Strategic Human Resource Management Report: M&S and Employee Relations

This report provides a comprehensive analysis of strategic human resource management (SHRM), focusing on the relationship between HR and business strategies, particularly within Marks and Spencer (M&S). It explores the importance of SHRM in attracting, developing, and retaining qualified em...Read More

STRATEGIC HUMAN
RESOURCE
MANAGEMENT

TABLE OF CONTENTS
Executive summary..........................................................................................................................1
TASK 1............................................................................................................................................1
Relationship among the strategies of HR and business..........................................................1
Comparative analysis of various theoretical concepts and models of strategic HRM...........3
Specific HR practices in performance management and rewards..........................................6
Nature and theoretical perspectives of Employment Relations..............................................7
Role of major actors towards development of employee relationship...................................8
Mechanism of participation of employees and their voice...................................................10
REFERENCES..............................................................................................................................11
Books Martin, G. and Reddington, M., 2010. Theorizing the links between e-HR and strategic
HRM: a model, case illustration and reflections. The International Journal of Human Resource
Management. 21(10). pp.1553-1574....................................................................................11
Patel, P.C. and Cardon, M.S., 2010. Adopting HRM practices and their effectiveness in small
firms facing product‐market competition. human resource management, 49(2), pp.265-
290.and Journals...................................................................................................................11

Executive summary
This report is based on understanding that human resource department in every business
enterprise has its important role in development of effective employee relations at workplace.
Business strategies is similar with human resource as it also relates with development of human
capital which is significant to increase the longevity and leads to success of business. There are
some important business trends which provides major impact on companies policies related to
development of human resource and overall business policies of enterprise. Vertical integration
considered as important activity of merging two or more business units similar company that are
at different stages of production.
TASK 1
Strategic management of human resource is considered as major concept or task that
implies to the practice of business enterprise to attract, develop, rewards and retain qualified
employees at workplace (Hollenbeck and Jamieson, 2015). It is also considered as a practice of
developing effective successful strategies HR functional unit in enterprise to sustain its
employees through development positive employee relations. In present report, As an HR
consultant in Marks and Spencer which is major retail store that has its headquarters in UK and
also operates in other overseas nations. As per scenario, M&S have also developed various
business and Human resources strategies in order to achieve their goals and objectives in retail
industry. Further, there are various important relations among the business strategies and specific
human resource strategies also been considered in order to provide an understanding about the
impact of employees on business performance of M&S.
Relationship among the strategies of HR and business
Today, functional unit of human resource has more effectively defined strategic role in
M&S and its policies also affects the bottom line. It is further considered as major challenge for
the Human resource managers in M&S to convince the executive teams of leadership that human
capital is major significant and beneficial resource in which the organization needs to make
investments (Kramar, 2014). Further, effective return on investments is considered as suitable
and major part of consideration to include the HR department as part of overall business strategy.
Further, here are some important relationship between strategies of HR and overall business
strategy have been mentioned above:
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 Similarity: As per the analysis, business strategies is similar with human resource as it
also relates with development of human capital which is significant to increase the
longevity and leads to success of business (Sparrow, Brewster and Chung, 2016). In this
context, HR department in M&S also involves executive leadership teams that discuss
with professional in HR to create complementary objectives of HR and overall business.
