Analysis of Strategic Human Resource Management Assignment Sample

Strategic HRM in the UK: Responding to External Challenges and Opportunities

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Introduction of Strategic Human Resource Management - External Factors, Trends, and Integrated Strategies

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Organisation’s human resource plays a very significant role in the performance of the organization and is a key to competitive advantage. Human resource is a dissection of the business that is stimulating with screening, training, finding, and recruiting human resources (Seeck and Diehl, 2017). HR helps an organization to deal with a fast-changing business environment and also provides great quality employees. For an organization, it is very crucial for paying attention to the process of management of human resources strategically, as there is a long-term implication for organizational performance and achievement. The key features of HRM activities are to manage and use the human resource of the organization effectively, and to develop competencies that help in enhancing individual and organizational performance (Hassan, 2016). HRM also helps increase innovation, creativity, and flexibility to enhance competitiveness.

The report is divided into four parts for better understanding the first part of the report develops a deep understanding of HR strategies and practices which are influenced by development in an organization's external environment. This part of the report also talks about external and contextual development in HR. The second part of the report highlights the facts about HRM's strategic approaches and the impacts of the theory of HR practices in the organization. The third part of the report evaluates HR initiatives that help develop high-performance in organizational culture. And it also provides detailed information about strategic HR initiatives and how organizational culture influence priorities and the way of working in the organization. At last, the report highlights the features and justification of integrated HR strategy and primary concerns during the process of adapting a strategic HR approaches.

Strategic HRM and external environment

Strategic human resource management provides a basic framework relating human management and development practices for long-term organization outcome and goals (Blom et. al. 2020). Strategic HRM also provides detailed information about reward or performance, and determination on how the strategies are integrated into the overall organizational strategy. There are various benefits of using human resource management strategies like increased, better work culture, customer satisfaction, proper utilization of resources, job satisfaction, various approaches to managing employees, and boosting productivity. There are some steps of a planned approach to human resource management which are as follows:

  • Creating awareness – the first and foremost approach to Human resource management is to analyze the objectives and goals of the organization. These strategies of human resource management help create an awareness of the goals and objectives of each department of the organization which further creates an interactive environment. In this HR manager sets outlooks and manages stakeholders to make sure that each department and manager is mindful of the goals and aims of the organization.
  • Formulating organizational goals- The next important strategy is to plan and formulate goals and objectives for the organization. Formulating means critically outlining what the organization wants to achieve in the upcoming future (Hong al. 2019). Organizational plans must include existing promises, the mission, 5 years roadmap, the purpose of choosing a particular goal, and strategies to be applied for the achievement of aims.
  • Analyzing the external factors which affect the organization- the most important part of the HRM strategy process is to examine the external factors that distress the organization. Once the goals and objectives of the organization are finalized the next important step is to analyze the external factors that may affect the goals of the organization. The major external factors are current demands and expectations, future expectations from products and services of the company, competition, and industry trends.
  • Identifying the risks and opportunities- analyzing external and internal factors helps in understanding the risks and opportunities involved in achieving the goals of the organization. Identifying risks and opportunities helps to develop a better and ideal human resource strategy.
  • Gap analysis – after analyzing the risks and opportunities, the next step is to highlight the gap in strategy. Gap analysis plays an important role in pointing out the strength and weaknesses of the organization. This step further allows the organization to make usage of available resources in an efficient and effective way.
  • Developing alternative strategies– developing an alternative strategy is a very important task for every HRM. Alternative strategy refers to a backup plan, in case of what if the current strategy fails HR manager should be ready with another plan known as pln B. With help of gap analysis, such issues are highlighted and empower the HR manager to create alternative strategies.
  • Implementing strategies suitable for the organization– the success of strategic human resources depends on the implementation of the plan. After analysing and forecasting, the major step is to implement the strategies or plan (Buller and McEvoy, 2016). For attaining the benefits of human resource strategy managers can focus on hiring, organizing training, and shifting organizational values to the new work culture.
  • Measuring and controlling process- the final step after implementing the strategies and plans of HRM, is to measure the success or results of progress. Managers are required to create a check and evaluate the result effectively to manage and control the human resource of the organization.

