Vodafone UK: Aligning HRM Strategies with Business Goals

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Strategic Management Human Resource
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Executive Summary
This report had highlighted HRM theories and strategies to evaluate their influence within the
organisational processes. Among these models, Best-fit model and resource based view
model positively influence the HRM procedures along with overall organisational processes.
Best-fit model of HRM hugely focuses on the best method for business by which the HRM
process can be aligned with the resource of the organisation and goal oriented approach of the
organisation can be effectively availed. Along with that, importance of employment relations
within the organisation also had been evaluated through this approach.
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Table of Contents
Introduction................................................................................................................................4
Task 1.........................................................................................................................................5
Task 2.........................................................................................................................................8
Conclusion................................................................................................................................11
Reference List..........................................................................................................................12
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Introduction
Human resource management (HRM) is the key within contemporary business approaches as
one of the main resources within the organisations are employees who are recruited through
HRM approaches. The efficiency of an organisation depends on the credibility of the HRM
team as they not only recruit efficient employees but retaining best workforce is also one of
the most important duties for them. This report will highlight different HRM strategies and
theories and evaluate their influence within the organisational processes. On the other hand,
importance of employment relations within the organisation will also be evaluated through
this approach. Vodafone UK will be considered for this report as the organisation has huge
employee base. More than 13000 employees work for the company in context of UK
(vodafone.co.uk, 2020).
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Task 1
Relationship between business strategy and the human resource strategy
One of the main traits that a successful leader of an organisation must have is that the
realisation of the strong connection between business strategy and human resource strategy.
One of the basic approaches of the HR management of an organisation is to manage the
recruitment and selection processes and this approach is directly linked with the productivity
of the organisation as it depends on the efficiency of employees (Glaister et al., 2018).
Through better recruitment and selection approach, a better workforce can be acquired that
satisfy the organistion by achieving its goals. Building a strong relationship between HR
department and other departments of the organisation has huge importance as executives of
organisation first needs to understand the actual benefit to align HR goals along with overall
business processes through organisational changes could be managed effectively by the
organisation (Saridakis et al., 2017). With such better relation, both HR executives and other
executives of the organisation can align their strategies properly.
Separation, Best fit and Holistic Model of HR
The Holistic Model of HRM mainly highlights the open system view of the HRM process
through which was developed by Wright and Snell. Such open systems are highly dependable
on the external and internal environments for different inputs. These inputs are transformed to
introduce outputs (Hecklau et al., 2016). It is an open HRM system, which works as
competence model of organisations such as Vodafone regarding the improvement of skill and
efficiency of employees. The Separation model of HRM identifies the processes of staffing
employees within the organisation. This approach identifies that an employee can end the
relationship with the organisation for any reason that person deems fit to acquire separation
(Gathiira et al., 2019). Mainly two types of separations can be seen, which voluntary and
involuntary separation are. The best-fit approach of HRM mentions the importance of the
alignment of business strategy with the human resource strategy of the organisation (Malik,
2018). Through this approach, HR professionals of the organisations such as Vodafone can
focus on both the needs of employees and organisation.
Vertical and Horizontal Integration in HR
Vertical integration within the HR mainly highlights different HR activities within the
organisation that fits organisational activities that supports the system of the organisation
along with its overall organisational activities (Christina et al., 2017). This process is
considered as the key to link with the strategic approach and the goals of the organisation. On
the other hand, Horizontal integration mainly highlights different HR activities and their
links and approaches to support each other. Different activities such as Performance
management, Recruitment and selection process and Reward management processes are
needed to be tailored in such process through which each of the activities can support each
other effectively.
