The possible implications that could be associated with the evolution of contemporary business environment and the specific dimensions associated with organizational development are observed in the strategic alignment of organizational capital. Strategy has emerged as a profound attribute for adaptability of organizations to the variable trends in the existing business environment particularly arising from the concerns of political, economic and socio-cultural changes. Therefore leadership and human resource management strategies of an organization must be aligned with the evolving trends in existing industrial and market environment.
The formidable contributions of SHRM to the domain of business management could be observed in the direction of human capital of an organization along the requirements and competences of the people assets. Thereafter the formal illustration of SHRM models and theories in context of management and leadership have been prolific contributors to the proliferation of specific platforms that can be utilized for identifying leadership and human resource management issues (Abdelhak, Grostick & Hanken, 2014).
References to the integrated observation of wider cultural and ethical issues posed for the leadership alongside the critical review of appropriate policies and practices for flexible and precise utilization of human capital assets could provide a comprehensive impression of essential requirements to support the organizational strategy. The following report engages in the description of the SHRM practices and theoretical paradigms in context of the case study of DEBT Busters UK which is an entrepreneurial establishment dealing with financial services.
The critical reflection presented in the report with respect to nature of SHRM theories and models as well as the practices and policies alongside the cultural and ethical impacts associated with leadership practices according to SHRM is helpful for drawing reasonable conclusions for the formation of appropriate course of action in order to implement HRM strategies effectively.
Reflection on the cultural and ethical issues faced by managers in the case study of DEBT Busters UK has also been highlighted in the report in order to draw comprehensive recommendations to change the course of action followed by the existing organizational management for human resource management (Akingbola, 2013).
The primary emphasis on leadership and management in context of SHRM could be realized effectively with respect to the case study of DEBT Busters UK so that imminent threats can be identified flexibly alongside providing possible strategic changes that can be introduced in the management of human capital. Prior to the expansion of the report, it is imperative to consider the assessment of the case study and observe the specific problems which have emerged as potential roadblocks for the feasible execution of strategic changes in human resource management of DEBT Busters UK (Beatty, 2013).
It is essential to obtain comprehensive interpretation of the pitfalls pertaining to strategic changes introduced by the organization for inducing reforms in the recruitment and selection process by including new managers who had served as managerial executives at General Electric. The reforms in the SHRM approach followed by an organization could be determined through recognition of potential areas of the business that could be subject to discrepancies without the implementation of strategy as well as the improvement of the conventional operational frameworks.
However, the introduction of changes by the new managerial executives could not be aligned with the old employees of DEBT Busters UK thereby turning to conflicts (Beatty, 2013). One of profound pitfalls that could be noticed in the case of strategic human resource management of DEBT Busters UK can be noticed in the initiation of unauthorized changes by Antony Brown, one of the founding members of the organization. Therefore, irresponsiveness to change and conflicts on the basis of culture could be identified as formidable strategic issues in context of human capital management in DEBT Busters UK.
These issues pose considerable threat to the sustainability of the organization’s competitive advantage and hence the senior management must assume cognizable initiatives in order to address the confusion related to whether the existing cultural and group based strategic management issues can be reformed or the organization should continue with the same (Cania, 2016).
On the other hand, the case study also reflects on the application of an initiative and incentive scheme which allows employees to improve their performance for accomplishing higher returns. The scheme reflects a promising initiative to introduce common precedents for practices among employees irrespective of the history of the organization or the association of the employee with the organization.
Prior to a reflection on the models and theories associated with SHRM as well as its implications in the resolution of leadership and management issues, it is essential to observe the generic definitions of human resource management. Human resource management can be described as a unique variant of employment management in context of a business organization. The strategic characteristics that can be associated profoundly with the concepts of human resource management refer to the development of competences as well as commitment among the workforce.
The process of competence development is associated with credible implementation of varying structural, cultural and personnel oriented techniques. Conventional definitions of HRM suggest its implications towards the management employment relations within the organizational environment. The influence of employment cycle’s consideration in the framing of appropriate SHRM frameworks is observed in the description of comprehensive details ranging from recruitment and selection till the termination (Chaturvedi, 2013).
Employment cycle is defined as the collection of varying phases encountered by employees in their specific job positions such as induction, training, and career planning and development and performance appraisal. The employment cycle is also indicative of the reflections on individual HR functions thereby reflecting on the issues and activities that can be associated with the same. Recruitment and selection could be associated with screening of the potential applicants on the basis of their specific competences. The profound implications that can be drawn from the recruitment and selection function of HRM refer to the primary objective of appointing the right individuals for specific jobs.
