Contents

Activity 1: A guide for Understanding the Importance of Human Resource Management and
Implementation Strategies..........................................................................................................................2
Introduction.............................................................................................................................................2
a) Definition of Strategic Human Resource Management...............................................................3
b) Importance of Human Resource Management in Organizations.................................................4
c) Framework of Strategic Human Resource Management.............................................................5
d) Strategic Human Resource Process..............................................................................................9
e) Roles in Strategic Human Resource Management.....................................................................11
f) Development and Implementation of Human Resource Strategies...........................................15
Conclusion.............................................................................................................................................19
Activity 2 Presentation of Strategic Human Resource Management with Important Notes and Handout 20
Presentation of Strategic Human Resource Management.....................................................................20
Important Notes....................................................................................................................................23
Handout.................................................................................................................................................24
Activity 3 Identification of a range of HR strategies and their application in an organization...................29
Introduction...........................................................................................................................................29
Identification of a range of HR strategies for an organization...............................................................29
Assessment of HR strategies and their application in an organization..................................................29
Conclusion.............................................................................................................................................32
References.................................................................................................................................................33

1
Activity 1: A guide for Understanding the Importance of Human

Resource Management and Implementation Strategies

Introduction

Human Resource Management is the process of staffing, recruiting, selecting appropriate human

capital that are earmarked for the right responsibilities along with different motivation, good

working environment for generating high performance for meeting the objectives and goals of

the organization. Therefore human resource management works on the most valuable and

complex element of any organization. Despite of tremendous advancement in technologies

organizational activities are dependent on the human. So, human resource management is very

much important for any organization. Well planned and formulated human resource strategy can

bring the high productivity for the organization. Therefore, good strategy regarding human

resource can work as a bar of employee turnover and enhance the employee satisfaction.

Therefore, partnership among managers and employees can be established for betterment of

organization. Human resource management includes activities like hiring man power, developing

the man power, motivating them for achieving the objectives of the organization. Hence to build

an effective human resource strategy the managers of different department and human resource

department must work in one line. Otherwise a effective strategy cannot be provided. A good

human resource strategy can make an entire organization successful. Many of the empirical

evidence we can see in current business in developed world despite of some lacking. Many

scholarly papers are being held on these topics. Therefore effective strategy is a relative matter

and is different from organization to organization depending on the internal and external factors

and environment.

2
 a) Definition of Strategic Human Resource Management
Human Resource Management is the process of employing, training, compensating people and

developing strategies and policies to retain them (Saylor Foundation, n.d). In the previous time

of organizational settings the human resource management was referred to the processing payroll

of the employees. Therefore the ideas and thinking about human resource management has been

changed. Human Resource Management can be considered as a ‘composition of interconnected

policies along with ideological and theoretical underpinning’ (John Storey, 1989). Human

Resource Management is strategic and comprehensive process for the organizations to value

assets like people discharging responsibilities individually or collectively for achieving the

objectives of the organization (Michael Armstrong, 2006). Human resource management is a

scientific discipline and it aids management to understand the political and economic dispute

among the employees and top management and this also helps in understanding the increasing

movement in involvement of employees in influencing the industrial and social psychology

(Mohan Thite, Michael J. Kavanagh, 2006). Human Resource Management is a set of activities

like record keeping, selection, recruiting, training, compensation and employee relations,

(Mohan Thite, Michael J. Kavanagh, 2006). According to Byars and Rue (2006) Strategic

Human Resource Management is the system of activities and strategies that motivate people

within the organization and obtain high quality human resources for achieving the goals of the

organization. To be successful every organization must make the productive human resource as it

is the most important resource of the organization and complex resource as well to use.

So, we can say that the Strategic Human Resource Management is the process that includes the

scientific approaches in its policies and strategies to manage obtaining and retaining the high

quality people who can discharge the best responsibilities and can work for achieving the

objectives and goals for the organization. Therefore, Strategic Human Resource Management

3
also includes the motivational and controlling factors of organizations’ most complex and

valuable resource the human resource.

b) Importance of Human Resource Management in Organizations

Ulrich and Lake (1990) mentioned that ‘HRM systems can be the source of organizational

capabilities that allow firms to learn and capitalize on new opportunities.’

