• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

With reference to UK and global perspectives, critically evaluate what it means for organisations to be strategic in their approach to Human Resource Management.

Extracts from this document...


With reference to UK and global perspectives, critically evaluate what it means for organisations to be strategic in their approach to Human Resource Management. The versatility of today's world has forced many businesses to be strategic in their practices and policies, with the Human resource now constituting an important part of the business much importance has been given to the development of a strategic approach in the HR department as well. This essay aims to firstly evaluate the strategic aspect of human resource management, exploring the three approaches in detail. It will then critically look at the HR practices and the strategic approaches adopted while specifically looking at the reward system. There are various theoretical approaches taken to strategic human resource management. One of them is the Universalist approach, which looks at one ideal way of doing things. The approach is related to high organisational performances in all contexts irrespective of the competitive strategy (Derek Torrington, 2008). The Universalist approach is also known as the best practice view supports the idea that superior management practices are easily transferable and used in other organisations. In order for an organisation to perform well it should identify itself with another organisation known for its superior practices in certain functions, analyse these practices and then adapt them to their own organisation. ...read more.


However, problems can arise when using performance related pay as it can be difficult to determine which bundle is linked to the measurement of the performance and pay scale (Agarwala, 2007). The resource based perspective is believed to be overstated by Storey (2007) as it pays too much emphasis on the roles played by knowledge, resources and organisational capabilities while playing down the broader influences of strategic choice, change and innovation. In order for a firm to survive in today's competitive environment it has to link its HR practices to the business strategy in one way or the other and any company is as good as its workforce, which needs to be kept satisfied through a range of incentives. These incentives according to the 'old pay' methods use to be limited to monetary terms coupled with planned career progression, which was better suited argued by some to Taylor's hierarchical structure in the times of predicated changes. The 'new pay' system which is argued is better suited for today's turbulent world, where organisational changes are of the norm. The new pay is based on the 'best fit' or better known as the contingency approach, as it focuses to be aligned with the business strategy. According to Lawler business strategies require to achieve certain employee behaviour and attitudes which can easily be attained through reinforcing certain pay policies. ...read more.


Even though the reward system along with its new pay management is an American developed idea with the American corporations in mind as the recipients. There has been some evidence of it being used in British organisations as well through its implications at the work place (Heery, 1996). This essay hopes to have shown the use of strategic human resource management practices and approaches in the light of the UK and global perspective. It critically evaluated the various approaches of 'best practice', 'best fit' and 'the resource bases view' used in strategic HR practices. It looked at the various drawbacks of each of the strategic approaches. It further on aimed to critically evaluate the system of rewards as part of the strategic HR practices and policies. It critically looked at rewards being used by organisations as of exploiting their employees. It is further criticised for not being a complete innovative or new approach to the reward system. The 'best-fit' and ' the best practice' models are also used in context to the reward system, with a critical analysis conducted on which approach is the most appropriate one to be used, coming to the conclusion that the new pay system is an effective way of a strategic reward system which needs to be used in the light of both a universalist approach as well as a contingency approach. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Human Resource Management section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Human Resource Management essays

  1. Human resource management in Carrefour

    Each new applicant has to pass a lot of stages. First all people must complete some application forms very complex and suggestive. It's a company presentation included also. The second stage , only the people with the right profile for the job that they applied, are chosen .

  2. Human Resource Management: Development, Activities, Planning and Recruitment

    In other words, they integrate and align HRM policies and practices to reinforce employee behaviours that can best realize the leaders' strategic intent. In the most successful companies, the set of policies and practices that collectively make up a company's HRM system is the critical management tool for communicating and reinforcing the leaders' strategic intent.

  1. Barriers to Effective Human Resource Management

    Where as they give low priority to the HRM issues. Managers in especially in the countries like Australia and New Zealand are not fully committed to the effective operations of HRM (Fowler, 1987; Kane, 1996; Purcell, 1994). Some of the writers e.g.

  2. Critically discuss the Best Fit approach to strategic human resource management (HRM)

    Armstrong (2001) describes that there are two types of fit that are external and internal fits. External fit focuses on how the HR strategies and practices are matching with the developmental stage and the strategic course of the firm. In new enterprises or newly opened firms, HR practices focus on pay, recruitment.


    Strategic Human Resource Management- A Historical Perspective. During the industrial revolution in the later half of 18th Century, the philosophy of ?managing people? was evolved through an evolutionary process as with increased mechanization and productivity, a need was felt for optimum utilization of people involved in production activities.

  2. Human resource management - Microsoft problems and recommendatins

    Challenges to be faced 1. Talent pool: Talent pool is an important challenge else human resource professionals will run into recruitment issues. For example, if there are no sufficient Microsoft certified engineers then there will be a shortage of employees. There will be a problem in filling the staff.

  1. Cape Breton Wallcoverings - HRM analysis

    company wanted to keep the situation like that to strengthen them against labor unrest. Recommendations AN consulting group has a few recommendations on how to solve the critical issues the Cape Breton Wall Covering is facing on the future. Unskilled labor Firstly to answer the issue of unskilled labor AN

  2. Performance related pay

    A reward system is one in which people are treated justly in accordance with what is due to them, their value to the organization (Armstrong and Brown. 2006). PRP may discriminate unfairly against women, because, in practice, it is primarily male managers who measure performance, and they may tend

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work