The role of HRM is to manage the workforce of the organization to attain its goals and to reinforce the culture of the organization. When all work is done effectively, the HR manager helps in recruiting new professionals who have skills and can fulfil the organization's goals. One of the most famous theories of leadership is also followed by human resource management which is contingency theory discovered by Fiedler. The contingency theory followed group based management which helps in leading the team.

External and contextual developments

For every organization to be a leader in the market it is necessary to bring a working model into practice that makes the best use of productivity and increases flexibility and efficiency at the same time HR is fluctuating its structure just about every day in accordance with the changes in technology (Hameed et. al. 2020). With the right degree and approaches from organization leaders, it ought to have a positive influence on the daily operations, and later the employees of the organization. There are various contemporary trends and development in human resource which includes the following measure points:

  • The impact of globalization – Globalisation has a significant implication for human resource management as it creates pressure for attracting the best set of HRM practices that can expand across the world. Globalization provides an opportunity to enter into new markets, higher remuneration for employees of the organization, and provides better job opportunities. The organization needs to deal with the employee pool for that it is required to attract, integrate, and maintain a multicultural is necessary for success.
  • Workforce diversity – diversity and inclusion have a great effect on an organization's human resources such as record keeping, training, recruiting, and requirements for workforce expertise. Work diversity increases responsibility for HR and holds the department accountable for the function of the organization (Mira al. 2019). Work diversity helps HRM to rethink the strategies and plan for the improvement of the workforce. Example for human resources needs to broaden the places for looking out for new hiring, and institutional training for enhancing their skills to solve the problems arising due to diversity workplace.
  • Changing skills requirements- recruiting and developing the skilled and potential workforce is very important for every organization which is concerned about competitiveness, quality, productivity, and management of a diversified workforce. Lack of skills results in losses for the organization in terms of poor work quality and low-quality productivity, and most important consumer feedback. Since more responsibility requires a high level of skills, strategic human resource management needs to be care full about the lack of skills and knowledge of employees.
  • Changing work patterns and practices- Many organizations are functioning in an environment that is self-motivated- dealing with fast and continuous changes. As an outcome, changing work patterns and practices programs might not be in the finest interest of the organizations (Paauwe and Boon, 2018). The problematic situation with the organization is that they may offer an incorrect logic of security.
  • Job design- job design in HRM is understood by the procedure through which the job's process is defined, the work which includes organizing the workplace on the base of job analysis. In the case of a job, design HR has to consider the whole organizational goals which further help alignment of individual and group goals in such a way that the organization's objectives and goals are achieved.
  • Knowledge management- Knowledge management includes wide improvement in the knowledge and skills of employees knowledge management focuses on the long-term security of the organization. It is the procedure in which an organization focuses on quality and building an improved base to assist its customers. The organization offers various programs and training to improve the knowledge of its workforce which further helps in focusing on the customers and goals of the organization.
  • Work-life balance and processes for improving levels of employee engagement and productivity- for every organization to be successful there are several processes for improving levels of employee engagement and productivity. These processes involve delegation, participative management, goal setting, building teams, and motivating employees. HRM plays a very important role in improving levels of employee engagement and productivity as it provides various training regarding decision making and enhancing their skills which result in increased productivity.

The Generic HR strategies, viewing people as a cost or an asset: The generic model of HRM includes of seven interrelated components which are internal environment, external environment, HRM fields and functions, HRM outcomes, HRM academic and professional factors, and feedbacks which are given by evaluating several theories. Generic model of HRM takes into consideration of many dynamics of managing people or assets at work in an organization.

