Strategic Human Resource Management Report

This report on Strategic Human Resource Management outlines the framework linking organizational objectives with employee goals. It discusses various theories of SHRM, the importance of employment relations, and provides recommendations for enhancing employee performance and organizational success.

Strategic Human
Resource
Management

EXECUTIVE SUMMARY
This report provide a detail information about Strategic human resource management
which help in formulating a framework that link the organisational objective with personal goal
of employees. It work toward managing the performance and employees and directing it toward
the accomplishment of organisational goal. This project is divided into two parts where task one
describes about various theories of strategic human resource management that support company
in improving their employee's performance. It also describes about a relation between human
resource and business strategy for supporting the SHRM concept. In addition to this it describe
about various human resource practices in term of performance management.
Second task describes about employment relation importance within the organisation
along with the role performed by each actor involve in employment relation. From this report it
has been found that SHRM plays an essential role in success of organisation as it contribute the
performance of employees toward organisational goal. In addition this employment relation is
also consider one of the major factor that must be maintain by an employer within organisation
to keep their employees motivates and focused toward goal. It is recommended to every
organisation that employees are the asset of company that must be treated fairly without any
discrimination for achieving higher success in market place.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
TASK 1............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
RECOMMENDATIONS.................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
TASK 2............................................................................................................................................7
INTRODUCTION...........................................................................................................................7
MAIN BODY...................................................................................................................................7
RECOMMENDATIONS.................................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES .............................................................................................................................11

TASK 1
INTRODUCTION
Human resource management refers to the formal system that devised for managing the
people working within an organisation (Buller and McEvoy, 2012). Strategic HRM refers to the
process of integrating the human resource with strategical objectives of organisation that support
in improving the business performance. This task includes elaboration of relationship between
business strategy and human resource strategy along with vertical and horizontal integration. It
also includes theoretical approach and model of SHRM along with description of HR activities
that are responsible for performance management.
MAIN BODY
The main aim of human resource department is to manage employees and their work by
contributing their skills as well as ability toward the achievement of organisational goals
(Armstrong and Taylor, 2014). This can be better done by establishing a relationship between
human resource strategy with business strategy. Human resource strategy refers to the process of
formulating strategies for managing and directing the behaviour of personnel as per the
requirement of organisation. On the other hand business strategy refers to strategic plan
formulated by higher authority that provide a direction to achieve its vision, objective and
competitive advantage over competitors.
Relationship between business strategy and human resource strategy
The ultimate goal of maintaining this relationship is to use human capital as a tool for
maximizing the organisation assets for the benefit of its stakeholders. As by aligning the business
strategy with human resource, company will be able to keeping its employees focused on
financial goals which provide an opportunity for employees advancement and growth. Because
business strategies provide directions to work on that support in achieving goals and objectives.
Under this alignment focus is directed toward business intentions and then relating them with
human resource practices and policies. This alignments are of two types which are as given
below:
 Vertical integration:- A company is consider as vertically aligned when middle level
employees such as managers, executive officers corporate with entry-level job holders for
understanding and achieving the company's goal. This alignment help in developing an
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understanding among employees related to how their position help company in
accomplishing their goal and what action they have to perform (Collings, Wood and
Szamosi, 2018). Vertical alignment can be achieve with the help of strong leadership and
by involving lower level employees in decision making process.
 Horizontal integration:- It refers to the process of developing an relationship between
the various functional department present within the organisation. As it help in bringing
efficiency in work by establishing coordination among departments that ensure effective
execution of strategies. As this support in accomplishing the goals effectively because
each departments are interlinked in term of their operations.
Strategic human resource management:-
It refers to the set of activities that are performed for attracting, developing, rewarding
and retaining employees for the benefit of each employee individually as well as organisation as
a whole. Strategic human resource management aims toward interacting with other departments
within an organisation for determining their goals so that strategies can be formulated that align
those objectives with organisational goals (Jiang and et. al., 2012). As a result these strategies
support in increasing the moral of employees which contribute toward the achievement of
organisational goals. Therefore, strategic HRM is consider as most essential factor for
organisational success as it utilises the talent and opportunities within human resource
department to make other departments effective. The effectiveness of strategic HRM can be
better understood using models of SHRM which are as given below:
Matching model of SHRM:-
This model state that SHRM focuses on integrating and applying effectively five factors
for achieving organisational objective which includes selection, appraisal, reward, development
and performance. According to this model work and contribution of human resource is required
to be evaluate properly using appropriate techniques. Reward and appraisal plays an essential in
improving the performance of employees as it act as a motivational factor which encourage
employees to achieve their set goals (Kramar, 2014). These five factors work as a cyclical
process as these are interlinked and contribute toward the accomplishment of organisational goal.
This model tries to encapsulate these functional factors of HRM for utilizing it in more
comprehensive manner that support in improving performance and accomplishing organisational
objectives.
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Main objective of strategic HRM is to ensure that business strategies are fully integrated
with human resource strategy so that HRM policies and strategies can be use by line managers to
perform their day to day operations. Theoretical approaches of SHRM are as follows:
 Universalistic theory:- This theoretical approach state that there are some common best
practice approach present throughout the world which support in managing people.
