HRM 325 Strategic Management Human Resources Report Analysis

This report provides a comprehensive analysis of strategic human resource management (SHRM), focusing on its crucial role in aligning business strategy with human resource practices. The report begins by exploring the relationship between business strategy and HR strategy, emphasizing the importance of vertical alignment and horizontal integration within organizations. It then delves into the application of various SHRM models, such as the Ulrich model and the 5 Ps model, to illustrate how HR functions can be structured to achieve organizational goals. The report further examines the theoretical perspectives and the nature of employee relations, highlighting the significance of fairness, consistency, and positive workplace dynamics. It evaluates the roles of different actors in employee relations and concludes with recommendations for effective SHRM implementation. The report uses the 'Centre of Expertise' as a case study to understand the practical application of SHRM principles in a real-world context. This report offers insights into how businesses can leverage their human capital to gain a competitive advantage and achieve long-term success.

Strategic Management
Human Resources

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Relationship between business strategy and the human resource strategy.............................3
Explanation of vertical alignment and horizontal integration................................................6
Models of Strategic Human Resource Management .............................................................7
TASK 2............................................................................................................................................8
Theoretical perspective and nature of employee relations ....................................................8
Evaluation and Identification of actors role in employee relations .....................................11
Recommendations ...............................................................................................................12
CONCLUSION .............................................................................................................................12
REFERNCES ................................................................................................................................14

INTRODUCTION
The aspect of strategic human resource management is considered as a powerful
determinant for gaining competitive advantage. The term strategic human resource management
is defined as a process or practice of attracting, enhancing, developing, retaining existing
manpower for accomplishing the organisational goal in an effective way. However, the role of
SHRM plays significant role as it help organisation to identify each manpower skill or
potentiality and also assist them to delegate roes and responsibilities as per their capability. Due
to such initiation, it help managers to enhance the overall performance of personnel as well as
lead them to generate better working condition (Ansoff and et.al., 2018). For this project, Centre
of Expertise has been considered who provide local and regional governance to European
countries. The mainly take initiative in determining public needs or requirements and implement
best strategic decision in order to obtain increased level of satisfaction from community or
society. IN this study, it involves the relationship the relationship between business strategy and
human resource strategy, application of suitable models or concepts. Furthermore, nature of
employee relation and also implication of theoretical perspective of employee relation for
accomplishing overall business goal in a better way.
TASK 1
Relationship between business strategy and the human resource strategy
To operate business effectively, it is crucial for an organisation to maintain its
administration effectively by formulating plan of action so that the organisation can achieve
sustainability in the business environment. Human Resource Management is a process of
bringing people and organizations together so that the goals and objectives of each are achieved.
From the view point of Sarah Benstead, 2019, Human resources is consider as umbrella term
which describe about the management as well as development of employees within organisation.
This involve set of practices such as recruitment, benefit, on-boarding, payroll, holiday
management, employment law, safety compliances, training and development of employees that
work toward increasing the employees performance. As the competition is rising within the
market due to changes that are regularly anticipating within business environment, it become
crucial for businesses to manage their HR practices effectively so that it become able to manage

its business as per the demand present in market. For this Ulrich model of HRM would be
helpful as it suggest organisation to divide its HR practices into four segments instead of
focusing total HRM practices with single perspective (The David Ulrich HR Model, 2018).
These factors are strategic partner, change agent, administrative expert and employee champion.
 Strategic partner:- Under this the HR business partners are tasked with communicate
employees directly and provide them feedback over the work or quality of performance
in order to align there efforts in a manner that it get matches with business strategies
toward the accomplishment of organisational goals.
 Change agent:- In this when an organisation want to expand its business or alter the
main objective then at that time change agents are one who help management in
communicating these goals internally and try ensure that employees learn new skills
accordingly. These change agents provide them training and try to adjust them within
new culture of environment.
 Administrative expert:- This administration person is responsible for following the
changes within legislation, trade law and support organisation to stay complaint with
those laws (The Ulrich Model: Is it still working, 2018). Additionally it also support in
organising the personal information of employees and regularly update or monitor the
information.