Changes in HR policy and practice related to current trends and developments: continuous improvements are positive beginning in every organization which typically focuses on changing work patterns and practices. Current work patterns avoid dealing up to the opportunity about, what the organization might require is essential or dramatic change. Such drastic alteration fall outs in the re-engineering of the organization's work patterns and practices.

Impact of digitalization on HRM

Human Resource Management comprises activities such as recruiting, training and developing people in the organization. HRM's objective is to achieve a competitive advantage in the field of HR by providing skills, training, personal and professional development for the employees of the organization. Technology development is an important activity for innovating the process of HRM within the organization, and it also includes knowledge (Baykal, 2022). All HR activities have some technical content which fall outs in technological improvement in the organization. Technological Innovation in Human Resource Management can evident in several ways:

  • By identifying solutions to the problem quickly and with flexibility during a negotiation
  • Identifying new ideas for products and service innovation.
    Identifying new markets.

(Source:Schwarz, 2022)

HR issues in small and large organizations

Human resource management is tough whether it is in a small organization or a large organization. With adequate staff and experienced employees in the organization, there are various issues in the human resource management of the organization. HRM also depends on the size of the organization, HR in small companies is very tough as they do not have the proper staff to look after the human resource of the company (Ulrichand Dulebohn, 2015). On the other hand HR in a large organization is more manageable because they have a whole team to look after the workforce in the organization. There are several other alterations between the HR of small and large organizations which are as follows:

  • The most common difference is that HR in a small and large organization is the external and internal awareness of ability and optimistic effect.
  • HR teams of small companies can acquire a lot from superior companies, which have more experience and a small company can adopt several HR strategies from a large organization.

Whether the organization is big or small all have various HR issues which impact the goals of the organization which are:

  • Compliance with rules, regulations, and laws
  • Healthy and safety of the workforce
  • Change in management of the organization
  • Incentives and compensation issues (Malik,2016).
  • Selection of best talent for recruitment
  • Employees retention
  • Monitoring performance and productivity of employees.

Theoretical perspectives of strategic HRM and their associated practices

1. Strategic approaches to HRM

The strategic approaches to human resource management apply to the idea of strategy to manage an organization's human resources. Strategic approaches to HRM are as follows:

  • Explicitly recognizes the influence of the external environment.
  • Explicitly recognize the effect of opposition and the dynamic of the labour market (Al Adresiand Darun,2017).
  • Extended range of effort.
  • Focuses on the matters of optimal choice and decision making.
  • Deliberates all personnel, unbiased to operational employees.
  • Combined with complete corporate strategy and functional strategies.

2. The link between business strategy and HR strategy

When business owners and manager frame business plans and strategies, they frequently forget about an important section of these strategies and plans. That part is human resource staff, they are often left out and not consulted in process of planning and decision-making in the organization. Several studies prove the importance of connecting business strategy with the growth of human resources in an organization (Thomas, 2016). A company that relates its HRM with its strategic business plan stances to have a durable competitive advantage in the market. There are various areas where business strategy and human resource strategy have a link which is as follows:

Strategic decision-making – it is all about reflecting both internal and external factors. The internal factors include the mission of the company and the external factors are political, legal social and economical forces which impacts business from outside. Business strategy and HR strategy both have common plans and strategies to deal with these factors.

Communication and trust – the key component of connecting business and HR strategy is business culture and communication between employees in the company. When employees are stimulated to get tangled in various parts of the business strategy it builds advanced levels of trust between employees and the management squad.

3. Role of HR in achieving competitive advantage

Human resource plays an important role in providing a competitive advantage to the organization in the following ways:

  • HR helps the company to create value in the market by providing quality productivity and an expert workforce which all are focused on achieving organizational goals which further helps in achieving competitive advantages in the market (Hamadaminand Atan, 2019).
  • HR managers plan on how to develop and exploit the rareness of the organization to gain competitive advantages.
  • HR department attempts to develop and nurture characteristics of organizations that cannot be imitated or copied by other competitors in the market.

