Strategic Human Resource Management: Trends, Theories, and Practices

This report provides a comprehensive analysis of strategic human resource management (SHRM). It begins with an introduction to SHRM, followed by an examination of current trends and developments impacting HR strategy, including globalization, changing skill requirements, workforce diversity, continuous improvement, and compliance. The report then analyzes the influence of both internal and external factors on HR strategy and practice, such as organizational culture, structure, competitors, and economic conditions. It also explores relevant theories and concepts related to the growth and development of SHRM, including contingency theory, and how these theories relate to practice in organizations. Furthermore, the report evaluates how appropriate change management models, like Kotter's theory, support HR strategy and discusses how HR outcomes can be monitored and measured. Finally, it discusses and evaluates how effective HRM and HR development support sustainable business performance, concluding with a summary of the key findings.

Strategic Human
Resource Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. key current trends and developments that influences an organisation HR strategy..............1
M1 Critically analyse the influence of external and contextual developments...........................2
P2. How internal and external factors influence HR strategy and practice.......3 just wrote not
mentioned how
TASK 2............................................................................................................................................4
P3. Relevant theories and concepts related to growth and development of strategic HRM.......4
M2. How human resource theory related to practice in specific organisational.........................5
TASK 3............................................................................................................................................5
P4. Evaluate how appropriate change management models support HR strategy .....................5
M3. Justification for the application of chosen change management models.............................7
D3. How change management strategies can be implemented...................................................7
TASK 4............................................................................................................................................7
P5 How HR outcomes can be monitored and measured.............................................................7
M4. HR development techniques help to contribute in performance and growth......................8
D4 Reflect on how HR monitoring and evaluating techniques contribute to sustainable
performance and growth.............................................................................................................9
P6. Discuss and evaluate how effective human resource management and development
support sustainable business performance..................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Human resource management is refers to the recruiting and hiring of suitable employees
according to the vacant post. The strategic human resource management can be understand by
comparing with human resource management. Strategic human resource management is the act
of attracting, developing, rewarding and retaining employees so that they can be benefited for
both company and themselves as well. To better understand this concept, TNT : Delivering in
business strategy case is being analysed by this report. The external and contextual developments
are influenced by strategy of human resource is being explained in this report. As contemporary
theoretical and practical knowledge of HR development is discussed in this report. There are
some change model which supports the human resource strategy is being discussed in this report.
As contribution of HR management and human resource development is very helpful in order to
sustainable business performance and growth.
TASK 1
P1. key current trends and developments that influences an organisation HR strategy
The human resource management of organisation is related with the policies and
procedures of staffs and employees. These policies needs to be followed by the employees of
organisation in order to perform their job effectively and efficiently. The trends are changing
very frequently in today's dynamic business environment. Due to the globalisation and
competition the world becomes smaller place. Even small businesses are now connected across
cultural and geographic boundaries (Sheehan, 2014). As an outcome these trends are affecting
human resource strategy of organisation like TNT, these contemporary trends and developments
are discussed as below:
Impact of globalisation:
In today's business environment everyone thinks about the go global. As globalisation is
not an option for business it is mandatory in order to be sustainable in this competitive market.
As organisations are also comes to know that best match for the jobs can be found not only
locally but also globally. Due to globalisation, organisation are liable for changing their human
resource strategy as according to global trends instead of local (Renwick, Redman and Maguire,
2013).
Changing skill-set requirement:
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The skills are capacity of an individual which enables employees to perform their job
with efficiency. As skills requirements are changing very frequently due to some factors such as
globalisation and technology up-gradation. As organisation like TNT requires the people who are
more comfortable working with technology. So the requirement of these skills set also making
affects on human resource strategies.
Workforce diversity:
The workforce diversity refers to the similarities and differences among employees in
terms of age, cultural background, physical abilities and disabilities, religion, race and gender.
As at the workplace when there is lack of acceptance and culture diversity than this will impact
human resource of TNT and have to change their strategy. To solve this issue organisation
should provide the diversity training which will help them to accept and respect each other's
differences.
Continuous improvement and processes for improving productivity:
This is very important for organisations to make continuous improvements in order to
improve the productivity of employees. As the continuous improvements enable organisation to
make improvements to be sustainable in the market. This process of continuous improvements
can affect strategy of human resource management. If model of continuous improvement is
applied in organisation than human resource of company needs to make changes in their strategy
accordingly. (Prieto and PilarPérezSantana, 2012).
