Strategic Human Resources Management

  • 15 Pages
  • Published On: 2-12-2023
Executive summary

Human resource management is essential in the organisation to expand the business and manage the operational activities strategically. The study focuses on strategic human resource management which includes theories and models related to human resource management. In the first part of the study, there are several models and theories such as Maslow’s hierarchy of needs, Herzberg’s two factor theory and performance management and reward system practice in the organisations. Through reviewing the theories and organisational practice, it is possible for the corporate leader to run their business efficiently by creating values for the employees and retaining them for long run, as the employees are the major stakeholders to perform better and contribute with their full potential for achieving the business objectives. In the second part of the study, there would be in-depth discussion about the employee relationship management, which is changing in the recent era of globalisation. The leaders also try to focus on employee participation and their voice in the workplace so that it is possible to ensure employee engagement and developing effective relationship with the staff members in the organisation. As per the findings of the study, the corporate leaders try to provide monetary and non-monetary incentives to the employees as well as empower the staff members for better employee relationship management so that it is possible to lead the staff toward achieving the organisational success.


Human resource management is important aspect of business where the business strategies and employment activities are interrelated in the workplace. The multinational corporations try to manage their operations efficiently by satisfying the stakeholders, mainly the employees, as the employees are playing a crucial role to operate the organisational activities efficiently for fulfilling the business objectives (Stewart and Brown, 2019). The aim of the study is to analyse the human resource management activities through the management team of the companies try to create values for the employees and lead them efficiently towards achieving the future success. Through the study, it is possible to review the models and theories of managing human resource at the organisations as well as discussing suitable approaches for developing employee relationship further. in the second part of the study, there would be in-depth evaluation of the roles of the actors within the Employment Relationship and changing nature of employment relations in the recent era of globalisation, where the organisations try to develop strong bonding and corporate relationship with the employees in the domestic countries as well as with the expatriates for strengthening their employee base and running the organisational activities efficiently.

Task 1
Explaining the relationship between business strategy and human resource strategy

A key relationship between the business strategy and human resource strategic planning is to create a corporate culture of clear communication and trust within the organisations. The employees are encouraged to take active participation in the organisational decision making practice, where the leader motivates the staff members to be empowered for developing creative decision for the organisations (Guest, 2017). The organisation management team try to manage the human resource to improve skills set and knowledge of the staff as well as encourage them to share their creative decision for developing the business strategy to run the operations of the firm. Hence, the business strategic planning is highly connected with the employee management, where it is possible for the leader to motivate the staff and improve their innovation for making good decisions for the business (Papa et al., 2018). Moreover, employee management is helpful to create good corporate culture, where it is possible to lead the staff members towards achieving the organisational goal. The employees are playing a crucial role in developing business strategic planning and make the organisation successful by working efficiently and thus there is strong linkage between human resource management and business strategic planning. For managing the creative decision of the business, it is hereby essential for the corporate leader to manage the employees and create innovative business culture for making better decision to achieve future success.

Models of strategic human resource management

Human resource management is beneficial for the organisations to manage the employees and retain the experience staff in long run. As per the Maslow’s hierarchy of needs, there are five needs of the employees which are physiological needs, love and belongings, safety needs as well as self-actualization and self-esteem needs (Markoulli et al., 2017).

Maslow’s hierarchy of needs

The organisational leaders have the economic responsibility where it is necessary to maximise the performance of the brand and enhance profitability for providing high return on the investment of the stakeholders. Hence, it is mandatory to structure the salary and introduce different incentives and rewards in the workplace, so that the employees can fulfil their physiological needs of food, water, clothing and shelter (Kim et al., 2019). Moreover, workplace safety needs must be fulfilled by the leader so that the workers can work safely. Co-worker relationship among the staff and managers are effective in the workplace for retaining the workers for long run. The needs of self-actualisation and esteem are also necessary to be maximised for creating values for the employees and retain them for maximising organisational objectives (Kim et al., 2019). Hence, through fulfilling the requirements as per the Maslow’s hierarchy of needs, it is possible for the leaders to retain the experienced employees in the workplace and improve the overall performance of the firms.

Herzberg’s two factor theory

Herzberg’s two factor theory is also effective to create values for the employees and manage organisational human resource successfully. As per the theory, there are two major factors which are motivational and hygiene (Kianto, Sáenz and Aramburu, 2017). As per the motivational factors, the activities such as promotion in the organisation, personal and professional developmental opportunities, personal growth and recognition, responsibility and achievement are beneficial to create values for the employees. The leaders try to provide them career growth scope, guide them with clear responsibilities as well as ensure workplace achievement which further encourages the staff members to perform better (Tang et al., 2018). On the other hand, the hygiene factors are also crucial to be managed well in the workplace, where the leaders focus on quality supervision and control, workplace condition, job security and relationship with other colleagues and team members as well as existing company polices. In this regard, the organisational leaders try to develop corporate culture with harmony and freedom, employment practice with high communication and cooperation, equal opportunities and transparency management, trust and respect which encourage the staff to work collaboratively for achieving the organisational aim and objectives (Pak et al., 2019). The safety and security of the employees is also important to maintain for providing safe workplace to the staff as well as the leaders try to provide continuous support and guidance for maximising their performance.

