SHRM – Strategic Human Resource Management


Strategic human resource management is the foundation principle of every organization. It assists in managing and maintaining the whole business in terms of gaining the best outcomes. The report discusses different functions and activities that directly influence the strategic HRM practices within a company. In addition to this, it helps in starting the description of HRM models which are explained by the guest. The main impact of the strategic technique of HRM on the line managers and employees has been discussed in this report. The report is based on costsaver which is a leading Travel and tourism organization and it is located in the United Kingdom. The main purpose of this assignment is to examine the existing trends and development that directly impact organizational strategies. The report describes different theories and concepts which are related to the growth of strategic HRM. The change management model is explained in the report with the use of accurate organizational examples.


Key current trends and development which may influence HR strategies of an organization

It is important for Costsaver is to emphasize and recognizing key trends and developments that may directly or indirectly impact their company HR strategies. They require focusing on these trends and as per this company needs to develop proper alterations in their current business functions and operations. There are various current trends and development that are described as under:

Globalization: It is required for an organization is to analyze whole global areas where they can expand their products and services (Albrecht, et. al., 2015). The globalized business gain higher growth and success and also attracting different countries people. Globalization has various trends which include scientific, demographic, economic, technology and so more. This is required for costsaver is to analyze another nation market when they want to expand their business operations. For this, they should understand their technology, resources, customers’ choices or preferences, and climate influence.

Workforce diversity: It refers to such a process in which all different backgrounds, cultures people come together for gaining desired goals. On the other hand, it is important for Costsaver Company is to develop strategies in which they need to attract diversified customers towards their tourism services or facilities. It is only possible when they hire diverse employees and they understand various backgrounds of people’s choices and requirements. This makes it easy for the firm is to gain the attention of various cultured and backgrounds of individuals.

Increasing competition for skills requirements: This is analyzed that every company wants skilled and experienced employees who can reach with desired goals. Due to this, competition has been increasing and this will create a mess in the whole marketplace (Björkman, et. al., 2015). But, it is necessary for costsaver is to book skilled workers to compete with huge rivals as well.

Technological advancement: It is the current trends in which costsaver need to adopt advance and latest technologies that help them in gaining a high amount of income or profitability. It is required for travel and tourism organizations are to use new technology as it assists them in attracting a wide range of people.

Continuous Improvement development: it is an important process that is used to maintaining effective products and services of the company. Costsaver needs to focus on its services provided and regularly updates these facilities according to the changes in people’s choices and requirements. It is beneficial for them and by this, the company can get accurate profit.

Analyze how both external and internal factors influence HR strategy and practice

It is evaluated that a successful HR strategy complements the company’s required objectives and goals (Crichton, et. al., 2018). Two factors directly influence the costsaver’s HR strategies and practices which plays an important role in managing high success or growth level. Such is explained as follows:

External factors:

Effect of rivals on recruitment: It is indicated that competition in the travel sector which affects the organizational abilities to appoint and choose experienced workers. They are concentrating on analyzing these candidates who have the necessary skills. In such a case, there are no requirements to spend expenditure on the marketing procedures as candidates that will visit the company websites of their own accord.

Impact of legislation: The nation’s laws and legislations are an impact on costsaver HR strategies and practices. They require examining the instructions and guidelines that are formulated by the country government for their specific industry. In addition to this, they need to adopt various rules and norms to smoothly regulate business functions or operations.

Internal factors:

Effect of internal policies: It is analyzed that organizational internal policies and strategies majorly affect HR practices in a better manner. Costsaver must formulate these policies in which all the staff members are mutually agreed otherwise it will develop major issues in a company (Haddock-Millar, et. al., 2016).

Employee relationship: This is an essential HR manager is to manage all the employees’ relations as it assists them in properly gaining potential goals and objectives. If the organization’s workers do not develop a strong connection with each other then this will impact its business practices and influence various HRM strategies. By this, the human resource manager also accountable for maintaining employees’ work in the company.

