Analysis of SHRM Theories and Application to Businesses in New Zealand

2217 words (9 pages) Essay in Human Resources

23/09/19 Human Resources Reference this

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Journal Article

Critical analysis of strategic human resource management theories and their application in contemporary businesses in New Zealand


This article consist the information about the analysis of strategic human resource management theories and their application in contemporary businesses in New Zealand which will be my workplace.


Strategic human resource management is determining as a plan for the organization to apply strategies into business for achieving the goals and objectives of company.  It helps to benefit both employees and organization by developing, rewarding, attracting and retaining them toward their work. These changes could decide to proper utilize of resources. As a result, the goals of a human resource department reflect and support the goals of the rest of the organization. Strategic HRM is seen as a partner in organizational success, as opposed to a necessity for legal compliance or compensation. Strategic HRM utilizes the talent and opportunity within the human resources department to make other departments stronger and more effective.

Strategic human resource management theories:

  1. Behavior theory
  2. Contingency theory
  3. Need based theory

Analysis of theories

Behavior theory:

This theory is basically known as a psychology theory which is based on learning on the idea in which all behaviors are taken from conditions. This is occurring during the interaction with the environment. All steps of organisation taken from the actions of stakeholders whether it’s internal or external.

According to this theory changes would be taken by systematic and observable way which regardless of internal states. Basically, only observable behavior should be considered like emotions and moods are far too. Some thought that any person can potentially be trained for perform any type of project and task which can be regardless of genetic background and personality traits that require on their physical capabilities so it only need the right conditioning. (, 2017)


Contingency theory:

The contingency theory gives importance to leadership behavior. It prominence both the leader’s personality and the situation in which leader lead their team and task. Fiedler and his associates studied leaders in a variety of contexts but mostly in military context and their model is based on their research findings. In this theory leader can apply his own leadership style to lead the organization and make a team for new project and innovation of their organization. Its only depend on the internal and external situation of the organization how leader can take action. This is only a theory that states effective not only on situation it also control on situation how team working what are their outcomes with clear goals and task. The procedures of work and relation of team members also have big effect. If team does not meet these combinations than it cause be failure leadership. Fiedler made scale that is called least preferred co-worker LPC scale it was the first step to identify leadership style by using of model. The contingency leadership model variables framework how leader lead team and the relation with followers. (, 2015)

Need based theory:

Abraham Maslow, one of the most famous psychologists of the twentieth century. He created a type of system to rank the needs, illustrated by a pyramid representing that how human needs are ranked. Maslow’s theory is based on the premise that human beings are motivated by needs ranked in order to step wise ranking. Some of these needs are simply or basic which are essential to all human beings. When a basic need is satisfied than begin to seek higher-order needs. A pyramid structure outlined like Hierarchy of Needs. From the bottom Physiological, Safety, Love/belonging, Esteem, and Self-actualization it shows physiological needs as the most essential. According to Maslow’s our physiological needs, such as air, food, and water. Once our physiological needs are satisfied, we become concerned about the safety. Which include our own physical safety and security, as well as our employment to earn more for our future. The next need to fill is social our need to bond with other human beings. The need for love, friendship, and family is considered to be a fundamental human motivation which comes step by step. When we have achieved a sense of belonging, our need for esteem becomes more salient. The highest level of the hierarchy is the need for self-actualization, which refers to Person, can fulfill this need by learning new skills, taking on new challenges, and taking action to pursue their life goals and desires. (, 2016)


The development of strategic human resource management theories allows management to do HR practice in a more flexible and effective way. Strategic Human Resource Management which is the result of the evolution has brought to the organisation’s attention. For getting success into business, business strategies involve observing the ability of your employees so that the outcomes can be submitted on time following by the growth of company. Through the strategic planning process, you can make sure that you know the company goals, opportunities and the other competitive and after that hire the staff and get them train to achieve all the requirements of company. There are Seven key strategic human resource practices are identified and used to develop theoretical arguments consistent with each perspective. The results demonstrate that each perspective can be used to structure theoretical arguments that explain significant levels of variation in financial performance.


To conclude, from this study can summarize that SHRM is one crucial part that contributed to organization performance. The numbers of research have shown that variables used in SHRM study are business strategy, human resource management systems, human resource outcomes, and organizational performance. Many practices are done by strategic human resource management to enhance the performance of company. To manage the human capital in organisation human resources managements are facing various challenges and issues which are identified in article. Moreover, human resource management is coming out with best outcomes from overcoming these barriers and the development of overall internal and external of organisation.





