HRM 325 Strategic Management of Human Resources Report - 2021

This report delves into the strategic management of human resources, emphasizing its crucial role in organizational success. It explores the interconnectedness of business strategy and HR strategy, highlighting the importance of strategic planning in managing human capital. The report examines theoretical models of Strategic Human Resource Management (SHRM), including the Resource-Based View, Contingency, and Universalistic approaches, and their strategic perspectives. It further analyzes specific HR practices, such as performance management and reward systems, offering recommendations for designing and redesigning performance management systems. The report also investigates the nature and theoretical perspectives of employment relations, the roles of actors within the employment relationship, and mechanisms for employee participation and voice. The analysis uses Marks and Spencer as a case study to illustrate key concepts and practical applications within a business context.

Strategic Management
Human Resources

Executive Summary
Strategic management of human resource is very essential for any organisation for the smooth
running of its operation. In order to manage human resource in any organisation it required a
proper as well as strategic planning of human resources. They are completely connected with the
business strategy as employees are liable for the operations in an organisation. The more
efficiently employees work in an organisation the more effective product will be provided in the
market which will give more customer satisfaction and profits to the organisation

Glossary
HR :- Human Resource
Pluralist :- Relating to a system in which two or more states, groups, principles, sources of
authority and many more coexist.
RBV :- Resource based view
SHRM :- Strategic human resource management.
Strategic Planning :- Process of documenting and establishing a direction of businesses.
Unitarist :- Relating to a unitary system of government
Universalistic :- Universal in Nature.

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Relationship between business strategy and the human resource strategy.................................3
Theoretical models and basis of SHRM......................................................................................4
Strategic perspectives of Best fit/Contingency, Best Practice/Universalist and Resource Based
View, (RBV)...............................................................................................................................5
Specific HR practices of Performance Management and Reward Systems................................6
Recommendations to design/re-design a performance management system..............................7
TASK 2............................................................................................................................................7
The nature and theoretical perspectives of Employment Relations............................................7
Roles of the actors within the Employment Relationship with analysis of the changing nature
of employment relations..............................................................................................................8
Mechanisms of employee participation and employee voice contribute to improved
employment relations within an organizational context.............................................................9
CONCLUSION................................................................................................................................9
REFERNCES:................................................................................................................................11
Books and Journals:..................................................................................................................11

INTRODUCTION
Human resource management is an essential part management of any organisation. It
refers to management of human resource capital of the organisation (Bailey and et. al., 2018). All
functions in an organisation is taken care by the human resource of the organisation and it is
essential for the management to manage the human resource in an organised manner in the
organisation. Marks and Spencer is a British multinational company which was founded in 1884
in Leeds, United Kingdom. The company deals in clothing, food as well as home products
having the label of the company in various countries of the world. This report contains
description of the relation between business and human resource strategy which are formulated
by the organisation. The theoretical basis of strategic human resource management is described
through the models of SHRM. There are several Human resource practices in the management of
performance and reward system in the organisation. Further, the report provides for
recommendations for the organisation to design a performance management system in the
organisation. There are several roles which are played by all the human beings in an organisation
to maintain the employees relation and analyse the changing nature of the relation in
employment. It also contains a further recommendation to provide mechanism of employee
participation and employee voice.
TASK 1
Relationship between business strategy and the human resource strategy.
Business strategy refers to those plan and actions of any organisation through which they
attract customer for their products and services. It is essential to have an effective business
strategy in order to achieve organisational objectives. Human Resource Strategy is a plan of an
organisation which is developed to manage the human resource of the organisation connected it
with the business activities. This strategy includes all the planning which is related to the human
resource management in the organisation such recruitment, appraisal, development,
compensation and many to include in it. Business strategy and Human resource strategy are
strongly linked with each other. Business strategy is wider concept and human resource strategy
is a part of business strategy. In order to formulate effective business strategy it is essential to
have an effective human resource strategy as human resource is an important function for any
organisation. Every function of an organisation needs human resource in order to manage them

in effective manner. That is the reason that a strategic management is required in the human
resource department of the organisation. If considered in Markers and Spencer, being a large
organisation having diversified operations in the market, all the functions of the organisation are
managed by human resource and required experienced and talented people. The organisation
needs to have a strategic management of human resource to manage young talent in the
organisation. These talent of the organisation helps them to develop and successfully implement
the strategy of business (Boon and et. al., 2018). Vertical alignment is used in human resource
management to establish a link between strategy which are made for human resource
management with the business strategy of the organisation. It is essential to establish this vertical
alignment to maintain coordination between functions and objectives or goals of a business
organisation. Horizontal integration refers to the integration or ali9gnment of human resource
strategy with the strategies of other functions in the organisation.
Theoretical models and basis of SHRM
Strategic human resource management refers to the strategic planning for the
management of human resources in the organisation. In order to understand the function of
human resource management, various theoretical concept or models are introduced which are
explained below:
Resource-Based view: The resource-based view is a social control theory which is utilized to
influence the strategic resources an organisation can exploit to accomplish sustainable
competitive benefits. In Marks and Spencer when company faces downfall in the clothing
business they found it profitable to follow resource-based view approach in the strategic human
resource planning of the organisation.
Contingency or Best fit Approach: According to this theory, no best way can be given to
organise a company or to manage or lead an organisation (Delery and Roumpi, 2017). The
decisions and management of any business organisation is depend on the internal as well as
external factors of the business environment. In the similar manner there is no fixed way to
manage the human resource of an organisation, the management needs to analyse the situation
and various factors to strategically plan the management of HR department of the organisation.
This approach is best fit for each and every organisation. In Marks and Spencer also this theory
is used by human resource department as the decision in the department are taken according to
the circumstances in the organisation and not on the basis of any theory.