It implies that both other functional and leadership teams along with HR professional
aims develops strategies with an aim of achievement of organisation objective of
retaining qualified employee and achievement of competitive advantage over rivals like
TESCO, ASDA and Sainsbury. HR Policies and productivity: Process of recruitment and selection of HR unit of M&S is
a predomination of developing a productive workforce at workplace (Jabbour and de
Sousa Jabbour, 2016). In present competitive business environment within retail industry,
maintaining qualified workforce in which the employees should have high job
satisfaction and job security is important M&S to increase its business performance in
market and compete with other firms. Increasing the performance is also leads to rise in
productivity of enterprise which is an aim of development of business strategy. Effect of trends : There are some important business trends which provides major impact
on companies policies related to development of human resource and overall business
policies of enterprise (Shen and Benson, 2016). These trends are technology, marketing
techniques, promotion, customers expectation, innovation and creativity etc. Among
these major trends innovation and creativity provides major impact on both HR and
business strategies of M&S. For making innovation in business practices along with
introduction of new and innovative products and services, it is essential for cited
organization in increase the skills, knowledge and capabilities of employees so that they
will contribute in increasing the sale of organization. Through this, M&S will be able to
achieve customers satisfaction and will be able to retain their loyalty towards the
organization. Interaction between executive leadership: It is considered that quality of communication
between the HR executive and other executives of M&S is the real test of relationship
among human resource and whole business strategy. Employee involvement in cited
organization also defines the improvement of relationship among the HR and executive at
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corporate level which clearly demonstrates the return on investments in human resource
activities. It has been review by management of M&S through reduction in their
employee turnover and increasing the high level of job satisfaction among workers at
different level.
Vertical integration : It is considered as important activity of merging two or more business
units similar company that are at different stages of production (Lussier and Hendon, 2018). For
example: A food manufacturer and a chain of Supermarkets like M&S. It is considered as
essential for M&S to make a control and access to the inputs and also manage the cost, quality,
and time of delivery of those inputs. Further, management is able to develop this integration with
the supports of its employees performance. Thus, they have need to develop effective strategies
in order to increase their potential and retention of qualified employees at workplace.
Horizontal integration: It is a process of raising the production of goods and services at the
similar part of supply chain which can be done by M&S through acquisition of various business
activities of other competitors in retail industry (Armstrong, 2014). For acquisition and
regulation of business activities of other firms, M&S will have a need of qualified and
experienced so that they will increase their business and achieve more sales as compared to
previous years. Strategic human resource management will support cited company in
development of effective recruitment and selection process through which they will be able to
gain more and more interest. For example: M& S acquiring other company in retail industry, will
gain profits by selling own products on its brand recognition.
Comparative analysis of various theoretical concepts and models of strategic HRM
Through analysis of literature, it is considered that SHRM is an attempt to model some
aspects of empirical world. Theories of strategic management are accurate which helps the
Marks and Spencer to fulfil its objectives of outcome and understanding related to the
relationship between the variables of interest ( Kumari and Alam, 2015). Critical analysis of
literature has provided an understanding Human resource department of organization also have
major contribution in development of successful business strategies that aids reduction in cost,
development of positive employee relations, management of employees and also provides
important business ideas in critical situation so that organization will not face any kind of losses.
In present context, Mode of strategic human resource management has been considered to
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provide information about various strategies which are development by M&S in order to regulate
business and operation for achievement of profitability and customers satisfaction. These are
strategies like Corporate strategy: It implies to those business policies which are formulated by M&S
by concerning the impact of major external factors like competition, government,
regulation, technology, market trends and economic trends. Business strategy: Business strategies are those which are made to enhance the sales and
growth of business enterprise in particular industry or market (Sheehan, Garavan and
Carbery, 2014). Management of employees in organisation is also a major part of
company's business strategy in order to develop and sustain competitive advantage over
rival firms in particular industry. In M&S, these business strategies are developed by
organization through concerning external factors which are discussed earlier along with
internal factors like culture, structure, policies, employee skill and past strategy etc.
 HR strategy: Next strategies in the model of strategic human resource management is
development of HR strategies by concerning the factors like employee separation and
laws in relation with employment at workplace (Vomberg, Homburg and Bornemann,
2015). In M&S, development of HR strategies involves human resource planning, design
of jobs and system of work. It also includes analysis job responsibilities of employees
and needs of management from its employees. Further, these strategies are developed in
order to analyse interlink of various jobs with each other.