The impact of theory on HR practices

A number of studies have been carried out that there is an optimistic and powerful association between strategic HR and organizational presentation. Strategic HRM practices have a positive impact on the productivity of the organization in a competitive and challenging market. The theory shows that employees are the key assets of the organization and their performance largely depends on HR strategies and planning (Magotra et. al. 2015). So when an active manner adopted the appropriate range of human resource policies and procedures are settled and implemented, they positively impact the performance of a business. HR practices also have a great impact on the financial performance of an organization and the objectives and goals of the organization are depending on the potential of the workforce in the organization.

Role of strategic HR to develop high-performance organizational cultures

Having a strong organizational culture is necessary for every successful organization. An organization's culture influences every part of the workplace from daily processes to top-level strategies and decisions which affect the brand identity, employee engagement, retention, and more. However, every organization has a different culture which depends on the organization's industry, leadership style, demographics, and other factors which are internal as well as external (Paauweand Farndale, 2017). There are different HR behaviours in which strategic HR affects the organizational culture by creating it successful, adaptable, and supportable for long period. The various ways are as follows:

  • Leading on culture – is the simplest way in which HR can impact an organization's culture by taking a dynamic approach to leading on culture. HR works with the HRM team and stakeholders across the organization to appraise the current culture of the organization. To measure the gaps and opportunities on basis of which the HR team makes plans and strategies to align with the value and goals of the organization.
  • Alignment of recruitment with organization goals - people hired for a particular job position which has a huge impact on an organization's culture, and the HR manager tries to match their recruitment practices with the organization's essential standards (Babenkoand Skopeckii, 2016). With help of a good organization's culture, it is easier to attract qualified staff; particularly if recruitment is processed in an in-demand position or a predominantly competitive region.
  • Strategic compensation and rewards - A competitive reward outline is dynamic for generating a culture where employees feel appreciated for their work and are motivated by this gesture. Though, compensation is too much than salary, and reward, it plays an important share in reassuring and motivating the behaviours of employees that are significant to an organization's culture (Chowhan,2016). For example, to develop a culture of innovation and knowledge in the organization, the HR manager can offer employees a yearly bursary to spend on their own projects.
  • Retain leaders on the path – it is very important for managers and leaders to stay on track in the case of an organization's culture, few times it is seen in an organization that leaders and managers go off the track because of poor management in an organization. HR specialists are accountable for carrying the organization's culture on track by prompting executives and managers about the influencing their selections which are on the organization's employee confidence and engagement.
  • Learning and development - By the increase in technologies and an ever-growing degree of change, it is always more significant to have a personnel which are adaptable to new changes, which have capabilities of forward-thinking, and willing to learn and enhance their skills. HR leaders can encourage this by providing the facilities for professional learning across the organization (Crous, 2016). This might comprise Investing in professional trainings and endorsement for employees. And Setting up training and mentoring programs for employees, Inspiring social and group learning among teams, and creating digital learning available to allow employees to take care of their individual education and actions. By creating an organizational culture that encourages constant development, HR can guarantee that its teams are continuously on a forward step in advance in comparison with its competitors.
  • Practicing the strategies - The HR department performance plays a leading role within the organization, encouraging the behaviours and standards that the organization required to promote. There are a few things that have a negative impact on an organization's culture like leaders going opposite to their own claimed values (Bullerand McEvoy2016). A good example set by leadership can be transformative in acquiring a competitive advantage from the other organization. HR leaders are exclusively sited to create their organization’s culture. By doing so, HR leaders play a key role in the success of the organization, and also in motivating and encouraging the workforce. This further makes it dynamic to shape trust and establish a close connection with the HR team. By keeping word, listening to others' ideas and issues, and working in accord with the organization's values it is possible to be the champion of the market.

