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Discussion Of Strategic Human Resources Management

Paper Type: Free Essay Subject: Business
Wordcount: 5302 words Published: 13th Apr 2017

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In this particular task we will discuss the Strategic Human Resource Management. What it is, what is the importance of SHRM in the modern business, purpose and the contribution of SHRM in the business.

With the increased global competition and the innovation of new technology and knowledge ,human resource management became the most critical function of organisation. Therefore, the workforce which was considered as resources became assets and are valuable for gaining competitive advantage for organisation. HRM helps organisation in aligning individual goals and objectives with the corporate goals and objectives, and rather than working as dictator HRM works as facilitator and promotes participative approach of workforce.

In short, the SHRM focuses on the efficient and effective management of people in achieving the organization’s vision or purpose.

Conceptually, the SHRM goes beyond a set of coordination functions and activities of an organization’s human resources. One of the fundamental ideas underlying the SHRM theory is that the organization can create a strategic fit or synergy between its HR strategies and organizational strategies. In other words, the organization should be able to side with its HR strategies and policies with whatever their organization might exist for. SHRM if designed carefully can become the driving force for organizational success. For, it is the HR that stands in the key position to influence growth and development of any organization. Variables such as customers and stakeholders, the quality of products or services, revenues or development outcomes are greatly determined by HR strategies and polices.

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Definition of SHRM

Strategic human resource management can be defined as the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation, flexibility and competitive advantage. In an organisation SHRM means accepting and involving the HR function as a strategic partner in the formulation and implementation of the company’s strategies through HR activities such as recruiting, selecting, training and rewarding personnel. [ezinearticles.com,2010]

Task 1.1 Importance of SHRM

With the hard core competition and the tough market conditions it is getting hard for the organisations to survive in the market .organisation have to develop themselves in such a way that they can survive and gain competetive advantage over its competitors.this is where shrm comes into picture as SHRM helps in the long term planning of the business.SHRM is a proactive management of people. It is a two way process where organisation meeting need of people and employees meeting needs of organisation SHRM helps in aligning individual goals with that of organisational goals and objectives by developing the skills of the employees by training and motivating employees. SHRM have provided new dimension for training and development by encouraging and facilitating innovation and creativity.

Employees are motivated by enriching their work experience . Instead of the performance Appraisal s performance and talent management have taken place.

Strategic Human Resource Management blurs the distinction between a specialized Human Resource Management function and core operational activity, SHRM

Aims to achieve strategic fit by integrating Hr strategies and business strategies vertically.

{Adopted from: People management}

DEST’S Strategic Human Resource Management Framework

According to survey in 2007 by Australian government a

DEST Strategic Human Resource Management Framework is designed which explains the development of the department which shows to retain talented people in challenging environment department is introducing new and innovative strategies while delivering fundamental human resource services like the salaries, payroll and recruitment.

A strong emphasis on leadership is used as a key strategic element to help and support for department people. the department has built and maintained a creative and engaged workforce able to deliver the growing and diverse education, science and training agenda.

{Adopted from: Curtin.edu,2011}

This diagram illustrates the HRM function factor are the specific factors that influence the compatability of HR practices ,while firm level factors are analysed as major determinants for matching hr activities with strategy.personal factors which embrace the capabilities of both employees and manager are identified as common determinants for both horizontal and vertical fit.

Task 1.2 Purpose of SHRM

The aim of SHRM is to ensure that the strategic decisions are made having a major long-term impact on the behaviour and success of the organisation by ensuring that the employees of the organisation are skilled, motivated and highly committed to achieve the organisational goals and also attain the competitive advantage against other rivals. Some of the SHRM activities are listed as below:

Resourcing:SHRM main activity is to have right people to do the right job at the rightime.Main emphasis is laid on the efficiency and effectiveness of staff.resourcing is a process and pay.which have planning,recruitment, selection ,induction.

Retention: once the staff is hired emphasis is laid on the retention of staff by providing them necessary training and development, by motivating them, by providing them job security ,job enlargement and using the reward management like the the performance related pay.

Flexibility: employees are provided with the flxibilty of work life balance, getting job done from home, like the part tiome jobs for students and mums and the maternity or the paternity holidays and the sick holidays to retain staff.

Therefore the purpose of the shrm is to deploy right people for the right task and look after the flexibilty and training and development of employees.The purpose of Shrm can only be achieved by proper planning and implementation.