Task 2

Nature of Professional and ethical values and dilemmas  

Research on Human resources management based is to follow the professional and ethical. The principal moral estimation of the HR experts is that they should add to the moral honesty of the association they work in. HR professionals are widely implicated with the responsibilities of new set when its importance increased in HRM. Ethical dilemmas got rise when employment of people in contemporary business that is on the part of HR practice which have largely ignored.  Values and ethics generally originate and could be polished up from the same sources as family, spiritual beliefs, and school. All the Professional values and ethics are the values and extensions which one learns before starting job at the workplace.HR experts must follow each law as it will help them to settle on moral choices for the improvement of the business and the organization (johnson, 2003).

B) Evaluation of findings:

      Dynamics of HR ethics

In every organisation ethical issues are basically defined as most difficult ones to handle.

Workplace moral principles and behavior guided by rules and standard of organisation ethics which sets company expectations toward ethical issues. The ethical issues in HR are employee responsibility, cash and compensation plans, performance appraisal, privacy issues, health and safety, employment issues. The basic rule for Human resource management is to treat each employee fairly and give justice without considering employees language and culture. The focus in HR ethics is on awareness of organisation values, codes, guidelines and behaving within those boundaries when faced with dilemmas in business or professional work. The important part of HR is to complete the employee’s performance appraisal by time and then rewarding employees according to their work. Ethical behavior in workforce should be rewarded and discipline should be maintained, to produce the positive outcome. Further, unethical values should be find out strictly so that a positive message could be sent to others that how conscious is the organization about following ethical and professional values (fiona harris, 2016).

      To tackle the emerging exigencies there are approaches which can be used to solve this emerging issue

In human resource management there are some basic principle to tackle emerging exigencies and ethical issues that three principles are intuitionism, moral idealism and utilitarianism.

Intuitionism: This principle work as the HR person or the employee is enough supportive or have knowledge to take decision and understand the emotion of the situation and take action accordingly, such as the final decision should not bring any negative effect on anybody or any person who is involved in it directly or indirectly.

Idealism: This principle gives significant on other states that everything is taken under law. There is clear distinction between right and wrong so no any emotional decision could be taken what is acceptable or what is not that is same true for all situations.

Utilitarianism: It concerns itself with the results or the implications. In this principle there is no clear distinction between what is good and what is bad the main focus is on the situation and the outcome. What can be acceptable in a particular situation and what can be unacceptable at some other place. It depict that if the net result of the decision is an increase in the happiness or better values of the organization so the decision is the right one (prachi juneja, 2016).

      Two issues identified from research findings

Health and safety: it is most common issue in some organisations as same we faced this problem in security company. Whenever our company faced this they always do some efforts to tackle this but the according to our security guards mostly time they faced rescue of their safety and health when they working in events and static jobs to protect someone it’s happen because of increasing of violence and drugs. So that this always comes big issue if anybody got attacked at work than it become bad image of company many of our guards are already faced some conflicts.

Lack of authority: This issue is also become bit serious because mostly guards faced difficulty when they working alone and in hospital patient watching. Security guards have no authority to take any action when they got attack they can just defense and call for backup its not on the spot working because sometime they got harm and no other way to tackle victim. Some of the guards leave jobs in last year by facing this thing so our company has to consider on it.  

      Justification of ethical frameworks

Above approaches are discussed can be very useful to tackle the emerging exigencies as these approaches promotes the ethical behavior which an employee needs to follow by considering the companies values. The utilitarian approach rises a question that what are the benefits and harms of the action to my colleagues and company. This approach also gives an various opportunity to people to choose one the best action which leads to positive outcome to company. The virtue approach centers around mentality, manners, or character qualities like genuineness, bravery, dependability, reliability, faithfulness and so on. This approach encourages people to show the faithfulness to other people by being honest. So, these approaches have great impact on people to make fair and honest decision to themselves and towards company. These approaches often arise the questions that which approach we tend to use for our personal decision.


APA references

  • (2015). Retrieved from
  • (2016). Retrieved from
  • (2017). Retrieved from
  • fiona harris. (2016, 12). Retrieved from
  • johnson. (2003). Retrieved from
  • prachi juneja. (2016). Retrieved from

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