 Employee champion:- The main role under this division is to raise the employee morale
and satisfaction in order to create a positive organisational culture where employees want
to work. For this the HR personnel mainly focuses toward determining the short-comes
in company culture and try to improve its so that employees can be managed well to
extract positive outcome.
These all are the main HR roles that must be well managed in order to ensure the
performance of an organisation. These HR segments will support in bringing collaboration
within the business strategy and human resources strategy.
Human resources strategy today includes executive leadership teams conferring with
human resources experts to improvise complementary goals for human resources and the
complete business. For adequate operation of the firm business and human resource strategies
both are required to the company. Both are related to each other in different manner like an
organisation must have strong human resource strategy to accomplish its mission and business
strategies are required to work retarding the goal (Donate and de Pablo, 2015). For example,
during the time of recruitment and selection, the human resource department formate some plan
of action like provide notifications to the individual by using different tool such as email, social
media etc. selection of right individual and others. In the organisation, HR function involved
with more than with other functions and influences the operations and performance of all the
other business functions. The relation between Human resource strategy and business strategy is
mentioned as below:
HR strategy and business strategy- In current time, no perimeter in the sand is draw
among human resource strategy and business strategy. A successful business own place the
powerful connection between the two. Processing human capital is important to the longness
and prosperity of the business concern (Gupta, M., 2016). At present time, human resources
strategy consists decision making leadership group discussing with human resources experts to
perform additive aims for human resources and the whole business.
HR strategy and business productivity- The recruitment and selection procedure in
human resource division is predominant to making a amentiferous manpower. Keeping a
workplace where workers can enjoy high extent of job gratification and job safety converts in to
employees that help in accomplishing business objectives. During the time of recruitment, HR
function hire skilled and knowledgeable workforce so that they can make their contribution in

attaining set business goals (Engert, Rauter and Baumgartner, 2016.).ion of vertical alignment
and horizontal integration
Explanation of vertical alignment and horizontal integration
Vertical alignment- It indicates to the acquisition by a company of business
organisations which are not running on the similar level on the value chain but are performing in
the upstream or downstream action in the value chain. With the help of vertical alignment, the
firm can extended its business operations and activities crosswise the value chain. It provides
benefits in beginning of raw substantial for the manufacturing and exploiting closer to the target
audiences. Zara, Luxottica, Starbucks etc. are some companies which follow vertical alignment
(Hitt, Xu and Carnes, 2016). ion of vertical alignment and horizontal integration
Horizontal integration- Integration is important for HR to maximize the effectiveness
and connection of HRM in a company. Horizontal integration indicates to the segregation of the
several factors of human resource (Hoye and et.al., 2018). It can be basic cognitive process of
business organisations which are working on the same extent in the value chain by a firm. In the
company, HR system is mentioned to as a crosswise incorporated system if the diverse elements,
such as the system, the instruments, the process and others are in correct. For instant, the HR
components like policy creation, recruitment, constructing work culture etc. should be in
synchronize to form the HR division of the administration efficacious. Volkswagen, Cadbury,
PeopleSoft etc. are some company which follow horizontal integration.

Models of Strategic Human Resource Management
The 5 Ps model of SHRM is relate to those aspect which signifies five human resource
activities with strategic the mainly highlights how significant , the strategy activity link can be.
Its explanation are explained below:
Philosophy of human resources: Under this component, it defines business values and
culture which express and highlights the aspect how to treat and value manpower in order to
enrich productivity and profitability ratio (Bailey, Mankin, Kelliher and Garavan, 2018). With
the application of this concept, it enable organisation to understand and respect each personnel
views or opinion with an aim of attaining sustainable proficiency ratio in an impressive or
creative style.
Policies human resources: In this determinant, it encompasses shared values and
guidelines. Hence, in this regard, company make an effort to develop certain employment
policies, regulation which provide right direction or guidance to employee for contributing their
full attempt towards an attainment of defined objective without nay hindrances (Lin and Wu,
2014).
Programme of human resources: This aspect is link with those term in which it state the
potentiality of human resource management to take best decision in order to acquire positive
response from employees in regard of working culture. Hence, in this context, company's
superior make an effort to determine business issues and render an opportunity to grieved
employees to share their opinion or views regarding problems which they face. On the basis of
acquired information, HR take an initiative to give fair decision for enriching the working culture
of organisation in an effective way.

