Strategic Human Resource Management Report: Business Strategy

This report provides a comprehensive analysis of strategic human resource management (SHRM), focusing on its application within Tesco. It begins by establishing the crucial relationship between business strategy and human resource strategy, emphasizing how HR initiatives directly contribute to overall business goals. The report explores both vertical and horizontal integration strategies within an organizational context, followed by a comparative analysis of various SHRM models, including Harvard, Guest, and Becker models. It delves into the contingency, universalist, and resource-based views, offering insights into different leadership approaches. The report then critically evaluates performance management and reward systems, highlighting their advantages, disadvantages, and providing recommendations for effective implementation. Furthermore, the report examines the theoretical perspectives of employee relations, encompassing unitarist, pluralist, and Marxist viewpoints. It discusses the roles of key players in employee relations and underscores the importance of employee participation and voice in fostering positive workplace dynamics. Overall, the report offers a thorough examination of SHRM principles and practices, providing valuable insights into the strategic alignment of HR with business objectives.

Strategic Human
Resource Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Relationship between business strategy and human resource strategy.......................................1
Vertical and horizontal integration across the company.............................................................2
Comparison of strategic human resource management models..................................................3
Explanation of contingency, universalist and resource based view............................................4
Critical evaluation of performance management and reward system.........................................4
TASK 2............................................................................................................................................6
Theoretical perspective of employee relations............................................................................6
Role of players in employee relations.........................................................................................7
Importance of employees participation and voice in employee relations...................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic management is the procedure of planning of activities and leverage of tools and
resources for accomplishment of desired objectives. In this report, the strategic management plan
has been formulated for Tesco. Tesco is a retail company operating in Britain, United Kingdom.
It generally deals in groceries and general merchandise. It was founded a century ago by Jack
Cohen. The report include the explanation of relationship between business strategy and human
resource strategy. The report also include the explanation of vertical alignment and horizontal
integration in organization context. Further the report cover the evaluation and comparison of
theoretical basis models of strategic human resource management. The report also comprise the
explanation of nature and theory of employee relations. The report the include the roles of actors
in actors in changing the nature of employment relationship. The report contain the
recommendations of importance of employee participation and voice in improvement of
employee relations (Armstrong, and Taylor, 2020).
TASK 1
Relationship between business strategy and human resource strategy
Human resource is an important integral part of business. Business run well when
employees of the company feel motivated, satisfied and enthusiasm. Human resource strategy is
a part of business strategy. Effective human resource strategy also helps in enhancing the overall
growth of business. Business strategy is linked with human resource strategy. The relations
between business strategy and human resource strategy are given below.
HR strategy is business strategy
Business strategy implies all the activities needs to performed to achieve a specific goal
of a company. Human resource is a strategy is a plan of activities to improve potential of
employees within the organization. Employees are part of business that's why human resource
strategy is a part of business strategy. Initiative taken to improve human resources is indirectly a
step towards growth of business. Human resource strategy engaged team of business executives
and human resource specialist to discuss and develop aims of human resources that would
eventually benefit the overall business (Bratton, and Gold, 2017).
HR strategies and business productivity
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The process of hiring in human resource department is crucial for accumulation of
productive workforce. Formulation of human resource strategy for hiring competent employees
is the foundation of organization growth. Maintaining a conducive environment in which
employees feels satisfied and secure is transform workforce in ladder to reach at the final
destination. Human resource is considered as the most auspicious resources for an organization
according to human resource experts (DeCenzo, Robbins, and Verhulst, 2016).
Examining coordination of business executives and human resource experts
Efficiency of relations between human resource strategy and business strategy is
examined by the quality of communication between employees of human resource department
and executives of other department.
Vertical and horizontal integration across the company
Horizontal and vertical integration are the succession strategies utilized by companies to
expand their business.
Horizontal Integration: It is a practice of acquisition of similar company of the same
industry in which acquirer operates. The main objective of horizontal integration is to reduce the
competition as it enlarge the size of the business. Company decides to apply horizontal
contribution in order to offer diversify product and services. It also aids in accomplishment of
economies of scale. Firm may also aspire to establish their presence in new geographical region
in order to increase source of profit by selling products to new customers. If outcome of
horizontal integration is positive than companies becomes capable to earn immense profit which
was difficult to earn individually. Example of vertical integration is acquisition of picture
company Pixar by another picture company Disney (Sparrow, Brewster, and Chung, 2016).
Vertical Integration: In this phenomenon, one company purchase another company that
lies in the production process of acquirer company. The main objective of performing vertical
integration is to streamlined the supply chain system of the business. It decreases cost of
manufacturing thus increase the profitability of the company. Vertical integration is of two types-
forward vertical integration and backward vertical integration. In forward vertical integration,
company buy firm which placed downward in the series of supply chain. On the contrary,
backward integration implies the acquisition of company that directly or indirectly provides raw
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material to the firm. Example of vertical integration is acquisition of Motorola by search engine
giant Google.