Human Resource Management has diversified importance in an organization. The ultimate

objective of human resource management is to achieve the organizational goal. Therefore it

summarizes the works to do that include integrating resources (human resource) and using them

in a best way by keeping good commitment to organization as well as to employees. Now the

importance of Human Resource Management in Organization are explained below-

Organizational effectiveness

Differential human resource strategies bring the core competence for the organizations which

result in organizational competitive advantages (Cappelli and Crocker-Hefter, 1996). Effective

human resource management practices have positive effect on the organizational performance

(Michael Armstrong, 2006). Human Resource Management aims at the development of

organizational policies regarding Knowledge management, Talent management, and creating

great work place environment that makes the organization as a place of effectiveness and

efficiency (Michael Armstrong, 2006). Organizational effectiveness needs the clear vision and

set of incorporated values. Therefore Human Resource Management ensures the clear vision and

set of incorporated values (Purcell et al, 2003). Again Human Resource Management deals with

and helps in continuous improvement of the organizational activities.

Management of Human Capital

Human capital is the set of human factors in the organization (Bontis et al, 1999). So, human

resource management is the process of working with the people who are in the organization and
4
on whom the organizational success depends. Therefore human capital includes all the people

whom are considered in the human resource management process. Human resource capital is one

of the important assets for any organization and therefore it is the key asset for achieving

organizational objective (Michael Armstrong, 2006). ‘Precise employment and choice of

procedures, performance-dependent motivation reward systems, and management expansion and

instructive activities connected to the wants of the business’ (Becker et al, 1997). Therefore

human resource management is important to manage human capital effectively.

Meeting various needs

Human resource management is the process that develops and implements policies that meet the

need of different stakeholders. Always different stakeholders’ needs are not earmarked in one

line by human resource as there is a resource constraint. Therefore, human resource management

ensures the balance between the meetings of stakeholders’ needs (Michael Armstrong, 2006).

Establishing partnership between management and workers

Strategic human management ensures the partnership between the management and workers for

achieving organizational goals (Josephat Stephen I., 2011). Employees are partners of

organization in a way they can cooperate with management and different stakeholders of

the organization in achieving organizational, team and individual objectives.

c) Framework of Strategic Human Resource Management

The framework for strategic human resource management was initiated and proposed by the

Harvard School. Beer et al (1984) of Harvard School developed the framework of human

resource management which was termed as ‘Harvard Framework’ by Boxall (1992). This

framework suggests that historical personal problem can be solved. The framework also suggests

5
that Human Resource Management is probably to stay as a piece of self-regulating activities, all

directed by its own practice custom.

Now a day many stakeholders put pressure in the management to provide broader and more

comprehensive and more strategic aspects in the human resource management (Beer et al 1984).

This framework provides indication that the people within the organization must be regarded as

assets rather than a variable cost for the organization. Harvard School propose that human

resource management as tow aspects-

 Managers take more responsibilities in line with the spirited strategy and human

resources policies

 Employees has an objective of adding value in setting policies and work for the

development and implementation of those policies

Boxall (1992) has shown in his study some advantages of framework for strategic human

resource management. Those are shown briefly given below-

 It includes the stakeholders’ interest

 Balance between the interest of owners, employees and different interest groups

 It includes the extent of influence of employees in supervisory decision making process

 It identifies the impact of different management decisions

 It emphasizes on strategic choices

6
The framework model for human resource management by Harvard School is given below-

Figure: The Harvard model of HRM (from Beer et al, 1984)

From the above figure we can see that this framework has included stakeholder interests.

Therefore including or considering stakeholders’ interest is important for the selection of policies

by human resource management group. Stakeholder groups include owners, employee,

government, unions and many other interest groups. Hence needs of these interest groups to be

met in a balanced form thus maximum use of resource can be achieved by the human resource

management group. Afterward we can see that situational factors like work force characteristics,

business strategy and conditions, management philosophy, labor market, unions, task

technology, laws and social values etc. These situational factors influence the interest of different

interest group which forms a demand or expectation from organizations. On the basis of this

interest different Human Resource Management policies are set which take into consideration the

following factors-

7
  Employee influence on the decision making process or any objective of the firm

 Human resource flow and turnover

 The existing and potential reward system

 Development of work environment

Those policies have some implication in the organization and derive some results for the

organization which are-

 Commitment toward different stakeholders group and achievement of organizational

goals

 Congruence among the management and other stakeholders like employees

 Achieving cost effectiveness

Deriving these results has long term consequences of over the organization and positive result

cause in sustainable growth of the organization. Therefore the consequences are-

 Individual well being and betterment

 Enhancement of organizational effectiveness

 Betterment of the societies as a whole

8
 d) Strategic Human Resource Process
Human Resource Management process is explained by Fombrun et al (1984) Michigan School.

