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This report provide an detail description about the Strategic human resource management which provides an framework to link organisational strategies which human resource activities. This help in managing the performance of employees toward the achievement of organisational goal which support in developing competitive edge within the market place. This report includes various theories and model to support the importance of SHRM within an organisation. Current report is divided into two part where first task describes about relation between business and human resource strategy to support the concept of SHRM within an organisation. Apart from this it describes about the HR practices for performance management.
In second task it explains about the importance of employment relation within an organisation. It also describes about the role performed by the actors involve in employment relation. From this report it has been found that, SHRM and employment relation plays a crucial role in development and progress of an organisation. Both the factors support toward developing an environment which foster employees to improve their performance and contribute toward its success. It is recommended that each organisation whether public or private must treat its employees fairly at workplace. So that employees can contribute at their best toward the achievement of organisational objective.
Strategic human resource management refers to the process of connecting human resource with strategic objectives for improving performance by developing a culture that foster flexibility, innovation and competitive advantage. This task elaborates about the relation between business strategy and human resource practices (Armstrong and Taylor, 2014). It also describes about SHRM models and theoretical approaches that help an organisation to achieve competitive advantage. Further it talks about performance management and HR practices linked with this such as scheduling activities and tasks, monitoring performance, performance appraisal and performance review/feedback.
Business strategy:- It refers to a firm's working plan that help in achieving its vision, objectives and achieving competitive edge over competitors. Business strategies describes about long term business planning that provides guidelines to perform actions.
Human resource strategy:- It refers to the process of creating long-term plan for management and development of human resource working within the organisation (HR strategy, 2016). These strategies help in unifying and directing the behaviour as well as action of human resource to promote overall development of employees in accordance with the requirement of organisation.
Relation between business and human resource strategy:-
Business strategy and human resource strategies are inter-related, as overall strategy of an organisation provides direction through which organisational goals can be achieve. On the other hand human resource strategies help in managing the employees so that these goals can be achieved effectively. HR managers mainly focuses on goals of business as they are related to human resource policies and practices. Therefore, business strategy help in figuring out that how manpower spread across the different department within an organisation. For instance, by developing a proper relation between HR practices and organisational strategy, Mark & Spencer will be able to determine the manpower required to perform a particular project. As management and retention of employees help in improving the performance outcome after the implication of business strategy. Hence, relation between business strategy and HR practices will help in achieving competitive advantage and in improvising performance outcome.
Coordination between business strategies and human resources practices help in achieving higher success and growth within the marketplace. In order to align organisational goal with employees performance, integration is crucial as it increases efficiency and relevance of HRM within an organisation. Following are the types of integration
Vertical alignment:- It refers to the process of acquisition done by two companies that are not working on same level in value chain but are operating their operations in upstream or downstream activities in value chain (Hohenstein, Feisel and Hartmann, 2014). This help company in spreading their activities across value chain and also provide the advantage of sourcing the raw material for production when it involve in upstream acquisition. It help in getting closer to customer when the acquisition is downstream. For instance, Mark & Spencer can integrate vertically with other apparel companies which have flagship store and sell a wide range of product that can get through regular retailer.
Horizontal integration:- It refers to the acquisition between the companies that are working on the same level of value chain within their business. Horizontal integration is very essential when a company want to achieve economies of scale as the same activities or products can be manufacture at large scale with the help of this integration. For instance, Mark & Spencer can merge with other retailers like ASDA or ALDI, as these belongs to same category. So this merger will help in expanding their business at large scale.
Strategical human resource management:-
SHRM refers to the practices of human resource department that assists in attracting, developing, rewarding and retaining employees for providing benefit to both employees and organisation. HR department which involves SHRM practices do not work independently rather they tries to interact with other department for determining their goals and formulated strategies for aligning the goals of individual with organisational goals. SHRM support the goal of rest of organisation by utilizing and integrating skills of human resource to make other departments stronger and effective (Ahmed and et. al., 2016). Matching model of SHRM will prove to be helpful to Regional Business Innovation and Skills department, as this model defines how HRM Practices must be performed to support organisational strategy.
Matching model of SHRM:-
This model shows the relation between organisational strategy and HRM practices as well as define how HR activities must be designed to support overall strategies of organisation. This model is divided into two parts where, first part describe about integration of HR strategies and second part will depict about HR cycle. Matching model provides a framework that help in determining how the HRM policies derived from mission and strategy of organisation which further affected by micro environmental factors (Bratton and Gold, 2017). It also depict how functions like selection, appraisal, reward and development are integrated to produce required performance of employees.
