A critical assessment of Morrisons approach to strategic HRM - Essay Example

A critical assessment of the approach Morrisons takes to its strategic HRM, in this context will help to justify The Personnel Review’s (2009)iii notion that if a big organisation is to function successfully, strategies at different levels need to inter-relate. Furthermore, an evaluation of the extent to which Morrisons’ SHRM approach contributes to organisational effectiveness substantiates TIJHRM’s (2004)iv view that focusing on the alignment of SHRM with firm strategy is a means of gaining competitive advantage.

However, in order to effectively measure the extent to which SHRM contributes to the overall organisational effectiveness, an important aspect requires to be taken into consideration which is moving away from sole reliance on financial measures of organisational success. Instead, holistic frameworks are applied such as Kaplan and Norton’s (1996) Balanced Scorecard, which seeks to judge Morrisons’ performance on the basis of a range of indicators. The report’s conclusion observes that the approach which Morrisons’ managers implement, SHRM policies and exercise leadership, is strongly related to positive employee views in respect to a range of issues that facilitate motivation and productivity (e.g. worker-management relations, reward and recognition, coaching and guidance, communication and quality control (Morrisons 2010).

Having said that a noticeable recommendation recognises that since pay mix is related to financial performance (Gerhart and Milkovich, 1990)v, in order to simultaneously improve employee ownership and promote high wages, staff and managerial remuneration, compensation should be based on Morrisons financial performance. This paper applies associated theory & practice to critically assess the approach Morrisons takes to its strategic HRM. This will be achieved by critically examining the definitions of personnel