Strategic Human Resource Management: Analysis and Application

This report provides a comprehensive overview of Strategic Human Resource Management (SHRM), its nature, and its importance in organizations. It defines SHRM and discusses its features, including its long-term focus, association with goal setting, and integration with business approaches. Various HRM models, such as the contingency model, best practice model, Harvard Framework, and Guest’s Model, are examined. The report details the activities of HRM, including recruitment, training, performance appraisals, and motivation, and explores how SHRM can be linked with other departments to ensure smooth organizational functioning. It assesses the role and purpose of organizational and HRM strategies, highlighting the benefits of linking them and their impact on organizational performance. Furthermore, the report analyzes business factors, such as growth in business, labor market competition, and technological impact, and determines human resource requirements, considering factors like organizational structure, skill levels, and compliance with regulations. The report concludes by outlining preliminary HR requirements for UrPhone4Everything®, including the need for trained installation staff and sourcing workers from countries with high skill levels and low labor costs.

STRATEGIC HUMAN RESOURCE
MANAGEMENT
Submitted by:

Nature of Strategic HRM
■ Long Term Focus- As business approaches have a long-term
direction, so aim of SHRM is also continuing in nature.
■ Associated with goal setting- It is largely associated with
establishment of goals, policy and delegation of assets at top
level administration
■ Interwoven with business approaches- There is link amongst
business approaches and SHRM
■ Helps in developing corporate eminence- SHRM considers
workforce as imperative future of an organization and based on
that it differentiates the organization from its competitors
(Gratton., Hailey., Stiles and Truss 1999).

Importance of SHRM
■ Helps in identification, prioritization and
exploitation of opportunities.
■ Provides equitable outlook of management
concerns
■ Permits vital decision to guide determined
purposes
■ Helps in efficacious delegation of time and assets
in order to identify opportunities

Features of HRM approach
Primary feature of HRM is to explore and improve the expertise of resources working in an
organization and help in improving quality, efficaciousness, productivities and fulfilment. HRM
helps to solve problem or disagreements which the staffs face and helps to maintain
discipline.
■ Models of HRM
■ Contingency model: It states that there is no defined manner of guiding a
firm as the model which is efficacious in one circumstance may not be useful
in other. Hence, suitable model to be utilized depends on circumstance being
encountered which also relies on the internal and external barriers.
■ The best practice model: the model states to recognize suitable approach,
gain engagement from top level, execute suitable approach and then create
standard for recognizing employees.
■ Harvard Framework: It states that HR standards are influenced by
situational attributes and stakeholder interests. It also emphasize that
managers can influence different aspects by the procedures they select which
involves 4 Cs namely competence, congruence, commitment and cost-
effectiveness.
■ Guest’s Model: It emphasizes on six elements which are HRM approach,
HRM exercises, HRM results, behavioral consequences, performance results
and financial results.

Activities of HRM
■ Selection and recruitment- It is associated with the recruitment of workforce
■ Training and Development- It helps in arranging for skill development of the
workforce
■ Human Resource Planning- The main functions of HRP are anticipating future and
avoid predicted problems.
■ Performance Appraisals- It helps in taking decisions related to transfer and
promotion of workforce in a firm.
■ Motivation- It helps in motivating the human resources of the organization.
■ Health, safety and security- It helps in ensuring the promotion of safety and
security in the workplace and ensuring good health of the employees.
■ Wage and salary administration- It helps in administration of the wages and salary
and in turn motivating them.
■ Job Analysis- It helps in providing knowledge regarding manpower planning.

Ways to add value to UrPhone4Everything®
■ Offering top quality products to the customers.
■ Increasing the delivery and installation speed of the
products
■ Providing additional expert service to the
customers
■ Improving customer service of the products

Linking SHRM with other departments
In order to ensure smooth functioning of
UrPhone4Everything® , strategic human resource
management should be effectively linked with other
departments or functional units. SHRM can be linked
with other units by aligning goals of strategic human
resource management with strategic goals of other
departments of UrPhone4Everything® .

Role and purpose of:
Organizational strategy- The main role and
purpose of organizational strategy is to attain
continued objectives of a firm by undertaking
multiple actions.
HRM strategy- The main role and purpose of
HRM strategy is to integrate culture, employees
and system of an organization by coordinating
set of actions to achieve business goals.
Benefits of HRM strategy to
UrPhone4Everything® :
 Helps in evaluating HR policies
 Improves team building activities
 Helps in monitoring progress of the
organization

Benefits of linking organizational strategy and HR
strategy
■ Strategic alignment of HR
■ Effective training and development strategy
■ Effective selection and recruitment strategy
■ Delivering the strategy

Relationship between HRM and
organizational performance
■ Strategic HRM activities (recruitment and selection,
training and development and compensation and
rewards) are directly related with firm’s
performance as practices adopted by the
organizations enhances the performance of an
organization.

