
giving them awards and perks as team-working reduced ample of stress and
productivity will also enhance. Morrisons should focus on team working as
together makes stronger. Team working can improve relationship among all the
members working in team as they all have to work for achieving a common goal
of company.
TASK 2
Critical discussion on nature and theoretical perspectives of Employment Relations.
Employment relations are the most important factor in the businesses. Employees are the
backbone for all the companies. A company cannot able to perform only with the help of table,
chairs, fans, computers or other non-living things. They need human beings that work together
as well as perform in order to achieve the goals and objectives of the company. Employees are
those human beings that work together towards the achievement of common goal at a common
place. Employees are the major asset of company (Lussier and Hendon, 2017). In Morrisons
company, the employment relations are very effective and good as they understand their
employees in very effectual manner. They share a good rapport with each other as well as strive
very hard to achieve the objectives and goals of company. Employment relations refers to the
relationship that every employee at workplace share with there colleagues and subordinates.
Relations can be with anyone in the company, between co-workers, superior and employee,
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between two members in the management. It is very essential that there should be healthy
relationship between employees and employer (Guest, 2017). It is not possible for any
employees to work alone, they need someone to talk, to share happiness and sorrows. The
environment or workplace at Morrisons is a very healthy environment as employees feel
comfortable to work. Life is really short and it is very important to enjoy at every place.
Employment relation is also known as industrial relation as it is the legal relation between
employer and employee at workplace. A positive relationship in between employees and
managers can transform a workforce in improving productivity, loyalty, engagement and as a
result retention of employees. There are many advantages that company enjoys by being a strong
relationship in the company are as follows-
High Moral, Less Conflict- It is fact that employees which are working closely together
increases the moral of employee. The management of company should focus on fostering a good
relationship between employees and managers. If the relationship are good and effective it will
easily solve the conflict or battles at ground floor without interruption to high authorities of
organisation. A good relationship automatically high moral comes (Ones, Viswesvaran and
Schmidt, 2017).
Help to retain top talent- It is also true that a good employment relation control the
employee turnover rate. It is the general thinking of employees that they need relaxation and
peach instead of high salaries and wages. If the salary is high and there is high pressure,
management is not understanding there problems, than employees does not able to retain in the if
company having this type of culture (Boella, 2017). Thus, employment relation is very important
to retain employees and reduced the turnover rate. Comfortable and stable environment makes
employees feel more comfortable to work.
Help in increasing Productivity- employment relation increases productivity of company
as if workers are happy they will contribute productive work. If company have culture of team-
working, collaboration, mutual motivation makes workers more efficient and smarter (Reiche,
Harzing and Tenzer, 2018). The relationship between managers and employees at Morrison are
very positive which resulted in more productive and quality work.
Raise the revenue of company- An effective and strong relationship have a positive
impact on the growth and development of company. Employees who are motivated and engaged
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in the workplace contribute fabulous work in there assigned role, that will result in healthier
products and services, effective customer satisfaction and raises the sales.
Government has placed some laws:
Employment Relation Act 1999- This the act that is formulated in parliament of United
Kingdom that lay the responsibility of economic stability of inflation and unemployment in the
country. Citizen of United Kingdom takes many advantages of employment rights that are
included in this act. There are various acts that are interlinked with the employment relations
such as Labour Law that regulates relations between employees and employers. Employees have
right to equity and common laws (Brewster and Hegewisch, 2017). Right to minimum wages and
working hour regulation, leaves and many other rights saves the interest of employees and that
improves the relationship among them. The main purpose of these laws is make sure that work
that are carried by employees have fairness and can aid to encourage productivity. All these
legislations and regulations contribute positive relationship among employees and employer as
well as it also raises the sense of truth and fairness in there employers. Morrison company is
following all these laws and legislations and this is the reason of effective and healthy
employment relationship within organisation (Delery and Roumpi, 2017).
Roles of the actors within the Employment Relationship with analysis of the changing nature of
employment relations.
Major there are three parties of employment relationship that is employers, employees
and government.
Employees:
Employees are known as the most important part of an organisation by the entire system
prevailing in a company. Employees with their different works such as their commitment
towards the company, their educational and social background, their attitudes towards the
establishment counts them as to be the major part of the company.
Employer:
Employer is the person who Is responsible to the management. They create a bridge between
manager and employees of the company. Their act is to assign duties to workers and check
whether they are being performed or not. Employment relationship is majorly because of
employers.
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