Strategic HRM: Analysis of Models, Perspectives, and Practices

This report provides a comprehensive analysis of Strategic Human Resource Management (SHRM), focusing on the relationship between business strategy and HR strategy, exploring theoretical perspectives such as the Best Practice/Universalist view, the Resource-Based View (RBV), and the Best Fit/Contingency approach. It examines HR practices like performance management and reward systems, delves into the theoretical and practical aspects of employment relations, and discusses the roles of various actors in shaping these relationships. Furthermore, the report investigates the evolving nature of employment relations and highlights the contributions of employee voice and participation mechanisms in fostering improved workplace environments within organizations, providing recommendations for enhancing employee performance and organizational growth.

Strategic Management of
Human Resources

Executive Summary
Human resource is a crucial element of all the organisations irrespective of their size and
scope. This makes entity to formulate their business strategy while considering human resource
of organisation in order to develop strong relationship among business and human resource
strategy. Present report include discussions upon models and theoretical basis of SHRM,
strategic perspective of Best practice/Universalist and resource based view, (RBV), Best
fit/Contingency and HR practices of performance management and reward.
In addition to this report also include, theoretical and nature perspectives of employment
relations along with the roles of the actors that prevails in employment relationship. Further
report discuss changing nature of employment relations and the way in which mechanisms of
employee voice and employee participation contribute in improvement employment relations
within organisational context.

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
1.0 Relationship between BS and HR strategy...........................................................................1
1.0 Three theoretical perspectives of SHRM..............................................................................2
1.1 One Best way........................................................................................................................2
1.1.1 Best Fit...............................................................................................................................2
1.1.2 Resource-Based View of the firm......................................................................................3
1.1.3 Performance Management.................................................................................................5
1.2 Recommendations ................................................................................................................5