Critical evaluation of theoretical base and models of SHRM
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The Best Practice model is considered as the single model or approach that introduce
distinctive human resource practice that introduces a proper shape through which a firm can
effectively compete (Power and Handley, 2019). However, this model had been criticised by
universalist mentioning that there is inconsistency between the resource based view and the
belief on the best practice as such approach mentions that there are only few routines and
resources are considered as valuable within best practice model. The contingency theory of
HRM effectively mentions that a Universal best practice model cannot be introduced as
according to the theory, the internal and external environment of a particular organisation
influence the interaction between the organisation and its environment and operation of an
organisation highly depends on such environment (Ringle et al., 2020). Therefore, best
practice model for each organisation would be a unique one as different organisations has
strategies, culture, technologies and management styles that fit to their organisational
approaches. Therefore, it can be effectively identified that best practice model can collaborate
with the contingency theory within the organisation as both these theory and model
emphasises on acquiring knowledge through an organisation can understand which of the
practices is best for the organisation and that can help to overcome challenges.
Resource Based view model aims to develop the strategic capability of the organisation by
which an organisation can acquire added value by appropriate deployment of all the resources
of the organisation (Yu et al., 2017). It also ensures to identify key strategic issues and along
with that, strategic goals also can be acquired by the organisation. According to the Human
Capital Theory, the Resource Based View mainly highlights that investment on the people
increases the overall value and efficiency of the firm. Through this approach, a sustainable
competitive advantage also can be gained by the organisation, as rivals within the industry
cannot imitate the organisational unique human resource pool. The advantage regarding
human resource can be availed with the help of “human capital advantage” that helps the
organistion to employ people who have valuable skills and knowledge to gain competitive
advantage. The resourced based view also effectively helps to adhere to firm specific
achievements as it create more intelligent and flexible approach within the organisation. The
process is mainly concerned with the Resource Dependency Theory as different HR
strategies are hugely concerned with the reward systems through which it can strongly
influence the high-quality employees to enhance their expertise within organisational
operations (Nemeth, 2017).
The Best-fit approach or theory is also aligned with the contingency theory of HRM as it
can be seen within the Best practice approach as it mentions that organisational HRM
activities must be introduced according to the circumstances of the organisation (Malik,
2018). Such approach mainly deals with the vertical integration of that shows the alignment
between HR and Business strategy. Different models of Best-fit approach can be seen that
provides strategic advantage to the organisations such as Vodafone UK. The life-Cycle
model, is mainly based on a theory that mentions that the development of a firm can be seen
within four different stages which are start-up, growth, maturity and finally decline. The
effectiveness of the HRM process of the organisation depends on the alignment with these
stages of development (Kirk, 2016). The Best fit competitive strategy model mentions
different strategies which can be availed by Vodafone by introducing innovative approach,
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maintaining quality of the services or products and communication with consumers and
finally with the approach of cost-leadership process (Lopez-Cabrales and Valle-Cabrera,
2019). The strategic Configuration model is one of the most effective models of the best-fit
approach that mentions that functions of an organisation can be more effective if the
organisation can proper adopt policies regarding strategic configuration (Galanaki et al.,
2019).
Critical evaluation on HR Practices of performance and reward management
Within the human resource management processes, reward and performance management
play major roles to effectively influence the efficiencies of employees. Within the approach
of the Human Resource management process, payment is considered as the sensitive matter
and paying an employee regarding his or her contribution to the organisation is known as
reward or compensation. Such approach not only helps to recruit talented people within the
organisation but it also introduces positive influence to the employees to increase their
efficiency (Gabriel et al., 2016). Within contemporary business processes, it is seen that most
of the organisations use the reward system as a tool to motivate employees and it is enabled
through the performance management process. Within the performance management
processes, providing rewards along with feedbacks play huge role to establish an appropriate
communication with the employees within the organisation. Role of rewarding plays a crucial
role through which employees, who had extraordinarily performed can achieve can achieve
bonuses pay hike and other achievements through which they can positively influence the
employees to improve their performance level (Gabriel et al., 2016). It is important for
organistion such as Vodafone that the organisation must focus on a transparent performance
management process through which negative attitude within the organisation can be
mitigated.
One of the most effective performance management approaches of the organisation is the Job
Characteristics model through which different aspects within the organisation could be
achieved if the employees could be motivated effectively. The model mentions different
characteristics regarding the achievement of job satisfaction. Skill variety is one of the most
important aspects by which employees can improve different skills and perform different
tasks effectively.