Task 1.3 Contribution of SHRM

In today’s economy the HRM plays an important role in achieving the main objective of the organization. it has lot to contribute as the policies of the organization is set by the Human resource management jointly with the approval of the senior level management hence a lot is depend on the contribution of SHRM in the organization .For any HRM to make positive contribution to the organizational achievements it is necessary that the HRM should know the business ,the core competencies and their competitive advantage along with expectations of the organization and their customers .there is a need to evaluate key drivers in the business performance . This will help the HRM in formatting the stratergic according to the need of the organization .the organization’s mission and vision is the key factor

For example if the organization is a Fast Food Industry where generally the vision is customer centric, customer satisfaction and the value of time. All these requires a well trained workforce usually available for the job to be done on time hence improving quality of work-life can have a substantial impact by reducing errors & accidents, reducing absenteeism & turnover, and improving productivity & customer service. Thus contribution of the strategic human resource management in today’s economy and style of business can makes substantial impact to the objectives of the organization and thus in turn participate in helping the business of the company to grow to higher limits.

SHRM contribute to the paradigm of the business.Shrm provides a value added core responsibility of HRM.

HR Planning: The ongoing process of systematic planning to achieve optimum use of an organization’s most valuable asset – its human resources.(investopedia,2011)

Hr Planning assist organisations to recruit ,retain and optimize the deployment of the personnel need ed to meet the business objectives and to respond to the external environment.The three key elements of the HR planning process are forecasting labor demand, analyzing present labor supply, and balancing projected labor demand and supply. This may include the development of training and retraining strategies.(bnet,2011)

Utility of Human Resource Planning in an unstable econonmic environment can be stated as follow:

Employee Maintainence: Tha administration and monitoring of workplace.Safety ,Health and welfare policiesto retain competent staff and comply with the statuatory standards and regulations.Employee Maintainence gives access to the employee data in regard to the personal and workplace information.

Performance Management:Accordng to Armstrong and baron -‘Performance Management is a process which contributes to the effective management of individuals and teams in order to achieve high levels of organisational performance. As such, it establishes shared understanding about what is to be achieved and an approach to leading and developing people which will ensure that it is achieved’.

Performance Management should be Strategic- About broader issues and long term goals and the Integrated -which links with the various aspects of the business ,people Management and individuals and teams. Peformance Management helps in the performance improvement and development of the individuals,teams and overall organisation.it also helps in managing behaviour iensuring that every there is better working conditions within the organisation.Performance mangament is a continuous process .Business starts of with the corporate goals and the departmental goals followed by the agreement on performance and development, leading to the development of plans betweenindividual and managers with continouous monitoring and feedback supported by formal reviews. Managers play aa important role in the performance management as they define individual behaviours ang assign duties and responsibilities and inform individuals about their accountibilities. Performance management is continuous improvement of the business processess, skills and behaviour of individuals and groups.

Long Term Consequences: HR Planning main purpose is to recrit, retrain , optimise and deploy people.But HR is also responisble ethically to individuals working for the organisations.Ii has its responsibity towards individual for devolping their skills by providing them training .Training should lead the organisational effectiveness. HR is responsible towards the society for its well being following the ethical issues and the corporate governance.HR policies should be ethical and complaying with the laws.

Because of the unstable Economic Environment large number of efforts are needed by the organisation sto sustain.Most of the organisations are trying to elimainate wastage like redundacy to get rid of the people who are not doing their job properly, Multitasking is pervailing and companieis are investing only on those employess who are capable and competent of multi tasking to assess sustainability. Hiring and training of new staff need lot of expenditure so companies is trying to train the staff internally from within the organisation.

Task 2.1 Business Factors that underpin Human Resource Planning In an Organisation.

Different business facors that underpin the Human Resource Planning in an organisation can be stated as follow:

Competetive advantage: Human Resources within the organisations are treated as assets than capital.Having the Capable and Competent workforce than the competitor provides a competetive edge to organisation over the rivals.

Talent management: Talent management is the systematic attraction, identification, development, engagement/ retention and deployment of those individuals who are of particular value to an organisation, either in view of their ‘high potential’ for the future or because they are fulfilling business/operation-critical roles.(cipd,2011)

From Business perspectives hiring those people who have the right skills that will be helpful to the organisation.

Labour Market: HR Planning is affected by the labour Market which deals with the demand and supply of the skilled and unskilled workforce available in the market. Due to the Unstable economic Conditions their is to much of supply and less demand for the workforce .

Strategy of the Organisation: Depending on the Strategy of the Business if they are the having a leader plan or the survival plan Hr will recruit and train staff.

