STRATEGIC HUMAN

RESOURCE
MANAGEMENT
BUSINESS REPORT
MODULE CODE: HRM 325

STUDENT NAME:

SUBMISSION DATE:
TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................................3
1. BUSINESS STRATEGY AND HUMAN RESOURCE STRATEGY..................................................................3
1.1 RELATIONSHIP BETWEEN BUSINESS AND HUMAN RESOURCE STRATEGY.........................................3
1.2 RELATIONSHIP WITH VERTICAL AND HORIZONTAL INTEGRATION....................................................4
2. STRATEGIC HUMAN RESOURCE MANAGEMENT (SHRM).....................................................................5
2.1 BACKGROUND OF THE SHRM CONCEPTUAL FRAMEWORK...............................................................5
2.2 THEORETICAL PERSPECTIVES OF SHRM.............................................................................................6
2.2.1 BEST PRACTICES/UNIVERSALIST PERSPECTIVE............................................................................6
2.2.2 BEST FIT/CONTINGENCY PERSPECTIVE.......................................................................................6
2.2.3 RESOURCE-BASED VIEW PERSPECTIVE.......................................................................................7
2.3 PERFORMANCE MANAGEMENT........................................................................................................8
2.4 REWARDING SYSTEM.......................................................................................................................10
3. EMPLOYMENT RELATIONS.................................................................................................................11
3.1 THEORETICAL PERSPECTIVES OF EMPLOYMENT RELATIONS...........................................................11
3.1.1 UNITARISM PERSPECTIVE.........................................................................................................11
3.1.2 PLURALISM PERSPECTIVE.........................................................................................................11
3.1.3 MARXISM PERSPECTIVE............................................................................................................12
3.2 DIFFERENT PARTIES OF THE EMPLOYMENT RELATIONS..................................................................12
3.3 RECOMMENDATION FOR IMPROVED EMPLOYMENT RELATIONS...................................................13
REFERENCES..............................................................................................................................................14
INTRODUCTION
The core competencies of an organization are dependent upon the utilization of the inputs in the
most efficient manner allowing the organization to make its way towards prosperity and success
in the long-run. Among these core competencies exist the major component of human resources
where the effective allocation and efficient management leads the organization towards a
competitive edge over the market forces. The research report is tailored to accommodate the
readers regarding the background of the Human Resource Management along with the
relationship of Strategic Human Resource Management with the core objectives of the
organization. The initial region of the research report provides the details about the distinction
between the business strategy and human resource strategy along with the correlation between
the two elements. The preceding discussion is laid over the concept of SHRM and the theoretical
background of the approach for human resource management in the organization. The last phase
of the report provides detail of the employment retention in respect to the different approach to
the retention of employees in the organization. The details are accommodated within this report
to provide the factual justification for an organization to implement the HRM policies and
framework approaches.

1. BUSINESS STRATEGY AND HUMAN RESOURCE STRATEGY

1.1 RELATIONSHIP BETWEEN BUSINESS AND HUMAN RESOURCE STRATEGY

The corporate aims and objectives of the organization are attained with the aid of appropriate
strategic management where the roadmap is developed in terms of the corporate business
strategy. The business strategy is the list of actions and planning that will be adopted by the
organization in order to attain the overall corporate aims and objectives. On the other hand, the
human resource strategy refers to the formalized process through which the human capital of the
organization is managed ensuring the output and productivity is aligned with the corporate aims
and objectives of the organization. The key regions of the human resource strategy comprises of
the appropriate directions over the hiring, performance assessment and continuous development
of the workforce in an organization (Huang, 2001). There is a direct correlation between business
strategy and human strategy in the corporate business environment as the effective management
of the human resource is an essential ingredient that leads the organization towards success and
prosperity in terms of financial and non-financial concerns. The correlation urges the
identification of the current business context and accordingly planning and implementing the HR
strategy to ensure the results are withdrawn in the most efficient manner. The element of regular
appraisal and communication is further necessary to ensure the outcomes are obtained as per the
planned approach (Brewster, 2017).