The notable issue that can be perceived for leaders in the recruitment and selection aspect of HR functions refers to diversity of workforce which could create formidable impact of sensitivity and gentrification. The next function which could be associated with the HRM management in strategic contexts is training and development which is meant for preparing the competences of employees in accordance with the stated objectives (Dimba & Obonyo, 2015). The conflict among individual and organizational responsibilities creates potential discrepancies in the resolution of training and development objectives in SHRM. Training and development is also associated with the concerns of adaptability to new technology and the implications of instruments required for retention of employees is a notable discrepancy that can be observed from the critical reflection of theoretical paradigms pertaining to strategic HRM. Another formidable element referred to in SHRM theories reflect on performance appraisal and rewards which signify a profound component of the employment cycle.
The theories pertaining to employment cycle refer to its efficiency in motivation of employees and thereby ensuring feasible strategic direction of the organization’s HRM. The performance appraisal and rewards imply the provision of remunerations, annual payment, fringe benefits, performance related incentives and policies for remuneration which are considerably inclined towards addressing the key motive of the working of human capital i.e. financial returns (Getha-Taylor, 2016). Other profound HR functions that could be referred to in context of strategic HRM include management of conduct and discipline, monitoring organizational change and development as well as participation and commitment are meant for obtaining conclusive SHRM outcomes as per theoretical concepts (Gitau, 2014).
Theoretical models which have been presented in context of SHRM refer to the Harvard Model, the Michigan Model and the Human Resource Cycle which are dependent on the approaches to HRM, possibility of competing HRM goals and assignment of ulterior responsibility to a specific authority for HRM. The HRM functions could be apprehended to be generically associated with the objectives pertaining to performance, staffing, administration and change management.
The approaches to strategic HRM could be first of all derived from the categories including occupational groups or levels, industrial or sector wise and societal context classifications. The contrast observed in the probability for completion of HRM goals can be analyzed from three distinct perspectives referring to unitarist or pluralist, social legitimacy or management autonomy and hard or soft HRM implications. The disparities among unitarist and pluralist perspectives could lead to profound concerns according to the involvement of varying parties in the employment relationship. The implications of trade unions and the proliferation of conflicts can be assumed as notable characteristic features which distinguish the unitarist from pluralist perspective and are responsible for privileges of managers to introduce varying approaches in SHRM.
The unitarist perspective refers to the superiority of general profitability as well as the superior performance of the organization as well as social systems rather than focusing on sectional interests. Hard and soft HRM approaches are also characterized by the varying emphasis on human capital as in the former the approaches are inclined towards comprehensive utilization of employees while soft HRM is inclined towards developing the competences and potential of individual employees which could improve employee commitment alongside pursuit of organizational objectives that can render high performance. Another possible determinant of competing HRM objectives of an organization could be observed in social legitimacy and management autonomy (Gupta, 2014).
Strategies which are implemented for increasing the reputation, image and brand identity through addressing demands of external stakeholders are responsible for validating social legitimacy. Management autonomy is realized when strategies are implemented for limiting regulations as well as requirements for addressing the external demands for enhancing the flexibility of local management. The theoretical paradigms referring to the Harvard model suggest formidable changes introduced in SHRM and its characteristics describe the efficiency of the theory in catering SHRM objectives. The formidable characteristics that can be derived from the Harvard model refer to the universal model adopted for ensuring good practices on a global level alongside depiction of comprehensive stakeholder interests and formal association of constraints and choices in the HRM process (Hataani & Mahrani, 2013).
The scope for internal coherence in the model is also a potential guideline for ensuring that the strategic HRM practices are realized effectively. The Michigan model reflects on the impact of political, cultural and economic forces on the strategic approach to human resource management. The Michigan Model for SHRM reflects on the essential characteristics such as hard HRM approach and social legitimacy. The model is characterized by the references to compatibility of the organizational strategy, structure and systems implemented for management of human capital of the organization (Hollenbeck & Jamieson, 2015). The hard HRM approach could be accounted for the induction of employee treatment policies that are precise and are considered as highly analytical resources to help employees in completing their goals.