Finance: Heavy investment is needed in recruiting ,training and retaining staff . Different levels of management have Different raes of remuneration.According to the Finances Available to the HR Department Recriument or Training of workforce is done.

Expansion or growth: Expansion or growth requires recriument and promoting of the workforce.

Law: HR policies and planning has to abide by the law .Law relating to the women working, pay, holidays or the ethical issues.

Internal /External Environment: Environment affect the operations and the working of the orgaistions. As the market is turbulent therefore the Hr planning is affected by the economeic conditions .

Organisational need : Depending upon the structure or the culture of the organisation HR act . To provide flexibilty there can be number of part timers within the organisation.

Apart from these factors HR planning is also affected by the mission and purpose of the organisation and the resource planning of the organisation.

Task 2.2 HR Requirement in a given situation

In a given situation HR requirement is about the workforce analysis.HR main job is to have right number of people with the right skill available for the job. Any training and development required is also analysed by the HR.HR estimates the cost of training and development. It is the responisibity of the HR to retain the staff.Basically HR is involved in all the activities related to the human resources such as recuiting,selecting, training, retaining .

Task 2.3 Develop a HR Plan For an organization

Organizational objectives are defined by the top management and the role of HRP is to sub serve the overall objectives by ensuring availability and utilization of human resources. 

HR Demand Forecast: Helps in estimating future quantity and quality of people required.

There are several good reasons to conduct demand forecasting

  • Quantify the jobs necessary for producing a given number of goods
  • Determine what staff-mix is required
  • Asses appropriate staffing levels in different parts of the organization
  • Prevent shortages of people
  • Monitor compliance with legal requirements with regard to reservation of jobs

HR Supply Forecast: Supply forecasting measure the number of people likely to be available from within and outside an organisation .Reasons for supply forecast are:

  • Helps quantify number of people and positions expected to be available
  • Helps clarify staff mixes that will exist in the future
  • Assess existing staff levels in different parts of the organization
  • Prevents shortage of people
  • Monitors expected future compliance with legal requirements of job reservations

HR Programming

Once an organization’s personnel and supply are forecast, the two must be reconciled or balanced in order that vacancies can be filled by the right employees at the right time.

HR Plan Implementation

Implementation requires converting an HR plan into action. A series of action programmes are initiated as apart of HR plan implementation.

Recruitment, Selection and Placement- after the job vacancies are known, efforts must be made to identify sources and search for suitable candidates. The selection programme should be professionally designed.

Training and development- The training and development programme should cover the number of trainees required and programmes necessary for existing staff

Retraining and Redeployment- new skills are to be imparted to existing staff when technology changes.

Retention plan- retention plan covers actions which would help reduce avoidable separations of employees.

Downsizing- where there is surplus employee, trimming of labour force will be necessary

Control and Evaluation

Control and evaluation represents the fifth and the final stage of hrp process. It should also clarify responsibilities for implementation and control, and establish reporting procedures, which will enable achievements to be monitored against the plan.

Task 2.4 Critically evaluate how a human resource plan can contribute to meeting an organisations objectives:

Human Resource Planning plan for the optimum use of its human resources. HR planning therefore deals with having right people for right job at the right time. Therfore Hr is responible for fulfilling the organisational objective.

Making best use of people: HR is responsible for hiring right people for the right job. Proper utilization of the capabilities of the individuals help the organisation to achieve its goal.

Planning for the surplus and shortage of staff: HR plans helps the organisation about the skill and unskill labour market . If there is excess of staff then staff is made redundant or the early retirements are given to employees .but if the staff is in shortage than than the staff is hired or trained from within . Multiskilling is practised by the organisation. It is the responsibilty of the Hr to have right number of staff for the right job.

Efficient utilization of people: Hr helps in the effective and efficient use of the workforce Hr helps the organisation to be cost effective by providing employees with the job rotation, job enlargement and job enrichment.Employees tend to acquire more skills by this.

Succession Planning:Wendy Hirsh defines succession planning as ‘a process by which one or more successors are identified for key posts (or groups of similar key posts), and career moves and/or development activities are planned for these successors. Successors may be fairly ready to do the job (short-term successors) or seen as having longer-term potential (long-term successors).’ Therefore Hr defines the right candidate to be promoted for the right post.

Recriument of Efficient Staff: Talent Management is in practice which helps the organisation to gain competetive advantage over its competitors and finding the cabable and competent employee for the job.

Creating a fit between the HR Strategies and business Strategy:HR need ritcto follow the policies which will help in the achievemnet of the business objectives.Strategies concerning recruiting, training, deployment and delayering should all be aliged with the business strategy to achieve business objectives.

