Strategic HRM and Social Responsibility: Theories and Examples

This essay examines the extent to which human resource management (HRM) can be both strategic and socially responsible, drawing upon academic theories and organizational examples. It defines HRM as a crucial function for achieving long-term objectives, involving employee management, motivation, and training. The essay highlights the role of HRM theories, such as the resource-based view, contingency theory, and ethical approaches, in implementing corporate social responsibility (CSR) and sustainability. It discusses how companies like Telstra, Wesfarmers, and Woolworths maintain sustainable HRM practices, including hiring and retaining employees. The paper further elaborates on the strategic role of HRM in enhancing employee skills, motivation, and commitment, promoting CSR activities, and fostering a culture of change and accountability. It also explores how different HRM theories are applied in organizational settings to improve performance, adapt to various situations, and uphold ethical standards.

Running head: Human resource management theory and practice
Human resource management theory and practice

Human resource management theory and practice
(Essay: To what extent can human resource management be both strategic and socially
responsible?” Illustrate your answer by drawing on both academic theory and
organizational examples).
The primary motive of this task is to define the role and significance of human resource
management. HRM is considered the backbone of each and every company that helps in
achieving long term mission and objects in the competitive market. HRM may be defined as a
process of handling and controlling the workers in an organization and it can involve firing,
hiring, motivating and training employees. Further, the paper outlines that how HRM theories
such as resource based view theory, contingency theory and ethical approach play a vital and
empirical role in exercising CSR practices and sustainability. The theories that are used by HRM
help in running business activities successfully and efficiently. The paper also discusses that how
various organizations such as Telstra, Wesfarmers and Woolworths maintain sustainable human
resource management. The paper further defines that how these organizations hire and retain the
workers with the help of sustainable HRM. More detail of the task has been detail below.
According to Briscoe, Tarique & Schuler (2012), HR management is a concept that used
to explain proper systems devised for the administration of people in an organization. The
responsibilities of a HR executive divided into three main areas such as worker compensation,
staffing, and conniving work. As per Storey (2014) human resource management may be defined
as a practice of hiring, recruiting, deploying, managing a company’s employees. HRM deals with
various issues and concerns related to safety, wellness, benefits, performance management,
organization development, training, employee motivation and others. Lengnick-Hall, Beck &
Lengnick-Hall (2011) stated that HRM plays a tactical role in handling people, working
environment and culture. It has been analyzed that HRM entails the highest and effective level of
human resource management activities. HRM helps an organization to attain its objectives and
goals by generating a favorable attitude among the workers (Chen & Huang, 2009). Along with
this, an effective and dynamic HRM is focused on a strategic works and goals by improving and
enhancing skills, motivation, knowledge and talents of the workers. Harzing & Pinnington
(2010) noted that HRM plays a significant role in today’s era to conduct business activities and
operations successfully and effectively. Apart from this, HRM focuses on increasing and
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Human resource management theory and practice
enhancing employee commitment and provides intensive training and development coaching to
the workers. The focus of an HRM may be increasing and enhancing the involvement of workers
and empowering them. HRM provides decision making and power and roles to the workers to
carry out the business actions in a hassle free manner. No company can perform well without
maintaining sustainable and effective HRM (Sharma, Sharma & Devi, 2009). HRM team helps
to develop and grow the business in a large extent and it also helps in attaining competitive
benefits in global market. Aside this, strategic HRM is the practice of developing, attracting,
rewarding and retaining workers for the advantages of both the organizations and individuals as
well.
HR managers are well situated and significant to play a critical role in supporting their
company attain its goals and objectives of becoming an environmentally and socially responsible
firm. It helps in reducing its adverse effects and enhancing its favorable impacts on the
atmosphere and community as well (Garavan & McGuire, 2010). As human resource
management influences various business processes and key systems underpinning effective and
unique delivery, further it is also well positioned to promote and improve a CSR ethnic and
attain a high and effective performance CSR society. It is noted by Inyang, Awa & Enuoh (2011)
that human resource management can be a firm partner to make sure that what the firm is saying
openly aligns with how employees are treated in the corporation. Aside this, Human resource
management also helps in promoting and improving the CSR activities and sustainability. HR
managers can focus and handle the CSR plan execution and scrutinize its implementation
proactively and successfully while documenting its growth and achievement through the firm.
HR technology can provide support with a CSR program and process including minimizing the
organization’s carbon footprint to advantage the planet. Creating a civilization of change and
accountability begin with human resource management. It is stated that HRM focuses on three
major areas of CSR may help to generate a cohesive and important map for the future and
present. HRM encourages and improves the community relations including initiating reward
programs, promoting community involvement, charitable contributions and practices. Moreover,
guidance and development programs and plans that define the interconnection between the
organization’s core products and services and the community at large and their core value to the
domestic market. HR managers make policies, plans and strategies for the welfare of the various
stakeholders within the organization. They enhance shareholder value and maximize employer
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Human resource management theory and practice
brand recognition and goodwill in the competitive market (Bučiūnienė & Kazlauskaitė, 2012).
HRM also encourages and implements green practice and further, HR managers celebrate
success and growth within the organization. They communicate, collaborate and share the value
of CSR to the community and workers. To promote and sustain a clear and unified international
workplace, it is vital for the entire international labor force of a firm to be on a single, effective
and attractive HR platform that permits for distributing a sound and effective corporate
responsibility plan and process. Publicity about a success and growth create a mutual
understanding of the corporate culture within each and every area that the firm serves. Along
with this, domestic population knows that in addition to rendering employment, the firm takes an
active and unique interest in and participates in domestic areas (Shen, 2011).
Resource based theory is used by HRM in the workplace. HRM theories help in seeking
to maximize and enhance performance and productivity through a single, static and strategic plan
is a fallacy. McIvor (2009) defines that resource based view is a administrative structure used to
