Critically Discuss The Various Existing Models Linking Organizational/ Business Strategy With Hrm Strategy

As the global business environment becomes increasingly competitive, more and more organisations are targeting human resources as a means of strategically gaining competitive advantage. Strategic human resource management (SHRM) is a constantly evolving process which is concerned with providing a strategic framework that supports an organisation’s long term business goals. The logic behind this is that organisations are using new innovative technologies to provide qualitative low- cost solutions, and are trying to manage their human assets more effectively (Wright,

Business environment is facing a rapid change that reminds the business management to focus on its core competencies to survive and sustain in the competitive environment. The core competencies can be developed by strategic human resource management. According to Armstrong (2006) employees are the valued assets for a company. The strategic human resource management is mainly developed in accordance to the fact that human resources need to be managed strategically for the company to enjoy sustainable competitive advantage.

Today 's fast-paced, competitive business environment has resulted in "rediscovery" of the human resource management function as a group that may be able to enhance firm competitiveness and performance by being "strategic" (Dyer & Kochan, 1995; Ulrich, 1997). Strategic Human Resource Management is a term describing an integrated approach to the development of Human Resource Strategy that will enable the organization to achieve its goals (Armstrong, 2005). Whiles strategy is an action that managers take to attain one or more of the organization’s goals. Strategy presents a general direction set for the company and its various components to achieve a desired state in the future. This results from the detailed

Competencies; shape of work envFloor: day to day admin sp function (pay, absence, docs etc)http://www.cipd.co.uk/hr-resources/factsheets/hr-business-partnering.aspxhttp://www.personneltoday.com/articles/2008/04/15/45340/dave-ulrichs-model-defence.htmlConcerns amongst HR staff regarding erosion of perceived power.Advocates like the ‘three legged stool’ model; HR as a meaningful and active part of the decision making of the businessDiscuss how it would work in different orgs (sizes, sectors, cultures, localities). Ulrich suited particularly to large orgs. P23 main workbook – expanded model.

M. Marchington & A. Wilkinson, 2008, Human Resource Management at Work 4th Edition, London, CIPD

The issue I have chosen is the relationship between HRM and organisationa,l and individual performance within the NHS. I have used two academic research based journals Baluch et al, (2013) in the Journal of Human Resource Management and Hyde et al, (2013) in the Journal of Health Organization and Management. Despite researching a similar field of study, the authors used different research methodologies.

The practise of Human Resources is moving from the traditional forms of managing people to a more strategic form whereby the Human Resources function is closely linked with organisational performance and success. This strategic form of human resources has increased the need for the Human Resource professional to understand the linkages between Corporate Strategy, Human Resource Strategy and Employee Integration.

This means that HR practices aimed mainly to improve performance of the organisation through selective recruitment, extensive training, employment security, autonomously of employees and sharing information (Pfeffer, 1994).

The term Human Resource Strategy is well defined as - “Human Resource management (HRM) is a strategic approach to managing employment relations which emphasises that leverage people 's capabilities is critical to achieving sustainable competitive advantage, this being achieved through a distinctive set of integrated employment policies, programmes and practices.” [ Bratton and Gold,4e,p3]

CRITICALLY COMPARE AND CONTRAST THE 'BEST FIT', 'BEST PRACTICE' AND 'RESOURCE-BASED VIEW', MODELS OF HRM STRATEGY AND EXPLAIN HOW EACH APPROACH IS ARGUED TO CONTRIBUTE TO IMPROVED ORGANISATIONAL PERFORMANCE.

More explicitly, Batt (2002) classified two paths that explained how bundles of HR practices directly and indirectly enhance employee performance within the organization. The direct path is important because it enable workers to solve work problems better by enriching their skills and knowledge. The indirect path plays a role in encouraging people to take the responsibility by enhancing their motivation and satisfaction.

As I propose how I would ensure the HR strategy is in alignment with the business strategy, I found while doing research that Ford motors is a multinational company operating in many different parts of America. Their cars are included in world’s most familiar cars. Ford Company is a composition of eight different companies, which are categorized into three different heads; first are Japanese cars, which fall under the name of Mazda, second is the American cars, which are under Ford, Mercury, and Lincoln. Third group of Ford Company comprises on European cars. Altogether, it makes Ford Motors, the world’s second largest manufacturers of cars, trucks and SUV’s. Japanese heads manufacture cars of all prices ranges and cover large part of the market, whereas American cars are of same price, and European cars like Aston Martin, Jaguar and Volvo are for the elite class. Their objective is to become the largest manufacturer of cars of world (Dyer & Reeves, 1995).

Aim: This research will help us understand the role played by Strategic Human Resources Management in Organizational success, what role a HR manager plays in improving organizational efficiency and how it differs from traditional Human Resources Management.

As the world is turning out to be more aggressive and unstable than any other time in recent memory, producing based enterprises are looking to increase upper hand at all cost and are swinging to more inventive sources through HRM practices (Sparrow, Schuler, & Jackson, 1994). HR practices has been defined by (Smallbusiness.chron.com, 2016) as “the means through which your human resources personnel can develop the leadership of your staff.”

Within this essay an in depth analysis will be conducted on the difference between Human Resource Management and Strategic Human Resource Management using contemporary perspectives. Human Resource Management (HRM) is the process of managing human resources in a systematic way. It is a practice devised to maximise the performance of employees and is concerned with the application of management principles to manage organisational personnel while paying attention to the policies and systems of the entity (Delaney & Huselid, 1996). Strategic Human Resource Management (SHRM) is a function of management which entails development of policies, programmes and practices related to human resources, which are aligned with business strategy so as to achieve the strategic objectives of the organisation (Patrick M. Wright, 1992). Its primary purpose is to improve the performance of the business and maintain a culture that encourages innovation and works continuously to gain competitive advantage. In this essay the Resource-Based View, High Performance Management and High Commitment Management perspectives of Strategic Human Resource Management and Traditional and Collaborative