Strategic Human Resource Management
1. Introduction
In the late decade of 1980, the organisations realized the significance of their employees as a capital asset or human resources; and by adopting and implementing a set of HRM practices (such as recruiting, training and developing people etc.) aimed to succeed a sustainable competitive advantage based on a business strategic view by making the employees’ involvement the main key point of the new human resource management into the business process; and by establishing the organizational culture that they are part of the organization (Kaufman 2001: 506). During this period, the HRM is transformed into a Strategic HRM approach in order to sustain in these modern business challenges.
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2. Understanding Strategic Human Resource Management (SHRM)
Human resource as a strategic partner in an organization means accepting the Human Resource functions as a strategic partner in the formulation of the company's strategies as well as in the implementation of those strategies. In particular, human resource are recruiting, selecting, training and rewarding personnel to increase the capacity of a business to execute its strategies, HR needs to understand on knowing how to measure the monetary impact of their actions, so they can be able to demonstrate the value added contribution of their functions.
Primary actions of strategic human resource should convert business strategies into HR priorities. In any business setting environment, whether it's a corporate, functional, business unit or product line, a strategy is always there either clearly in the formal process or document or completely through a shared agenda on priorities. Human Resource as a strategic business partner identifies the HR practices that make the strategy happen. This whole process of identifying HR priorities is called organizational diagnosis through which an organization is able to determine it strength and weaknesses.
The important areas in organization that reflects any organizations
Human Resource (HR) strategic plan’s outline short term goals that have been aligned with their organization’s strategic plans. With the HR’s goals being aligned it also helps the representative know how much man power is needed from the budgeting process done through HR. The HR function of an organization is responsible for ensuring top talent is recruited and retained, which means ensuring success of an organization’s strategic plan.
The human resources department plays an important role when it comes down to strategic planning. To illustrate this form of planning is a vital component in strategic human resource management. The human resource department must demonstrate a plan, which is the strategy which is intended to accomplish the goal of the organization over time. This is the way the organization functions. When the human resource department is on the same page as the organization this directly links the two together and guide them on a straight
To begin evaluating strategic human resource management approaches, one must first understand the concept of human resource management and how it came to be. Human resource management stemmed from what use to be called personnel management in the early 1940’s. The term human resource management (HRM) was first used in the United States and it suggests to some that “employees were an asset or resource-like machines, but at the same time HR also appeared to emphasize employee commitment and motivation” (CPID, 2016).
In simple term, strategic human resource management is concern with the ways in people is crucial to company effectiveness. According to Miller (1987) strategic
Today 's fast-paced, competitive business environment has resulted in "rediscovery" of the human resource management function as a group that may be able to enhance firm competitiveness and performance by being "strategic" (Dyer & Kochan, 1995; Ulrich, 1997). Strategic Human Resource Management is a term describing an integrated approach to the development of Human Resource Strategy that will enable the organization to achieve its goals (Armstrong, 2005). Whiles strategy is an action that managers take to attain one or more of the organization’s goals. Strategy presents a general direction set for the company and its various components to achieve a desired state in the future. This results from the detailed
Human Resource Management is defined as “the policies, practices, and systems that influence employees’ behavior, attitudes, and performance” (Noe 3). The responsibilities of the human resource department of any company can be characterized by three product lines, providing administrative services, being a business partner, and also being a strategic partner. When referring to handling administrative services and transactions, that means handling administrative tasks for a company by recruiting and hiring employees and answering any questions that they may have. Next is being a business partner, meaning that by having an effective HR system that keep track of everything at the company and looking for skills that the company may be in need for the future, and understanding what the business needs. And finally, being a strategic partner. Being a strategic partner entails contributing to the company’s goals and strategy by understanding what is needed in the HR department and provide a competitive advantage.
In any organization it is important for HR to touch all levels of the organization and to understand the organization’s environment. An organization who values their employees cannot afford having a human resources department that does not function in a strategic partner role. Human resources professionals, in organizations are equipped with the knowledge, skills and abilities to work with talented senior leaders in an organization. They have the ability to successfully partner with each department within an organization to understand the overall business. HR professional can assist in designing strategic plans to balance the needs of the organization, the employees and the stakeholders. HR can help align efforts of the various functions within the organization with the established goals. They can support the organization’s functions by recruiting, developing and retaining company team members who are crucial. HR should be the driver of the organization’s values. They must not only focus on internal tasks but must step outside the box and fully understand the organization as a whole, how it operates, the competition and what could influence the organization's progress. They must be able to handle change, perform environmental scanning, understand outsourcing and processes
Human Resources often begins as very tactical policies, records, compliance, discipline, compensation, benefits, job descriptions, hiring, performance management (). Taken to the next level, HR becomes strategic, connecting employees to the business mission, values, and vision, in order to drive business results (). Employee goals and metrics align to the business strategy and rewards tie into results. Additionally, careful consideration is given to developing talent pipelines, employee succession plans, and career planning in order to respond flexibly to the inevitable work flow and staffing changes that all businesses experience ().
In my role as HR, I need to be prepared for the rapid changes in the business environment; organizations are increasingly looking at human resource as a unique asset that can help provide a sustained competitive advantage., I will ensure the HR strategy is in alignment with the business strategy of the company I am responsible for. Obviously, my ultimate goal is to provide a full-fledged effort to ensure the productive and fruitful integration between HR strategy and Business strategy.
Strategic Human Resources needs to be used. This is the attempt to use HR policies to mutually benefit employee and employer while delivering the organisations wider objectives. This
The strategic human resources management of the means every person from within organization from the top of management level to the bottom of ground staffs are doing things that make the organization successful. According to Schuler, R. S. (1992) strategic human resources management is defined about integration and adaption within organization .Its concern to ensure HR management is fully integrated with the strategy and these HR policies are adjusted and used by the employees and their line managers as part of their everyday work.
In most companies Human Resources is being recognised as a strategic partner. Integration of the human resource strategy with the business strategy is achieved by considering HMR issues as part of the formation of business strategies. Operational human resource responsibilities became less
Strategic human resource management on the other hand involves the process of developing a consistent and accurately aligned collection of corporate practices, strategies as well as policies aimed at facilitating the achievement of a given organization's strategic objectives as indicated in the work of Mello (2002). Some of the Strategic human resource management (SHRM) practices include the activities, actions and decisions related with
In today’s rapidly changing globalised business environment, human capital has become one of the keys to competitive advantage. Consequently, any good business strategy must fully utilise the inimitable assets of people through their knowledge, skills and abilities. This highlights the need for strategic human resource management (SHRM). The key assumption of SHRM is that organisational performance is affected by employees through a set of human resource (HR) practices (Pan et al 2006).
HR managers and HR professionals are taking much more of a proactive approach on the management team than ever before. The strategic HR approach is involved in variety of tasks ranging from strategic planning to decision making and coordinating all Human Resources functions for all employees (Schlesinger, Leonard A 1983).