Main objective of strategic human resource management is to ensure that HR department of organisation is fully integrated into strategic planning so that the HRM policies can be accepted and utilized by line manager in their day to day operations. Main theoretical approaches of SHRM are divide into three categories, which are as explained below:
It refers to an ongoing process between employees and their managers which provides feedback, accountability and documentation for improving the performance outcome. Performance management is a very crucial function of human resource department as it help aligning the skill and talent of employees with organisational goals (Cardy and Leonard, 2014). This function involves set of activities that are planned by HR manager for ensuring high performance or making sure that each business operation should performed effectively. Following points describes about the set of activities performed by human resource department:
For designing an effective performance management system, Regional Business Innovation and Skills department is recommended to use an effective plan which describe about the activities to be performed. These activities must be scheduled according to their priority so that each task could be perform in timely manner. Apart from this it is recommended that Mark & Spencer must provide performance appraisal to their employees on time. Rewards are not be bounded for annual basis only, it must be extended to workers according to their performance and on monthly or quarterly basis.
Apart from this regular training must be provided to employees so that performance can be improved which contribute toward positive outcome. Further it also assist employees in being adaptable to changes that are anticipated within as well as outside the organisation. As it help in dealing with future challenges and achieving competitive advantage.
From the above given task it can summarized that strategic human resource management is very essential part of an organisation as it focuses on linking the personal goals of employees with overall organisational objective. This will further assists in managing the performance of employees using various HR practices so that an organisation can achieve competitive advantage and become able to deal with organisational changes.
Employment relation refers to a legal agreement between employee and employer which shows the terms & condition in which a person perform its duty within an organisation. It describes about how an employer treat or behave with its workers at workplace (Jacoby, 2018)(Kim and Bae, 2017). This task elaborates about the employment relations and various theories related to it such as unitary and conflict. In addition to this it also describes about the role that an actor plays within employment relation.
Employment relations :-
It refers to the study of regulation of employment relationship between employee as well as employer. It describe about how a manager interact and treat their employees and vice versa. By using employee relation theories a company can develop an understanding related to these regulation will help them in positioning responsibilities to better lead their workplace (Employment Relationship, 2018.). It also assists workers in maintaining an environment of equality, where their issues will be heard and proper actions well be taken. Following are the theories of Employment relation:
Roles of the actors within the Employment Relationship
Employment relation describes about the interaction between any of the actor which are of three types i.e. employees, employer and state. These all work together within an organisation with some set of rules to develop better relationship and understanding. Role of each actor in term of employment relationship can be better understood by following points:
These all are the actors which are involve in the employment relationship concept, contribution and coordination of which help in building up a healthy relation between employer and employee. The nature of work as well as employment relationship are changing continuously which has improved the scenario of employee and employer relation up to a great extent. As earlier, employees are more humiliated and exploited in workplace. They are forced to work more and are not remunerated as per their work performed (changing nature of employee relations, 2017.). This environment lead to the development of trade union which promote healthy and fair environment for employees to work. Further various rules and legislations are formed for protecting the right of employees and trade union ensures that these laws must be followed by employer (Geppert, Williams and Wortmann, 2015). Therefore, trade union works in favour of employees to provide them secure and healthy working environment where they can work effectively and are fairly remunerated.
Employees are consider as an asset of the company which contribute toward the success of an organisation so they must be treated fairly and equally. This will help in developing job satisfaction among them which support in improving the productivity. As health employment relation is the key to employment retention, higher productivity and organisational success. Therefore, it is recommended to Mark & Spencer that management must identify the need of employees and must try to improve their organisational norms and procedures. This help in creating such a working environment that foster employees to work effectively for achieving organisational goals.
Apart from this employees participation and employee voice also plays a crucial role in improving the employment relations within an organisation. As active participation of employees within decision making process and other activities which will help in conveying the employees will regarding current process to higher authority. In addition to this employees of Mark & Spencer must also speak up whenever they are forced to perform some action which they are not want to do. Apart from this they also speak up over every unfair decision or at changes that are implement without their concern. This help in improving the relation between employee as well as employer. Further it also help in improving the working condition of other employees working in Mark & Spencer.
From the above task it can concluded that employment relation is one of the crucial factor that must be managed by an organisation in order to achieve higher success and growth. As employees are the main part of a company which perform activities that support an organisation in achieving their desired goal. So in order to achieve maximum productivity from their employee it is very essential for employer to develop an healthy and safe working environment to keep their workers happy to achieve higher growth in market place.
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