The Extent to Which the Human Resource Management Strategy Is Aligned to the Organizational/business Strategy: the Case of Walmart

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[Source: Armstrong, 2009, p12]

As exhibited in Figure 1 an HRM framework unites HR theories that portray the general values and controlling standards embraced in overseeing employees, HR systems that characterize the heading in which HRM expects to go, HR approaches that give rules characterizing how these qualities, standards, and techniques ought to be connected in particular areas of HRM, HR forms that include the formal methodology and strategies utilized to put HR strategies, Plans and arrangements into impact, and HR programs that empower HR procedures, arrangements and practices to be executed by (Armstrong, 2009).

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Strategic Human Resource Management

SHRM is often described as a process of aligning human resources and human performance more closely to the organisations’ objectives strategically and operationally. It is about ensuring the harmonizing of peoples’ activity as closely as possible with the goals and objectives of the organisation in order to attain a competitive advantage (Martin, 2010).

As indicated by Armstrong (2009), the basic point of SHRM is to produce hierarchical ability by assuring that the association has the talented, engaged, dedicated and well-motivated workers it needs to accomplish managed upper hand over its competitors. [pic 4]

[ Source: Cania, 2014][pic 5]

As shown in Figure 1above, SHRM is a procedure that result in the improvement of HR systems, which incorporates vertically and horizontally with the business policies. These approaches express the desires of the general association which are valuable for the authoritative viability furthermore in overseeing individuals by resourcing, learning and advancement, reward and building worker relations (Cania, 2014).

SHRM has two fundamental targets, firstly, to accomplish incorporation like the vertical arrangement of the HR strategies with the business practices and the horizontal integration of HR procedures. The second would be to give an ability to read a compass in a regularly turbulent environment so that the business needs of the association, the individual and the aggregate needs of its workers can be met by the advancement and usage of sound and commonsense HR approaches and programs (Dessler, 2000).

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Difference Between HRM and SHRM

According to Snell & Bohlander (2010) HRM engages the process of utilizing individuals, building up their skills/capabilities, and making use of their services. Be that as it may, today, HRM has run over numerous progressions, and the most recent one is the Strategic HRM which is the most capable thought at present. The main difference amongst HRM and SHRM is that HRM is about dealing with the human capital within the company and SHRM is about adjusting the human resource to the key goals and strategic objectives of the organizations.

Moreover, Becker and Huselid (2006) clarified that HRM contrasts from SHRM in two noteworthy ways, firstly, SHRM concentrates on organizational performance as opposed to individual performance and secondly SHRM underlines the part of HR administration frameworks as answers for business issues including positive and negative complementarities instead of individual HR administration practices in segregation.

Strategy is about building economical upper hand that thusly makes above-normal budgetary execution. The most straightforward portrayal of the SHRM model is a relationship between a company's HR design and firm execution (Becker and Huselid, 2006).

SHRM mainly emphasizes on the objectives, goals and plans of the companies and how these business goals are accomplished through their human capital. Thus, SHRM is based on three main purposes which are acquiring a competitive advantage through human capital, executing the strategic plan through people and adopting a systematic approach in defining the target of the organization and the path that needs to be followed (Burma, 2014).

Table 2: Difference between HRM and SHRM[pic 6]

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Walmart Stores Inc.

Founded in 1962 by Mr. Sam Walton, Walmart is a conglomerate retail company that manages chains of warehouse and large discount department stores. As their mission statement highlights Walmart puts a lot of effort on creating a change in their clients’ lives by assisting them save money and live better (History Timeline, 2016).

Furthermore, from the idea of retailing through small stores have made Walmart the biggest retailer worldwide with 11,500 stores in 28 countries and e-commerce sites in 11 countries, 260 million consumers visiting annually. Walmart recently earned $482.1 billion in revenue and employed 2.3 million employees around the world of which 1.5 million works solely in the U.S. (Bergdahl, 2010).

Walmart utilizes the business strategy of cost leadership and differentiation. They strive to discover new ways of reducing overall costs and offer a comprehensive range of products and services at a significantly lower price that would provide them a competitive advantage against their competitors. Moreover, Walmart implements the cost leadership strategy by successfully implementing supply chain management. Thus, Walmart’s generic and intensive strategies are aligned to the company’s vision and mission. The company’s effective implementation of its strategies, vision and mission has made it the global retail industry leader (Ferguson, 2015).

5.1 Walmart’s Recruitment, Selection and Retention Strategy

Recruitment refers to the selection process of a range of potential applicants based on required educational background, working experience and technical skills from among whom, a company or organization chooses the most suitable person for a vacant position to be filled. The recruitment is undertaken in order to provide the best opportunity to the broad pool of selected candidates for the vacant post. However, any mistake in enlisting or selection process can occur resulting more costs and problems to business operations and clients. Therefore, choosing the right person is always challenging to the company (CIPD, 2009).

Therefore, the human resource management process at Walmart focuses on different recruitment procedure and sources for each vacant position in particular and also practices the selection criteria specific to retail