The formidable inference that can be drawn from a critical reflection on the theoretical paradigms of strategic HRM indicates that contingency measures are not described comprehensively. The employment cycle denotes another promising element in the management of strategic human resource management implications. The necessary observation of a relation between HRM and performance is a major concern for leaders in the case of DEBT Busters UK as observed from the different models pertaining to SHRM. The theories pertaining to SHRM are also implicative of the prominent references to Purcell’s model of high performance in which the underlying elements between HR policies and practice as well as the performance are described in order to determine the possible directions of strategic human resource management approaches (Hornsby, Kuratko & Naffizger, 2015).
The limitation noted in context of the model presented by Purcell is indicative of employee attitudes and employee behaviour. While employee attitudes are profoundly associated with the involvement of employees in the HRM framework and commitment of the employees, experiential observations from employees as well as discretionary behaviour are also accounted as fundamental implications that can be derived in context of employee behaviour. The discussion on the explicit benefits that can be drawn from the strategic policies, theories and models could be used for determining the scale of strategic alignment in order to address the reforming trends in the business environment.
The noticeable issues which leaders and managers face in context of SHRM could be derived from the varying implications of policies, plans, strategy and practices that are considered as profound determinants of strategic alignment of HR functions. Strategic HRM requires leaders and managers to achieve a formidable alignment of business strategies and HR strategies and the long term options for promotion of the HR’s direction as well as the fabrication and implementation of decisions for forming coherent HR strategies (Jackson, Schuler & Jiang, 2014).
Furthermore the implications of SHRM for determining appropriate allocation of HR functions with suitable strategic direction are also associated with the potential issues that can be faced by the senior management and leaders of DEBT Busters UK (Jackson, Schuler & Jiang, 2014).
Apart from the models, an illustration of the theories is also perceived as a drastic influence on the approaches to SHRM and therefore a critical reflection of the theoretical paradigms is intended to explain the rationale of issues that arise in context of leadership in DEBT Busters UK. Some of the profound theories that could be referred in context of SHRM include examples of trait theories, situational leadership, great man theories, transactional theory and contingency theory and transformational theory. Theoretical references to varying leadership styles such as autocratic, democratic, transactional, coercive and transformational styles are implicative of the variable options accessible by leaders in context of strategic human resource management.
Development of distinct leadership competences according to the different categories could enable leaders to implement contingency based measures that are compatible with the scenario presented immediately (Jackson, Schuler & Jiang, 2014). The formidable influences that could be presented in context of varying leadership theories should be applied differently in case of varying organizational situations can be obtained from the exercise of authority over the individual employees and departments alongside varying directions of motivation, influences, privileges of followers and direction for accomplishing strategic objectives.
Another promising inference that could be drawn from the theoretical paradigms related to SHRM refers to the emphasis of employee relations in strategic management of human resources (Kramar, 2014). The major elements which could be associated with employee relations is indicative of movers or the parties and involved institutions, patterns, process and outcomes, skills, practices and policy and the approaches as well as context for SHRM on the basis of theoretical assumptions (Kramar, 2014).
The application of SHRM practices and policies can be critically evaluated from the perspective of strategic alignment and its respective directions for strategic changes introduced in an organization. The ability of an organization to ensure the integration of core operational and strategic practices which could provide appropriate desired outcomes. The classification of strategic alignment into the vertical and horizontal strategic alignment is indicative of the distinct approaches through which the HR and functional strategies, plans, practices and policies are integrated with each other (Lengnick-Hall, Lengnick-Hall & Rigsbee, 2013).
The implementation of SHRM could be apprehended from the primary measures such as strategic partnership including the inferences from the Ulrich’s model which signifies the four distinct roles of a HR leader referring to the strategic partner, employee advocate, human capital developer and functional expert. The term strategic partner is amply reflective of the similarities with business partner wherein the interrelationship between the professionals and executives of the HR department of an organization with the line managers and senior management in order to realize plausible outcomes from strategic management (Maina, 2017). The strategic partnership is validated by the proliferation of HR strategies and policies which depict formal similarities to the business objectives of the organization. The application of strategic partnership is a generic term in context of private sector organizations while public sector firms have also started the adoption of strategic partnership as a reasonable approach for SHRM. Implementation of the varying dimensions of SHRM refers to comprehensive illustration of the key concepts associated with SHRM as well as the definitive perspectives related to SHRM.
The perspectives for implementation of SHRM are largely classified into the universalistic and contingency perspectives. The universalistic approach followed for determining the best practice to implement strategic HRM is associated with the profound characteristics of commitment, flexibility, strategic integration and quality. The implementation of Universalist approach is implicative of the promulgation of a unique assortment of reasonable HRM practices that can be applied universally in any context alongside presenting viable performance outcomes in varying scenarios. On the other hand the contingency approach suggests the formulation of functional and HR strategies in accordance to the organizational circumstances and context (Marler & Fisher, 2013).