Fombrun et al (1984) suggested four generic processes of human resource process which are

explained below including the figure or graph of flow of process-

Figure: The human resource cycle (adapted from Fombrun et al, 1984)

Selection

Selection refers to the recruiting the human resources for appropriate job. Selection is a very

important part of total process. Therefore, to achieve the proper objectives proper human capital

is needed to be hired. If human resource management fails to hire appropriate human resource

for appropriate responsibility, then that will be disaster for the organization. Hence, recruiting

high quality human resource is desirable by the management to meet the organizational goals.

Obtaining and selecting appropriate human resource need some concentration like-

 Organizational attractiveness

 Proper reward and appraisal system

9
  Balanced work load to the employee are given etc.

Performance Management

Performance management refers to the appraisal of performance done by the people. Proper

appraisal on appropriate time is required to enhance the productivity of employees. If there is

stagnation in appraisal of performance than the performance level may stagnant or even get

worse. On the other hand appraisal of performance has continuous feedback and can help in

produce effective policies that ultimately enhance the productivity.

Rewards

Business must perform in the present to succeed in the future (Michael Armstrong, 2006).

Reward system should be developed in a way that ensures the short and long term growth and

sustainability in the organization and retention of high quality human capital. Effective reward

system also ensures the high performance level and less employee turnover. So, in human

resource management process there rewards hold a very important place.

Development

Development in the human resource process is the development of quality of human capital. The

development of human quality can be achieved by train them. Educational and vocational

teachings help in generating the high quality human capital. Now these grooming and training

enhance the quality of employee and this quality also enhance the performance of the company.

Performance

The previous elements of human resource are related to performance. All the activities and

policies taken by the human resource management in its process are for increasing the

10
productivity and enhancing the performance level in individual level and also in organizational

level. So, we can say all the elements of human resource management process is to enhance the

overall performance of the company.

e) Roles in Strategic Human Resource Management

Human Resource Management plays a vital role in strategic management. The roles played by

the strategic human resource management suggested by the Saylor Foundation are assessed

below-

Staffing

Staffing include the hiring the people and making their salary packages. Now a day with

sophisticated technologies there is a still dire need of human in the work process of the

organization. Therefore human resource management plays an important role in hiring and

proper staffing of employee for an organization. Now staffing has four fundamental steps which

are-

 Developing the staffing plan

 Developing the policies to motivate multicultural adaptation

 Recruiting process

 Selecting high quality human capital

Work Place Policies

Organizations have to have the policies for the smooth running of the activities. Therefore, in

developing the policies the human resource management consider following things-

 Requirement of a policy or a alteration of a policy

11
  Look for views on the policy

 Formulating the policy

 Communicating the policy with concerned people

To set up policies human resource management cannot and do not work singularly but work with

other related departments to make convergence and finding effective policies for the

organization. Examples of those policies on which human resource management often work are-

 Regulation course policy

 Leave time policy

 Uniform or dress code

 Morals policy etc.

Compensation and Benefits

In setting compensation and benefits for the people who are working for the organizations,

human resource management plays a major role. For generating higher performance

compensation and benefits are given to the employees. Therefore proper allocation of

compensation and benefits are keys. For example, a high performer presumably should get high

compensation and benefits. If that doesn’t occur then there is a problem in the policies which

may result in down gradating of performance and performance level will go down. So, human

resource management must identify the high performer and compensate him or her for

patronizing the high level of performance. Now organizations use many compensation and

benefits policies. Some of these given below-

 Health Benefits

 Pay

12
  Retirement plans

 Employee Stock Ownership Plans (ESOP)

 Vacation time

 Sick leave

 Key Performance Indicator (KPI) Bonuses

 Other Bonuses

Retention

Human Resource management is keen to retain its high quality employees. Therefore employee

turnover is common issue in different organization. So, human resource management need to

find the reason behind the high turnover. Following some of the reasons for high turnover are

given-

1. Complex and overloaded job

2. Challenges with supervisors or managers

3. Poor organizational culture

4. Low grading work place environment

Training and Development

To train and develop the employee skills and quality is another major activity of human resource

management. They arrange different kinds of training by selecting people for whom the training

is appropriate and this result in high quality employee generation.

