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.  

Task 1

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.

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 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 gi


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