Practice of human resource: In this, it signifies leadership role in different condition or
circumstances and also signifies the way of managing managerial or operational function of
company in a better manner (Marchington, 2015). However, in relation of this, company's leader
analyse particular situation and make an attempt to gather all relevant or potential information so
that they can impose best decision or action. Along with this, it lead organisation to enhance its
managerial and operational function in an improves or amended manner.
Processes of human resource: Under this element, it is concern with those aspect which
comprises the process or procedure for formulating and implementing certain rules and ideas for
carrying out the business activities in a efficacious mode. IN this relation, company can enrich
their communication procedure and also can overcome the issue of overlapping, misconception,
misunderstanding among team members (Meyers and Van Woerkom, 2014). Additionally,
manager can also bring increased level of collaboration and coordination among manpower with
an intent of enlarging firm's market share or size in an amended manner.
Henceforth, from the above discussed models of strategic human resources management
help organisation to accomplish the pre determined purpose in an effective and improved style
without any obstacle.
TASK 2
Theoretical perspective and nature of employee relations
Employee relation is a term which refers to the efforts of an organisation in managing
relationships between employees and employers. An enterprise which has a good relations helps
in providing fairness and consistent treatment to all workers so that it will help them to stay
committed towards their jobs and stay loyal for the organisation (Zehir, Gurol, Karaboga and
Kole, 2016). Maintaining adequate relations with employees helps in reducing the conflicts
among workers, boosting the morale of staff and raising the overall productivity of an
organisation. Centre of Expertise understands the benefits of employee relations which helps
them in achieving business goals and objectives.
Nature of employee relations
The nature of employee relations can be seen in following points which are elaborated as
follows-

 The relations between employees and employers are considered as an outcome of
relationship among employees in an industry. Such relations do not exists without
appropriate involvement of both the parties. It is determined as an industry which helps in
providing the setting for both the relationship between two of them. It includes both
individual and collective relationship between employer and employees. This helps in
implying the relationship among employees and employers. Collective elations
determines relationship among workers and trade unions and in this State regulation plays
a major role (Ouimet and Zarutskie, 2014).
 The concept of relations between employer and employee is multi-dimensional and
complex and it is not limited but it also extends to general relationship web among
government, employees and employer. It also covers unregulated and regulated and
individual relations which may be in unorganized and organised sectors. It also
undergoes under changes within changing environment and structure of an industry. It
helps in flourishing along with social and economic institutions which exists in society.
These forces gave a shape and content to employee and employers relationship within a
country.
Theoretical perspective of employee relations
Matching model of strategic HRM :-
This model presents the relationship among the organisation's strategy as well as HRM
practices in order to define the manner in which HR activities are to be designed so that they
support in accomplishing the overall strategy and aim of an organisation. The matching model of
SHRM is divided into two parts where, first part explains about the integration of HR related
strategies and second part represent the HR cycle. It is a framework which support in formulating
the HRM policies that are derived from the mission and strategy of organisation that further get
affected by the micro environmental factor (Sissons and Green, 2017). It also help in presenting
the functions like appraisal, selection, development and reward in order to integrate them for
producing the required outcome of employees. The main objective of strategic human resource
management is to make sure that the department of Human Resources within organisation
remain fully integrated within the strategic planning so that the HRM policies can be
implemented by line manager in their operations and extract best possible outcome.

The relationship between employees can be understood in a better way by theoretical
perspective within the relationship among employees. There are three theories of employees
relationship such as Marxist, Unitarist and Pluralist which helps in providing a different kind of
interpretation towards the conflicts taking place at work, job regulations and trade unions roles.
These theories are elaborated in detail as follows-
Unitarist perspective- From the perspective of Unitarist, the enterprise is recognised as
harmonious and integrated people group which has one distinctive culture towards loyalty. Such
enterprises attached more importance and significance towards the mutual corporation. Also,
these workers within an enterprise helps in contributing towards a mutual goals and it is similar
to paternalism which has high amount of requirement for employees loyalty. The management of
these kind of enterprises is outstanding because of its application and emphasis (Resmi, Gemini,
Silvian and Kannan, 2014).
Pluralist perspective- As per the perspective of Pluralist, an enterprise has been made up of
different groups and sections. Each of such groups has certain leaders, gaols and legal loyalties.
Specifically, trade unions and management are considered as two different remarkable groups in
this aspect. It results in that the significant job role of a management is not controlled not
enforced but it is coordinated and persuaded (Sissons and Green, 2017). Also, the trade unions
acted as lawful delegation of workers. This kind of conflict is inevitable and such conflicts in this
perspective can be resolved by collective bargaining. In general, conflicts can be associated with
many bad things. However, they are manageable and can take into action for evolution and
positive changes from its perspective.
Marxist Perspective- This kind of perspective is also known as radical perspective and it is
developed for revealing the capitalised society nature. It thinks that the relations of workplace is
opposite from history. In this concept, it has been recognised that inequalities in employment
power relationship can be considered in wide society as whole (Schiemann, 2014). Also, the
conflict which is perceived as an inevitable results is more natural response in regards to workers
which is against capitalism exploitation and it is seen as trade unions. The management position
can be improved by joint regulations and institutions as they are suppose rather than challenging
the proceeding of capitalism.