The contingency approach suggests diverse facets for accomplishing feasibility of the approach through the association of the external fit of the organization with concerns for HR strategies of the organization while the internal fit in context of the contingency approach reflects on the coordination of functional strategies, policies, plans and actions with the organization’s strategic objectives and goals. One of the promising inferences that can be drawn in context of the strategic management of human resources is the profound reference to establishment of precise guidelines that dictate the treatment of human capital of an organization alongside the moderation of practices that could ensure feasible realization of principles and values associated with the strategic change. In case of DEBT Busters UK, the formidable reference to the conflicts that could be drawn from the SHRM applications is noted in the case study. The different types of conflict include value role conflict and old new role conflicts alongside conflicts arising in internal and external contexts of roles (Martín, Miguel & Sánchez, 2013).
The individual types of conflicts observed in the theoretical references suggest that the inter-role conflict arises when employees or managers are responsible for addressing specific roles and on the other hand, the conflicts with other individuals from different departments. The intra role conflict is reflective of the friction among the expectations and accomplishment of the HR leaders in an organization. The value role conflict can be observed as a notable deterrent for the case of DEBT Busters UK since the entrepreneurial values posed by the Antony Brown are contrasting to the demands of the job as required by the strategic changes in management introduced by the new managers. The old-new role conflict can be drawn from the conflicts that could arise in context of existing demands as a response to the new pressures impinged by strategic changes (Matei, 2013).
One of the most noticeable measures implemented for strategic HRM applications is observed in the structuring of the HR department for realization of contingency and strategic objectives. The structuring is dependent on the specific processes for SHRM such as shared services, strategic business partners and the centres of excellence which further leads to varying changes that can be implemented in HR departments. Strategic business partners in context of SHRM could be described as the senior HR personnel and executives working in unison with the line managers for addressing long term objectives related to change management and talent management planning. The centres of excellence are formed within the HR department of an organization through the induction of specific teams of HR experts that have industry specific knowledge competences and are associated with the improvement of innovation in areas such as performance appraisal and rewards, talent management and employee engagement (Matei, 2013).
Shared services in context of the structuring initiatives for the HR department are indicative of the concentration of distinct core functions of HR such as payroll management, absence monitoring and resourcing in a single unit. The moderation of these three distinct aspects is responsible for the induction of specific models of HR departmental restructuring (Rankin, 2013, January). The functional structuring of HR department is characterized by the central organization of the HR functions alongside ensuring the responsibility of teams for discrete areas of activity in HRM such as training and development, recruitment, incentives and compensation. Shared services centres also account for a drastic influence on the restructuring of HR department which is established generally as an intranet or call centre that can be accessed by everyone in the organization flexibly in order to determine plausible responses for the queries.
The applications of shared services restructuring could be noticeable opportunity to access and leverage the opportunities of accessibility and economies of scale which could be flexibly helpful in context of internationally operating businesses (Rankin, 2013, January). Concerns for developing employee engagement can be accounted as major determinants of the efficiency of feasibility of strategic HRM approaches, policies, strategies, procedures and plans since the implementation of the cognizable competences of the organization in terms of human capital could only be helpful for accomplishing the strategic objectives as presented by the change management scenario. DEBT Busters UK could leverage this factor to introduce commendable modifications in the employee engagement strategies so as to complement the approaches of SHRM (Rankin, 2013, January).
The case study of DEBT Busters UK also depicts the formidable setbacks that arise from the conflicts between existing employees and new managerial executives who implement strategic changes to accomplish organizational objectives. Therefore the analysis of employee engagement strategies such as talent management, career planning and training and development should be assumed as prolific measures for garnering higher employee involvement alongside the primary motivating factors of remunerations and appraisals.
The consideration of the comprehensive range of cultural and ethical issues posed for the SHRM frameworks of DEBT Busters UK can be promising contribution to the determination of varying impacts on individuals as well as the business. Organizational culture is a major element for the sustenance of competitive advantage of an organization and is indicative of the generic approaches followed for execution of normal business in an organization. Furthermore, the definitions of organizational culture also refer to the collective impression impinged on the mind as a result of the unique beliefs, values and practices associated with the organization’s activities (Singh & Rao, 2015).