Critically analyze the influences of the external and contextual developments

As per the view of Hecklau, (2016) Costsaver Company mainly concentrates on examining and analyzing different factors that are influence business practices. These are described as under:

Government regulations: It is an external factor in which the company needs to follow government rules and legislation otherwise they cannot smoothly operate their business operations and functions in the country.

Workforce demographics: This is important for costsaver is to focus on workforce demographic based on this they need to target their customers.

Economic conditions: For maintaining whole business functions, it is required for costsaver is to analyze the nation’s economic situation and how this will create an impact on their operations.

Available employment pool: This is another factor in which the company should hire skilled employees and for this, they require to go through with the whole employment pool and analyze their abilities for selecting the best suitable candidate. 

Influences of key external and contextual developments, applying relevant theories, models, and concepts

It is required for costsaver to analyzing the influences of key external factors that are directly influencing the human resources strategies of an organization. They require to use accurate theories and concepts which assist them in evaluating correct outcomes and how these impact on their managing operations (Hossain, et. al., 2016). Innovation theory helps in determining the external aspects that are influencing the costsaver strategic activities. In such a manner, the company has developed and formulated investigation and development procedures through which they can easily analyze their potential customers’ needs and requirements.


Apply relevant theories and concepts relating to the growth and development of strategic HRM to specific organizational examples

In every organization, the human resource manager plays an important role in encouraging and motivating their employees for achieving great goals and targets. In addition to this, their business functions are managed and maintained for developing strategic goals and work for enhancing the growth of costsaver in a large market place. There are different HR theories and concepts that are connected to the development and growth of strategic HRM are discussed below:

Universalistic approach: It states that best practices in context to the wide range of HR problems such as staff recruitment and section, training and development, employee motivation are applied to each company and understand the nature of different aspects. It is mainly to determine the business performance and growth level of an organization in a better manner (Jabbour, et. al., 2016). Costsaver can easily use this approach which helps in identifying the global issues and problems of strategic decisions at an extreme level.

Contingency theories: It is an important management approach that suggested the accurate style of management which is dependent and it helps in managing whole business functions. This is such a theory that describes that there is no appropriate method to arrange and maintain business activities and this can lead to making correct decisions for gaining better outcomes. Costsaver can use this theory as it helps the company in understanding the way by which they will decisions and analyze both the external and internal situations of the market

Motivational theories

In this, the Maslow hierarchy of needs is the motivational theory in psychology that contains five steps of models. It includes psychological, safety, love and belongingness, esteem, and self-actualization.

Psychological needs – In this level of need, people need to satisfy their psychological requirements that involve basic survival such as water, air, shelter, food, etc. Costsaver needs to provide basic facilities to their guest who applied and registered to their company.

Safety needs – It is the second level of Maslow’s hierarchy theory which mainly concern about people’s needs that should be secure and safe in their environment. It also involves the need for protection psychological and physical danger (Kaufman, et. al., 2015). Costsaver is the travel company so they need to focus on providing the best protection to their travelers and tourists which reduces their fear in a different place and they realize safe.

Belongingness and love need – Such form of requirements includes dealing with and acceptance from other individuals, providing and receiving affection and friendship with someone else. Based on this theory, it is rarely analyzed that people reach with level. As per the costsaver company, most of the people have already come with their friends or family so they do not need any other members in their group.

Esteem needs – As per the need of Maslow, it may be classified into two subsidiary groups. First is the desire for adequacy, strength, power, achievement, and freedom, and another one prestige, status, and recognition. Costsaver offers the best facilities to their travellers and guest through which their company’s goodwill cannot be reduced in any manner.

Self-actualization – It is analyzed that self-actualization presents people’s desires to satisfy their maximum use of abilities and skills. As per the costsaver company, they are focus on fulfilling their customers’ needs and requirements, and based on their previous want, which will help them in satisfying them regarding their services properly.

How human resources theory relates to practice for identifying areas where this will differ in other organizations situation

This is necessary for the company to concentrate on HR theories which include strategic, tactics, and objectives which are mainly used by business managers and senior leaders to maintain accurate procedures and policies relates to other areas. Costsaver requires recognizing the areas in which they can differ from other organization conditions properly. Besides this, a specific company needs to identify their customers’ choices and needs as per this they need to develop accurate alterations in a better manner. For instance, if an organization focuses on managing whole business practices and functions where they recognize these areas then they need to firstly get required growth and success.