Comparison of strategic human resource management models
Basis Harvard Model Guest Model Becker Model
Factors Components of
Harvard model are
situational factors,
stakeholder interest,
HR policies choices,
HR outcomes, long
term consequences and
lastly feedback loop
(Chelladurai, and
Kerwin, 2018).
HRM strategy is the
only factors that affect
this model.
This model is
influenced by initiative
taken and strategy
devised by manager
for business.
HRM practices According to this
model the diverse
human resources
activities can be
handled under four
categories that
employee influence,
human resource flow,
reward system and
work system.
Human resource
management practices
under guest model are
recruitment, selection,
training, appraisal,
rewards, job design,
involvement, status
and security..
This model is
concerned with design
of human resource
management system
which include
recruitment, selection,
compensation system,
development and
training.
Outcomes Outcome of Harvard
model are divided into
two categories that are
HR outcomes and long
term consequences.
Outcome of guest
model is divided into
four categories that are
HR outcomes,
behavioural outcomes,
Outcomes of Becker
model are divided into
three categories that
are HR outcomes,
performance outcomes
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performance outcomes
and financial
outcomes.
and financial
outcomes.
Explanation of contingency, universalist and resource based view
Organization run by leaders and managers. Manager runs companies on the basis of
principles and concepts of management. Leaders manages firm by influencing in their own way.
Different leaders have different styles of leadership. Some follows one approach in all the
situations and some follows different styles according to situations. Leadership styles are of eight
types that are democratic, autocratic, laissez faire, strategic, transformational, transactional,
coach style and bureaucratic leadership (Albrecht, and et. al., 2015).
Contingency: It is a management theory states that best style of leadership is one that
perfectly fits into the situation. Contingency theory suggest that there is no single approach is
suitable for all the situations. A contingent leader focuses on both leadership and situation and
take steps to assure that both communication efficiently. Contingency theory suggest that a
leader should learn the lesson from previous situations for the purpose applying learning from
these lesson in the management of situations that will arise in future.
Universalist: It is also known as best practice approach. Universalist is a human resource
management theory that suggest that to handle any kind situation there is a prescribed set of
management practices. These management practices are considered to best to be applied in
almost all kinds of situations.
Resource Bases View: This approach of strategic human resource management is quite
flexible. It emphasis on application of contingency approach along with some elements of best
practices. According the configurable theory, it is important to follow best practices along with
customizing hr policies to comply with the overall business strategy (Jabbour, and de Sousa
Jabbour, 2016).
Critical evaluation of performance management and reward system
Talented employees enhanced the growth of the company. It is essential to monitor and
evaluation of performance of employees. Performance management system serve the purpose of
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improving performance of employees. When employees get incentives for the exceptional
performance than get motivated to work harder. Reward system serve the purpose of motivating
employees to the highest level. The description and critical analysis of performance management
and rewards system are given below:-
Performance Management: It refer to the activities of examination and improvisation
of performance of employees to improve the the overall function of organization. It is an ever
lasting process in which certain objectives on the basis of which employer do the monitoring and
evaluation of employees performance. Employer provides reinforcement and motivation to
workers so that they would perform better and contribute more in the growth of the organization
(Ahmad, 2015).
Advantages of performance management
1. It improve the overall performance of the organization.
2. It enhance the growth of the company.
Disadvantages of performance management
1. It is very time consuming approach because writing performance appraisal good
employees is a lengthy process.
2. It can discourage employees in case of bad experience in the procedure of
performance appraisal.
Reward System: In this practice of human resource management, managers give rewards
to those employees whose performance is best throughout the month. Rewards is in form of
monetary benefit such as incentives as well as non monetary benefits such as perks and
promotions. Incentives are given when employees increase the overall revenue of the firm. It
motivates employees to perform their best (Stone, and et. al., 2015).
Advantages of reward system
1. It improve the morale of employees
2. Employees brings more revenue for the organization.
Disadvantages of reward system
1. It encourage employees to play politics to earn incentives.
2. Company profit margin may suffer.
Recommendations for building performance management system
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1. Evaluation of current performance: Company have to consider the feedback they are
giving to their current employees. If there is need for modification than move to the next
step (Guest, 2017).
2. Identify Objectives: The first step of performance management is identify what is the
objective of organization.
3. Set performance expectations: Employer should set expectations from employees
regarding certain level of performance. Aware them with their current performance level.
Proclaimed them about the goals management aspire to achieve next year or the new
project of product development. Finally make them belief that they can able to
accomplish that goal.