Developing integrated HR strategy to support sustainable business performance and growth

An integrated HR strategy merges the organizational goals, tools, skills and aligning processes which help an organization to recruit and train talent who are a perfect fit for fulfilling organizational goals. Leaders and HR executives must approve the culture and deep look into their strategies and policies to determine if there is an alternate arrangement between perception, vision, and direction (Snell and Morris, 2018). Creating a business plan is essential for the success of every business. When an organization has a business plan to follow, leaders are focused on preparation for the future. A business plan generates a focus for the organization and encourages employees toward the organization's goals. When everyone in the organization works together, it is quite easier for the HR manager and executive to manage time and resources, for the growth of the organization. There are various integrated HR strategies to be followed by organizations, which are as follows:

  • Defining the difference between corporate and business strategy – Business strategy raises the question of how to gain a competitive advantage in the market or how to fulfil the expectations of stakeholders. When a company follows a business strategy, it helps to boost employees' performance which further helps in the decision-making process of the company (Koser al. 2018). Employees who are empowered by the decision-making power tend to be more engaged in their work which results in productivity. And when HR is involved in corporate strategy, it creates universal buy in and moves out in lockstep with the rest of the organization.
  • Hire people who fit the organization in the best ways possible - Employees which are aligned with desires and customers are the one which will relate the greatest to their needs, pain, and wants. This does not mean that organizations should hire people who are similar to buyer personality. Diversity and attachment are always key to a successful workplace environment. Looking out for modified technical skills to attract the best talent who are capable of understanding the needs of the organization's customer base and stakeholders.
  • Influencing technical competencies with culture - Technical skills are an advantage when the employee contributes to the company's organizational culture. There is a need for a balance between technical skills and culture, so the capability is sensed by the individual, but the effectiveness influences the organizational level (Brockbank al. 2018). When the organization is looking out for hiring candidates with technical skills, the hiring committee also asks questions related to assessing soft skills. Such questions define their motivation level, response to various changes, cooperative skills, and capability to think outside the box. It is also better to know about their ideal management style and company culture.
  • Alignment of HR practices and policies with culture - the key areas in which HR focuses are organizational structure, performance evaluation, employee development, and change management. These areas are mostly obstructed by business modifications and distractions. An organization can not transfer toward its goals competently and effectively because its culture and policies are not in accordance. Inappropriately, numerous employees do not perform and behave rendering to the organizational structure (Grohmann, 2015). Because these principles and values which remain silent and unwritten and for preparing policies and practicing them to influence individuals in the organization. These should be written, shared, and demonstrated by leadership. The organization's Culture is meant to establish the attitude for the work environment, appealing to employees, so that they can identify their shared commands and standards in the organization.
  • Setting SMART objectives – HR SMART objectives bring much-needed clarity and alignment to the work culture of the organization. SMART is short for specific, measurable, attainable, relevant, and timely goals that are not unclear or impossible to achieve. SMART goals help human resource management to retain the organization's vision and effort towards the achievement of goals and objectives. These goals provide achievable targets and help in keeping the workforce focused and motivated throughout the period. They can help in identifying any aberration from the fixed path and take instant steps to cover that path by minimizing the time and waste of resources.


The report concluded with a deep understanding of Strategic human resource management. Strategic human resource management offers an outline connecting management and expansion practices to long-term business goal line and results. It focuses on long-term resourcing matters within the framework of an organization's goals and objectives. The report highlights the deep understanding of the assessing HR strategy and practices which are affected by development in an organization's external as well as internal environment. It concludes the contemporary trends and developments in HR and how technologies have a great impact on people-management practices. The report discusses strategic approaches to HRM and their related practices in several types of organizations. It also states facts about how business strategy is linked with human resource strategy and also about the role of HR in attaining a competitive advantage in the market.

The report concludes understanding of evaluating strategic HR initiatives which are used for developing a high-performance culture in an organization for the achievement of goals and objectives. The need to grow an integrated HR strategy to backing business performance and encourage growth is discussed through the appropriate strategy of HRM. At last, the report discusses the importance of integrated strategy and various strategies that help in evolving an organizational culture that is helpful in attaining goals and objectives of the organization.


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