According to this theory a general pattern is followed by organisation for solving HR
issues like recruitment, selection, employees motivation and compensation for managing
people (Approaches to SHRM, 2018.). These practices are followed by companies
worldwide without considering organisational circumstances.
 Contingency theory:- This approach is also known as best fit approach which suggest
that universal approach doesn't leads to better performance. As in order to improve
performance it is very essential for an organisation to integrate its organisational policies
and strategies with human resource practices (Purce, 2014). This support in contributing
the actions of individual toward the accomplishment of organisational goals.
 Resource based view:- It is a mixture of strategic management theories that seeks to
determine the resources which help firm in achieving sustainable competitive advantage.
It involve resources such as brand name, skilled personnel, machinery etc. This
theoretical approach focuses on integrating the tangible as well as intangible assets of
organisation along with knowledge, information, routine, organisational process and
management skills (Wood and Kispál-Vitai, 2014). This integration help a company in
performing operations much effectively that contribute toward its success.
Performance management:-
It refers to the process in which manager and employees plan to work together in order to
monitor or review the performance of employees and guide them for improving their current
performance so that desired objectives can be achieved. Performance management plays an
essential role within the growth of organisation along with employees as well. Therefore, it is
consider as most crucial function of HR department as it help in aligning the abilities of
employees with organisational goals. This includes setting up standards and goals for employees
by HR manager in order to achieve desire goals. Following are some specific human resource
practices that are linked with performance management and reward:
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 Scheduling activities and tasks:- HR manager is responsible for defining and designing
the work performed by each individual so that work can be performed on time and as per
the requirement. Apart from this it is very essential for human resource manager to
schedule activities or tasks as per their priorities which help in performing actions on
time. This help in reducing the chance of errors or delays as well as provide direction
related to which work that brings efficiency. For instance by scheduling task or activities
HR manager of ASDA will be able reduce its operational time. As each activities are
priorities and assigned with time required to complete it which provide a clear guidance
related to which action to be perform and at what time. This will help in accomplishing
task on time which further enhance performance. But on the other hand sometime it has
negative impact as it bring dependability among employees because sometimes they
depend over others to perform their part
 Monitoring performance:- It is also one of the crucial function of HR manager as it
help them in identifying the factors that affect the performance of employees. These
factors can only be determine by monitoring the performance of employees. By
identifying these factors they will be improve the performance of employees that support
in accomplishment of organisational objectives. For instance by monitoring the
performance of employees, HR manager of ASDA will be able to identify the area that
require improvement for enhancing the level of performance. Apart from this while
monitoring the employees, mangers can guide them that further help in reducing the
chance of error or failure. But it also have some negative impact that while monitoring
employees get frustrated from their subordinates when they continuously give comments
over work performed by employees as they get demotivated.
 Performance appraisal:- Under this HR manager systematically evaluate the
performance of employee by comparing the actual with planned performance. This help
in providing information related to the factors that are required to be improve from
enhancing the performance. Using performance appraisal HR manager of ASDA will be
able to motivate their employees to contribute their skills toward accomplishment of
organisational goals. As using performance appraisal they get information related to
which employee must rewarded for performing well and which require guidance for
improvement. Reward over performance help in motivating employees to perform well
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but on the other hand it also create jealousy among employees who are not rewarded or
appreciated. This will demotivate employees which negatively affect their performance.
RECOMMENDATIONS
From the above given information it can be recommended to Regional Business
Innovation and Skills department that strategies plays an essential role in developing an effective
performance management system. As strategies help in providing a direction to employees for
performing their operations effectively. Apart from this it is also recommended that each
organisation whether public or private must integrate their business strategies with human
resource policies. This will help in improving the performance of employees which further
support in accomplishment of goals. In addition to this performance appraisal and reward must
be provided to employees that help in improving their moral which in turn will enhance their
performance.
CONCLUSION
From the above given information it can be concluded that strategic human resource
management is very essential for the success of organisation. As it interlink the skills and
abilities of employees with the organisational policies that contribute toward the accomplishment
of goals. Apart from this it also support in managing the employees performance by using
various HR practices that help in achieving competitive advantage.
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REFERENCES
Books & Journals
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Buller, P. F. and McEvoy, G. M., 2012. Strategy, human resource management and performance:
Sharpening line of sight. Human resource management review. 22(1). pp.43-56.
Collings, D. G., Wood, G. T. and Szamosi, L. T., 2018. Human resource management: A critical
approach. In Human Resource Management (pp. 1-23). Routledge.
Jiang, K. and et. al., 2012. How does human resource management influence organizational
outcomes? A meta-analytic investigation of mediating mechanisms. Academy of
management Journal. 55(6). pp.1264-1294.
Kramar, R., 2014. Beyond strategic human resource management: is sustainable human resource
management the next approach?. The International Journal of Human Resource
Management. 25(8). pp.1069-1089.
Purce, J., 2014. The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management (Routledge Revivals). 67.
Wood, G. and Kispál-Vitai, Z., 2014. Strategic Human Resource Management. Strategic Human
Resource Management: An International Perspective, p.72.