Universalistic or Best Practice Approach: According to this approach there are several practices
that are considered as best practices and are applicable on all types of organisation no matter of
the nature and uniqueness of the organisation such as recruitment and selection, training and
development, motivation and many more. In Marks and Spencer also this approach is applicable
as they also perform the universal functions of human resource department of the organisation.
Strategic perspectives of Best fit/Contingency, Best Practice/Universalist and Resource Based
View, (RBV)
The strategic perspective of all the theories of Strategic Human Resource Management is very
essential to be taken into consideration as it will help an organisation to adapt the best fitted
approach in the organisation (Wright and Ulrich, 2017). All these approaches have their own
strategic perspective which is explained below in detail:
Universalistic or Best Practice
Approach
Resource-Based view Contingency or Best fit
Approach
The perspective of this
approach is to state that the
best practices or the universal
practices are used by each and
every organisation no matter
the size and function of the
organisation. In case of Marks
and Spencer they follow the
universal activities in similar
way other organisation follow
those activities. The
recruitment, selection of
employees, training and
development and other
functions are the functions
which are strategically used in
each and every activity of
In this approach of Strategic
Human Resource Management
the approach is used according
to availability of resources in
the organisation. In order to
strategically manage the
human resource in an
organisation, the organisation
utilise their resources in best
possible manner.
The strategic perspective of
this approach states that no one
can decide a best way to
manage human resource in the
organisation. It is affected by
the internal as well as external
situations of an organisation.
In order to manage various
situation in human resource a
manager needs to analyse and
observer the situation in very
critical manner and then need
to take decision which will be
best suited in that situation. It
is the best suited approach
which is used in most of the
organisation. In case of Marks

organisation. and Spencer, the organisation
most of the time use this
approach in order to manage
human resource in the
organisation. There are several
kind of situations which are
faced by human resource
manager and is solved by them
effectively by using this
approach of Strategic human
resource management (Allui
and Sahni, 2016).
Specific HR practices of Performance Management and Reward Systems.
Performance management refers to the process of management in order improve and develop
skills and capabilities of their employees which will further enhance their capabilities in the
organisation. The best HR practice in order to manage the performance of employees is to have
an effective and motivated reward system in the organisation. The rewards are the best way to
motivate employees to perform well in the organisation (Knezović, Bušatlić and Riđić, 2020). In
order to manage the performance of employees in the organisation. There are several practices
which are taken by Human resource department in order to manage performance of the
employees in the organisation.
Performance management system
In order to manage performance of em,plo9yees in the organisation there are several practice an
Human resource manager undertake are given below:
Establishment of clear goals for the employees: It is essential to clear the goals of organisation
as well as employees to them as they must know what they need to perform in the organisation.
The clear goals help employees to set an objective of their work which affect the speed and
efficiency of work of the employees. If the employees know their duties in better manner it will
led to improve their performance in the organisation (Cooke, 2018).
Offer consistent feedbacks to them: To manage the performance and improve their working in
the organisation, the manager need to provide feedback for their work in timely manner. So that

they can improve their working in early stages only. The feedback provided by the employer
help them to realise their mistake in early stages by which they are protected to became it their
habit. The feedback provided by the employer not only manage performance of employees in the
organisation but also provide the company effective as well as efficient production.
Development of employees from various training programmes: Training is a process in
which the company provides the knowledge to employees to enhance their skills and the working
of the organisation. Sometimes organisation provide training to the employees only to enhance
their skills and their behavioural development in the organisation. Training programmes need to
be provided to employees in timely manner (Martin and et. al., 2016). It will help the
organisation to improve skills and knowledge of employees which will result in their
development. This development will enhance the performance of employees in the working of
organisation.
Reward system
The HR manager of an organisation can offer rewards to their employees in two manner either in
tangible form or intangible form. Both type of rewards are essential in the organisation to
motivate employees. Tangible rewards are provided in monetary terms to the employees as
reward of appraisal or for extra work or as a bonus to their employees which motivate them to do
extra work and enhance their capabilities. The intangible rewards are provided to the employees
in form of appraisal which are given to them to fulfil their esteem needs in the organisation. In
case of Marks and Spencer where there are so many employees engaged in the organisation and
the Reward system is managed in efficient manner in organisation to provide them
Recommendations to design/re-design a performance management system.
Marks and Spencer should design a performance management system in organisation to
manage performance of the organisation. It only help the organisation in management of
performance but also help in talent management of the organisation. To design performance
management system, management need to provide clear goals to the employees which needs to
be connected with their personal objective and organisation's objective. After providing goals to
the employees they need to be analysed and are provided training to them in required area to
enhance their skills in working area. After the process of training, the work of employees needs
to be checked and provide them feedback on the early stages to correct them in process of
working. A proper reward system needs to be maintained and clear to the employees to motivate