The Development and Retention of the Human resources:Beside recriument and training it is very essential for organisation to retain and develop the staff.

Task 2.5 Explain the purpose of HR management policies in organisation

Human resource policies are the formal rules and guidelines that businesses put in place to hire, train, assess, and reward the members of their workforce.(uslegal,2010)

Rules and Norms: HR policy should follow the rules and norms and should comply with the law.

Procedures- HR policies provides a clear idea about the procedures relating to the displinary.

Support- HR policies provide support in regared to the working hours and the break timimngs etc.

Displinary and greviaces-Policies relating to the greviances such as how the greviances by solved and what are the displinary measures and the misconduct and the gross misconduct.

Performance Management: Performance management underlines the Hr policies about analysing and measuring the performance of individuals. These underline the probation time , appriasal and the reviews by the management.

Employee Relations-HR policies provide support to employees in relation to any problem or information relating to the workplace.

Reward Management : HR policies states the pay and remuneration of the employees and how the employees are paid .

Task 2.6 Analyse the Impact of regulatory requirements on HR policies in an organisation’s

Regulatory bodies have tremendous effect on the HR hence it is mandatory for the HR to keep the Law and regulatory authorities at priority before finalizing on HR Policies failing to do so would lead the organization into serious trouble with consequences up to heavy penalty and license being cancelled. There are a few of those policies

No discrimination policy – discrimination of any sort is a crime hence the HR follows the policy of no discrimination policy. Training is been given to employees on this topic which explain them what they can say or do.

Equal opportunity policies – where the Hr has to plan a structure to offer jobs for everyone irrespective on anything

Economic : Hr sholud look after tax policies as well. Any Tax Evasion of wrong Income Shown leads to the unethical bahaviour .therefore HR policies should work ethically towards the government.

Sexual or mental harassment policy: Hr takes a serious action against any employee breaking this policy

Working HR Restriction policy: Hr Has to proved a contracted hours of job for immigrants that have work hour restriction for their job

Social Corporate Responsibilty:it is HR responsibility to look after the welfare of the society or invest in the ecnomic infrastructure or creating jobs for the unemployed in the society.

Adequate Resource and Training : HR policies should have proper measures for the training and development of workforce.

Respect for employees: HR policies should support diversity in work cultures and the common law for respect for the employees and forbade the use of abusive language at work.

Regular performance review: it is mandatory for the Comapnies to perform reviews of employees as it provide the idea of the working of employees.

There are various policies and procedure that has to be implemented by the HR due to the legal restrictions of the government .

Task 3.1 Impact of Organisational structure on HR:

An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims (wikipedia,2010)

An organisation ‘s structure is presented as an organisational chart which shows how management is organised vertically with layers of hierarchy and horizontally by function, product or division.There are three main types of organisational structure: tall ,hierarchical,flat hierarchical and matrix.In the centralized structure decision making power is concentrated in the top layer of management and in the decentralised structure decision making power is distributed.

HR do not have much power to exercise in the traditional structure but in regard of the decentralised Hr have rights and power to exercise. Hr helps in improving the communication between managers ,supervisors and employees.It helps in allocating the roles ,powerand responsibilities are delegated ,controlled and coordinated.

Task 3.2 Impact of organization culture on HR: –

“The specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholdersHYPERLINK “http://en.wikipedia.org/wiki/Stakeholder_(corporate)” outside the organization”.(wikipedia,2011)

Role culture also known as the Greek temple ; classical structure, bureaucratic nature, roles more important that the people who fill them. Position power predominates and expert power tolerated. This culture serves the cause of structure.This type of culture is normally for the Army or the Home Office. Hr define the role properly for every individuals.

Task culture also known as the Net; the focus is on completing the job. Individuals expertise and contribution are highly valued. Expert power predominates, but both personal and position power are important. The unifying force of the group is manifested in high levels of collaboration. NHS nurses and doctor are the examples of the tash culture.There is continouous training needed for the jobs.

Person culture also known as a Cluster or Galaxy; a loose collection of individuals usually professionals sharing common facilities but pursuing own goals separately. Power is not really an issue, since members are experts in their own right. This type of culture serves the individual.

Accountant,businessman are the examples.No hr is needed for the person culture as the individuals take their own decision and do not require any staff.

