Strategic Human Resource Management Report: Telstra

This report provides a comprehensive analysis of Strategic Human Resource Management (SHRM) at Telstra Corporation Limited, a major telecommunications company in Australia. It explores the relationship between business strategies and HR strategies, examining vertical alignment, horizontal integration, and the application of different theoretical models like the separation, fit, and holistic models. The report evaluates the theoretical basis of SHRM, including best fit, best practice, and the resource-based view (RBV). Furthermore, it critically assesses Telstra's HR practices in performance management and rewards, highlighting the importance of defining company goals, providing frequent feedback, and implementing pre-emptive management strategies. The analysis underscores the significance of SHRM in achieving organizational objectives and fostering employee satisfaction within a globalized market.

Running head: STRATEGIC HUMAN RESOURCE MANAGEMENT
Strategic Human Resource Management: Telstra
Name of the Student
Name of the University
Author’s Note:

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Table of Contents
1. Introduction............................................................................................................................2
2. Discussion..............................................................................................................................2
2.1 Task 1: Relation between Business Strategies and Human Resource Strategies.............2
2.2 Task 2: Detailed Discussion of the Nature as well as Theoretical Perspective of
Employment Relation.............................................................................................................9
3. Conclusion............................................................................................................................12
References................................................................................................................................14

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1. Introduction
Strategic human resource management or SHRM can be referred to as a pre-emptive
management of individuals. It needs logical thinking and then making plans for way in an
organization so that it is possible to fulfil every need of the employees (Noe et al. 2017).
Telstra Corporation Limited is a large and popular telecommunications organization in
Australia that have been sharing few important and noteworthy services and products to the
customers. Telstra is considered as one of the most successful organizations in the world and
this is mainly because of the effective and efficient strategic of human resource management
(Telstra. 2019). This following report would be providing a detailed discussion over SHRM
for Telstra Corporation Limited with a relation between business strategies and HR strategies
as well as theoretical perspective of employment relationship.
2. Discussion
2.1 Task 1: Relation between Business Strategies and Human Resource Strategies
A business related strategy can be stated as the collection of few competitive actions
and moves, which any business utilizes to attract the customers, compete successfully for
strengthening performances as well as obtaining the organizational goals (Cascio 2015).
There are few distinctive purposes of a business strategy, which include achievement of
effectiveness, perceiving as well as utilizing opportunities, mobilizing the resources, securing
a beneficial position, overcoming the threats or challenges and finally directing efforts or
behaviour. There is a stronger relation within business strategies and human resource
strategies.
This HR strategy is an important output of the strategic management, which is being
aligned with the business strategy for bringing major success in the company (Bratton and
Gold 2017). There are three vital aspects, which are needed to be highlighted while

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understanding the relation between business strategy and HR strategy, which are Separation,
Fit and Holistic model. In the separation model, there exists no specified vertical integration
within business and HR strategies. The fit model eventually recognizes that staffs are the
main resources for achieving business strategies, hence HR strategy should be designed for
fitting every requirement of the business strategy. The holistic model, on the contrary,
recognizes staffs as the main sources of competitive advantages and not only the mechanism
to deploy organizational strategies (Armstrong and Taylor 2014). HR strategies in this model
is quite critical, as the competences of staffs become major business competences. Telstra has
been focusing on their unique business strategies and ensuring that each and every employee
is gaining satisfaction from the work.
2.1.1 Explaining Vertical Alignment as well as Horizontal Integrations in Telstra
Corporation Limited
Vertical alignment between the human resource strategies is extremely important for
ensuring that there is a specific vertical fit during categorization of the configuration of the
practice of human resource management or strategic management procedures of the
company. This type of vertical fit could be controlled by simply directing the HR towards
every primary and secondary initiative of Telstra Corporation Limited (DeCenzo, Robbins
and Verhulst 2016). The vertical fit can be termed as the major ideology of this human
resource management and can be solely associated to the approach on the basis of
contingency, even before creation of the entire fit of every management strategy like human
resource management for the long term objective. The second important factor is the
horizontal fit, which has significant implications of the HRM practices within Telstra. The
best fit ensures that there should be an assessment in the extent until where vertical
integration within the practices and policies of HRM and business strategies of the company.
The notion of a link within these business strategies and performances of all staffs is

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considered as vertical integration. This type of integration within business strategies helps in
linking with individual objective setting for rewarding of the business goal. It is required for
analysing the overall organizational performances.
A horizontal integration is being obtained by efficient allocation of the resources and
it is bothered by the planning of procedures as well as activities of the entire HRD with
successful management of resource that can be accessible to the individuals (Cascio 2015). It
is required for complementing the vertical alignment properly. The entire ideology is
empowering of the company to obtain an aligned stature, however also with high flexibility
for having ability of managing the complex or dynamic environment. A contingency
approach towards these strategies of human resource management with the fundamentally
hard practices for enabling them regarding achievement of a vertical alignment (Noe et al.
2015). This type of alignment integrates the SHRM for achieving the goals and objectives.
The overall organizational performance in Telstra is highly enhanced with an
effective business and human resource strategy and they have enjoying a successful position
from the beginning with these strategies (Chelladurai and Kerwin 2018). There are some of
the major as well as the most significant requirements for understanding whether the vertical
alignment and horizontal integration is possible or not. Globalization has a major impact on
Telstra and thus the performance of this particular company plays a vital role regarding
competition in the modern market. The modern and the latest approaches of human resources
are required to be analysed effectively. The HRM of Telstra mainly focuses on the decision
making procedure, rewards, profit sharing and higher compensation systems (Budhwar and
Debrah 2013).
2.1.2 Evaluation and Comparing of the Theoretical basis or Models of SHRM