HRM influence on organizational strategy
As opined by Lawler and Mohrman (2003) HR departments have
greater specific, dynamic responsibility in firms and HR approach
influences bottom level. Also, human resources strategy includes
forming executive leadership teams to improve integral objectives for
workforce and entire firm.

Organizational strategy influence on HRM strategy
The HRM strategy and practices which are adopted by
an organization are highly influenced by overall
organizational strategy as nature and objectives
determines the scope of HRM strategy and practices.

Roles that could be assumed
in UrPhone4Everything®
■ Human Resource Manager- as human resource manager my
main role would be to devise and implement human resource
activities to meet the objectives of UrPhone4Everything® .
■ Marketing Manager- as marketing manager my role would be
to increase the popularity of UrPhone4Everything® in the
market.
■ Supply chain and logistics manager- as supply chain and
logistics manager my role would be to increase the
effectiveness of supply chain of UrPhone4Everything® .
■ Research and Development Manager- as research and
development manager my role would be to lead and guide the
research and development team for developing innovative
products and solutions.

Characteristics of SHRM:
Recognizing the external environment as it provides multiple threats
and opportunities to an organization.
SHRM should be long-range focused so that it can be effective to add
value to business.
A strategic accession to workforce is involved with entire workforce,
not just its operational employees.
HR approach applied by an enterprise should be incorporated with
corporate approach for effective human capital management.

Importance of SHRM
SHRM aims to solve concerns that affect workforce governance
concerns instead of focusing on internal issues. Hence, primary
significance of SHRM is to enhance workforce expertise by addressing
business concerns that arise.

Approaches to strategic HRM
■ Resource based strategy
■ Achieving strategic fit
■ High-performance management
■ High-commitment management
■ High-involvement management

Changing Pattern of Human Resource
Management
■ Effect of globalization- as globalization has affected
every possible aspects of business and modern day
organizations so human resource practices are
designed based on effect of globalization (Pettinger
2010).
■ Use of Information technology- Information
technology has helped in increasing the
productivity and effectiveness of human resource
management. Therefore IT tools are aligned with
various human resource practices and activities of
an organization.

Analysis of business factors
■ Growth in business- The growth of businesses have occurred
as a result of increasing focus on Internet of Things.
■ Labour market competition- The competition in labour market
has increased as a result of the effect of globalization.
■ Labour cost substitution- Labour cost substitution can be
carried out by introduction of technological advancements.
■ Development of employee- The development of employee is
carried by providing training and development.
■ Control of labour costs- The control of labour costs will be
carried out by sourcing workers from low labour cost
countries.

Contd..
■ Operations locations- The location of the operations of
the company is UK.
■ Changing nature of business- The changing nature of
business can be attributed to increase in globalization
and implementation of advanced IT tools.
■ Increase in productivity and efficiency- The application of
advanced technology is increasing each day due to rapid
progress in field of disruptive innovation which has
resulted to enhanced productivity and efficiency.
■ Impact of technology- Technology has resulted in
increased efficiency and productivity in operations
■ Competition level- The level of competition has increased
due to potential of growth offered by the sector.

Factors to be considered before HR
planning at UrPhone4Everything®
■ Organizational Structure- It needs to be considered before HR planning
as the scope of HR planning depends upon organizational chart.
■ Skill levels of employees- The skill level of employees should be taken
into account before HR planning as its effectiveness depends upon the
skill level of employees (Sims 2002).
■ Workplace productivity- The level of workplace productivity also needs
to be considered before HR planning as it determines the activities
related to HR planning.
■ Compliance with regulations- The regulatory requirements also needs
to be taken into account before HR planning as the HR activities should
comply with legal and regulatory requirements.

Elements of HR planning
Environmental Assessment- The first element of HR planning involves
analysis of both the internal and external environment in which the
company operates.
Establishing HR goals-The other aspect of HR plan includes setting
achievable goals to resolve the concerns raised with environment
evaluation.
Defining Tactics-As stated by Keenoy and Schwan (1990) third aspect of
HR planning states the approach that will be implemented to attain HR
goals. These may involve policies and programs linked to employee
interaction, training, development, recruitment, performance
management, compensation and career growth as well as management
of performance, succession planning and job definition.

Preliminary HR requirements of the UrPhone4Everything®
■ Highly trained and experienced 25 installation staffs
■ Workers will be recruited from countries with high
level of skill and low labour charges such as from
India and China.
■ The workers will be recruited from both internal and
external sources of recruitment.
■ The basic pre-requisite for the workers are sound
knowledge and training regarding Internet of Things.

Reference
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Keenoy, T., and Schwan, R. (1990). Review Article Human resource management: rhetoric,
reality and contradiction. The International Journal of Human Resource Management, 1(3),
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Sims., R. R (2002). Managing Organizational Behavior. Quorum Books: Westport: CT,
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