Assess the purpose of strategic human resource management activities in an organisation & evaluate the contribution of strategic human resource management to the achievement of an organization’s objectives Be able to develop human resource plans for an organisation Critically evaluate how a human resources plan can contribute to meeting an organization's objectives Understand human resources policy requirements in an organisation Explain the purpose of human resource management policies in organisations

1. Introduction
Strategic human resource management is a complex process which is constantly evolving and
being studied and discussed by academics and commentators. Its definition and relationships
with other aspects of business planning and strategy is not absolute and opinion varies between
writers. The definitions below are from the CIPD book Strategic HRM: the key to improved
business performance within which there is comprehensive coverage of the various definitions
and approaches to HRM, strategy and strategic HRM. Strategic HRM can be regarded as a
general approach to the strategic management of human resources in accordance with the
intentions of the organisation on the future direction it wants to take. It is concerned with longer-term
people issues and macro-concerns about structure, quality, culture, values, commitment and
matching resources to future need. It has been defined as:
 All those activities affecting the behaviour of individuals in their efforts to formulate and
implement the strategic needs of business.
 The pattern of planned human resource deployments and activities intended toenable the
forms to achieve its goals.
Strategic HRM can encompass a number of HR strategies. There may be strategies to deliver
fair and equitable reward, to improve performance or to streamline structure. However, in
themselves these strategies are not strategic HRM. Strategic HRM is the overall framework
which determines the shape and delivery of the individual strategies. Boxall and Purcell argue
that strategic HRM is concerned with explaining how HRM influences organisational
performance. They also point out that strategy is not the same as strategic plans. Strategic
planning is the formal process that takes place, usually in larger organisations, defining how
things will be done. However strategy exists in all organisations even though it may not be
written down and articulated. It defines the organization’s behaviour and how it tries to cope
with its environment. Strategic HRM is based on HRM principles incorporating the concept of
strategy. So if HRM is a coherent approach to the management of people, strategic HRM now
implies that that is done on a planned way that integrates organisational goals with policies and
action sequences.

2. Bratton and Gold define HRM as: “A strategic approach to managing employment relations
which emphasises that leveraging people’s capabilities is critical to achieving sustained
competitive advantage, this being achieved through a distinctive set of integrated employment
policies, programmes and practices”
Organisations used are HSBC, ASDA ( Reputed Company of Wall-Mart), BA (British Airways)

3. Task 1: Understand how the strategic management of human resources contributes to the
achievement of organizational objectives
Task 1.1: Explain the importance of strategic human resource management in
organisations
HRM is very important to us for the following reasons:
1. Development and Growth of the organization: HRM paves way for development and
growth in the organization. By improving the individual capabilities, acquiring necessary
cooperation and developing teamwork HRM makes sure that the organization develops
and grows well. Goals of the organization are met by HRM by effective motivation and
excellent utilization of employees.
2. Creation of healthy culture in the Organization: HRM creates and maintains excellent
culture in the organization and it makes people develop and grow.
3. Maintenance of Human Resources: The development, care of Human Resources is
done by the HRM. Human beings are a very crucial and vital factor of production , and
thus HRM is gaining more and more importance day by day. It also has important
implication in societal development also. It is the heart and soul of modern management.
Core values of HRM:
The core values of HRM states that
1. Human beings are the crucial aspects of every organization. The greater is the
commitment of the human resources the more successful is the organization.
2. An individual is a whole person. He brings all aspects of his personality, attitudes, traits
and behavior to the work place.
3. All people represent the organization. The building, equipment and other resources
productive only because they are being handled by the hyper energic force of humans.
4. People are different from each other. They vary in abilities, nature, personality, religion
etc. people are also influenced by social economic and environmental factors.

4. 5. Human resources have to be acquired, developed and motivated to give higher
performances and also must be retained.
6. The success of an organization depends upon the satisfaction of organizational needs and
employees needs. There are various levels of hierarchical levels in an organisation. The
people who manage (i.e., the managers), and people who are at work (subordinates). The
effective coordination and commitment between managers and subordinates is essential
for organizational success. Apart from that healthy relationships are to be maintained
with consumers, shareholders, entrepreneurs, governments and suppliers.
7. Human relations enable people to work effectively in an organization with other people
in organization.

