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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.
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.
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.
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:
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:
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.
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:
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:
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.
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.
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.
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:-
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:
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.
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 both employer as well as employee. So it is recommended to ASDA that management must also consider the need, expectations and will of their employees before formulating organisational policies. This help in promoting a healthy working condition at workplace that support in retaining employees for longer time and also support in improving productivity by satisfying customers. Management of ASDA must try to improve the norms and policies for creating a favourable working environment for employees that foster them to contribute toward organisational goals and also support in developing healthy environment.
In addition to this, employees participation also plays a major role in promoting healthy employment relationship. As active participation of employees in decision making process and other activities will help in conveying their message to higher authority that support in building a relation of trust. Apart form this employees voice against unfair decision or pressure from their superior will help in improving the policies of ASDA. This further support in improving the employee and employer relationship at workplace. So, ASDA must encourage their employees to participate in various managerial practices and speak up over their unwillingness to perform certain action.
From the above given information it can be summarized that employment relation is consider as major factor within an organisation which is responsible for success or failure of a company. As good employer or employee relation help in motivating workers to perform their operations effectively for contributing toward achieving the organisational objective. So for establishing a better relationship it is very essential for an employer to follow all the regulations formulated by government.
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