1.2 RELATIONSHIP WITH VERTICAL AND HORIZONTAL INTEGRATION

The approaches of integration are also related to the HR strategy and business strategy where the
vertical integration refers to the merger or acquisition between the organizations and the supply
chain of the organization in the same industry but at an earlier or later stage of productivity. This
can be termed as the example where the automobile producer, Toyota, buys or merges with an
organization which manufactures the components for their vehicles or the merger with the
organization that deliver their vehicles to the customers. On the other hand, the horizontal
integration refers to the merger or takeover by the organization of another business at the same
level of operations within the same industry probably a competitive force. This can be termed as
the example of Apple merging or taking over the business of Samsung in the particular niche of
smart phones (Kaiser and Obermaier, 2020). The vertical integration is a key business strategy
which aids the organization to boost their production efficiency by eliminating the flaws in their
costing processes at an earlier or later state giving an edge to the organization to enjoy healthy
returns and higher customer satisfaction. The horizontal integration will aid the organization to
gain advantage of the key core competencies of a rival force that it merges or take over allowing
it to maximize the business efficiency and produce healthier returns for the organization as a
whole. The human resource strategy is highly influenced by the existence of these both
integration procedures allowing the organization to identify the core regions of expertise that the
targeted organization possess. This will add on additional comparative edge for the organization
to effectively allocate the resources within the human resource management at the organization
leading to higher effectiveness over the delivery of output from the organizational activity. The
systematic drafting of the business corporate and human resource strategic policies is interlinked
with the integration procedures where effective arrangement will lead to beneficial gains for the
organization as a whole (Pellinen et al., 2016).
 2. STRATEGIC HUMAN RESOURCE MANAGEMENT (SHRM)

2.1 BACKGROUND OF THE SHRM CONCEPTUAL FRAMEWORK

The business aims and objectives are fulfilled in an appropriate manner with the existence of
effectiveness in managing the factors of production at the respective organization among which
the human resource management holds a significant part. The strategic human resource
management (SHRM) is the formalized framework which aids the organization to effectively
plan, allocate and implement the human resources in their organization with timely evaluation
and analysis to examine the flaws and loopholes. The human resource is a key ingredient which
lays the foundation of the business success and prosperity so the existence of a roadmap through
SHRM is essential to ensure the results are driven as per the planned approach (Bailey et al.,
2018).

The SHRM framework assesses the inter-linkage between the resource allocation and planning
procedures with the growth and financial gains feasibility of the organization over a defined
period of time. The business strategy composition comprises of human resource management as
a key factor which is why appropriate planning and allocation through SHRM is essential
allowing the organization to enjoy the benefit of gaining a comparative edge over the
competitive forces of the market. The motive for the successful implementation of the SHRM is
to allow the organization to regularly evaluate the business performance in terms of financial
performance and financial health along with continuous up gradation of the business procedures
and continuous professional development of the human capital (Greer, 2021).

2.2 THEORETICAL PERSPECTIVES OF SHRM

The theoretical phases under strategic human resource management (SHRM) comprises of three
perspectives which have been examined and described below with every perspective having their
own distinct features and characteristics along with the implementation procedures.

2.2.1 BEST PRACTICES/UNIVERSALIST PERSPECTIVE

The first outlook of consideration under the approaches for strategic human resource
management is the best practice approach which sets the grounds of implementing the idealistic
human resource practices for the strategic process of SHRM. The idealistic practices for SHRM
would revolve around the aspect of enrichment of involvement and contribution from the human
capital along with exceptional motivation and commitment towards their duties. The
performance of the human capital is targeted to be performed at exceptional levels contributing
towards the prosperity and success of the organization in the long-run (Croonen et al., 2016).

The key approaches adopted under this perspective comprises of the enhanced morale of the
workforce in the organization as well as targeting the boosting of professional behaviour and
attitude of the human capital towards their duties and responsibilities in the organization. This
perspective further aids in maximizing the performance and productivity of the organization
through increased skills and mindset of the human capital as well as through high motivations
leading to lower staff turnover. The perspective leads to the enrichment of productivity by the
workforce in the organization assisting the organization to derive higher profits and enhanced
quality of service leading to enrichment of enhanced results (Malik, 2018).

2.2.2 BEST FIT/CONTINGENCY PERSPECTIVE

The second perspective under the SHRM practical implementation comprises of the contingency
or best fit perspective which states that the organization planning and strategic implementation
process should take into consideration the scenario and context of the organization. This will
allow the organization to plan and execute the human resources in the most appropriate manner
as it fits the organization because it is not necessary that every idealistic human resource
management approach applies to every business. The contextual configuration is assessed for the
organization in terms of the respective organization by examining the internal and external
environment of the respective organization allowing the strategic planning and implementation
in accordance to it. The business lifecycle is aligned with the human resource strategic process
and competitive strategies to aid the organization in their strategic composition development
(Negron, 2020).