5. Task 1.2 & 1.3: Assess the purpose of strategic human resource management activities in
an organisation & evaluate the contribution of strategic human resource management to
the achievement of an organization’s objectives
Human resource management can be regarded as a strategic and coherent approach to the
management of an organization’s most valued assets, the people who individually and
collectively contribute to the achievement of the objectives of the business.
Case Study ASDA
ASDA is one of the reputed retailer companies of Wal-Mart which was formed in 1965 by a
group of farmers from Yorkshire and its activities are still mainly based in the north of Britain. It
expanded south in 70’s and 80’s , in 1989 buying rival change Gateways Superstores which is
offering shoppers everything from Frank furthers to Diamond rings. ASDA is the second largest
food seller that operates 370 stores from where primarily sell groceries and apparel, also the
stores which are situated in different parts of the UK sell CDs, books, DVD’s, House wear
financial services, take away meal etc.
The Strategic Human Resource Management of ASDA which has developed its overall
activities, because every year ASDA recruits 10,000 workers, 10,000 permanent staffs to work as
little as 10 weeks a year. ASDA always targeted people over 50 and it has already employed
22,000 people aged over 50. For managing their SHRM ASDA’s employees trainings is the
highest in the market. Every year they recruit fresh trainee employee to build a proactive team
for the management. (Source: http://www.allbusiness.com/retail-treade/4297631-1.html)
As the part of SHRM management ASDA follows following structures of management:
1. ASDA
2. Corporate level: Business level, Operational level
3. Board of Directors: All regional managers, Line managers
4. Chief executive officer (CEO): Line Supervisors etc.
5. Country Directors
6. Chairman

6. 7. Chief Financial Officer (CFO)
8. Chief Technical Officer(CTO)
9. Divisional Head
By this structure ASDA monitored and supervised all the activities while they ensure the power
and position of that structure by its unique policy. For managing Strategic Human Resource
Management ASDA assists organization to meet the needs of their employees in the best way
they can, so that company goals can be promoted. It also managing people proactively, because it
requires planning ways for ASDA to meet the needs of its employees, thinking ahead and also
helping the employees to meet the needs of the organization. This process changes the outlook
and affects the way things are done at this business site, in others words it help to integrate
modern ideas and models into the traditional Human Resource practices to come up with better
solutions which not only benefit the employees, but the organization. It helps the organization
from the hiring of employees, to the training, assessment and discipline.
For proper employee management by ASDA it has affected the organization significantly,
because ASDA be aware about the employees career and development resulting reducing time
frame of recruitment and selection process, retention staff in the organization, creates the
productivity of the employee by developing training programs. It also arranges career programs
for the employee which builds the employees loyalty towards ASDA which gives them unique
efforts to fight with competitors in the market.
Strategic Human Resource Management is the process of Human resource Management for a
long period of time which helps organization to achieve its long term goals. As a part of these
activities ASDA maintains high standard of Human Resource Management through its unfair and
competitive employees selection, motivation and training which given ASDA to be almost a
market leader in the UK super market. It has established companies overall growth, revenue and
satisfaction of stakeholders. (According to my understanding during the class period)
From the ASDA business site it is viewed that it has announced plans to create 9000 jobs in the
UK through a mixture of new stores, product range extensions in terms of non-food selling space