How human resource theory relates to practice in the specific organizational example

In the company, the human resource manager plays an integral role in which they are accountable for managing and maintaining business activities through which they can easily gaining appropriate goals and targets. For example, it is the best way to manage the HR system and procedures and it mainly influences the employees working style as well as organizational growth (Khan, 2018). HR transactional activities involve effective management, new recruitment of staff members, payroll processing and maintain records and statements related to the business operations in a proper way.


Evaluate how appropriate change management models support HR strategy in application to relevant organisational examples

The operational, functional, and structural management of the organisation can be changed through the conduction of change management models. The HR policy of the organisation can be maintained using the change management model. The organisation can use the Kotter’s change management model which will help the organisation in changing operational functioning and working of the firm. Kotter’s model can be used by Costsaver Company for the HR strategy conduction in which there are eight steps for the implementation of the whole model (Kianto, et. al., 2017).

Urgent: this step of the model involves the creation of an environment in the organisation for change conduction to improve the services provided for the customers. For instance, the HR strategies of Costsaver Company can be supported using the change management model. The urgency in the change implementation in the working and operational section of the company are necessary for better performance and problem resolving.

Powerful coalition: the employees and team’s support is required for the positive outcomes of the changes applied in the company. The coalition of the whole company’s staff and employees will result in the proper conduction of changes infirm. For example, Costsaver Company needs to the coalition in the employees to retrieve better results of the changes with the contribution of the HR strategies for the performance enhancement of the company (Marchington, 2015).

Change vision: the change vision should be understood to the employees and the management of the company for the proper implementation and knowledge about its requirement for the company. For instance, the Costsaver Company need to imply the importance and need for the changes in the company along with the HR strategies of the company.

Vision communication: the communication for the vision of change is needed to be done among the employees of the company for understanding the changes required for the Costsaver Company and its employees.

Remove obstacles: the company need to remove the obstacles in the direction of changes in the company. For instance, the Costsaver Company need to remove the hurdles in the path of changes in HR strategies which will enhance the overall performance of the company.

Short term wins: short winnings should be used in the support for employees which will increase the morale of workers. For example, the Costsaver Company need to support the employees using the small wins in the whole change management model implementation.

Change building: the consistent building of changes in the company is a must. For instance, the Costsaver Company needs to continuously create changes for the survival in the market place as per the HR strategies of the company management (Ogunyomi, et. al., 2016).

Corporate changes: the organisation needs to implement the changes in the corporate culture of the company. For example, the Costsaver Company should implement changes in HR strategies for the enhancement in the support field of employees for betterment.

Justifications for application of chosen change management strategies, models and concepts, and demonstrate how they effectively support HR strategy.

The Costsaver Company of tours and travel of UK gets effective support in the HR strategies as per the implementation of the Kotter’s change management model. The eight steps of the Kotter’s change management model have effectively supported the strategic management of the HR strategies which are important for the company. The strategic and controlled application of the changes is applied in the Kotter’s change management model for the Costsaver Company of UK which gets effective support for the new HR strategies for the dealing in tours and travelling fields of work (Shamim, et. al., 2016).

Critique how to change management strategies, models and concepts could be implemented together

The Costsaver Company will receive possible disadvantages and crucial assistance for the concepts and strategies for the functioning of the company under the Kotter’s change management model. The Kotter’s change model will provide strategic and sequential benefits for the company under favourable and unfavourable working environment as per the alternate administration of Kotter’s. The progress and development in the administration will be gained through these benefits in such a way that share prices and market profit will increase for the company (Shaukat, et. al., 2015). There are also some negative impacts of the Kotter’s change management model in which the employees can suffer difficulty in adapting through changes and performance of the overall company and employees can suffer decline. This is the only possible drawback for the Kotter’s change management model.