them to work effectively band efficiently in the organisation. In order to design a performance
management system of the organisation the company can use management information system
software which helps the organisation to maintain the record of each and every employee and
their performance in the organisation. It is the duty of Human resource department to maintain a
proper record of the performance of each and every employee working in the organisation. It will
support the company in providing appraisal to their employees which is essential for the
motivation of employees. In this manner, Marks and Spencer can manage the performance of
employees working in the organisation.
TASK 2
The nature and theoretical perspectives of Employment Relations.
There are four theories of employment relations which should be followed by company Marks
and Spencer and are described below:
Pluralist: This theory detailed the role and process of trade unions and management. It
helps to provide strength to value of collective bargaining and legitimacy (Rogers and et. al.,
2016). In this kind of organisation the primary function of management is not to demand and
control the employees rather they interact, communicate, discuss and persuade to the employees.
Unitarist: This theory helps to highlight the co-dependency of employee and employer
of an organisation. According to this theory an organisation needs to be integrated, friendly and
collaborative and need not to support employee or trade unions in the organisation. These kind of
organisation works on the basis of employees of loyalty. Marks and Spencer also like to believe
on the loyalty of employees in the organisation.
Marxist: This theory refers to the know-how of a socio-economic investigation that
views social conflict and class relations.
Radical: This theory primarily focuses on the essential business relations of workers that
protect them from large business concerns. This theory states that organisations working to earn
profit have no attentiveness for their employees except from lawful obligations.
In case of Marks and Spencer, they follow radical theory in the organisation as they need
to focus on the necessary business relations as they have so many establishment across United
Kingdom which are managed by the organisations.

Roles of the actors within the Employment Relationship with analysis of the changing nature of
employment relations.
Employment relationship refers to the legal connection between employer and employee of an
organisation. It is essential to maintain a good relation between employer as well as employee of
an organisation to maintain a good working condition (Storey, 2016). In order to maintain this
employment relationship there are several persons which plays an important role. The various
actors who play an important role in employment relation in human resource management are
given below:
Employees/unions: The nature of employees plays an important role in establishment of good
employment relation in the organisation. The skills of communicating with their seniors will help
them to establish good relation with the organisation and employer. In case of Marks and
Spencer, if employees of the company cooperate with the employer then it will create a good
coordination between employer as well as employees of the company.
Management/employers: Management also plays an important role in the employment relation.
If the management or employer is lenient and flexible with their employees then in this case the
employees will be more dedicated for the employer and organisation. An helping and
understanding employer can maintain good employment relations in an organisation. They can
issue several orders and guidelines for the purpose of maintaining good relations between the
employees and employer of the organisation (Garavan and et. al., 2016).
The state: The State refers to the government of respective country in improving employment
relation in an organisation. Government has issued several laws and legislation to define
employer and employee relation in an organisation. These laws and legislation helps the
organisation to define the legal relation between employees and employer. The government
provides for leaves, working hours and a break which needs to be provided to the employees
help to define the various rules of organisation which needs to be linked with these legislations.
All these actors are very essential to safeguard the interest of employer as well as
employee of an organisation which helps them to maintain good relations between them(Iwu and
et. al., 2016).

Mechanisms of employee participation and employee voice contribute to improved employment
relations within an organizational context.
Employee participation refers to the situation of active participation of employees in the
organisation. In order to maintain good and healthy employment relation in any organisation it is
required that the employees participate in the activities which are held in company. There arfe
several situations in which the employees do not want to participate in the functions of the
organisation or even they do not respond to the union of employees. In this situation the manager
or employer will not be able to understand the perspective of the employee which can create
misunderstanding between them. Hence in order to maintain good and healthy relation in
employment active participation of employee is very essential. Not only employee but the
employer should also actively participate. It boost the enthusiasm of employees and they would
like to participate in the organisation in further processes.
CONCLUSION
From all the above discussion it is concluded that strategic human resource management
is necessary for each and every organisation. The plan for the management of human resource
needs to be formulated in such a manner that it must be in accordance with the business strategy.
There is a strong relation between business strategy and human resource strategy of an
organisation. In order to manage human resource in the organisation it is essential to consider the
theoretical model of human resource management in the organisation as it helps to create
strategic plans for the human resource team of the organisation. In order to manage them it is
essential for the organisation to design a performance management system and a reward system
for the organisation. The actors of the organisation plays an essential role in employment
relationship in the organisation. The government, employer as well as employee all plays an
important role in the establishment of employment relationship in an organisation. Participation
of employees and their voice helps them to feel connected with the organisation which improved
the relation between employer and employee of an organisation.