Online
Approaches to SHRM. 2018. [Online] Available
through<https://research-methodology.net/approaches-to-shrm/>./
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TASK 2
INTRODUCTION
Employment relationship refers to the process of establishing a legal relationship between
the employer as well as employee over certain term & condition in which a person work within
an organisation (Alcover, Martinez-Inigo and Chambel, 2012). This relationship describes about
how an employer or management treat its employee at workplace. This task describes about
employment relations and various theoretical perspective related to it. Apart from this it also
explains about the role that each actor play within employment relation.
MAIN BODY
Employment relation refers to the legal link between employee as well as employer
which is generally formed when a person perform work or services under certain circumstance in
return of remunerations. This relationship is based on certain types of rights and obligations
between both the parties which support in ensuring the benefits associated with employment in
area of labour law and social security (Employment Relationship, 2018). There are certain
employment relations theories present that can be used by a company for developing an
understanding related to regulations which support them in performing their responsibilities for
leading workforce effectively. Following are the theories of employment relations:-
 Unitary theory:- This theory is based on assumption that should have integrated group
of people and loyalty structure that work toward the accomplishment of common goal.
Unitary theory suggest that employee as well as employer must share a harmonious
relationship where both of them should work together for achieving the success (Bach,
2012). So that both the parties can form up one team with similar interaction and
understanding which doesn't require third party or union intervention. For instance by
using this theoretical perspective ASDA will be able to centralized their actions which
support in developing discipline, coordination and also avoid conflicts related to
authority. But apart from this it has been criticized by Trade union as it only consider the
top management to take decision and manage business as per their choice. It doesn't
extend any power to employees which manger have all the power to operate actions of
workers.
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 Pluralist theory:- This theoretical perspectives suggest that an organisation is consists of
group of individuals with different objectives, value or interest. Pluralist theory state that
employees are different in term of their value, beliefs, interest and aspiration from that of
management which creates conflicts among them. These conflicts are accepted under this
theory and are solved through concessions and negotiations which is the major function
trade union (Forth and et. al., 2013). For instance by applying this theory ASDA can
maintain a better relationship with their employees by inviting them for their suggestion
during decision making process. As this theory allows employees to follow their beliefs,
culture and identity that enable them to gain respect and dignity which boost up self
confidence. But apart from this Pluralist theory also poses some negative aspect as
delegation of authority may sometimes leads to delay in activities and increase in conflict
because of their positions.
Role of the actor within Employment Relationship
Employment relation refers to the interaction between actors such as employee, employer
and government who perform different roles that affect the relationship. These all actors work
together under some set of rules and regulations for developing better relationship and
understanding among actors. Role of each actor can be better understood using following points:
 Employer/management:- The role of employer is to hire employees, define their job and
remunerate them for work performed by them. Management is also held responsible for
informing their employees if any changes made to members in industrial relation and also
offer advices as well as training if any changes made to current method of performing
operation (Stoleroff, 2013). Apart from this employer must ensure that the task or job is
delegated as per the ability of employees.
 Employee/union:- It refer to the organisation of workers that are joint together with an
aim to improve the social being of its members by taking actions in favour of employees
right. As many workers doesn't receive proper payment or working condition at their
workplace and these issues are handle by this union (Kelly and FREGE, 2013). On the
other hand employer seeks to improve employment terms & conditions by exchanging
their views and voicing their grievances with management. Workers generally get united
to form this union against the management for getting support from this association to
solve their workplace issues.
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 Government:- State and central government plays a crucial role in managing the
employment relations by formulating laws, regulations, policies etc. In addition to this
government hear the grievances that employees have so that proper judgement can be
provided to them (Rodriguez and Mearns, 2012). It involve third part such as labour and
tribunal court.
These all are the actors of employment relations which plays an essential role in
promoting a healthy relationship at workplace. Apart from this nature of work and employment
relationship is changing and improving rapidly due to number of changes anticipated in
environment. This have an huge impact over the labour market, standards, social security system
and the way in which rights or protection addressed. These all factors work toward improving the
relation between employer and employee.
As earlier employees are more exploited by their employer at workplace in several ways
to achieve maximum productivity from them. Employees are forced to work for extra working
hours, they are remunerated properly or employees do not get their salary according to work
performed by them. Apart from this employees have to work in centralised organisation structure
where their view are not consider by higher authority and they have to work as per the
instruction provided by management (Rousseau, 2015). These environment and exploitation at
workplace leads to the development of trade union which hears the grievances or issues faced by
employees at workplace. It work toward improving the term & condition of workplace in which
employees work and promote the healthy environment where a person can work effectively
without getting humiliated.
Apart from this several rules and regulations are formulated by government in order to
promote healthy environment at workplace and protecting the rights of employees. Therefore,
trade union works on behalf of employees for protecting their rights and promoting a healthy
working environment by ensuring that employer must follow all the laws formulated by
government.
RECOMMENDATIONS
From the above information it can be recommended to ASDA that employees plays an
essential role within an organisation that contribute toward its success so they must be treated
fairly. As it help in motivating them to provide better performance toward the achievement of
organisational goals. This further support in developing a health employment relation among
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