2.2.3 RESOURCE-BASED VIEW PERSPECTIVE

Resource-based view is a critical strategic framework which assists the organisation to evaluate
the comparative advantage with the assistance of the company as well as opportunities that it can
prevail. This theory highlights the key strengths that exist within the internal environment of the
business and how they can utilise these inputs or resources to effective use. The process helps the
organisation to identify the tangible or intangible resources which can assist the organisation to
gain comparative advantage. The elements of heterogeneous and immobility are applied using
the VRIO model through appropriate planning and allocation (Collins, 2021).

The following illustration provides an idea over the relationship between VRIO model and
competitive advantage for an organisation.
 (Knott, 2015)

2.3 PERFORMANCE MANAGEMENT

The performance management is an essential approach which is utilised by the Human Resource
Department of an organisation to ensure effective strategic implementation and planning by the
managers and the workforce. The process is devised concerning the recruitment, training and
development along with the appraisal of performance by the employees to allocate appropriate
human resource measures. The process helps the organisation human resource management to
identify the regions of loopholes as well as the areas of effectiveness to ensure that the
deliverance of the actions by the workforce remains flawless. Performance management is a
regular approach of evaluation of the workforce which help the organisation management to stay
aligned with the strategic goals and objectives through the performance of the workforce
(Aguinis, 2019).

The performance management is subdivided into three steps which assist the organisation HR
management to sustain the efficiency of human resource deployed in the organisation. The initial
step of performance management in strategic human resource management is the provision of
training to the employees in the respective region off work to polish their skills and knowledge.
The theoretical and detailed practical is provided to the employees in the organisation to ensure
that the productivity in the organisation remains unquestionable. The second step of the
performance management comprises of job evaluation for the employees and providing feedback
in terms of the corrective actions that need to be taken to maximize the efficiency of operations
in the business. This includes sustaining the key existing competencies and suggesting actions
where floors or loopholes exist in the current stance (Saratun, 2016).

The third step of performance management is the evaluation and analysis of the performance by
the workforce after the corrective measures have been advised as a part of assessing the
efficiency of the workforce. The members of the workforce that are irresponsible or have not
dealt with the problems as per the advice from the HR management are considered between
training and termination over poor performance. Strategic Human Resource Management aims
towards the development of a healthy workforce where absolute productivity is targeted rather
than an individual goal for the collaborative gain for the organisation. The regular appraisal of
the employees in an organisation will assist the human resource department to timely identify
and counter the weak links and sustaining the positive aspects of the workforce (Buckingham
and Goodall, 2015).
2.4 REWARDING SYSTEM
Another key element for the SHRM is the enhancement of motivation level within the employees
of the organisation through a rewarding system. The system could include monetary as well as
non-monetary rewards for the employees as a mode of appreciation for their effectiveness and
efficiency in the performance of their operational duties. The higher the level of rewards offered
to the employees will be the increased amount of efficiency and effectiveness will be
demonstrated by the workforce leading to productivity gains for the organisation in terms of
profits and lower costs. The rewarding system for the employees is a key element that should be
considered and implemented by the SHRM (Mira et al., 2019).

The strategies are developed by human resource management where financial reward such as
bonus, additional wages and salaries are offered to the employees who enhance their productivity
for the organisation. Another mode of rewarding the employees in an organisation comprises of
job appreciation by awards or promotion of designation which will lead to an upsurge in the
morale of the employees. The SHRM should take into consideration all these aspects during the
planning and implementation process to assure that the productivity of the workforce is
maximized (Shipton et al., 2017).
 3. EMPLOYMENT RELATIONS

3.1 THEORETICAL PERSPECTIVES OF EMPLOYMENT RELATIONS

The process of employment relations refers to the direct linkage between the employees and
organization.  This is a formalised procedure which is adopted by the employer in order to
sustain a healthy relationship with the employees as well as accommodating their needs and
wants on timely basis within a suitable formalised framework. The process is aimed at providing
maximum feedback to the employees as well as getting higher motivation of the employees
towards their duties and responsibilities (Williams, 2020). There are three different perspectives
which are utilised in the business contextual environment for the employment relations which
have been described as below.        

