‘Strategic Management of Human Resources. HRM 325.Student Name: Angel Takondwa Nkhoma
Student Number: 179132454/1
Tutor: Dr. Ngali
Module Leader: Andy Clark
Table of Contents
TOC o “1-3” h z u TASK ONE PAGEREF _Toc524677693 h 3Introduction PAGEREF _Toc524677694 h 31.0 BUSINESS STRATEGY AND HUMAN RESOURCE STRATEGY PAGEREF _Toc524677695 h 32.0VERTICAL AND HORIZONTAL ALIGNMENT/ INTEGRATION OF SHRM PAGEREF _Toc524677696 h 42.1VERTICAL ALIGNMENT PAGEREF _Toc524677697 h 42.2HORIZONTAL ALIGNMENT PAGEREF _Toc524677698 h 43.0 STRATEGIC HRM PERSPECTIVES PAGEREF _Toc524677699 h 53.1 BEST FIT/CONTINGENCY PAGEREF _Toc524677700 h 53.2 BEST PRACTICE/ UNIVERSALISTS PAGEREF _Toc524677701 h 63.3 RESOURCE BASED VIEW (RBV) PAGEREF _Toc524677702 h 74.1 HR PRACTICES OF PERFORMANCE MANAGEMENT AND REWARD PAGEREF _Toc524677703 h 7TASK TWO PAGEREF _Toc524677704 h 81.0EMPLOYMENT RELATIONS PAGEREF _Toc524677705 h 81.1Theoretical perspective of employee relations PAGEREF _Toc524677706 h 8
TASK ONEIntroductionStrategic human resource management was defined by Wheelen and Hunger in 1995 as a set of managerial decisions and actions that determines the long run performance of the organization. Basically, task one of this report will look at mostly human resource management strategies in an organization.
1.0 BUSINESS STRATEGY AND HUMAN RESOURCE STRATEGYBusiness strategies help an organization to set itself up to achieve its desired objectives and these business strategies can also be called long term business planning where as human resource strategies help to merge and direct the behavior and action of people while satisfying their development in accordance with the needs of the organization (Truss, 2012).
The diagram below shows how business strategies and human resource strategies are related;
For a business to meet its mission, it must have a strong human resource. Skilled workers results in the business’ mission implementation. Here, the business uses the hr strategies to recruit the right person for the specified job, trains the worker and also retain the worker to be a loyal employee of the business (Lee, 2010).
When a business is faced with the dynamisms of the environment, the business strategy changes in one way or the other and here HRM can be seen as a driver to organizational change implementation because it comges in to communicate and teach about the new terms.
VERTICAL AND HORIZONTAL ALIGNMENT/ INTEGRATION OF SHRM
2.1VERTICAL ALIGNMENTGolding (2004) defined vertical alignment as a link between business strategy and the way every individual in an organization performs. An organization being vertically aligned means that the 1employees know exactly what is expected of them, understands the company’s goals and work towards achieving them (Jonathan Crawshal, 2017). Vertical alignment is achieved in an organization when all employees take part in decision making and a company that is vertically aligned is said to be successful since there is a high number of employee satisfaction, job satisfaction, job retention and low turnover rate.
2.2HORIZONTAL ALIGNMENTIn horizontal alignment HR activities depend on each other and support each other, for example recruitment is dependent on selection processes and vice versa. Horizontal integration is mainly used by mergers and acquisitions of firms offering the same product or service. Basically, companies buy horizontal alignment to help it achieve economies of scale, product quality, to beat competition and the risks to penetrate into new markets (Ji Guojun, 2012).
3.0 STRATEGIC HRM PERSPECTIVESSchuler (1992) said that SHRM is all about adapting and integrating and according to that various approaches were taken to identify the different strategic perspective of Best fit/contingency, best practice/ universalists and resource Based View in strategic human resource. Below is the analysis of these perspectives;
3.1 BEST FIT/CONTINGENCY
According to the diagram above, best fit model is said to believe that HR strategies become more efficient when they work hand in hand with the environment of the business internally as well as externally. The model emphasizes on making sure that the HR strategies suit different kinds of circumstances along with the culture and operations of the organization as shown on the diagram above (Zdravka, 2012).
This contingency approach to HR strategy suggests that an organizations set of HR policies and practices are effective only when they are depending on other organizational strategies and its aim is mainly to improve organizational performance. This approach is used in the hotel industry where by the hotel employs people that will work to exceed the expectations of the guest by giving them a ‘wow factor’ as well as satisfying the management goals (Gannon, 2015).
Purcell made critics that the best fit approach is too reliant on what happens here and now and does not reflect what will happen in the future. Boxall also said that this approach limits the strategy in the sense that it restricts the look for possibilities and also brings out troubles when you are trying to demonstrate the interconnections of the strategies (Armstrong, 2006).