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For being effective in the globalized market place, the departments of HRM in Telstra
Corporation Limited increasingly should act as the strategic partners with all other companies
in the same industry. The recruitment, interviewing as well as hiring of the correct personnel
is being done for proper production of the quality products or services (Sparrow, Brewster
and Chung 2016). The total annual revenue of this specific organization is average of 26
billion Australian dollars and they are providing a vast range of products such as fixed lines
or mobile telephony services, data services, pay television and Internet services. The strategic
objectives of Telstra are being obtained by them by proper inclusion of variety of products
and services and even bringing subsequent innovation within the products (Brewster 2017).
The three models of HR, separation, fit and holistic have a major relationship that
helps to understand their roles in Telstra. As in separation model, there is no vertical
integration, it is evident that the HR strategies require improvement. There is absolutely no
formal responsibility for HR in the company (Aswathappa 2013). After analysing the Fit
model, it is observed that in Telstra, the staffs are not considered as the key for business
strategy achievement. They are not satisfied completely with the organizational performances
and hence they often get the idea that these staffs do not fit to the business. They are only
following a top down approach of information flow from their senior management. After
analysing the holistic model in Telstra, it is observed that the staffs are the main source of
competitive advantages. This particular analysis contradicts with fit model as few staffs often
feel that they do not fit in the company. The best fit approach have successfully identified
series of issues, in both underlying theoretical assumptions as well as in the application to
Telstra.
2.1.3 Critical Analyses of the Strategic Perspective for Best Fit, Best Practice as well as
Resource Based View or RBV

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There are few of the major components of the best practice or high commitment
human resource management in Telstra and these are given below:
i) The first as well as the foremost component is providing security to employees.
When these employees cannot perform well, they could even be fired, however they also
focus on the strategic errors, which are present in the organization.
ii) The second component of the best practice is selection of employees with different
criteria (Jackson, Schuler and Jiang 2014). The company always recruits their staff as per the
cultural fits or attitudes and not only for the respective skills that the employees could easily
learn from training.
iii) The next significant component of the best practice in Telstra Corporation Limited
is decentralization or self managed teams. The management of this particular organization
always focuses on the management layering elimination and thus the employees are
extremely satisfied with their job.
iv) The high compensation schemes and high level training are yet another important
component of the best practice (Anderson 2013). The HRM of Telstra ensures that the
salaries of the employees are increased annually and they receive effective training from the
management.
Telstra also ensure on the best fit perspective. Due to high globalization, it has
become a major issue for the organization to perform effective management. They consider
every aspect of employee performance and provide appraisal or rewards to the best fit or
deserving candidates. Due to the high compensation systems, it has become extremely
common for the organization to include the high commitment model (Kramar 2014). With
this type of high commitment model, the staff generally work for the organizational
objectives and have subsequent flexibility to complete every task.

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Another important perspective of SHRM that is to be considered is the resource based
view or RBV. With this specific managerial framework, Telstra is able to determine each and
every strategic resource that any organization could easily exploit for achievement of
sustainable competitive benefits (Purce 2014). The major strategic resources of this particular
organization include core competencies, employees, positioning, financial assets, intellectual
properties, critical infrastructure, systems as well as every related asset, which support the
overall value chain and provide permission to the company in execution of the strategy.
Moreover, this RBV even emphasizes on managerial attention over the internal resources of
the organization with the distinctive effort regarding identification of the competencies,
capabilities and assets with a significant potential for delivering better competitive
advantages (Brewster et al. 2016).
2.1.4 Critical Assessment of the HR Practice of Performance Management and Rewards
Telstra has always focused on their unique practices of human resource regarding
performance or reward management for every employee (Berman et al. 2019). This type of
performance management is extremely important for motivating the employees and getting
better effectiveness within the business. Telstra is even setting expectation for the work
performances or planning of methodologies for meeting the expectation before monitoring or
checking employee performances with every meeting or check in. They offer reward for good
performances and try to address the poor performances by motivating them (Albrecht et al.
2015). The major HR practices for performance or reward management in Telstra are as
follows:
i) Defining and Communication of Company Goals or Performance Objectives:
They try to define as well as communicate the company objectives or performance goals. It is
a major step towards extremely effective performance management of the employees. The