Dealing with Laws

Human resource management deals with the laws that influence the employment. They often

deals with following laws relating matters-

 Inequity laws

13
  Health-care necessities

 Payment necessities such as the least amount of wage

 Worker security laws

 Labor laws

Worker protection

It is a duty of human resource management is to protect he workers life and property that can be

affected in the work place or by the work. Human resource management need to take protection

against the factors such as-

 Chemical hazards

 Heating and ventilation

 The “no fragrance” zones

 Defense of confidential worker information

Communication

Communication is another burning issues or responsibility of the human resource management.

Therefore proper communication can help in enhancing the high performance individually or

collectively.

Awareness of External Factors

Being aware and raise awareness among the person in the organization is the key role of human

resource management. The external factors needed to be taken into account by human resource

management are-

 Globalization and off shoring

 Amendment to employment law

 Health-care costs

14
  Employee anticipations

 Multiplicity of the workforce

 Varying demographics of the labor force

 A vastly well-informed workforce

 Layoffs and scale backing

 Know-how used, such as HR databases

f) Development and Implementation of Human Resource Strategies

There is a need of harmony in action for developing and implementation of human resource

strategies between departments and human resource strategies (Hendry and Pettigrew, 1990).

Tyson (1997) indicated that actions by managers and employees cause a reaction and this

reaction contribute to the formulation of new strategies. Strategy formulation is about

preferences, choices, and matches (Mintzberg et el, 1988). Mintzberg regarded the human

resource strategy formulation as a viewpoint rather than exact process of mapping the future

actions.

Boxall (1993) has made the following suggestions regarding the formulation of Human Resource

strategies-

 Overall business strategies influence the human resource strategies formulation

 Strategy formulation procedure is multifaceted, and extremely rationalistic that links

between strategic planning and human resource planning

 Interest of stakeholders and tradeoff between the interest influence the formulation of

human resource strategies

For developing effective human resource strategies Gratton (2000) suggested six steps which

are-

15
Build the guiding coalition

In this steps the inclusion of people to take the opinion about the problems and their reactions are

taken. Views are taken from people within the organization.

Image the future

The second step is about the visualizing of future. In this step the future consequences are

determined and propose possible solution are taken.

Understand current capabilities and identify the gap

Human resource management tries to sketch out the current capabilities of the organization that

whether the organization can run with the taken strategies and identify the gap of recent trends in

organization.

Create a map of the system

This step is to ensure the system to be developed in a meaningful manner thus that can be

comprehensive and communicable.

Model the dynamics of the system

This process should consider diverse factors and dynamic approaches are taken before the

strategy formulation.

Bridge into action

After having agreed provision the strategy is formulated and communicated. Therefore the action

are performed and control mechanism work for identify the gap between performance and

expectation.

16
Hence, Tyson and Witcher (1994) said that ‘The different approaches to strategy formation

reflect different ways to manage change and different ways to bring the people part of the

business into line with business goals.’

Methods for developing human resource strategies suggested by Dyer and Holder (1988) are

followings-

 Assess viability

 Determine attractiveness

 Establish goals

 Choose the ways of achieving goals

Implementation of Human Resource Management Strategies

Implementation of Human resource management strategy according to Saylor Foundation is

show in the graph.

Figure: Implementation of Human Resource Strategy (Adopted from Saylor Foundation)

From above figure we can see the first step of implementation of human resource strategy is

determining the needs of organization and different stakeholders including internal and external.

Therefore, the recruiting and selecting process starts in which the strategies provides full

guidance. After selecting there must be strategy regarding development of human resources and

17
how they should be treated and compensated. There is a/ many method(s) of appraisal in

different firms. So, the strategy provides the guidance what will be appraisal of performance and

in line with that the human resource management work or implement the strategy.