TASK 2 ...........................................................................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Success of business organisation is the result of strong connection between strategies of
business and human capital. It also assure long term sustainability and profitability of
organisation. Present report include formative discussions on models, theoretical basis and
practises of strategic human resource management (Johnson, Carlson and Kavanagh, eds.,
2020). Along with this performance management is also being discusses in this report along with
its importance.
In addition to this, management of employee relations and the manner in which employee
participation and employee voice mechanism aid in making significant improvement in
environment of workplace is also covered in this report.
TASK 1
1.0 Relationship between BS and HR strategy
Business strategy can also be defined as planning and long term activities of an
organisation, formulated by management to achieve the specific objectives. For running a
successful business company needs to analyse the situation and formulate a master plan which
can help to bring improvements in the existing process and increase the profitability (Armstrong,
2019).
Human resource strategy is another process and planning uses by the management of
organization to manage and arrange the employees at the workplace (Pattanayak, 2020). In
organisation Human resource management plays an important role as it analysis the needs of
employees and formulate the policies that are beneficial for employees and organisation.
Evaluation of the relationship between BS and HR strategy.
The evaluation of BS and HR states a good relationship between them which is important
for organisation to perform their activities as well as activities effectively. Without a Human
research strategy, it becomes difficult for organisation to complete the business strategy as it
helps to arrange people, plans and encourage them to perform well by showing their talent. In the
case of Tarmac, the Human resource manager is performing a valuable role as it formulates
different policies and objectives then assign between employees who are working by clearing
goals and strategies to complete tasks that increase business performance (Dzwigol and et. al.,
2019).
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Horizontal and Vertical integration
In a business organization, Human resource strategy and Business strategy are integrated
with the form of horizontal and vertical that helps to increase the sales and complete tasks
ineffective period. In Horizontal integration, HRM of Tarmac shares the information in a flat
structure by following all HR practices that motivate employees and provide job satisfaction.
Moreover, vertical integration information passes from top to bottom and vice versa that helps to
design all strategies systematically and make each employee responsible to perform well
(Demir, 2019).
1.0 Three theoretical perspectives of SHRM
Strategic human resource is the activity which formulated by management by making
plans and organize resources optimally. Tarmac is a big size organisation that uses different
approaches for increasing business performance and profitability by completing goals and
objectives.
1.1 One Best way
One best way: This is a scientific approach which uses by organisation in manage and
arranges the employees and their method of working so they can bring the changes in existing
activities. The HR manager of Tarmac company makes the uses of one best way in which it
selects the appropriate method of arranging employees in particular activities for improving
performance and profitability (Kerzner, 2019).
The critical evaluation of the approach explains that using this can be beneficial for
Tarmac that helps to increase production, decrease autocracy, making a quick decision,
controlling the activities, and deliver the best services. The chosen organisation understands the
needs of employees as well as customers then provide the services that increase the satisfaction
level and motivate them to work more.
1.1.1 Best Fit
Best Fit: According to Schuler & Jackson (1987), this is a strategy which mainly uses to
see the interest of employee towards particular activity and task that needs to be complete within
a certain time. External and internal fit are two-term that links operational strategy with the
whole business by managing all activities. This is another approach, being used by organisation
for ensuring that HR strategies which are formulated by management are appropriate to the
circumstances of the company and increase insights to bring changes accordingly. By using this
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approach management of Tarmac organization focuses on culture, operational process, and
external environment that may influence the business. If someone is facing problems adopting
them at the workplace then training also provided to employees that support to increase the
performance as well as activities (Lee, Pak, Kim, and Li, 2019).
After evaluating critically it has been stated that the Best Fit model is helpful for Tarmac
company as it ensures employees all HR policies are following by management that creates job
satisfaction between people and leading the higher motivation effectively. The disadvantages of
such an approach are practices concerning HRM are not static where changes can occur at any
time that can create difficulty to adopt (Looise and van Riemsdijk, 2020).
1.1.2 Resource-Based View of the firm
Resource-based view: Every organization aims to attract the number of customers and
achieving competitive advantages. In this, management analysis the resources of organisation
that can be used to perform all functions accurately and looking towards a competitive
environment. As shown in the case of Tarmac company, management uses the RBV approach by
focusing on tangible and intangible assets which use to operate and run the business activities. In
this, management uses available resources optimally and assigns the role of employees that helps
to increase business sales and profits (Ogbonnaya and Messersmith, 2019).
VRIO Framework
The success of the industry concerning business mainly depends on resources and
activities that are important to manage the performance and attain the competitive advantages.
VRIO is a framework and strategic process that any organisation begins with mission, objectives,
and analysis to use resources effectively. This also helps to attain competitive advantages by
sustaining a competitive environment. The VRIO analysis in context to Tramac company are as
defined:
From the case study valuable resources of Chosen organisation are explained below:
Resources Valuable Rare Inimitable Organised
Financial resources Yes No No No
Global presence Yes Yes No No
Skilled workforce Yes Yes Yes No
Distribution channel Yes Yes Yes Yes
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(Inbound service )
Valuable: This means what resources are valuable for the organisation and how they
contribute to the most sustainable competitive advantages. In the context to Tarmac, different
resources are financial resources, global presence, skilled workforce, and Distribution channel
that all are valuable and important for organisation which can help to sustain in competitive
environment-strategy. Financial resources are very important which are uses to run all functions
and activities of Tarmac such as hiring, marketing, selling, operation, etc.
A skilled workforce is used by organisation to understand the goals and bring innovative
ideas to improve the existing performance (Hu and Zhao, 2020). The global presence is
managing by management by using different sources and marketing channel that helps to provide
information regarding product and services. Moreover, the Distribution channel is used by
management for distributing its products to potential customers and increase sales.
Rare – This means resources that are not easily available for every organisation and
make different to those who have this type of resource. In the context of Tarmac, management is
using online marketing, internet and other services that inform customers regarding products and
services then encourage customers to make a purchase. This helps to attain the competitive
advantages because very less organization having these resources so it makes different chosen
organisations from others (Saeed and et. al., 2019).
Inimitable – This means inimitable resources can help to increase performance and
profitability. In Tramac number of employees are working who are enough skilled and talented,
performing their roles and activities effectively which is divided by management for reaching the
potential customers and attaining the business goals. This can help to manage the employees and
arrange them at the right place by creating value that motivates them and give efforts to improve
performance (Venugopal, Krishnan, Kumar and Upadhyayula, 2019).
Organized – This means proper arrangement, utilization, and organisation of resources
that are important for organisation and contributing to higher performance. In context, Tarmac
management are using different ways of distribution and transportation that is cost-effective,
helps to increase the sales and profitability ratio. Moreover, management uses inbound logistic
service by considering helpline calls, customer support, website enquires, and chatbots that fill