After development of these strategies, management of M&S will be able to perform various
important activities like Staffing: Through implementation of these strategies, HR department will be able to
analyse the requirement of employees at different levels and will be able to fill job
openings by hiring qualified employees at workplace. Training: After filling the gaps in hierarchy, effective HR strategy will also help the
managers to analyse the needs of training between new employees (Snell, Morris and
Bohlander, 2015). Various important methods like performance review, appraisal etc. are
considered in these strategies which helps the managers of M&S to develop required
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potential among its newly recruited employees by providing On the job and off the job
training to employees. Performance management: Development of appropriate business and human resource
strategies will enable corporate executives in M&S to manage the performance of newly
hired employees along with existing ones by using various methods. Compensation: Managing payroll of employees is also important part of Human resource
strategy in which manager will design or develop the compensation provides report to
management (Kavanagh and Johnson, 2017). It enables management to decide whether
compensation is paid to on the basis of performance or experience. Compensation in
M&S is paid by HR department by concerning both performance and job position at
workplace.
 Employee relations: Effective HR strategies will enable the cited organization to develop
positive relationship with employees by providing effective compensation, rewards,
participation and opportunities of training etc.
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Illustration 1: Model of SHRM
(Source: 13 Models of Strategic Human Resource Management, 2017)
Specific HR practices in performance management and rewards.
According to (), there are several important practice have been accomplished by HR
department in order to manage the employee's performance and providing them rewards. Below
give are some important activities performed by HR like:
 Performance appraisal: It is method in which the performance level of employees is
judged by taking interview of their line managers, supervisors and personnel observation
(Stone and et.al., 2015). It will provide an understanding to the management of M&S
about the areas in which employees will require more experience and knowledge which
can be fulfilled through training.
 Ranking method: It implies to the method in which manager will provide to employees
on the basis of perform so that they key performer in organization will get appreciation
and rewards from top level management.
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TASK 2
Nature and theoretical perspectives of Employment Relations.
Employment relations that implies to the relationship between employers and employee,
employers and employers, workers and workers in every enterprise. As per the view of
Armstrong and Taylor, (2014), it is analysed that it is essential for every business enterprise
operating at international level to develop effective relationship with its employees so that they
will perform better in order to achieve the objectives of enterprise at workplace. It is considered
as major fact that employee will become loyal to that organization which provides them high
amount of remuneration along with effective recognition at workplace. On contrary to this,
Martínez-Jurado, Moyano-Fuentes and Jerez-Gómez, (2014) has stated in various business
organization, management does not concentrate on development of competencies in their
employee, they only aims at achievement of more and more in order to gain importance at
workplace. In present context, Human resource department of Marks and Spencer have the
major responsibility of development of effective relationship with the employees at workplace.
Further, management of organization also thinks that there is major importance of create positive
relations with workers and this can be possible for enterprise through adoption various methods
like
 Rewards: It is major thing that relates to the fact that employee will get motivation and
develop positive perception towards M&S if they will provide appropriate rewards to
employees for their better performance and providing innovative business ideas to
management for development of new products and service to customers.
 Promotion: It is also important method in which management of M&S will use effective
business strategy in order to review the performance of employees and on the basis
effective method performance they will provide promotion. In M&S, method of
performance appraisal is effectively used by manager in order to promote their employees
which has lead to development of positive relationship and decrease in employee
turnover.
 Recognition: According to Martin and Reddington, (2010), employee in organization not
only get motivation through rewards, they often require recognition of their efforts and
performance by top level management at workplace. Through various methods of
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performance appraisal managers of M&S will analyse the performance of employees to
provide them recognition in annual general meetings.
 Increment: Along with the recognition, managers of M&S also have an opportunity to
positive employment relations by increasing the salary of employees or extra other
benefits in lieu of salary in order to influence their perception and make them loyal
towards. It will enable the workers in organization to gain motivation and focus together
for accomplishment of organizational goals.
 Better working environment: As per employment laws, it is duty of management of
organization's to fulfil the basic requirements of employees at workplace (Ng, 2017). In
M&S, human resource department was totally responsible to ensure that employees
should get a better working environment so that they will face any problems and health
issues at workplace. By providing appropriate and healthy working condition, employers
will be able to change the perception of employees and attract their concentration towards
achievement of common business goals and objectives.