3.1.1 UNITARISM PERSPECTIVE

The first approach of employment relation is that Unitarism perspective which highlights that all
the members of the organisation share common goals and objectives ensuring that there are least
disagreements or flaws within the organisational structure of human resource management. 
Unitarism prospective highlights that the management and organisation are working towards a
common goal, where effectiveness and efficiency will lead to the benefits for management and
employees.  However, there are certain flaws in this particular perspective of employment
relations which exist in terms of poor communication as well as misinterpretation between the
employees and the management affecting the output adversely (Greenwood and Van Buren,
2017).

3.1.2 PLURALISM PERSPECTIVE              

The second perspective of employment relations is termed as the Pluralism which highlights that
the organisation is subdivided into groups of people and experts based on their department and
diversified nature of activities.  There is existence of numerous conflicts of interest within this
perspective framework of employment relations which adversely affect the decision-making and
implementation process for the management. The structural background and expertise are
implemented in relation to the region of concern where the absolute deliverance of the output lay
within the hands of the corporate management.  There are certain disagreements from the trade
unions as well as other employee representatives but the approach is more stable due to the
highest amount of authority lying within the hands of the management (Cullinane, 2016).      

3.1.3 MARXISM PERSPECTIVE              

The last perspective of employment relations is termed as Marxism which outlines that there
should be a distinct configuration due to the differentiation of thinking and practical approach by
the working-class and those who invest the money in the organisation termed as capitalist.  It has
been stated under this approach that the working-class will be readily available to produce and
act accordingly in response to the productivity that is demanded for the organisation whereas the
capitalist Are only interested to inject their investment in the organisation without taking the
stress of having the things done in order to drain profits or returns over their investment (Vidal et
al., 2015).

All these three prospective have their own mindset and roadmap for adoption by the organisation
as per their suitability assisting them to effectively manage the employment relations through the
human resource strategic management.

3.2 DIFFERENT PARTIES OF THE EMPLOYMENT RELATIONS

There are different stakeholders of the organisation which play a significant part in the
employment relations. The first stakeholder are the employees of the organization who are
converting the inputs into outputs in order to enable the organisation to generate income through
sales. The composition of employees is subdivided as per the threshold of expertise and
professional background in order to enable them to act accordingly towards the attaining of goals
and objectives of the organisation as a whole. The second stakeholder of the organisation that
work towards the employment relations is the trade union which is the legal authority developed
in order to protect the rights of the employees ensuring fair treatment and appropriate wages to
be settled for the services provided by the employees (Marginson, 2016). The trade union
insures that the employees are not exploited at any stage whether in terms of working conditions
or the salary wages offered to them for their services. The government is another stakeholder
which work towards the employment relation insuring that the legal framework of laws and
regulations are not exploited or violated ensuring that the rights of the employees are not
violated. The legal composition of laws comprises of minimum wage levels as well as
employment protection act which have been issued by the government to enable the protection of
employees from unfair treatment. All the stakeholders ensure that the employment relations of
the organisation are kept at healthy state preventing any lag or conflict as well as providing
sufficient backing for the workforce (Järlström et al., 2018).

3.3 RECOMMENDATION FOR IMPROVED EMPLOYMENT RELATIONS

The employees are down as an essential ingredient upon which the prosperity and success of the
organisation is highly dependable. Due to this element, there is a need for an appropriate human
resource management strategy to effectively and efficiently manage the human resource capital
along with the surety that an active participation from the employees is continuously witnessed
within the organization. The concept of employee participation should be taken into account by
the organisation to evaluate and boost the job motivation of the workforce to gain the advantage
of maximise productivity from the employees (Amossé et al., 2016). Furthermore, providing a
higher voice to the employees would enable them to work more efficiently due to a boost in their
morale as they will feel important for the organisation leading to financial and non-financial
gains. There are several corporate examples of multinational organisation which are highly
successful due to the ability of accommodating the human capital in the most appropriate manner
resulting in a remarkable effectiveness and motivation from their productivity. It should be
considered that the overall business strategy is highly dependable upon the human resource
strategy which is adopted by the organization that is leading the achievement of corporate aims
and objectivists through business strategy more easily (Townsend et al., 2019). It should be
considered that the strategic human resource management is an essential tool which should be
implemented efficiently as it helps the organisation to achieve prosperity and success in the
longer run and to carry out their business activities without any halt.
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