4. Monitor employee performance: Employer needs to monitor and supervise employees
performance throughout the year. If employee is finding difficulty in doing any task than
employer should provide support them. Employers is required to coaching to employees
in complex project.
5. Evaluate employees performance: Proclaimed result of each employee performance
level. Render feedback regarding their annual performance. Managers is required to
reveal the rewards of employees on the basis of their performance. Manager needs to
listen the problem employees are facing during the task. Lastly manager have to find out
the solution of the issues (Cascio, 2015).
6. Learn from mistakes: Manager is required to ensure that mistake must not be repeat and
probable measure should be taken tackle difficulty face by employees in last year.
7. Set new goals for next year: Employer needs to make new goal for the consequent year.
TASK 2
Theoretical perspective of employee relations
When different opinions of employees and employer collides than conflict arises.
Conflict is situation when two parties are disagree on each other opinions. Conflict management
is activity of solving conflict between two parties with mutually agree conclusion. Some scholar
believes conflict is inevitable while others believes it is not inevitable. There are three theoretical
perspective of employee relations that are unitarist, pluralism and Marxism. The detail
description of unitarist perspective, pluralism and Marxism is given below:-
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Unitarist Perspective: According to this theory, organization conflict is not an
inescapable phenomenon of relations between employees and employer. Peaceful employment
relations is important for sustainability of a company. It is perceive that conflict may occur
periodically in employee relations as a consequent of some strange incident in general operations
of business. Followers of Unitarianism perspective perceives the manager and employee
performing task for aliveness of company. So there is less probability that organization would
dissolve due to conflict (Jamali, El Dirani, and Harwood, 2015).
Pluralism: This theory suggest that conflict in workplace is impossible to avoid.
Assumption is contrary between Unitarist and Pluralism theory of employee relations. This
theory revolves around the fact that an commercial organization are complicated social structure
where diverse interest group persist. Managers and employees are two different group present in
an organization. Managers and employees of diverse belief and objective works in a company.
As a consequent, vulnerability to conflict in an organization increases over the matters of
assignment of task and distribution of rewards.
Marxism: Last one is the Marxist theoretical perspective of employees and employer
relationship. This theory is developed by Karl Max and Friedrich Engels. Both are philosopher
belonged to Germany. The theory implies that class conflict emerge due to fascination towards
materials in capitalist economies between the class of proletariat and bourgeoisie. The proletariat
are the section of wage earners that are hired to perform the task of manufacturing of goods and
services. The bourgeoisie are the dominant class possess the all the medium of production and
enjoy all the profit that is generated from the hard work of proletariat (Delery, and Gupta, 2016).
Role of players in employee relations
Employee, employer and government are actors play important role in employee
relations.
Role of employees: Employees are most affected entity among all the actors of industrial
relations persist in a company. Industrial relations affect the employees determination towards
the work and satisfaction from the job. Employment relations also impact the attitude of
employees to the firm. Good employment relations drive sense of commitment in employees and
boost their confidence. Employees usually believes that employment relations should is meant
for improvement in work environment, solution of every grievances, sharing of opinion and
ideas with top management and play a role in organization process of decision making. The
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objectives of employees is to strengthen the bargaining power by adopting the practice of
collective bargaining. Another objective of employees in employee relations to manipulate
employers to provide flexible terms and conditions of occupation for all the members.
Employees expects better status of them in workplace. Lastly they want employer to apply
democracy I decision making process (Aryanto, Fontana, and Afiff, 2015).
Employer: They comes next to employees in employee relations. Employer work on
behalf of management in a corporate. Management is accountable for handling several
stakeholder in a company especially employees. In order to maintain good employee relations
manager have to motivate employee. Managers to make sure that employees would remain
committed to the company. One of the objective of employee relations is to accomplish
efficiency in the business operations to the large extent.
Government: As the business environment and work culture go through noticeable
changes therefore role of government in managing and maintaining good employee relation also
changed. For example, before the end of 19th century, the government adopted the approach of
laissez fair in which all the issues between employees and employer were meant to be resolved
by both parties. No third party was intervene in the matter of both entities. After that era,
government become conscious regarding resolving the corporate conflict. Government started
intervening in the affairs of industrial relations. Government realized that it is necessary to take
initiative to solve the conflict of the firms. Later on, government started playing an important
role in resolving problems of industrial relations. In current era, government monitor, supervise
and regulates the industrial relations (Baum, 2015).
Importance of employees participation and voice in employee relations
Employee Participation
1. Strengthen Community: Participation of all employees results in creation of stronger
community. If employees receive a good response on their opinion and ideas and observe
modification done for their well being than they contribute in the growth of the company.
