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 o
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.
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 given below:
Matching model of SHRM:-
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:
- Universalistic theory:-This theoretical approach state that there are some common best practice approach present throughout the world which support in managing people. According to this theory a general pattern is followed by organisation for solving HR issues like recruitment, selection, employees motivation and compensation for managing people (Approaches to SHRM, ). These practices are followed by companies worldwide without considering organisational circumstances.
- Contingency theory:-This approach is also known as best fit approach which suggest that universal approach doesn't leads to better performance. As in order to improve performance it is very essential for an organisation to integrate its organisational policies and strategies with human resource practices (Purce, 2014). This support in contributing the actions of individual toward the accomplishment of organisational goals.
- Resource based view:-It is a mixture of strategic management theories that seeks to determine the resources which help firm in achieving sustainable competitive advantage. It involve resources such as brand name, skilled personnel, machinery etc. This theoretical approach focuses on integrating the tangible as well as intangible assets of organisation along with knowledge, information, routine, organisational process and management skills (Wood and Kispál-Vitai, 2014). This integration help a company in performing operations much effectively that contribute toward its success.
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:
- Scheduling activities and tasks:-HR manager is responsible for defining and designing the work performed by each individual so that work can be performed on time and as per the requirement. Apart from this it is very essential for human resource manager to schedule activities or tasks as per their priorities which help in performing actions on time. This help in reducing the chance of errors or delays as well as provide direction related to which work that brings efficiency. For instance by scheduling task or activities HR manager of ASDA will be able reduce its operational time. As each activities are priorities and assigned with time required to complete it which provide a clear guidance related to which action to be perform and at what time. This will help in accomplishing task on time which further enhance performance. But on the other hand sometime it has negative impact as it bring dependability among employees because sometimes they depend over others to perform their part
- Monitoring performance:-It is also one of the crucial function of HR manager as it help them in identifying the factors that affect the performance of employees. These factors can only be determine by monitoring the performance of employees. By identifying these factors they will be improve the performance of employees that support in accomplishment of organisational objectives. For instance by monitoring the performance of employees, HR manager of ASDA will be able to identify the area that require improvement for enhancing the level of performance. Apart from this while monitoring the employees, mangers can guide them that further help in reducing the chance of error or failure. But it also have some negative impact that while monitoring employees get frustrated from their subordinates when they continuously give comments over work performed by employees as they get demotivated.
- Performance appraisal:-Under this HR manager systematically evaluate the performance of employee by comparing the actual with planned performance. This help in providing information related to the factors that are required to be improve from enhancing the performance. Using performance appraisal HR manager of ASDA will be able to motivate their employees to contribute their skills toward accomplishment of organisational goals. As using performance appraisal they get information related to which employee must rewarded for performing well and which require guidance for improvement. Reward over performance help in motivating employees to perform well but on the other hand it also create jealousy among employees who are not rewarded or appreciated. This will demotivate employees which negatively affect their performance.
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:-
- Unitary theory:-This theory is based on assumption that should have integrated group of people and loyalty structure that work toward the accomplishment of common goal. Unitary theory suggest that employee as well as employer must share a harmonious relationship where both of them should work together for achieving the success (Bach, 2012). So that both the parties can form up one team with similar interaction and understanding which doesn't require third party or union intervention. For instance by using this theoretical perspective ASDA will be able to centralized their actions which support in developing discipline, coordination and also avoid conflicts related to authority. But apart from this it has been criticized by Trade union as it only consider the top management to take decision and manage business as per their choice. It doesn't extend any power to employees which manger have all the power to operate actions of workers.
- Pluralist theory:-This theoretical perspectives suggest that an organisation is consists of group of individuals with different objectives, value or interest. Pluralist theory state that employees are different in term of their value, beliefs, interest and aspiration from that of management which creates conflicts among them. These conflicts are accepted under this theory and are solved through concessions and negotiations which is the major function trade union (Forth and et. al., 2013). For instance by applying this theory ASDA can maintain a better relationship with their employees by inviting them for their suggestion during decision making process. As this theory allows employees to follow their beliefs, culture and identity that enable them to gain respect and dignity which boost up self confidence. But apart from this Pluralist theory also poses some negative aspect as delegation of authority may sometimes leads to delay in activities and increase in conflict because of their positions.
Role of the actor within Employment Relationship
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:
- Employer/management:-The role of employer is to hire employees, define their job and remunerate them for work performed by them. Management is also held responsible for informing their employees if any changes made to members in industrial relation and also offer advices as well as training if any changes made to current method of performing operation (Stoleroff, 2013). Apart from this employer must ensure that the task or job is delegated as per the ability of employees.
- Employee/union:-It refer to the organisation of workers that are joint together with an aim to improve the social being of its members by taking actions in favour of employees right. As many workers doesn't receive proper payment or working condition at their workplace and these issues are handle by this union (Kelly and FREGE, 2013). On the other hand employer seeks to improve employment terms & conditions by exchanging their views and voicing their grievances with management. Workers generally get united to form this union against the management for getting support from this association to solve their workplace issues.
- Government:- State and central government plays a crucial role in managing the employment relations by formulating laws, regulations, policies etc. In addition to this government hear the grievances that employees have so that proper judgement can be provided to them (Rodriguez and Mearns, 2012). It involve third part such as labour and tribunal court.
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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