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HR department of this organization has been using goal tracking software for the successful
creation of a chart and offering visuals to every employee so that they are able to track their
own performance without much complexity (Nickson 2013).
ii) Offering Frequent Performance Feedback: The second HR practice that is
common for Telstra regarding performance management is offering frequent performance
feedback. This type of performance feedback is quite vital for every employee so that they
would have the ability to understand their position and what gaps they have in their works
(Morgeson, Brannick and Levine 2019). A better performance feedback is responsible for
reinforcing the strong skill set or positive behaviour and negative performance feedback
shows areas of improvement for the employee. Hence, both of these feedback is required for
the employees.
iii) Pre-emptive Management or Recognition: Rewards and recognition are two
important requirements for motivation in a work place. Rewards are being implemented and
pre-emptive management is being practiced in the business for better performances.
The above mentioned three HR practices demonstrate that Telstra has always focused
on the reward structures of their staffs and have ensured that every employee is satisfied
under every circumstance. They have aimed to reward the employees in a fair, equitable and
consistent manner as per their subsequent value to the company. It has also created as well as
operated the entire reward management system in the most efficient method. Moreover,
Telstra have ensured that a systematic performance appraisal is being managed for helping
the managers in successful identification of employee performances as well as the areas, in
which improvement is needed. With the help of pre-emptive management, employees are
able to gain high motivation in their work. Moreover, with frequent performance feedback,

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employees are able to identify their weaknesses and hence taking initiatives to improve those
areas.
2.1.5 Recommendations on Designing of a Performance Management System for
supporting Organizational Development or Changes
The recommendations for designing a performance management system in Telstra to
support their organizational development and change are as follows:
i) Combining Strategies with Technology: Although Telstra is a telecommunication
organization, they have not still combined their strategies with technology. It is extremely
important for them to combine their unique business and HR strategies with technology, so
that they are able to obtain better effectiveness and efficiency in the existing performance
management system.
ii) Providing Recognition to the Employees: The second important recommendation
for Telstra regarding their designing of performance management system is to provide
recognition to the employees. Rewards and recognition can highly motivate the employees
and the system for managing performance would be redesigned in a better manner.
The first recommendation of combining strategies with technology would ensure that
Telstra is absolutely updated with the new technological advances and is able to deal with all
types of complexities in an effective manner. The second recommendation would help the
employees in getting high motivation through such recognition and hence they would feel
satisfied with their works.
2.2 Task 2: Detailed Discussion of the Nature as well as Theoretical Perspective of
Employment Relation
2.2.1 Critical Description of the Nature and Theoretical Perspective of Employment
Relation

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The employment relations in Telstra is highly prioritized since it is the legalized link
within an employer and employee (Kehoe and Wright 2013). It eventually exists while any
person is performing work and services under distinctive conditions as per remuneration. It is
via employment relation that the reciprocal right or obligation of the management is being
created amongst the employee and management. It is being considered as the major factor
that helps in reducing the complexities related to social security and employment rights.
The major three perspectives of employee relation are unitary perspective, pluralist
and Marxist.
i) Unitary: This perspective views Telstra’s employee relations as featured by
harmonious and integrated system for their common objectives, interests and values. It
ensures that the employees and employers are working together for achieving the major
objectives and goals. Unitary is often considered as autocratic and authoritarian and provides
right to manage.
ii) Pluralist: This perspective is completely based on the fact that Telstra is providing
a scope for diversity in the social groups, values and social interests, which generate
conflicts. Variety of objectives and ideas are composed after identification of employee
diversification. Pluralist perspective considers that employees and employers of Telstra have
several interests that should be fulfilled.
iii) Marxist: This perspective views the relation between employee and employer in
the capitalist society that is exploitative. It states that conflict is the major source of societal
change, which is required for the business. Societal balances can be maintained in this aspect
in Telstra.
There are few factors like disguised employment relationship, poorly formulated laws,
narrowly interpreted laws or lack of compliance that have given rise to an effective

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employment relationship in Telstra (Moutinho and Vargas-Sanchez 2018). As per the
theoretical perspectives, contingency theory is highly applicable to this employment relations.
As per this theory, there would be a relevant relationship within a dependent variable and an
independent variable as per the influences of company size, age, capital intensity, location
and technology. Here the independent variable is employee and the dependent variable is
employer, who dependent on the employee that whether the employee would provide better
performance or not.
2.2.2 Identification and Critical Assessment of the Role of the Actor in the Employment
Relation with analyses of the Altering Nature of Employment Relation
When the HRD develops the plan for better recruitment and training as well as
compensations based for the objectives of the company; it helps in ensuring that a proper
strategy is being followed by them to gain major effectiveness and efficiency (Kramar 2014).
The employment relationship eventually refers to the organizational efforts for managing the
relationships within employees and employers.
The main actors of employee relations in Telstra include employees and employers.
i) Employees: The first benefit that employee provide to employee relations is
collective bargaining. The employees can easily collect or organize strikes, formal protests
for getting attention of employers and urging them in considering the matters from the
subsequent perspective of employees, represented. Another vital benefit that would be gained
by Telstra in employee relations would be employee welfare. They would be able to
automatically have an intermediary, who would step in for any type of negotiation with the
senior authority regarding income, safety and working schedules.
ii) Employers: Employers, on the other hand, provide several vital benefits like
representing employees in negotiations. It even allows the employer in getting into a concise