Recommendation on design or redesign performance management system
According to the contemporary approaches of Vodafone, it is seen that the organisation offers
competitive payment through which effective benefits could be introduced and along with
that talented people within the organisation can be motivated by the organisation. The
organisation also effectively compares the payment processes and payment approach is
tailored according to the needs of the employees. However, the organisation is failing to
motivate ground level employees therefore; multilevel performance management approach is
needed to be taken by the organisation through which performance of employees from
different levels of the organisation can be measured appropriately.
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Task 2
Critical evaluation on the nature and theoretical perspective of Employment Relation
Employee relations mainly refer to the effort of the organisation through which relationship
between employees and employers can be effectively built by the management of the
organisation. Within an organisation where effective employees relation is seen can introduce
transparent and fair treatment to the employees could be introduced properly. Such programs
regarding employee relations can effectively manage organisational problems which is seen
within different situations (Kaufman et al., 2017). Employee relations are one of the most
complex and delicate issue within contemporary organisational contexts. It is the core of the
labour management process within the organisation and these employees are the key assets of
contemporary organisations. Progress within the contemporary industries cannot be achieved
without loyal employees within the organisation.
Nature of the Employee Relation hugely depends on different aspects such as collective
relationship between employees and employers as it is seen within contemporary industry
that without effective employee relation, estimated progress could not be gained by the
organisation (Ochsenfeld, 2018). The relationship between employer and employee includes
collective and individual relationship and by such approach different relationship between
associations of employees along with trade unions. There are economic factors, which are
concerned with different aspects as it is seen within different aspects, as several parties are
properly involved within the employee –employer relationship. Associations and Unions of
employees are the main parties, which is associated with the employees of the organisation.
There are different theories that effectively influence the approaches of Employee Relation.
Through these approaches, organisations can effectively improve the employee relationship
approaches and these aspects could effectively improve better organisational approaches. One
of the major theories of Employee Relation is “Unitarism” as this approach helps all members
to share similar interests through which cooperation between employers and employees can
be introduced. The theory mentions that staff members and management of the organisation
share similar goals through which loyalty of employees towards the organisation can be
increased. Within the industrial relations, “unitarist theory” mentions co dependency of
employees and employers and within such approach, a friendly environment within the
organisation can be seen (Troth and Guest, 2020).
The Pluralist Theory mentions employment relationship approach as it highlights processes
and functions of different management and trade union (Gold, 2017). It also effectively
strengthens the value and legitimacy of collective bargaining through which the employees of
the organisation could achieve a cultivated result. Pluralism is mainly a frame that mainly
focuses on the collective bargaining processes through this process management and trade
union approaches through which trade union aspects and better management approaches
could be introduced. Such approach effectively limits that authority of the employers through
which inappropriate use of power towards employees could be introduced. Managers in such
cases have effective authorities through which effective solutions could be introduced within
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the situations where conflicts could be seen within the organisation. Primary power in such
approaches mainly remains to the managers of the organisation.
The Radical Theory of employee relation mentions that employees within the organisation
are bound to have conflict with the employers of the company because of the capitalist
approach of the organisation (Barba-Aragón and Jiménez-Jiménez, 2020). Therefore, it is
important to focus on different ideas of control through which employment relation within
the organisation can be developed effectively. Trade Unions are most important aspect within
an organisation as it helps employees to protect rights of employees within different stages of
their employment properly. On the other hand, these trade unions also help to protect the
terms and contracts of the employment contract. Most of the time it is seen within
organisational contexts that managers embrace such approaches however, in different cases
such approaches are considered as drawback for organisations as inequalities can be seen in
such organisational approaches.
Marxist Theory also mentions the importance of employee relation as it mainly defines the
socioeconomic class relations and broader view of the social conflicts within the organisation
(Callaghan, 2018). The theory mentions that organisations can perform effectively if
organisations are run as the state organisations.