The definitions of organizational culture depict the pattern which comprises of generic assumptions learned by a group in the organization through experiential practices as well as the processes of internal integration and external adaptation. These methods are validated on the basis of experience and hence new members of the organization could leverage these opportunities to perceive the problems correctly alongside presenting the correlation of the problems in order to present a viable interpretation of the relevance between measures used for solving the problems and the scenario. Integration of strategic practices in Human Resource Management could be observed in context of rational management and cultural management which are indicative of varying approaches to deal with scenarios. In the case of DEBT Busters UK the conflicts on the basis of culture arise due to the formation of sub groups within the organization based on varying rationale (Singh & Rao, 2015).
The rational management implemented by the newly appointed managers is indicative of potential characteristics such as arguments on the basis of statistics, use of regulations and procedures to implement management control, formal communication, evaluation through monitoring and control as well as management of budget according to targets and strategies. On the other hand, cultural management is inherently observed in the case of existing business environment in DEBT Busters UK which relies on soft HRM approach thereby signifying the formidable characteristics such as administration of workers on the basis of shared beliefs, informal communication, and emotional appeal for external stakeholders and the use of autonomy and commitment for evaluation.
Understanding the cultural issues arising due to conflicts on the basis of values as well as new and old roles of managers in case study of DEBT Busters UK is a noticeable illustration needed for determining varying approaches to management of HRM through culture. Recognition of cultural and ethical issues in context of strategic HR management could facilitate unique benefits such as increased commitment of employees, shared belief and values, improvement in productivity, absence management, better employee relations and improvement of employer reputation. Ethical issues could be observed profoundly in the violations of Antony Brown and the sub groups within the organization that refrain from adopting the new changes introduced in HRM framework (Tabasi, Vaezi & Alvani, 2014). These can be considered as ethical due to the obligation of the employees to comply with organizational precedents (Yulei & Leping, 2013).
The resolution of critical gaps in the cultural and ethical dimensions related to the implementation of SHRM activities at the DEBT Busters UK could be implicative of the potential opportunities that could be presented by the explicit approaches to culture in strategic management of human capital. The foremost benefit delivered by the organizational culture in context of strategic human resource management is observed in the induction of a common framework of values and beliefs which guarantee the institution of common approaches to functional and HR strategies. The varying adaptations of culture according to the strategic performance objectives for the HR in an organization refer to the perspectives of strong culture, adaptive and fit (Tao, et al., 2013).
The individual classification of the organizational culture perspectives indicates the dependence of the organizational culture and strategy thereby validating the institution of cultural changes in order to address the strategic management objectives in context of HRM (Yuksel, 2013).
The specific course of action that should be followed in case of DEBT Busters UK is initially suggestive of measures to develop human resources such as training and development of personnel, performance improvement methods and the organizational development. Induction of appropriate and functional training and development programmes could indicate potential improvement in case of sub group conflicts that are evident in the organization (Yang & Choi, 2013).
Training would be helpful in planned instruction of human capital to follow specific practices assumed by the changes that new managers have introduced. The primary objective of training would be directed towards informing the existing workforce about the imminent objectives and scenario presented for DEBT Busters UK. Development should be a supportive entity for the outcomes of training which could suggest formidable long term impacts especially in terms of the development of professional competences in an individual. The management should extend its initiative and incentive scheme by implementation of measures to develop human expertise especially through learning (Tiwari, 2013).
Human expertise is particularly observed in the form of organizational capabilities that result in the unique competence of the organization in the industry. Monitoring the distinct levels of learning in context of the SHRM approaches would also be a reasonable approach to realize effectiveness of the strategic changes introduced in the organization. Individual learning is possibly derived from the personal reflection and understanding of performance in order to improve skills and competence for adapting to change (Tsao, 2013).
Group learning is largely dependent on the sociological dimensions for learning and is related to sharing of information through informal processes. Organizational learning is directed towards acquisition of system level information that could help the employees of DEBT Busters UK to implement technical changes for responding to external environmental conditions.
Conclusion:
The report conclusively reflected on the privileges and responsibilities of leaders in case of strategic management of human capital with respect to the case of an organization, DEBT Busters UK which requires moderation of a strategic change implemented in the form of recruitment and selection of new managers with improved expertise.
The failure of the initiative called for comprehensive critical reflection on the models and theoretical aspects related to SHRM, implementation framework for SHRM and the cultural as well as ethical issues observed prominently in context of the application of strategic changes in the management of human resources. The report also presented a viable course of action based on the critical reflection on the approaches for SHRM and theory associated with the same.
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