the customer requirement and supports to obtain competitive advantages.
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From the above discussion, it explained critically, organisation mainly focuses on their
resources and capital that uses to perform all actions and manage the task effectively. The
management of Tarmac analysis the organisational resources and uses them optimally which
helps to increase the performance and provide competitive advantages by organize them
properly.
1.1.3 Performance Management
In order to gain more competitive advancements compared to other rivals in industry it is
essential for an organisation to have strong performance management system in which
employees performance on daily basis get monitored. With the help of this entity can effectively
provide reward to deserving employees (Berger, 2020). It significantly aid company to increase
performance and productivity of employees at great extent.
1.2 Recommendations
It is essential for an Tramac to make increase in performance of their employees as it will
not only aid workers but also benefit company in number of ways. It has been evaluated that it is
essential for entity to manage performance, for this mentioned below there are some formative
set of recommendations being given to company:
 Tramac is recommended to make significant improvement in the communication process
between employees and managers.
 It is recommended to Tramac management to provide different types of rewards and
appraisals to their employees. It will aid entity to maximise motivation and morale of
employees towards company that automatically increase overall productivity of both
employees at employers at great extent.
 Tramac management is also recommended to provide career development courses to their
employees in which proper eduction, mentoring, counselling is being required to be
provided to employees.
By considering all the above mentioned recommendations Tramac can not only assure
higher productivity of their employees but can also increase entity growth and development
opportunities at great extent.
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TASK 2
2.1.1 Unitarism perspective
In this approach, each and every individual share same interest along with this, staff
members as well as management share common goal (Hamid, Muzamil and Shah, 2020).
Further it has been evaluated that, according to this perspective situations of conflicts does not
likely to take place. XzY by taking advantage of this approach can assure stronger sense of
cooperation among entity and employee through which workers emphasize upon primary
objective.
2.1.2 Pluralism perspective
According, to this approach organisation have different interests and views of individual.
It lead towards higher level of disputes and conflicts, as in this individuals of diverse interests in
sub-groups can cause conflicts among trade union and management. However, it has been
evaluated that imbalance of power among labour and capital have significant impact on
employee's performance towards entity. It lead towards significant maximisation of frustration
among employees.
2.1.3 Marxism perspective
This approach stages that employers and employs are bound to have conflict because of
capitalism result. Along with this, it has been underlined that this practice mainly emphasize
upon idea of control as an essential factor to employment relationship and industrial relations.
Further, according to the evaluation it has been stated that, radical approach mainly include both
limitation as well as benefits towards employment relationship.
2.2 Different actors
There are different types of actors within employee relations through which effective
relationship between employees and employers can be assured in effective manner. Along with
this, it has been underlined that with having healthy and positive relationship with employees
overall productivity and performance of employees can be maximised at significant rate.
Mentioned below different types of actors within employment relations is being defined:
Employees and Trade Unions:
Trade unions are those unions who are mainly develop to present employees at
organisational workplace. In addition to this, it has been determined that trade unions mainly
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assures that rights of every employee is maintained effectively. Main role of trade union is to
make sure that that employees are having access to better workplace conditions, employee
friendly policies. In context with Tramac it is essential for company to abide proper guidelines
and measures of Trade Union Congress (TUC). This will aid them to strengthen their
relationship within employees and assure higher profitability.
Employers and their associations
Main aim of employer association is related to provide formative advices to company
human resource department related to the manner in which successful workforce can be assured.
It has been determined that they basically engage in researches on employer side and further
present them during the process of essential negotiations with workers (Amason and Ward,
2020). In terms with Tramac, it is important for company to undertake use of various forms of
associations as per according to the industry in which they are performing their operations.
Government and its agencies
Government formulate different types of regulations as well as laws which is required to
be abide by both employers and employees. For instance, if UK government sets minimum wage
rate then it is essential for Tramac to abide in order to pay their employees accordingly.
Thus, as per according to the above mentioned discussion it has been determined that all
he above mentioned actors plays crucial role that effectively make sure that relationship between
employer and employees is healthy and positive. However, it is essential for Tramac
management to have proper understanding of the manner in which these actors are affecting
nature of employees relations. As it will help entity to undertake strategic measures to overcome
negative impact of these factors and gain more effective profitability.
2.3 Recommendations
Positive relationship between employer and employees act as an essential aspect of any
organisation through which entity can assure maximum profitability and growth opportunities. In
terms with Tramac, it is essential for management to undertake effective measures in order to
increase participation of employees. For this mentioned below there are some formative set of
recommendations being offered to respective entity:
 It is essential for company to enhance participation of employees in the company
decision making process. However in some cases, company can retain final decision
making authority by themselves. By engaging employees within decision making process
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entity can not only make improvement in relationship with workers but can also
maximise their loyalty towards entity. As per according to many researches it has been
underlined that organisations those who engage their employees in decision making
process see more productive outcomes compared to other rivals in respective industry.
 In addition to this, Tramac is also recommended to deliberately provide positive
workplace culture to this employees along with transparency. It will help aid entity to
maximise overall productivity of employees at great extent. Further it has been evaluated
that entity is also being recommended to reduce unnecessary barriers and effectively
encourage creativity as well as teamwork. It enhances flexibility and sense of
belongingness among workers. Thus, it will lead employees to feel empowered that
further lead towards improving relationship among management and workers.
 One of the most important and effective recommendation which is being offered to
Tramac management, in this it is essential for entity to facilitate listening. It is one of the
essential strategy which is being undertaken by even large scale organisations such as
Virgin company (Ongaro and Ferlie, 2020). By taking advantage of listening Tramac
management can provide employees with an environment in which their opinions and
views get heard. In addition to this, it has been determined that by having opportunity to
voice out opinions employees can feel more empowered and well treated. It automatically
enhances their overall level of performance and productivity in organisational workplace
structure.
Thus, according to the above mentioned discussion it has been underlined that
management of Tramac by undertaking advantage of transparency, empowering, listening and
more can effectively assure development of employees at great extent. In addition to this, it has
been evaluated that by considering all these given recommendations Tramac can enhance
relationship among employers and employees at great extent.
CONCLUSION
As per the above mentioned report it has been concluded that, in order to assure higher
success and development it is essential for an organisation to develop strong relationship with
their employees. In this entity is required to make sure that there is formative relationship
prevails within business strategy and human resource strategy. It has been underlined that with
the help of theories discussed in project company can effectively assure long term success and
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