3.2 BEST PRACTICE/ UNIVERSALISTS These are HR methods that have universal and optimistic impact on organizational performance and believe that there is a set of HR practices which if taken into consideration; they will lead to better organizational performance. Jeffrey Pfeffer’s model of best practice suggests that there are important sets of HR practices that can boost the company’s profits. In his model he linked human resource with improved competitive performances CITATION Mic00 l 1033 (Grugulis, 2000).
Below is the explanation of a few of the human resource practices that were highlighted;
Employment security- this means that no matter the economic downturn of the organization, employees should not be made quickly redundant (Gabriella Berloffa, 2016).
Training and development- For an organization to achieve a skilled work force it must put training as one of its priorities, because training develops employee capabilities. For example in the UK even athletic training educators undergo through training to get an understanding of how athletic trainers develop as educators (Ellen k, 2017).
Despite the best practice approach being viewed as a competition drive, it is still being debated as to whether it is good or bad and people have not really constitute what best practice is and it still needs to be researched. However, Dr Malik (2012) also argued that the perspective of best practice does not put more emphasis on financial implementation’s implications, this can be a challenging approach since it requires a strong financial stand to have SHRM policies put into practice.
3.3 RESOURCE BASED VIEW (RBV) Barney and Wright (1998) said that RBV has helped to build a productive theoretical approach between business strategy and HRM. The RBV states that for a firm to develop its competitive advantages it must acquire, develop, combine and effectively deploy its physical, human and organizational resources in ways that add a unique value and are not easy for competitors to copy. This perspective was intended to help researchers understand why some firms enjoy competitive advantage and thereby outperform other firms.
Although RBV has been greatly used in the entrepreneurial ventures, it has been criticized that resources remain ill defined, inconsistent, and also contradictory across studies. Researchers have not reached to a conclusion of to what a resource is about. There is still an unclear theme as to whether the resource based view is applicable to entrepreneurial ventures and established firms (Franz Kellermanns, 2016).
4.1 HR PRACTICES OF PERFORMANCE MANAGEMENT AND REWARDAccording to Armstrong and Baron (1998), performance management is both a strategic and integrated approach to delivering successful results in organizations by improving the performance and developing the capabilities of teams and individuals (MSG, 2016), Armstrong also defined reward management as a set of strategies, policies and processes required to ensure that peoples contributions in an organization are recognized by both financial and non financial means (Armstrong, 2007).
Organizations that use performance management systems are likely to be successful in terms of monetary and non-monetary because they tend to have improved performance, employee satisfaction, retention and loyalty and improved productivity. These organizations also have a take on reinforcing reward practices which are aligned with HR practices and work towards achieving the organizational goals (Armstrong, 2015). HR practices of performance management and reward are explained below;
The way employees perform in an organization whether it is on the job or off the job, their work deserves to be measured, evaluated and eventually rewarded accordingly. The practices behind this are what are called performance management, whereby then reward systems are formed and in-turn helps the organization to gain its competitive advantage, retain and motivates employees (Alharbi, 2018).
360° appraisal Vs performance certificates
360° appraisal is a performance management practice while performance certificate is a reward practice.
EMPLOYMENT RELATIONSEmployee relations refer to the interconnection that exists between employees and employers in the workplace.
Theoretical perspective of employee relationsThe three theoretical perspectives of employee relations are generally identified as pluralistic, unitary and Marxist. Each perspective offers a different insight at a workplace and therefore used to
Fox (1966) states that in pluralistic, the organization is considered to have a plurality of interest, goals and leaderships amongst different types of employees in different departments. Organizations that are pluralistic tend to have more conflicts than the others due to different expectations and allegiances and it is the organizations duty to find ways on how to handle and resolve these conflicts. This perspective is disadvantaged in a way that the groups in different departments are expected to have the same social norms and if they are slightly different this approach is void in that particular organization (Ackers, 2014). In a pluralistic organization they use the democratic leadership style.
1.1.2 Unitary Perspective
Unlike a pluralistic perspective, there is a predominance of common interest and shared priorities across the organization. Polly politik criticized this perspective of being unrealistic, because individuals have different interests although being in the same organization. This approach is also said to be employer biased to promote employee commitment and creativity. The conflict that arises in this perspective of ER is said to be pathologic, the three possible causes of conflicts could be the breakdown of communication, interpersonal frictions and agitators.
An example of an organization in unitary perspective can be in a military, whereby cadets only go by the instructions of their commanders to assign missions in training and follow an authoritative leadership style.
A Marxist organization is also said to be radical. This perspective dwells on the thought that employment relations are against the old ways of how employment relationships were handled in the 1st century. It enlightens the inequality in power that is there in employee relationship as well as in the society at large. Here, conflict is taken as an inevitable and the Marxist perspective gives more reasons to conflicts.
THE CHANGING NATURE OF EMPLOYMENT RELATIONS
The nature of work and employment relationships is changing drastically