Role of major actors towards development of employee relationship.
From the critical analysis of some important literature, it is recognised that there are
development of positive relationship with the employees in organisation is an crucial task which
is not accomplished by one single person. There are some important parties which have there
important role in make an influence over the perception so that company will be able top sustain
market and also achieve high level of profitability in comparison to other rivals. In present
scenario, some major actors are also analysed which have an influence of employment relations
in M&S like:
 Employers: These are owners of M&S who have major focus on development of positive
relationship and increasing the performance of employees in selling of products and
develop effective relationship with the customers. There some important decisions have
been taken by employers like increasing pay scale, promotion, recognition and training
etc. so that employees will get influence and focus on accomplishment of company's
objectives like increasing profitability along with rise in customers base continuously.
 Trade union: Voluntary association of workers from various organizations which is
developed with a aim to protect the rights of employees at workplace. These trade unions
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operate at different levels in countries (Patel and Cardon, 2010). In M&S, there is also a
trade union of employees who is responsible to protect employee rights and they also
help the organisation through resolution of disputes at workplace. Management of M&S
will have to provide authority to the leader of trade union to participate in meeting of
organisation in order to ensure that decisions will not be taken by management against its
employees. European union has also provided recognition to trade unions in countries
and provided them authority to enter between the industrial dispute of employers and
employees at workplace.
 Government: As per the view (Park, Bae and Hong (2017), government of every country
also have an important role in maintaining positive employment relations between
workers and their employers at workplace. In present context, government of UK has
developed some important laws that relates to employment rights, working hours,
compensation, leaves and working condition of employees. M&S also have requirement
to consider and abide by these laws so that they employees will get better working
condition and opportunities to develop their skills, knowledge and experience at
workplace.
 Employees: Development of positive employment relations is an essential duty of
employees also so that employers will tend to develop positive communication towards
them. For this, every employee need to have positive relationship with their colleagues
along with superiors. They should understand their job responsibilities and always
concentrates on achievement of objectives of organization. In M&S, there is positive
communication between employers and employees through they are able accomplish
their job responsibilities in specified time period.
 Shareholders: According to Kramar, (2014), in some situations shareholders also plays
an important role in development positive employment relations as they promote the
employers or employees so to provide business ideas which helps the organisation to
increase its market share profitability in retail industry.
Thus, it can say these key main players have major role in development of effective
employee relationship in M&S.
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Mechanism of participation of employees and their voice.
Employment relations that implies to the relationship between employers and employee,
employers and employers, workers and workers in every enterprise. As per the view of (Lussier
and Hendon, (2018), it is analysed that it is essential for every business enterprise operating at
international level to develop effective relationship with its employees so that they will perform
better in order to achieve the objectives of enterprise at workplace. From the critical analysis, it
has been recognition that participation of employees in making decision and providing valuable
business ideas to management of Marks and Spencer is important because it supports the
organization to analyse the impact of external business environment and changes in trends along
with requirements of customers in selected market segment. There are various important
methods have been applied by managers of M&S in order to gain participation of their employee
in handling critical business situations in organization. These importance methods like
increasing the salary, providing rewards, recognition, performance appraisal and their employees
aims at increasing the profitability of employees at workplace.
Further, managers of M&S have also concentrated on providing various authorities to
employees at workplace so that they will be able to gain recognition of workers towards
achievement of various important business relationship at workplace (Kumari and Alam, 2015).
It is also essential for employers to provide motivation in order to gain their participation in
managing the activities. Other than this, employees also help the organization to analyse the
strategies which are developed by its competitors in market in order to influence the market
share of organization.
Thus, it can be said that human resource department have major role in gaining participation of
employees at workplace in order to achieve business objectives.
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REFERENCES
Books and journals
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Armstrong, P., 2014. Limits and possibilities for HRM in an age of management
accountancy. New Perspectives On Human Resource Management op. cit. at, pp.154-166.