Specific HR practices of Performance Management and Reward Systems

Performance management and reward system is beneficial for employee management where the leaders focus on creating values for the staff members, so that the employees can feel special and work efficiently for fulfilling their job responsibility and get rewards and benefits in future. There are several strategies through which the corporate leaders try to manage the employee performance and provide the, rewards in the workplace (Delery and Roumpi, 2017). The major activities that the leaders focus on are such as working activities in the workplace, opportunities for the staff members, procedures, quality of life, people management and compensation. The corporate leaders try to provide resources to the employees, effective infrastructure to perform under supervision and control, sense of accomplishment and clear job role, so that the employees can perform according to their experience and skill set (Tang et al., 2018). On the other hand, the leaders try to provide equal opportunities for personal and professional development to all the employees, learning and developmental activities and continuous support for career achievements. This is beneficial to encourage the staff to perform better and achieve higher in future. The quality of life is also necessary to be managed well, where the leaders provides freedom to work, manage the work life balance of the staff and manage cultural diversity for better employee management. Hence, these activities are beneficial to maximise performance and productivity of the employees.

Performance management and reward system

On the other hand, for reward management, the leaders focus on providing compensations and benefits to each employee. There is yearly basis bonus and compensation on working efficiency. Performance related Pay is also another major strategy to provide monetary incentives to the staff as well as there is structured salary for the employees as per their job role, personal experience and position in the organisation. People management in the workplace also has crucial impacts on performance management system. In this regard, the leadership style with effective guidance and support as well as managerial power and cooperative working practice, co-worker’s relation and communication are beneficial to maximize the performance of the employees in long run (Barrière, 2017). The staff members try to get suitable circumstances to work where partnership working practice, team building activities with continuous support and guidance as well as high communication and cooperation are helpful for the staff to work efficiently and utilise the organisational resources for achieving higher. Hence, the performance management activities and reward system are beneficial of the corporate leaders to manage strong employee base and maximise the overall organisational performance in long run.

Task 2
Perspectives of Employment Relations

Employment relationship is mandatory in the recent era of globalisation and it has been changing over the period of time. Previously, there was lack of relationship and internal bonding among the leader, managers and employees in the workplace and there were strict rules, legislative structure and autocratic leadership style where the employees were under strict supervision and control (Troth and Guest, 2020). However, in the recent era of globalisation, the corporate leaders focus on employee relationship in order to develop bonding and enhance internal communication. It is beneficial for the organisational leader to develop employee relationship at the organisational workplace, as this provides a scope to the employees to engage with the activities of the firm as well as trust and leader and management team for working collaboratively (Soltis, Brass and Lepak, 2018). Through employee relationship, it is possible to enhance internal communication and collaboration among the management team members and employees, where the employees can perform better. The leaders and managers try to lead the employees by giving them freedom to work and maintaining harmony at the workplace. The leaders also focus on creating values for the employees to develop strong bonding. There is effective communication and cooperation in the workplace, where the organisational leader aims at interacting with the employees and understanding their perception while making corporate decision (Troth and Guest, 2020). Hence, the employee relationship management is also beneficial for developing effective organisational decision and running the business efficiently. It is hereby necessary for the firms to focus on developing corporate relationship and bonding with all the employees, so that it would be possible to retain experienced staff in the company for long run (Soltis, Brass and Lepak, 2018).

Additionally, it is essential for the corporate leaders to create values for the employees by providing monetary incentives, including structured salary, bonus on yearly basis, performance related pay and other payment structure, so that the employees become encouraged to work with their full capabilities and contribute in the firm for achieving the business goal. In addition to this, for employee relationship management, the leaders also try to engage with the staff and manage changes in the workplace (Soltis, Brass and Lepak, 2018). The employees are motivated for working efficiently where the leaders provide guidance and continuously support them for better performance. Hence, in the recent era of globalisation, employee relationship is mandatory for maintaining strong employee base and retains the experienced staff in the company to fulfil the business objectives (Yong et al., 2020). Conflict Management is another strategy of the leaders to manage eth employees and create values for them, where manag3ing cultural diversity, fulfilling the commitment at the workplace as well as providing equal opportunity to each staff in the workplace are helpful to resolve the existing conflicts, the leaders also try to empower the staff in the organisation in order to encourage their creativity and innovation to perform better (Soltis, Brass and Lepak, 2018). Hence, recently the pace of building employee relationship has been changing over the time, where the leaders and managers try to engage the staff and empower them for organisational decisions making behaviour.