7. named ‘ASDA living’ and others business expansion like home shopping, online shopping via-
ASDA direct.
It sounds like an ambitious growth plan, although ASDA needs to keep growing quickly just to
maintain its relative market share, where ASDA planed 179000 employees employ in the year.
(http://tutor2u.net/blog/index.php/business-studies/comments/asd-goes-for-growth/)
President and CEO of Wal-Mart International, Dong McMillan thanked Andy Clarke for his
leadership role in the development of the ASDA business during his times as president and CEO
and in other roles during his 16 year career at the retailer ‘’I am extremely proud of the
management team at ASDA and the contribution that each of our nearly 170,000 colleagues
makes every to serve our customer. We are very well positioned to continue to win in the UK
market’’. (Source: http://your.asda.com/2010/4/12)
From the discussion above it has been found that ASDA has been serve the customer promptly
through their proactive management team which has impacted ASDA to improve its business
growth revenue which attracts stakeholders such as employees, customers, suppliers,
government, local community and competitors etc. Nowadays ASDA stakeholders feel confident
as they invest as they could. Therefore, as a global company ASDA maintain its SHRM policies
resulting to achieve overall growth of its business.
Conclusion of case study: As a part of HRM development ASDA has been taking more
initiatives in its operation, because every year ASDA recruited highly educated trainee officer in
their organization. As well as they arranges graduate programmes for hunting talents to their
organization. Moreover, they provide training for improving the skills of employees and
prepared them to perform duties for next designation. There are so many others programs which
has been conducted by ASDA such as communication with all levels of employees, stakeholders
etc. Therefore, the HRM management of ASDA has got success in its operation by which
organization achieves its strategic goals.

8. Task 2: Be able to develop human resource plans for an organisation
Task 2.1: Analyze the business factors that underpin human resource planning in an
organisation
Strategic HRM Strengths: The strength of strategic HRM in the HSBC bank is to identify the
right people in the right place. Strategic HRM is to focus HR activities that HSBC practise in
order to develop the organisation. The strengths of Strategic HRM is to apply in HSBC bank
with great effort in order to bring the outcome satisfactory and make the company develop in HR
practice.
HSBC as world local bank has various factors that strength the Human Resource planning.
Particularly in the economic down town HSBC has come with successful business factors which
made it able to identify the sectors they were need to develop. As a Human resource Manager
following the Business factors that I have underpin the Human resource plan is
Business Growth: The impact of Strategic HRM in the World giant bank of business growth is
to practise the Strategic HR activities properly by the Managers, individual bankers, cahiers and
by the customer service assistant. HSBC as world giant bank has newly opened a retail branch in
Glasgow by spending £2.1 million and creating 18 jobs across Scotland. HSBC regulatory
committee has authorised a further investment of opening a new HSBC premium branch to open
in Thailand in 2011(Enterprising news, 2011).
Locations of operation: HSBC as one of the giant local bank in the world has its Headquarter in
London and it is appearing in 8000 locations in 80 countries and the territories are across Europe,
North, Central and South America, the Asia-Pacific region, the Middle East and Africa.
Particularly HSBC has 1500 branches across UK.
Business change: HSBC as one of the world giant bank has gone through a radical business
change by adapting online Banking system. Where consumer can do their business activities
after the banking hours close. The online banking system has identified to make flexible and
conducive service for customer. In online banking customer can easily transfer the money, apply
for credit card, apply for loan, apply for mortgage and also can apply for job as well.

9. Task 2.2: Assess the human resource requirements in a given situation
HSBC bank has bought the Indian retail and commercial businesses of Royal Bank of Scotland
(RBS.L) as the part, nationalized UK bank it retreat from overseas markets. According to HSBC
it would pay a premium of up to $95 million over the tangible net asset value (TNAV) of the
business after the deal has completed probably in the fast half of the next (2011) year. (Source:
www.reuters.com)
Government policy (Regional): Human resource management policies of HSBC bank in fact,
Government polices about the employees of RBS in India over the Acquisitions has remained
unchanged as the Royal bank of Scotland in India 83% is owned by the British Government .
(Source: www.reuters.com)
Government policy (Education): To make more skilled and more productive employee in the
organisation HSBC Strategic Human resource programme has started running online academies
by what allows the personnel to make their personal development programme. The online
academy provides self-assessment programme, exams to the users who will find out where the
position of the employees in the organisation and match these against the skills of what position
they can look for. (Source: www.personeltoday.com)
Task 2.3: Develop a human resources plan for an organisation
Organisation Used: HSBC
HSBC as one of the biggest Bank in the world has its Human Resource management is very rich.
It has to develop a human resource plan for its Human resource performance. Here I am as a
Human resource manager of HSBC bank creating a Human Resource plan.
Organisational Objectives: HSBC as world local bank its plan must be based on SMART
(Specific, Achievable, Measurable, Realistic and Time – based). In terms of supplying best
service all staff must be concern with objectives.