Hollenbeck, J.R. and Jamieson, B.B., 2015. Human capital, social capital, and social network
analysis: Implications for strategic human resource management. The Academy of
Management Perspectives.29(3). pp.370-385.
Jabbour, C.J.C. and de Sousa Jabbour, A.B.L., 2016. Green human resource management and
green supply chain management: Linking two emerging agendas. Journal of Cleaner
Production. 112. pp.1824-1833.
Kavanagh, M.J. and Johnson, R.D. eds., 2017. Human resource information systems: Basics,
applications, and future directions. Sage Publications.
Kramar, R., 2014. Beyond strategic human resource management: is sustainable human resource
management the next approach?. The International Journal of Human Resource
Management. 25(8). pp.1069-1089.
Kumari, K. and Alam, A., 2015. Strategic Human Resource Managers: Creating a path from
administrative to strategic function. International Journal of Research in IT and
Management. 5(12). pp.39-45.
Lussier, R.N. and Hendon, J.R., 2018. Human resource management: Functions, applications,
and skill development. Sage publications.
Martin, G. and Reddington, M., 2010. Theorizing the links between e-HR and strategic HRM: a
model, case illustration and reflections. The International Journal of Human Resource
Management. 21(10). pp.1553-1574.
11

Martin, G. and Reddington, M., 2010. Theorizing the links between e-HR and strategic HRM: a
model, case illustration and reflections. The International Journal of Human Resource
Management. 21(10). pp.1553-1574.
Martínez-Jurado, P.J., Moyano-Fuentes, J. and Jerez-Gómez, P., 2014. Human resource
management in lean production adoption and implementation processes: success factors in
the aeronautics industry. BRQ Business Research Quarterly. 17(1). pp.47-68.
Ng, S. H., 2017. ‘Employment across Markets or Nations’: A Review Paper on International and
Comparative Employment Relations. Employee Responsibilities and Rights Journal. 29(3).
pp.165-171.
Ng, S. H., 2017. ‘Employment across Markets or Nations’: A Review Paper on International and
Comparative Employment Relations. Employee Responsibilities and Rights Journal. 29(3).
pp.165-171.
Park, O., Bae, J. and Hong, W., 2017. High-commitment HRM system, HR capability, and
ambidextrous technological innovation. The International Journal of Human Resource
Management. pp.1-23.
Park, O., Bae, J. and Hong, W., 2017. High-commitment HRM system, HR capability, and
ambidextrous technological innovation. The International Journal of Human Resource
Management. pp.1-23.
Patel, P.C. and Cardon, M.S., 2010. Adopting HRM practices and their effectiveness in small
firms facing product‐market competition. human resource management, 49(2), pp.265-
290.
Patel, P.C. and Cardon, M.S., 2010. Adopting HRM practices and their effectiveness in small
firms facing product‐market competition. human resource management, 49(2), pp.265-
290.and Journals
Sheehan, M., Garavan, T.N. and Carbery, R., 2014. Innovation and human resource
development (HRD). European Journal of Training and Development. 38(1/2). pp.2-14.
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Shen, J. and Benson, J., 2016. When CSR is a social norm: How socially responsible human
resource management affects employee work behavior. Journal of Management. 42(6).
pp.1723-1746.
Snell, S.A., Morris, S. and Bohlander, G.W., 2015. Managing human resources. Nelson
Education.
Sparrow, P., Brewster, C. and Chung, C., 2016. Globalizing human resource management.
Routledge.
Stone, D.L., Deadrick, D.L., Lukaszewski, K.M. and Johnson, R., 2015. The influence of
technology on the future of human resource management. Human Resource Management
Review. 25(2). pp.216-231.
Vomberg, A., Homburg, C. and Bornemann, T., 2015. Talented people and strong brands: The
contribution of human capital and brand equity to firm value. Strategic Management
Journal. 36(13). pp.2122-2131.
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