Identifying actors and evaluate their roles in ER
According to the British model of Employee as well as Industrial relation, there are mainly
three principle actors who are:
 The trade unions and their workers
 Employees and associations
 Agencies and government
The main role of trade unions and its workers is to introduce effective supply effective skills
in order to improve the efficiencies of the organisation. Through such approach, production
of better production of goods and efficient manners of services can be achieved by the
organisation (Zhang et al., 2018). It also effectively helps organisations with efficient human
resource through which better environment with the organisation can be introduced.
Along with that, the main role of the government agencies is to enable an effective
environment through which better services or goods could be introduced by the organisation.
These mentioned actors effectively perform their services towards such organisations with
different expectations in return. As it can be seen within different aspects that trade unions
and workers within organisations prefer better salaries along with other aspects such as
favourable conditions within the workplace facilities (Bhave and Glomb, 2016). Along with
that, government and the agencies expect effective tax return and proper order within such
organisations. The role of employees and associations within an organistion is also huge as
they effectively supply raw materials in the form of human resource and financial supports
and in return, huge profit is expected by them.
Changing nature of ER and evaluate the roles of the actors in line with the changing
nature of ER
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Working processes within the world is changing hugely as “non standard” working are being
introduced within the working processes which is hugely challenging the collective and social
dimension of work. The introduction of “Gig Economy” is introducing such concern for the
activities of trade union (Huws et al., 2017). Individualisation within employment is
increasing the processes of gig economy within contemporary organisations and such
approaches are questioning the approach of trade unions to manage both the workers of the
sectors and outside of the sector. On the other hand, the gig economy is also influencing the
membership approach of trade unions by which high issue regarding the formation of trade
unions could be seen.
The rise of non-standard workers is also influencing the organisational approaches as it is
changing the labour law approach along with industrial relation. The feminisation of work
through the introduction of gig economy along with non-standard works is increasing
struggle of trade unions. On the other hand, flexibility within the workplace is increasing the
opportunities of female workers to work within the organisation, which is challenging the
purpose of the association of employees.
Recommendation on how employee participation and employee voice can contribute to
the improvement of ER
Participation of employees can improve the Employment Relation as organisation that has
effective employee relation can enjoy better productivity and higher employee relations. It
also helps to spread the goal of the organisation among the employees of the organisation.
Participation of employees within employee relations approaches such as trade union or
employee associations can introduce appropriate communication channel by which
organisational challenges can be effectively communicated and both internal and external
issues of the organisation can be effectively cultivated. Within the context of Vodafone plc,
employment relation approaches can identify the challenges that organisations are facing and
effective solutions could be introduced.
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Conclusion
The report had vividly identified the fact that HRM department of organisations hugely
influence the business processes of the organisation. It is seen that different models such as
Best-fit model and resource based view model hugely influence the HRM approaches of an
organisation. Best-fit model of HRM mainly focuses on the unique approach of business by
which the HRM process can be aligned with the resource of the organisation and goal
oriented approach of the organisation can be effectively availed. On the other hand, the
resource based approach of the organisation mainly consider the available resources and
investment of employees to achieve better position within the industry. The second part of the
report mainly highlights the employment relations and their influence on the business
processes. Among the actors of ER, Trade Union along with employee associations play huge
role to provide appropriate human resources to the organisation. However, within modern
economy, the business approaches and environment is drastically changing and introduction
of gig economy is also changing the modern approach of trade union.
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Reference List
Barba-Aragón, M.I. and Jiménez-Jiménez, D., 2020. HRM and radical innovation: A dual
approach with exploration as a mediator. European Management Journal.
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Callaghan, C.W., 2018. Strategic human resources management or talent management: a
theoretical non sequitur?. Journal of Contemporary Management, 15(1), pp.763-783.
Christina, S., Dainty, A., Daniels, K., Tregaskis, O. and Waterson, P., 2017. Shut the fridge
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Huws, U., Spencer, N., Syrdal, D.S. and Holts, K., 2017. Work in the European gig economy:
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