10. Selection and Recruitment: Selection is the initial stage of identifying the right people need for
the organisation. After the selection process recruitment process must be based on the
organizational structure to avoid the unwanted position.
Employee Development: Employee development plays a major role in the organisation. In
HSBC bank there is a need for regularly revising Training programme. In average HSBC spends
£600 per employee on training programme delivered in 16 training centre worldwide. Here in the
United Kingdom about 173,000 learning days so far recorded with around 33,000 employees
attending face to face training.
Retention: Retention planning gives the chance to keep the skilled personnel in the organisation
for long period. Developing a promotion and career plan aspect must be taken in order to avoid
potential recruitment in the organisation.
Task 2.4: Critically evaluate how a human resources plan can contribute to meeting an
organization's objectives
Human Resource Planning plans for the optimum use of its human resources. HR planning
therefore deals with having right people for right job at the right time. Therefore HR is
responsible for fulfilling the organisational objective.
Making the 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 of staff and shortage of staff: HR planning helps the organisation
about the skilled and unskilled 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
responsibility of the Hr to have right number of staff for the right job.
The contribution of Strategic Human resource plan is to increase human resource activities
performance in the organisation. It plays a vital role of providing the effectiveness in its action in
order to improve the business performance. It attempts the link between personnel management

11. practices and such as ‘hard’ outcomes as profit. The stages of contribution kept by human
resource plan are defined below.
Improve performance: The contribution of Human Resource Management in the HSBC bank is
to improve HR activities in the organisation. It is to identify in what are need to be develop or
need to improve in order to provide extreme performance.
Business case (cost): The contribution of strategic human resource management is to reducing
the cost of unwanted expense in HR practice. Minimizing the cost is one of the key elements of
practicing extreme human resource activities in HSBC bank.
Succession planning: HSBC has one of the key objective of ‘Managing Growth’ is a strategic
plan of implement formal and friendly behave between staffs. By what they understand is that
they can have skilful and perspective people in the organisation.

12. Task 3: Understand human resources policy requirements in an organisation
Task 3.1: Explain the purpose of human resource management policies in organisations
The purpose of human resource management in HSBC bank is in very wide perspective. It has
mainly to identify and reserve the Human Resource activities in the organisation. The policies of
HR in HSBC bank are
Health and Safety: HSBC bank put great importance on Health and safety to make sure that a
safe environment is exist in the organization the measure of risk may arise from possible terrorist
attack, the environmental disaster to fire, accident and diseases. HSBC has encouraged its
employees to take health and safety as a part of their own responsibility.
Equity and diversity: In HSBC bank Equity and Diversity programme is practised with lots of
integrity. To develop the best diversity practice HSBC introduced locally the strategy of diversity
Toolkit programmes in 2004 in Hong Kong. To enhance the consciousness of the issue and
develop a database of cultural and business etiquette HSBC introduced an interactive diversity
competition on the employees’ intranet in Hong Kong.
Bullying and Harassment: HSBC as the world local bank has put the individual specific
employee policies are imposed by the legislation and the regional cultural norms. All personnel
are accountable for behaving colleagues with respect and dignity for creating the atmosphere free
from Discriminations, Harassments and Victimizations. Unable to be abided by the policy may
be subject to disciplinary procedures.
Working time and time off: HSBC bank has statutory requirement working hours and leave.
Most of the staffs are required to work maximum 48 hours average in the working week. Any
agreements must be writing and signed by worker. The bank has made detailed regulation on
maximum rest period. The employees are entitled to take maximum of 5.6 weeks’ paid leave a
year. The employees are also entitled to take, paternity leave, maternity leave, parental leave,
abortion leave and the leave for family reason. (Source: www.hsbc.co.uk)