18
Conclusion
Human Resource strategy is the fundamental issue for effective operation of business and

achievement of organizational objectives by using the most precious resource of organizations,

the human resource. For making effective strategy there is a need of proper plan. The human

resource plan for act is a composition of different aspects the organization plans to perform in its

effort to attain its human resource goals. In addition of well planning there is a need of harmony

in the internal organizational activities thus the organization can have integrated results. So, at

last we can say for making better and effective growth of organization and to sustain there is a

need of appropriate human resource strategies.

19
Activity 2 Presentation of Strategic Human Resource Management with

Important Notes and Handout

Presentation of Strategic Human Resource Management

What is Strategic Human Resource Management?

Human Resource Management is the process of employing, training, compensating people and

developing strategies and policies to retain them. It is a set of activities like record keeping,

selecting, recruiting, training, compensating and employee relations. Hence we can say strategic

human resource management is a coherent process that is agreed by different departments of

organizations with human resource management to identify the potential opportunities in

enhancing performance and also finding out the existing problems thus with keeping balanced

interests of different stakeholders overall organizational and individual performance can get

better.

Why Strategic Human Resource Management?

The role of strategic human resource management is diverse. Therefore some important roles of

it are given below-

 Enhancing Organizational effectiveness

 Management of Human Capital

 Meeting various needs

 Establishing partnership between management and workers

 Training and Development

20
  Raising awareness of External Factors

 Staffing

 Selecting and implementing work Place Policies

 Retention of high quality employees

Framework that can be used in organization for SHRM

The framework model for human resource management by Harvard School is given below-

Figure: The Harvard model of HRM (from Beer et al, 1984)

21
 Work Flow of Strategic Human Resource Management?

Fombrun et al (1984) suggested four generic processes of human resource process which are

explained below including the figure or graph of flow of process-

Figure: The human resource cycle (adapted from Fombrun et al, 1984)

How to formulate human resource strategies?

 Build the guiding coalition

 Image the future

 Understand current capabilities and identify the gap

 Create a map of the system

 Model the dynamics of the system

 Bridge into action

22
 How to Implement Human Resource Strategies?

Implementation of Human resource management strategy according to Saylor Foundation is

show in the graph.

Figure: Implementation of Human Resource Strategy (Adopted from Saylor Foundation)

Important Notes

 In presentation there is a need to present and emphasize on the harmonizing of actions

and policies for effective strategy formulation between the departments and human

resource management

 There is a need of briefly description of human resource management framework

 Brief descriptions are required for formulation and implementation of strategies and

human resource process.

23
Handout

What is Strategic Human Resource Management?

Human Resource Management is the process of employing, training, compensating people and

developing strategies and policies to retain them. It is a set of activities like record keeping,

selecting, recruiting, training, compensating and employee relations. Hence we can say strategic

human resource management is a coherent process that is agreed by different departments of

organizations with human resource management to identify the potential opportunities in

enhancing performance and also finding out the existing problems thus with keeping balanced

interests of different stakeholders overall organizational and individual performance can get

better.

Why Strategic Human Resource Management?

Organizational effectiveness

Differential human resource strategies bring the core competence for the organizations which

result in organizational competitive advantages (Cappelli and Crocker-Hefter, 1996). Effective

human resource management practices have positive effect on the organizational performance

(Michael Armstrong, 2006). Human Resource Management aims at the development of

organizational policies regarding Knowledge management, Talent management, and creating

great work place environment that makes the organization as a place of effectiveness and

efficiency (Michael Armstrong, 2006). Organizational effectiveness needs the clear vision and

set of incorporated values. Therefore Human Resource Management ensures the clear vision and

set of incorporated values (Purcell et al, 2003). Again Human Resource Management deals with

and helps in continuous improvement of the organizational activities.

24
Management of Human Capital

Human capital is the set of human factors in the organization (Bontis et al, 1999). So, human

resource management is the process of working with the people who are in the organization and

on whom the organizational success depends. Therefore human capital includes all the people

whom are considered in the human resource management process. Human resource capital is one

of the important assets for any organization and therefore it is the key asset for achieving

organizational objective (Michael Armstrong, 2006). ‘Precise employment and choice of

procedures, performance-dependent motivation reward systems, and management expansion and

instructive activities connected to the wants of the business’ (Becker et al, 1997). Therefore

human resource management is important to manage human capital effectively.