Roles of the actors within the Employment Relationship

Employee relationship is one of the major factors which are necessary to be implemented in the corporate firms, to manage the organisational staff and retain them for long run. The major actors of employee relationship management are such as the leader in the multinational corporations, managers in the workplace, employees and the country government. The corporate leader is the main actor to develop relationship with the employees (Yong et al., 2020). The main aim of the corporate leader is to fulfil the employment commitment as well as provide them monetary and non-monetary incentives for creating values for the employees in the workplace. Hence, the organisational leader is important to develop corporate bonding with the staff and lead them efficiently towards achieving the future success (Soltis, Brass and Lepak, 2018). The corporate leaders also try to create good organisational culture, with harmony and freedom, managing health and safety of the staff, enhancing communication and cooperation. These are beneficial for the leader to manage the staff and convince them for further chances in the workplace (Troth and Guest, 2020). Conflicts management is also the responsibility of the corporate leader, where they try to create values for the staff, convince them for chance, resolve the misunderstanding among the staff and providing equal opportunities to all the members for working better and achieving rewards in the workplace (Zeebaree, Shukur and Hussan, 2019). These are the major responsibilities of the corporate leader to enhance communication and develop trust and respect for each other. Hence, the main actor of ensuring employee relationship in the corporate firms is the leaders, who hire the staff for better performance and productivity, through employee relationship management; it is possible for the leader to maximise organisational performance as a whole and fulfil the business objectives in long run.

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On the other hand, the managers are also another actor for developing employee relationship as the managers interact with the employees directly at the workplace and design job structure, project activities and timing for the employees. The managers follow the instructions of the leader, vision and mission of the organisation to development employment practices and manage the staff in the workplace (Ogbonnaya and Messersmith, 2019). There is a great role of the management team in creating corporate culture in the workplace and they try to follow the employment rules and legislative structure for managing he staff and creating values for them. The workplace activities and human resource management care handled well by the managers and thus the managers are the important actors for developing trust and corporate relationship with the employees (Zeebaree, Shukur and Hussan, 2019). Additionally, the employees are also the major actors of cooperating with the leaders and contributing with their full potential to fulfil the business goal. Moreover, the government is also essential actor for developing employee relationship, where the government develops the employment rules and create suitable practice to manage the human resources of the organisations (Ogbonnaya and Messersmith, 2019). For example, the health and Safety at workplace Act 1974 as well as the employment rule are effective for the leaders to manage safety measures in the workplace and provide secure circumstances, where the employees can perform safely. On the other hand, Equally Act 2010, non-discrimination activities are also fruitful to create good corporate culture in the workplace (Garcia-Arroyo and Osca, 2019). Minimum wage payment, working hour management and other employment practices such as fairness, trust and respect, transparency and accountability management are beneficial to create good bonding with the staff and lead them efficiently towards achieving the organisational success.

Impacts of employee participation and employee voice on employment relation

Employee participation is one of the effective factors for developing strong bonding and trust in the workplace. The employees are encourages to participate in the organisational activities and be empowered in the decision making practice. It creates values for them as well as motivates them to perform better (Garcia-Arroyo and Osca, 2019). The corporate leaders try to empower the staff and identify their perception, so that they can share their feedback and strategic opinion in the workplace. This further contributes successfully in making good corporate decision after reviewing the feedback of the staff. Hence, employee participation is fruitful for the organisational leader to engage the staff in the internal decision making practices and create values for the employees (Ogbonnaya and Messersmith, 2019). On the other hand, employee voice is mandatory in the workplace for retaining them in long run. The employees are also encouraged to show their creativity in working innovatively. The leaders also focus on employee voice, where the staff members can provide authentic feedback and share innovative ideas with the leaders before organisational decision making behaviour. In this regard, transparency and accountability are managed well by the management team as well as the managers also try to provide equal scope to each member to share their opinion and engage them in the decision making behaviour of the firm (Zeebaree, Shukur and Hussan, 2019). This further enhances the internal communication and cooperation in the workplace, where partnership working practice can be developed. The organisational leader also becomes successful to manage the staff and resolve the internal conflicts among the employees (Zeebaree, Shukur and Hussan, 2019). This is also beneficial for managing organisational chance and develops innovative decision to run the business successfully (Soltis, Brass and Lepak, 2018). Hence, the employee voice and participation are beneficial for creating good bonding and developing trust among the staff where the leader become efficient to develop strong corporate relationship and bonding with all the employees in the workplace and lead them towards achieving the future business objectives.


The study concludes that human resource management is crucial for running the organisational activities sustainably in the market and expand the business internationally for securing future growth. The organisational leader and management team focus on develop strong relationship building activities through enhancing communication and cooperation with the employees, where the staff members are motivated continuously to perform better for fulfilling their responsibility in the workplace. Moreover, the organisational leaders and managers try to provide performance related pay and other monetary incentives to fulfil the requirement of the employees. On the other hand, the non-monetary incentives for the staff such as work life balance, harmony and freedom to work at the workplace, getting suitable corporate culture, leadership support and guidance as well as encouraging employees creativity by suitable empowerment of the staff in the workplace are the major initiatives taken by the corporate leaders to create values for the employees and retain the experienced staff for running the business activities strategically. Human resource management is hereby crucial for fulfilling the organisational aim and objective and expand the business activities across the international countries, so that the companies can achieve sustainable growth and gain competitive advantage.

Reference List

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