13. Task 3.2: Analyse the impact of regulatory requirements on human resource policies in an
organisation
The impact of regulatory requirements on Human Resource policies in HSBC bank is very
important and essential for proper practice of regulatory policies and abides by the rules. It has
emphasised on exercising Employment legislation and legal and regulatory requirements
including pay, discrimination, equality employment right and responsibilities. The impact of
regulatory requirements policies in HSBC bank are discussed below.
Sex discrimination act: Under the sex discrimination act 1995/1997 it is illegal to discriminate
against someone o grounds of their sex (including gender re-assignment) or marital status
(including civil partnerships) or on grounds of their actual and perceived sexual orientation. No
one can discriminate because of the pregnancy or maternity.
Race relation act: Under the race relation act 1992 it is illegal to discriminate against someone
on grounds of Race, Color, Nationality or Ethnic minority origins or on the grounds of their
religion or philosophical beliefs. Anyone become failure to be abided by the rules would be
faced proper action of termination.
Employment act: Under the employment act 2008 HSBC has introduced the basic employment
law to the staff. The recruitment law cover the discrimination on number of grounds is illegal for
instance, race, sex, age, disability, sexual orientation. Part time employees have the right to be
treated with full respect as the full-timers have. Employees must deduct for NI and tax
contribution from their wages, and pay them to Customs & HM revenue under pay as you earn.
Dismissing someone is automatically unfair and discriminatory if the dismissal is due to
pregnancy or any reason to do with the childbirth. (Source: www.hsbc.co.uk)

14. Task 4: Be able to examine human resources management in an organisation
Organisation structure: It relates to a skeletal framework of activities and processes in an
organisation and specifies the roles of these in achieving goals and objectives of the organisation.
According to (Mullins, 2009), a good structure is highly important due to the fact that decisions
on structure are primary strategic decisions which can make or break an organisation. One
important aspect of a good structure is the human element. Organisation structure should be
designed so as to encourage employees and increase the morale and job satisfaction of
organisation members which will result to overall organisation efficiency.
Organization's culture: Understanding an organization's culture from an employee as well as
management point of view is as important as understanding one's own job profile and
responsibilities to perform well in any structural setup. Given the continuously changing
environment, employee insights on his or her work culture is very important for an organization
to best define and upgrade its role and objectives. Organizational culture can be defined as the
pattern of shared values, beliefs, and assumptions considered being the appropriate way to think
and act within an organization.
Task 4.1: Analyse the impact of an organisational structure on the management of human
resources
Organisation taken: British Airways
According to Mintzberg (1979; Mintzberg et al 1998), there are two basic approaches to the
formation of organisational structure, the contingency approach and configuration approach. The
contingency approach of the structure of an organisation will depend on factors like the nature of
the business and its strategy, its size, the geographical span of its activities, its age and history
and the nature of the environment. He argues that rather than adapting the contingency approach
it is sometimes better to base structure on configuration approach, factors like span of control,
the need for formalization centralization and decentralization and planning system should be
logically configured into internally consistent grouping, (Stonehouse & Campbell, 2004).
Organisational structure is form of model which indicates the segmented management level and
the imposed responsibilities belong to individuals. Impact of strategic HRM on the British

15. Airways organisational structure is to set up a frame work in the favor of reducing unwanted
vacancies, make positive and constructive formation in the organisation. Organisational structure
of British Airways has given below.
Geographical Impact: British airways as one of the biggest airline company in the world have
great impact of its operation in all over the world. The organisational structure has big influence
on running the Human resource in the company. Strategic HR and its function are involved with
the company in order to make proper recruitment process to the promotion in that organisation
and employ the right people in the right place. In terms of reducing the unprofitable routes and
make the productive practice of Strategic Human Resource.
Centralization impact: Centralization of British Airways organisational structure can put huge
impact on its operation. British Airways business which is value adding activities can be highly
impacted and effective by practising centralization of its organisational structure. The decision
making process of centralized structural activities can produce the competitive market for British
Airways.