Meeting various needs

Human resource management is the process that develops and implements policies that meet the

need of different stakeholders. Always different stakeholders’ needs are not earmarked in one

line by human resource as there is a resource constraint. Therefore, human resource management

ensures the balance between the meetings of stakeholders’ needs (Michael Armstrong, 2006).

Establishing partnership between management and workers

Strategic human management ensures the partnership between the management and workers for

achieving organizational goals (Josephat Stephen I., 2011). Employees are partners of

organization in a way they can cooperate with management and different stakeholders of

the organization in achieving organizational, team and individual objectives.

Retention

Human Resource management is keen to retain its high quality employees. Therefore employee

turnover is common issue in different organization. So, human resource management need to

25
find the reason behind the high turnover. Following some of the reasons for high turnover are

given-

5. Complex and overloaded job

6. Challenges with supervisors or managers

7. Poor organizational culture

8. Low grading work place environment

9. Training and Development

10. To train and develop the employee skills and quality is another major activity of human

resource management. They arrange different kinds of training by selecting people for

whom the training is appropriate and this result in high quality employee generation.

Awareness of External Factors

Being aware and raise awareness among the person in the organization is the key role of human

resource management. The external factors needed to be taken into account by human resource

management are-

 Globalization and off shoring

 Amendment to employment law

 Health-care costs

 Employee anticipations

 Multiplicity of the workforce

 Varying demographics of the labor force

 A vastly well-informed workforce

 Layoffs and scale backing

 Know-how used, such as HR databases

26
 Framework that can be used in organization for SHRM

The framework model for human resource management by Harvard School is given below-

Figure: The Harvard model of HRM (from Beer et al, 1984)

How to formulate human resource strategies?

 Build the guiding coalition

 Image the future

 Understand current capabilities and identify the gap

 Create a map of the system

 Model the dynamics of the system

 Bridge into action

27
 How to Implement Human Resource Strategies?

Implementation of Human resource management strategy according to Saylor Foundation is

show in the graph.

Figure: Implementation of Human Resource Strategy (Adopted from Saylor Foundation)

28
Activity 3 Identification of a range of HR strategies and their application

in an organization

Introduction

In many organizations different kinds of HR strategies are used. Therefore this study is to find

out those strategies and assessing those that how those strategies are used in the organization.

There is no doubt that HR strategies bring good results but still there are gaps which needed to be

addressed and solved. So, continuous improvement needs for the HR process and updating of

strategies.

Identification of a range of HR strategies for an organization

In an organization there can be two basic kinds of strategies used. Therefore those HR strategies

are-

 Overarching strategies; and

 Specific strategies relating to the different aspects of human resource management.

Assessment of HR strategies and their application in an organization

Now following the assessment of those two basic HR strategies and their implication,

implementations are given-

Overarching strategies

This strategy demonstrate the intention of the organization that how the people of the

organization will be managed (Michael Armstrong, 2006). Some of the examples of overarching

strategies that are used in organizations-

29
  AEGON: “All the policies of AEGON are integrated and linked”.

 B&Q: “Enhances employee commitment and minimize the loss”.

 GlaxoSmithKline: “We want GSK to be a place where the best people do their best

work”.

Therefore to implement this strategy is depend on the increasing effectiveness of the people and

organization. This strategy ensures better people in organizations with better process (Boxall and

Purcell, 2003).

Specific HR strategies

Specific HR strategies are for the management to work in the fields such as-

 Talent management

 Continuous improvement

 Knowledge management

 Resourcing

 Learning and developing

 Reward

 Employee relations

Above HR specific strategies are implemented in organizations with point concentration and

based on agreed decision of different stakeholders like internal employees and persons in

different departments.

30
Some organizations those use this specific strategies are given below-

 The Children’s Society

 Diageo

31
Conclusion

At last we can say organizations need to develop different HR strategies for having the good

effect of it in the setting of organizations. Human capital is the set of human factors in the

organization (Bontis et al, 1999). So, human resource management is the process of working

with the people who are in the organization and on whom the organizational success depends.

Therefore human capital includes all the people whom are considered in the human resource

management process. Human resource capital is one of the important assets for any organization

and therefore it is the key asset for achieving organizational objective (Michael Armstrong,

2006). Therefore proper implementations of HR strategies are desired by every organization.

32
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34