Evaluation and Identification of actors role in employee relations
There are various actors who plays major role in maintaining effective employee
relationship. These actors includes trade unions, employers, managers and leaders. All these
contributes towards enhancement of employee relations and making sure that there is appropriate
relations among employees. Their roles are elaborated as follows in the context of changing
business environment-
Trade Unions- With the changed political, educational and social environment which is
in context of awareness regarding trade unions and rights are recognised as major component of
employees relation system. These unions plays an important role in protecting members interest.
These unions are such enterprises of workers who together work for maintaining and enhancing
economic status by insisting on rising wages of money and in improving the benefits and
working conditions. The main purpose of these unions is to regulate the relations of workers and
employers by collective bargaining (Slack, Corlett and Morris, 2015)
Leaders- Leaders of an organisation plays an important role in maintaining an effective
employees relationship which will help in achieving the overall goals and objectives of an
enterprise. Leader motivates their workforce towards achieving business goals and they also
helps in resolving if any kind of conflicts takes place within an organisation. With the changes in
policies an procedures in political environment, leaders through effective communication
transfers necessary data and information with workers.
Manager- Manager is a person who control and manages all the activities of an
organisation. It is the responsibility of a manager to make sure that effective communication
must take place within an organisation which helps in resolving certain problems and issues
between employees (Tangthong, Trimetsoontorn and Rojniruntikul, 2014). Managers helps in
formulating an effective communication which helps in maintaining an adequate relationship
among employees. Managers make sure that all the employees are treated fairly irrespective of
their caste, creed, nationality, religion as per the Equality and anti discrimination act. If manager
wants to transfer any kind of information with team members, than due to growth in technology
and innovation, they can send a mail to all groups .

Recommendations
There are certain recommendations regarding mechanism of employee participation and
employee voice in maintaining an effective relationship among employees which can be defined
in detail as follows-
 It is the responsibility of a leader to become explicit when its staff have the permission
for adjusting their wellness programming and schedules which is around wellness
programming and regarding the types of activities which can be done within the working
hour. For instance, taking short breaks for stretching or going for walks around an office.
 Another important thing which can be done by staff members is to participate in
employee engagement programmes which will help them to take initiative regarding
various important decision of an organisation. Employees of an enterprise can participate
in decision making procedure which helps them in feeling to be an important components
of an organisation. This will motive them towards achieving overall goals of an
organisation and will improve their predetermined performance.
 Moreover if any kind of discrimination takes place within an organisation, it is the
responsibility and right of workers to raise their voice. This discrimination can be
anything regarding gender pay gap, unfair wage practices, lack of diversity in a working
environment and so on. As per the equality act, employees have the right to raise their
voice against any kind of unfair practices. This way an equal and diversified working
environment can take place and all the workers will be treated equally.
CONCLUSION
It has been signified from the above explained report that the aspect of strategic human
resource management help organisation to ensure that its culture, style, and structure is
enhancing the quality of employee and company performance. Along with this, it assist
establishment to allocate the requires resources in an efficacious and expeditious manner that
empower firm to obtain maximisation of profit within competing industry. Apart from this, the
aspect of employee relation is considered as important component as it help company to create
positive relationship between team members. Due to which, it motive each personnel to put their
best contribution towards business goal and also help them to bring collaborative and cooperate
working style within organisation. Moreover, application of appropriate theories or models