16. Task 4.2: Analyse the impact of an organisational culture on the management of human
resources
Organisational culture: Organisation culture is the key element of management practice. In the
aspect of organisational life culture keep a central and dimensional location in the organisation.
Organisational culture sometimes perceived an explicit attention by how people think about the
company, the value and the ideas how guided by the meaning and the belief of a cultural nature.
Managing the organisational culture is important and the perception of it understand by the
corporate world can develop the cultural practice and the performance (Alvesson, 2002).
Organisational culture is the form of cognition and ideas, ideologies and the value of the
organisation internal behaviour. This is kept in people mind when they work for British airways.
Nurture the aspect of organisational culture in mind practice the responsibly is the progressive
way of developing human resource in British airways.
The relationship between culture and HRM functions: The relationship between culture and
HRM function is very common and internally linked. HRM function includes Resourcing,
Development, performance management, pay and conditions and employees’ relationship has the
contingency approach to each others. The functions of HRM and the culture are practised at the
same time to develop and exercise the Strategic Human resource management in the
organisation. British airways can be idealised with this practice of cultural HRM functions to
make en effective Human resource in the organisation.
Task 4.3: Examine how the effectiveness of human resources management is monitored in
an organisation
The effectiveness of Human resource management is to improve the existing business in BA.
Human resource management strategy, human resource policies and Human resource operation
is to provide the competitive advantages in the organisation. The contribution of HRM is to
provide the achievement for organisation, help to acquire BA goals, reducing the cost, and
increase the benefit by practising it.
Organisational goal: Strategic human resource has identified the several field of effectiveness
in BA. BA has the goal to develop customer focused and the performance of HRM that offer

17. rewards for individual performance but also the recognition of different employee in the business
has different demand in terms of benefit, Training and development.
Human resources efficiency: Human resource efficiency means the activeness of the operation
is provided by those people who are working for BA. British Airways has total manpower of
36832 across the operation which is the reduction of 3800 staff in the previous year (2009) all on
voluntary terms. To improve the business BA has finished restructuring of the management in
order to increase accountability of the business. It is now exploring the new way of boost the
efficiency in staff to get better value for consumer by focusing the improvement of employees
engagement.
Performance Indicator: Performance indicator is a process of identifying the individual
employee’s activity measurements. BA have the right Human resource leader of right support
with motivation to create high performance HR culture, that means the managers may involve
with the employees to get high – class productivity. To measure the individual performance the
surveys report will be introduced quarterly and include the engagement index by what managers
can track and take the action. (Source: British Airways 2009/2010 annual report)
Task 4.4: Make justified recommendations to improve the effectiveness of human resources
management in an organisation
British Airways is the UK’s high profile and largest international scheduled airline. It flies the
consumer at convenient times to the best located Airport around the globe. British Airways is the
world leading global premium Airline with 144 Boeing, 84 Airbuses, 3 Avros and 7 Embraer E-jets.
It has one of the world biggest structural and multicultural infrastructures around the world.
Proper implementation of Human Resource practice can bring the effectiveness and the
outstanding productivity in that organisation. This can help BA to achieve its target market and
expected goals.
Justified Recommendation: The effectiveness of strategic Human Resource management in BA
is to perform the organisational performance of combination with strategic structure and the
strategic cultural programme in order o provide better service to the customer. The effectiveness
of the theory to adapt and implement existent structural and cultural exercises by utilising the

18. resources it has to bring the improvement in the practice of human resource in the organisation.
Regular monitoring programme, Reporting and Meetings could be very effective way to justify
the performance of Human resource in British Airways in terms of improving the effectiveness.
Benchmarking HR performance: Internal performance programme standard can be the
effective way by looking at the comparative HR performance of others Airline Company of the
same categorical or the look at the similar Airline Company that is providing the same service in
the industry. British Airways can have in effect, the existence strategic HR groups by
benchmarking against similar Airline Company rather than the individual. BA may be
performing badly and loosing the competitiveness against others Airline organisations that can
justify customers’ needs in different way.

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