Task 3.3 How effectiveness of HR is monitored:-

Performance appraisal (PA) is one of the important components in the rational and systemic process of human resource management. The information obtained through performance appraisal provides foundations for recruiting and selecting new hires, training and development of existing staff, and motivating and maintaining a quality work force by adequately and properly rewarding their performance. There are two primary purposes of performance appraisal: evaluative and developmental. The evaluative purpose is intended to inform people of their performance standing. The collected performance data is used to reward high performance. The developmental purpose is intended to identify problems in employees performing the assigned task. The collected performance data is used for training and development purposes.The effectiveness of HR can be monitored by auditing the following functions of the Human resources like

Hiring Procedures/Recruitment/Interviewing:- the quality of the hiring procedure ,recruitment and the interviewing criteria

Reference Checking Process :- To thoroughly check the reference provided by the employee

New Employee Orientation Program:- the Quality of the orientation programmed for fresh employees

Salary Reviews/Compensation Issues :- the Time Taken to provide solution to these issues

Employee Benefits Programs :- Are these programmed Worth for the employees

HR Policies and Procedures :- their Adherence quality

Employee Handbook :- How well it is reviewed

Job Descriptions for Key Positions:- if the employees know about their duties and responsibilities.

Cross Training :- Quality of Checking if the training was worthy enough for the employee

Skills Assessments : – criteria to assess the skills of the employee

Staff Mentoring : – the degree or the quality of mentoring provided to the staff by the HR if situation arises where a staff needs mentoring (htr,2010)

Task 3.4 Recommendation to improve the effectiveness of HRM

Below are some recommendations

Have a check on the composition of the audit team which audits the performance of the HR. have a member of HR in the team representing the HR

Review the values and the Mission statements of the HR

Review the effectiveness of the Hr policies in getting the polices adhere to the desired result

KPI’s ( Key performance indicators should be set for Hr functions and should be monitored performance monitoring for the implementation for the planning made by the HR in the next six months also implementation and proper execution of the trading or other activity assigned for the employees. The time or the period taken by the HR to solve or rectify or address a query shall also be monitored and their follow up for the same has to be made.

Appointing a consultant to examine the HR of a given Company would be a better option


Human Resource Planning helps ,in selection,recruiting,training and appraising . HR department helps the organisation to gain competetive advantage over its competitor by selecting the employees with the right skill to do the right job. HR now a days is focussing more on the talent management.Concepts like psycological contract ,learning organisations are getting into practise to increase the efficiency and productivity of employees.


Inroduction of SHRM available[online]

http://www.rim.edu.bt/Publication/Archive/rigphel/rigphel2/people_mgt.htm [accessed 24th January 2011]

Image of organisational culture adopted [online]http://changeworksblog.com/category/viral-change-change-management/ accessed [14th January 2011]

defination of personnel management available [online]http://www.businessdictionary.com/definition/personnel-management.html accessed[ 14th January 2011]

HRM Available[online]http://humanresources.about.com/od/glossaryh/f/hr_management.htm [accessed 24th January 2011]

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HR Planning Available[online]http://www.bnet.com/topics/human+resource+planning accessed[24th January 2011]

Image of HR Available [online]

http://rphrm.curtin.edu.au/2006/issue2/strategic.html[Accessed 18th January 2011]

HR Planning Available(online)http://www.investopedia.com/terms/h/human-resource-planning.asp [accessed 24th January 2011]

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Talent Management Available[online]http://www.cipd.co.uk/subjects/recruitmen/general/talent-management.htm?IsSrchRes=1 [Accessed 25thJanuary 2011]

Human Resource Policies Available[online]

http://definitions.uslegal.com/h/human-resource-policies/ [Accessed 25th January 2011]

Organisational structure Available[online]http://en.wikipedia.org/wiki/Organisational_structure [Accessed 25th January 2011]

Defination of Organisational Culture Available[online] http://en.wikipedia.org/wiki/Organizational_culture [Accessed 25th January 2011]

HR Effectiveness Available[online]http://www.htr.org/hrmanagement.asp [accessed25th January 2011]

Doherty N.,Tyson S.,1999Human Resource Excellence.,Cranfield School of Mnagement.,Financial TimesManagement.

Anthony P.W.et al.,1995.Strategic Human Resource Management,Dryden Press.

Image of Evolution of SHRM available [online]

http://www.brighthub.com/office/project-management/articles/77199.aspx?p=2 [accessed 18th January 2011]

DEST Strategic Human Resource management Framework Available[online]

http://www.annualreport2007.dest.gov.au/chapter_eight/people_management.htm [accessed 18th January 2011]

Workforce planning Available[online]

http://www.cciq.com.au/Business-Skills/Adult-Learning/What-training-is-right-for-your-business[ Accessed 19th January 2011]


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