decide and identify the strategic resources with the capability to provide proportional advantage
to a corporation. These resources may be exploited by the company to attain sustainable and
unique competitive benefits. Michaels (2011) stated that RBV focuses and identifies managerial
attention on the organization’s internal resources those capabilities, assets and competencies with
the potential to render superior and dynamic competitive benefits. The resource based theory can
be perplexing just because the resources may be used in various ways within everyday general
language. It is a significant to distinguish strategic resources from other resources. With the help
of this theory, HRM focuses on the internal capabilities and resources to overcome the
competitors.
On the other hand, contingency approach is also used by human resource management to
carry out the business functions and actions effectively. This theory suggests that most suitable
style of administration is dependent on the context of the situation and that adopting a single,
common and rigid style is inefficient and ineffective in the long term. The company claims that
there is no best way to systematize a company, to lead a firm and to make unique and effective
decisions. It is analyzed that contingency theory may also produce and develop more well
rounded and dynamic leaders who are able to build and improve skills and talents in multiple
areas. In this way, the firm is able to cope up and strive with rivalries globally (Guest, 2011).
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Human resource management theory and practice
One of the significant approach or theory that used by HRM is ethical approach. It implies
concern for organizational and people ethics. This ethical approach is share with work ethics of
the personnel serving in the company. HR has to be acquainted with specific staff qualities, rules,
and norms through proper orientation, induction and CPD programmes. Both employees and
organizational qualities and rules are predicted. The four ethical principles include the following:
 Respect for the individual
 Mutual respect
 Procedural fairness
 Management, transparency and workers
Some kind of behavioral characteristics, work ethics system and manners are expected in
handling and managing human resource in this theory. Thus, this theory could be designated as
normative theory of HRM. This approach designates the normative environment at workplace
which means that there is a self guided force in functions and operations (Collings & Wood,
2009).
Let’s talk about an example, it is noted that human resource team of Wesfarmers plays a
major and imperative role in conducting business activities and operations widely. The HR team
is devoted to render people related outputs that enable the business to attain excellent growth and
strong and unique sustainable performance and productivity. HRM at Wesfarmers is also
responsible to provide ample of social benefits to the workers in the workplace. HRM are
focused team leaders with superior and dynamic interpersonal skills, capabilities and passion for
rendering outcomes that lead to a highly engaged, committed and talented labor force. The
company has developed and implemented innovative strategies such as staffing, assortment,
induction, training, reward, performance development and compensation strategy.
Another example is Woolworths, it is one of the biggest and well known retail organizations
in the Australia. The company has dedicated human resource department that focuses on the
effective and unique employee management for the company. It is analyzed that Woolworths has
created their HR department with the help of few significant theories and models of human
resources. Building and recruiting talent, retaining and training, selection, and quality
management are the important and vital strategies those have been implemented by Woolworths
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Human resource management theory and practice
limited. Along with this, it is stated that Woolworths follows the business procedure HR
outsourcing, with the help of various external suppliers to manage and control the actions of
human resource like payroll administration, recruitment and selection. In case of Woolworth
limited, this retail firm manages and operates their human resource functions at the social and
strategic level. The practitioners are involved in the CSR activities and human resource planning
and further, HRM also performs various other functions such as performance management,
retention strategy, recruitment and selection. Various sustainability and CSR practices are
exercised by the HRM at Woolworths. The company encourages their existing workers to the
designation of technical analyst by various and attractive performance appraisal method. HRM at
Woolworths helps in standing out against the competitors in the international market.
Woolworths follows the functional and strategic levels of HR functions. In this way, HRM plays
an empirical role in Woolworths to run the business activities and actions in a hassle free manner
(Wiscareers, 2018).
Telstra also maintains a sustainable human resource management to sustain CSR activities
and sustainability.HRM plays a key role in Telstra to enhance and improve the quality of
products and services. Furthermore, HRM at Telstra works in a wide range of areas such as
employee engagement, talent acquisitions, organizational development, workplace relations,
change management and recruitment. HRM also helps in attaining CSR objectives and goals
within the organization. By using sustainable HRM, Telstra has been able to compete explore
and expand its business functions globally. HRM at Telstra plays an important role in integrating
CSR to a whole organization and among its personnel as well (Francis, Holbeche & Reddington,
2012).
Further, it is stated that HR is accountable for various key systems, procedures, processes on
which effective and unique delivery system depends. Human resource executives keep relevant
and important skills, knowledge and talents in context to organizational cultural change and
learning. Apart from this, employees are considered a key stakeholder in any CSR program. HR
executives also manage the managerial and administrative tasks that include benefits,
performance appraisal, motivation, education and compensation. They also focus and monitor
the activities and operations of organizations and staff as well. HRM also works in some other
areas such as social welfare, personnel management, and maintenance. They maintain reciprocal
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Human resource management theory and practice
relationship among the different departments to carry the business successfully. HRM also helps
in promoting and enhancing employee contribution and meaningful changes at the workplace.
Having a unique and attractive HR solution that render organizations flexibility, accessibility and
the correct mix of methods are needed to the growth and achievement of both workers as well as
managers alike, as they sustain and handle work life balance and flourish in a varying and
changing working environment (Ehnert, Harry & Zink, 2013).
It concludes from the above mentioned limelight event that HRM is a significant part of each
and every organization. HRM plays a vital role in exercising CSR activities and sustainability
practices globally. The above analysis shows that how HRM theories help in gaining competitive
benefits and further it also helps in attaining desired objectives and goals. Human resource
management also is socially liable to fulfill the expectations and needs of the various
stakeholders. No company can grow and expand its business without maintaining effective and
unique sustainable human resource management.
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Human resource management theory and practice
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