Compliance and regulation:
There are various laws regarding the employment, information privacy, labour practices
and information privacy which are constantly changing. Organisation make strategies according
to the laws and legislation. It is important for them to keep cop up with the laws in order to
smooth functioning of organisation. So changes in laws can make impact on human resource
strategy of TNT. So it is necessary to keep analysing laws regarding human resource in order to
smooth functioning of business.
M1 Critically analyse the influence of external and contextual developments
There are different factors which make influences on human resource strategy of
organisation. As dynamic trends force organisation to make changes in the strategies of business.
The main benefits of these trends are, it allows to keep comply with latest strategy according to
the need of business. These external and contextual developments are affecting human resource
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strategies as due to globalisation management needs to plan their human resource according to
the global requirements. Diverse workforce at workplace is also another trends which forces
organisation to change their strategy. The changes in human resource strategy allows
management to be sustainable and competitive in this dynamic market.
P2. How internal and external factors influence HR strategy and practice
The human resource strategy and practices are designed for maximising the recruitment
and retention and minimising employees grievances. To implement these strategy and policies,
some factors which needs to be analysed by human resource of TNT in order to executing these
strategy effectively. The external and internal factors are discussed as below:
Internal factors:
The internal factors are those which are related with internal system of organisation.
These are as follows:
Organisational culture:
Organisational culture is the sum of shared values, beliefs and habits within an
organisations. This shows the personality of company. This is very important for human resource
manager of TNT to adjust its strategy positively within organisation. Human resource manager
needs to understand culture which follows in the business in order to formulate adequate policy
(Petrick, 2017).
Organisational structure:
This is also an internal factor which affects the human resource strategy. As normally
there is two kinds of organisational structure that one is tall and other one is flat structure. This is
very important for human resource of TNT to know the structure of organisation than according
to set their strategy. For example, TNT has flat organisational structure and HR makes strategy
according to the tall structures so this is very important to plan strategy according to structures.
External Factors:
The external factors are those which are outsider of organisation and make impact on
human resource strategy of company. These are discussed as below:
Competitors:
The competitors plays an important role in market and also make effect on the human
resource strategy of organisation. If competitors make job offers to the employees with more
attractive terms and conditions than human resource of TNT also needs to analyse their strategy
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in order to select suitable candidate. As number of competitors increases the importance of
staffing function and compensation practices also gets increases.
Economic factors:
Economic factors are those which are related with economy growth of country,
unemployment and interest rates etc. This factor also make impacts on the strategy of human
resource of organisation. As if there is increasing in unemployment rate in economy than human
resource of TNT needs to formulate their strategy accordingly in order to retain their employees
(Michailova, Heraty and Morley, 2016).
Trade unions:
Trade unions are one of the major constraints for country as well as organisations. The
trade unions are formulated in order to dealt with the issues of employees and staffs at
workplace. As with formulation of these trade unions, employees interests are no longer
determined by management. So it is very important for human resource of TNT to make strategy
by considering trade unions because they can make impact on strategy of human resource.
TASK 2
P3. Relevant theories and concepts related to growth and development of strategic HRM
The organisational development and growth is very important in order to be sustainable
and competitive in dynamic business environment. As growth of organisation leads to growth of
employees of that company. Growth and development of strategic human resource management
in TNT organisation depends on the various factors. There are some theories and concepts for
development of strategic human resource management these are discussed as below:
Contingency theory:
This theory was developed by the Burns and Stalkers and Woodward, this theory
indicates the relationship between the adequate independent variable and dependent variable
vary in accordance to factors such as company size, age of company, technology and capital
intensity. This theory talks about the implementation of potentially tough interactions among
human resource management variables and performance indicators (Mahesh and Crow, 2012).
As this theory displays the definitions of aims, policies and strategies, list of activities and
evaluation of role of human resource department are legitimate only if these are related with
organisational situation. As with the help of this theory TNT company use performance
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management effectively and efficiently. This theory is basically about the need to achieve best fit
among what organisation is and want, technology size, structure, people its employees and its
external environment and how company performs. As TNT manage the flexible work
arrangements by contingency theory. Contingency theory is applied in different contingent
situation like restructuring. The Tesco Plc also apply this contigent theory in order to use the 540
performance appraisal in their organisation to measure performance of its employees in
organisation. This theory says that there is no universal accepted practice in human resource. As
it is all depend on the situation which arises in organisation and how human resource manager
handle to overcome this situation.
M2. How human resource theory related to practice in specific organisational
There are various theories which are used by organisation for different organisational
situation. As contingency theory of human resource management describes that there is no fix
practice for human resource practice. An organisation face the different situation and according
to that they apply theory of HRM. If there is situation other than restructuring than this theory
will can not be executed. As due to difference in organisational situations the theory will also
differ (Greenhaus and Callanan,2012).