Employees will present their views on way to improve work environment and product
which eventually improve the employee relations. In this way employee relations will
improve.
2. Improve communication: Allowing employee participation also enhance the quality of
communication. It remove the traditional communication obstacles. Employees aware of
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the issues that can be arise from the company's decision can share their concern over the
decision going to be implemented. Thus employee relations will improved.
3. Reducing stress: When employees participates in the major decision of company than
stress reduces. It decreases feeling of not only in employees but also in employees. Stress
evolve when employees fears that company will impose new rules and regulations, make
new policies which can curb freedom or increase their working hours in the lure of more
profit. Stress can cause abnormal blood pressure, headaches or dearth of enthusiasm. All
of these issues will discourage employees to do hard work. Employee participation will
reduces the chances of stress. Thus employee relations will improve.
4. Hike productivity: Employee participation helps in boosting productivity of the
organization. Productivity increases because employees can work with stress free mind,
workplace become conducive, employees feel motivated and do job with full enthusiasm.
5. Improve product quality: Employee participation can lead to increased in product
quality because employee will do more hard work with interest and enthusiasm.
Employee voice
1. Protect from negative emotions: If employees mind filled with negative emotions like
anger and frustration and than their creativity is dissolves, feels demotivated. They
become less productive and perform worst. It hamper growth of organization. Mechanism
of employee voice prevent damages that can caused by not being able speak out.
2. Improve organization flexibility: It improves agility of the company. When company
give employees freedom to speak the truth when necessary than company will become
capable of easily adapting itself parallel to the conditions.
3. Fully utilize knowledge and skills: Study of Daniel Spencer concluded that application
of mechanism of employee voice is directly proportional to level of retention. When
employees have liberty to express their emotions than grievances are addressed before
they make the matter worse. High degree of retention is important to leverage the
knowledge fully in order to gain competent advantage.
4. Increase customer acquisition:When employees grievances are not taken seriously than
they pour out their frustration on Glassdoor, facebook and other social media. This
activities deteriorate the reputation of company which results in difficulty in attracting
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talented candidates in recruitment drive. Organization with efficient grievances redress
system improve the image of the company which leads to ease in hiring best talent.
CONCLUSION
From the above file it has been concluded that human resource strategy is a part of
business strategy. An effective human resource not only improve performance of employees but
also have a positive impact on the growth of overall business. Horizontal integration reduces the
competition for the company and vertical integration strengthen the supply chain system of an
organization. The report also conclude that contingency, universalist and resource based view
define the opinion regarding best style of leadership. Performance management and rewards
system is beneficial to enhance the productivity of employees. The report also conclude that
unitarist, pluralism and Marxism exhibit the theoretical perspective of employee relations.
Employee, employers and government are the actors plays important role in maintaining
employee relations. In the end, the report conclude that employee participation and employee
voice improve the employee relations.
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REFERENCES
Books and Journals
Ahmad, S., 2015. Green human resource management: Policies and practices. Cogent business &
management. 2(1). p.1030817.
Albrecht, S.L., and et. al., 2015. Employee engagement, human resource management practices
and competitive advantage. Journal of Organizational Effectiveness: People and
Performance.
Armstrong, M. and Taylor, S., 2020. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Aryanto, R., Fontana, A. and Afiff, A.Z., 2015. Strategic human resource management,
innovation capability and performance: An empirical study in Indonesia software
industry. Procedia-Social and Behavioral Sciences. 211. pp.874-879.
Baum, T., 2015. Human resources in tourism: Still waiting for change?–A 2015 reprise. Tourism
Management. 50. pp.204-212.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Cascio, W.F., 2015. Costing human resources. Wiley Encyclopedia of Management, pp.1-1.
Chelladurai, P. and Kerwin, S., 2018. Human resource management in sport and recreation.
Human Kinetics.
DeCenzo, D.A., Robbins, S.P. and Verhulst, S.L., 2016. Fundamentals of human resource
management. John Wiley & Sons.
Delery, J. and Gupta, N., 2016. Human resource management practices and organizational
effectiveness: internal fit matters. Journal of Organizational Effectiveness: People and
Performance.
Guest, D.E., 2017. Human resource management and employee well‐being: Towards a new
analytic framework. Human Resource Management Journal. 27(1). pp.22-38.
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.
Jamali, D.R., El Dirani, A.M. and Harwood, I.A., 2015. Exploring human resource management
roles in corporate social responsibility: The CSR‐HRM co‐creation model. Business
Ethics: A European Review. 24(2). pp.125-143.
Sparrow, P., Brewster, C. and Chung, C., 2016. Globalizing human resource management.
Routledge.
Stone, D.L., and et. al., 2015. The influence of technology on the future of human resource
management. Human Resource Management Review. 25(2). pp.216-231.
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