Explain how HR outcomes can be monitored and measured, and apply this to a specific organisational situation

The HR outcomes required to be monitored and measured for the calculation of the HR strategies in terms of efficiency, effectiveness and service delivery. HR services can be measured using various factors. The failure of new recruitments, performance levels of new employees, return on investment, benefit satisfaction, training effectiveness and many more are the matrices on which the HR outcomes can be measured for the company. The deepness in the strategical implementation of the services is measured using these actions (Yusoff, et. al., 2020).

The efficiency and effectiveness in the HR strategies can be monitored and measured using recruitment channel analysis, cost per hire, and return per investment. The HR performance will stand their outcomes for the efficiency and effectiveness of the company’s performance. The HR outcomes can be measured from the employees’ satisfaction in the company’s working culture.

The Costsaver Company can measure and monitor the effectiveness and efficiency of the HR strategies and its outcomes using the measurement metrics. The metrics are influenced by the return in investment or the other HR outcomes which are required to be measured for the enhancement in the performance of the company to increase the development and growth. The changes need to be applied correctly as the performance can be measured and monitored using the changes (Ogunyomi, et. al., 2016). The employees’ performance will be influenced by high rates due to the monitoring and measurement of HR outcomes.

Discuss and evaluate how effective HR management and development can support sustainable performance and growth to meet organisational objectives.

The Costsaver Company has major roles for the HR administration for the growth factors in the achievement of the performance and organisational objectives using the various factors. The manpower in the company is under the control of the HR department in the organisation. The employees and HR division collaboratively work for success and growth of the organisation. The Costsaver Company has the aims and objectives for achieving sustainable performance by the employees of the organisation with the help of the hard-working culture. The employees of the company are provided with the enhanced working atmosphere by the HR management and development of the company.

The environment of the workplace should be enthusiastic, friendly, energetic, motivational and light in which the employees will enjoy working and don’t stress out. The HR department’s development and management facilities will help in the increase in performance of employees which will enhance the benefits in sustainable performance development of the company (Jabbour, et. al., 2016).

Make suggestions for HR development techniques applicable in a given organisation.

The Costsaver Company can apply various kinds of HR development techniques for the attainment of development and sustainability in the market place which is as follows:

Performance appraisal: this technique will help in increasing the motivation and performance of the employees on individual levels and the overall performance of the company.

Employee training: this technique will enhance the performance levels of employees and outcomes of growth and development of the company will be achieved.

Employee career: this technique will help in sustaining employees in the company for a longer period which will maintain stability in the employee’s career and company’s performance and growth levels (Hecklau, et. al., 2016).

Employee rewards: this technique will motivate and encourage the employees to work hard for achieving public appreciation for the hard work for the company. This will help in increasing the overall performance of the company in growth and development.

Critically reflect on how HR monitoring and evaluating techniques contribute to sustainable performance and growth.

The Costsaver Company’s growth and progress will be continued using the HR development and observing practices. There are various kinds of results received from the development and monitoring techniques for influencing the business performance for the growth and development of the company in an act of optimism. The HR development techniques help the organisation in increasing morale, motivation and performance of the employees which will enhance the individual performance along with hard work for aiming the targets and objectives of the company (Crichton, et. al., 2018). The HR techniques will help in gaining a sustainable presentation along with the growth and progress of the company. There are also some drawbacks of the techniques of the HR department and the monitoring facilities of HR outcomes in which the employees can start rebelling towards the administration of the company or can harm the company’s resources which will adversely impact on the performance and growth levels of the company. Thus, the HR techniques have desirable and undesirable influence or impact on the organisation’s goals and objectives. The Costsaver Company will get influenced by these factors and the development or progress will be hindered by the overall administration formation of the company.


From the above-described report, it is concluded that strategic HRM is a process that assists in managing business concerns and activities. The current trends also help in analyzing the major factors which influence HRM strategies and policies of the business. Various external and internal factors are also discussed in this report that impacts organizational growth and regulations. It is required for Costsaver Company to adopt an online platform which helps them in attracting a wide range of people at national and international level. The change management model also described that assist in recognizing the alteration aspects which may create a negative impact on company processes or practices.


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