TASK 3
P4. Evaluate how appropriate change management models support HR strategy
Change management refers to the collective term for the different approaches to prepare
and support individuals, teams and organisation in making organisational change. This is used by
organisation to form a current state to a desired future state to execute a vision and strategy. This
is a complete process which mainly focuses on the encouraging employees to accept and
embrace changes in their present working environment. The needs of change arises in order to
achieve the organisational goals effectively and efficiently. TNT can also apply the change
model in their current working environment in order to get their goals achieved effectively.
These change model supports the strategy of human resource. There are change management
models which can be adopted by the TNT. These are discussed below:
Kotter's Theory:
This theory mainly focus less on the change itself and more on the the people who are
behind the change. As by inspiring a sense of urgency for change and maintaining that
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momentum, this theory can be useful to great effect in adapting the business to current climate.
The theory has 8 steps which are as follows:
Create a sense of urgency:
This is a first step which states, create a situation which defines that there is urgency for
change in organisation. This can be helpful for initial motivation in order to get the things
moving. To implement change model, manager needs to recognise the potential threats and
should develop a case which shows what could be happen future. As this supports the human
resource strategy by identifying need of change in organisation in order to achieve organisation
goals (Drucker, 2012).
Develop a core coalition:
This is very important to convince people regarding that change is required in
organisation. So the support of leaders and stakeholders is required in order to manage and lead
change effectively. As to lead change, managers of TNT needs to bring together coalition and
other departments of organisation like human resource etc.
Create a vision for change:
A clear vision should be developed in order to make change in organisation. A vision
would be very helpful for manager to bring together organisation people and implement change.
As the vision for change supports human resource strategy in order to get goals achieved.
Get everyone on board:
At this stage, idea for change should be spread to whole organisation. So the different
departments of organisation make strategy according to change management. To convincing
organisation people for adapting change is very difficult.
Remove barriers and reduce friction:
The obstacles are those which make the change process more difficult in organisation.
These barriers can be removed by looking at organisational structures, job description and
performance and compensation systems to assure they are in line with vision (Buller and
McEvoy, 2012).
Create short term wins:
As company should create short term goals. Because success motivates most to adapt
changes. TNT should create some short span of targets so staff will be feel motivated and adapt
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changes. As this goal can align with the human resource department in order to support the
strategy formulated by human resource department.
Build change:
At this step, change is implemented in organisation and company set goals in order to
continue building momentum.
Anchor change:
At this stage, this ensure that change is now becomes integral part for organisational
culture and visible in every organisational aspect.
M3. Justification for the application of chosen change management models
The Koter change management model is used by the various organisations in order to
make changes in current working environment. As this change management model effectively
supports human resource strategy of organisation. The TNT used this change model in order to
make change in their current working environment (Budhwar and Varma, 2013).
D3. How change management strategies can be implemented
This model can be implemented effectively in organisation with the proper coordination
and guidance of leaders. The main benefit of this change model is that company can achieve its
goals and objectives more effectively with new healthy working environment. And the major
drawback is that employees of company might take some more time to adjust with this change
management.
TASK 4
P5 How HR outcomes can be monitored and measured
There are various methods which are used by organisation in order to evaluate and
monitor. These are as follows:
Key Performance Indicator
Key performance indicator adapts by the organisation for performing the task of human
resource with the purpose to evaluate the performance of employees and success of the business
entity like T&T by analysing the previous performances of employees the HRM performs the
task of performance appraisal in order to improve the workforce performance. It provides
comparative statements of an employees performance that depicts the previous performances of
the employees and shows the overall progress of employees till the present business period. It
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creates the motivational force among workforce that promotes their working performance as
well as operational performance of the business this all leads to increment in the productivity and
profitability of business. By ensuring betterment in employees workings and operational
performances of entity, the KPI befitted in maximisation of the profit as well as betterment of
the workforce workings and also for financial performances of the entity. This all leads to
accomplishment of the desired goals and targets of the organisation.
BENCHMARKING:
This techniques is concerned with measurement of the quality of business entity's
policies, products, strategies etc. along with presenting the comparative statement which
compares the measured quality with the the measuring standards with the only motive to
quantify favourable or unfavourable deviations for the improvement or betterment in the
formulating and adapting strategies and policies of the organisation like T&T . so that the
organisation can achieve the high performance levels. Along with this, the benchmarking helps
the HR in order to make better or effective strategies and policies in context of product as well as
employees performance appraisal for the betterment of the entity's performance. Although it is
also concerned with betterment in operational performance.
10 C HRM Model:
This model embraced and pragmatic model. This model was propounded by Alan price
by his book Human Resource Management in a business context published in 1997. this book
concerned mainly with the role of Human resource manager as well as management in context of
businesses. This model and book describes the role and need of HRM in business scenario with
the help of ten essential principles in Ten Cs model. The principles are Comprehensiveness.
Credibility, Communication, Cost effectiveness, Creativity, Coherence, Competence, Control,
Change, Commitment this all ten principles are essential for practising the better human resource
practices as these to be concerned by the HR to the employees of the organisation in order to
create a healthy working environment and to ensures control and coordination (Brewster, 2017).
M4. HR development techniques help to contribute in performance and growth.
In present situation there is a need of HR to perform different training and development
function that help in increasing the performance of company and employees as well. Some of
these are performed by HR manager of TNT that are discussed below:
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Training and development: HR perform different function in order to improve the
performance of employees. They arrange different training and education programs to guide
working in respect to perform certain task. So proper training help to grow efficiency among
worker.
Performance appraisals: Manager of TNT record and analyse performance of each
employee in order to make effective plans. They make use of these formulated plans to improve
the performance of worker in case to attain the goals and grow in future.
D4 Reflect on how HR monitoring and evaluating techniques contribute to sustainable
performance and growth.
Human resource manager of TNT perform a valuable role in increasing the performance
and maintaining long term financial sustainability. There are different application and tools that
have been applied by HR in order to achieve predefined goals in upcoming future. These HR
techniques help in future growth addressing potential consequences of their implementation. It is
observed that implementation of HR policies also help employees of company in different ways.
Such as incentive, compensation and additional pay for the extra pay to the worker that also
motivate them to work with their full potential to attain predefined goals. As a result company is
going to grow in future.
P6. Discuss and evaluate how effective human resource management and development support
sustainable business performance.
To be sustainable and achieve organisational goals it is very important to have best
practice and effective human resource management and development in organisation. The
effective human resource management refers to the best fit HR policies in the organisation which
supports the sustainable business performance. There are various ways in human resource
management which supports the sustainable performance in TNT. These are discussed below:
Adequate HR policies:
Every company have their plans and policies which is followed by the employees of
organisation. As these policies defines some set of rules and regulation at workplace which is
being followed by the staffs. The policies effect the growth of business and its sustainability. The
better and liberal human resource policies in TNT would enables it employees to work at their
full capacity and get organisational goals achieved. So effective HR policies supports the
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sustainable business performance and growth of organisation. This will help the TNT to achive
their organisational goals with adequate plan and policies.(Trullen, Bonache and Sanchez, 2012).
Providing training and development:
The training and developments are the integral part or function for human resource
department of organisation. As every company identify needs of training and development and
than provide training and development to employees in order to be sustainable and competitive
in market. As HR of TNT identify needs of training for its new joiners and development need for
existing employees. This helps employees to groom their skills and achieve organisational goals
of improving productivity and efficiency of organisation.
By recruiting right candidate:
The recruitment and selection is primary function of human resource department in
organisation. As human resource department of TNT recruit the right candidate for their vacant
post. Recruitment of right candidate by human resource management helps companies for
sustainable business performance and achieve organisational objectives. As selection of right
candidate will perform the task effectively and achieve the goal. (Aladwan, Bhanugopan and
Fish, 2014).
By motivating employees:
Motivation is techniques which is used by leaders and human resource management of
organisation in order to motivates their employees and get work done. This is an important tool
for the key people of organisation as because it enables employees to give their best efforts in
order to achieve organisation goals and drive sustainable performance. The HR department of
TNT obliged to motivate its employees in order to retain and get work done. As motivation in
employees is another way to drive sustainable business performance and achieve organisational
goal so organisation can grow.
By performance appraisal:
The performance appraisal is an another major function which is performed by human
resource management of organisation. As under the performance appraisal, employees
performance is being measured and according to that they are promoted. As TNT organisation
promotes its existing employees to the higher post in order so that they feel motivated and does
not leave organisation also. There are various ways for performance appraisal which is being
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used by companies like 360 degree etc. The company will achieve the organisational goals of
maximising profit as by motivating its employees.
CONCLUSION
In the conclusion it can be said that human resource management plays an important role
in organisation in order to achieve goals of organisation. There are some trends and
developments which influences the organisation human resource strategy. The external and
internal factors make impact on the human resource strategy and practices. The theories and
concepts related to human resource management helpful in growth and development of strategic
HRM. Change model is applied by various organisation and it supports the human resource
strategy also. There are various ways in order to monitor human resource outcomes of
organisation.
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