Components of Strategic Human Resource Management
Question:
Discuss about the Value of Staff Training and Education.
Strategic Human resource management plays a great role to complete the activities of the organization. Human resource management is an important part that should be taken into consideration by every organization. Strategic human resource takes into consideration components like hiring, payroll, and discipline that helps to boost the retention of the employees and also it helps to improve quality of the work experience.
According to John Bratton “Strategic human resource management emphasizes on the overall human resource strategies that are considered by the business units and organizations” (Bolden, 2016).Strategic human resource management also focuses on measuring the overall performance of the employees. When employees work in a positive environment, then it can be easy for the employees to complete the task in an effective way. Whereas Strategic management analyzes the strategies that should be taken into consideration by the managers so that performance can be enhanced and also competitive advantage can be achieved.
Strategic management is stated as a decision process in which the top management takes decision and decides the overall performance of the organization. It is a continuous process in which proper evaluation and control is made of the activities that are undertaken by the organization (Armstrong and Taylor, 2014).
Strategy is considered as a multi-dimensional concept that set a direction for the employees to conduct the activities smoothly. Strategic human resource management helps the organizations to meet the overall demands of their employees so that overall goals and objectives can be achieved (Jackson et al., 2014). Strategic human resource management is one of the proactive management of the individuals. Strategic human resource management states that it is a connection of human resources with strategic goals and objectives so that overall performance can be improved and also it develops the organizational culture that boost innovation, flexibility and competitive advantage (Bratton and Gold, 2017).
The practices of strategic human resource are not standardized and it is seen that if there is proper strategic human resource management then organization can easily enhance the performance of the employees. In the recent scenario, it is seen that environment is changing rapidly and this change known by various phenomena like globalization and changing the demand of the customers. To compete in the competitive environment it is important to improve the performance by reducing costs and also by improving quality.
Organizational performance plays an essential role to achieve the overall outcome in a proper manner. It is important to take into consideration effective human resource policies and practices so that proper balance can be maintained between the employees and organizations. Without human resource, it is not possible for the organization to complete the activities of the organization. Competitive advantage can also be attained if there is proper strategic human resource management in the organization (Brewster et al., 2016).
In the recent scenario, companies are facing a huge level of competition. It is just because of the rapid changes that are taking place due to globalization and also advancement in technologies. So it gives impact on the overall organizational performance of the organization. Organizational performance is considered as an important factor to management. The results that are given by the team and individuals in the company are known as the performance and it is concerned with the authority and responsibility so that objectives can be achieved by considering the ethics and values. Performance is stated as an ability of the employees to conduct the activities according to the given instructions (Mone and London, 2014).
Importance of Strategic Human Resource Management
It is seen that there are various strategic human resource practices and theories that should be considered so that performance can be enhanced effectively. One of the major factors that affect the overall performance of the employees is motivation. Motivation gives impact on the performance and productivity of the employees. It is stated that if the employee is highly motivated then it can be easy to accomplish the overall goals and objectives of the organization. Motivation helps the employees to give their best towards the activities of the organization. Strategic human resource management takes into consideration motivation factor to enhance the productivity level of the employees. It is important for every organization to motivate its employees so the activities can be conducted in a right direction (Kearney, 2018).
There are various theories related to motivation like Maslow Hierarchy theory. This theory should be considered by every organization so that employee’s motivation level can be enhanced. Maslow hierarchy of needs is the theory that is related to the necessity of an individual. In this theory, there are five factors that help the employees to be motivated. First is related to self-actualization need in which the managers should give training so that growth can be achieved by the organization. If there is growth in the organization then it can be easy for the employees to enhance performance level. Next is related to esteem need in which the managers should promote the employees by considering their overall performance. It affects the satisfaction level of the employees and also gives a positive impact on the employees. Safety need is also important need that should be given to the employees. Safety need helps the employees to safeguard their jobs by enhancing the satisfaction level. The biological need is concerned with food, water, and shelter that should be given to the workers so that efficiency can be maintained. Last is love and belongingness need is related teamwork and love between the employees of the company (Lee and Hanna, 2015).
So, by this theory, it is stated that organization should focus on the basic needs of the employees so that performance can be enhanced effectively. It is seen that if the organization motivate the employees without doing the assessment that how employees are motivated then it can lead to demotivation of the employees. For instance: There are two employees in the organization. One employee who is (A) is motivated by giving superior position and one Employee who is (B) is motivated by monetary incentive. If the employee B is given superior position and employee A is given monetary benefit then it can directly impact on the motivation level of the employees. It can also create difficulties for the organization to retain its employees in the organization. So, it can be negative for both organization and employee. It will affect the overall productivity level of the employee and also if employee leaves the organization than it can cost to the organization for hiring the employees.
Organizations implement strategic human resource management during recruitment and selection process in order to hire qualified employees that positively influence the company’s overall performance. Human resource planning (HRP) is referred to a process of evaluating and identifying the availability and need of human capital in a company so that the corporation is able to perform its tasks. It is necessary that managers conduct human resource planning to reduce significant time occurred between identification of job requirements and hiring qualified employees to perform such job (Khera and Gulati, 2012). The HR department is required to have an idea regarding job market and how to match job requirements with the qualification of job candidates. Hiring is a substantial part of strategic human resource managing which directly influences the performance of a company.
Theories Related to Motivation
However, effective planning is necessary, or else lack of human resource planning during recruitment process can negatively affect the employees. During the recruitment process, HR department seek candidates who fulfill qualification criteria for a specific job and who is a versatile individual (Jiang et al., 2012). In recent years, corporations have shift focus from traditional recruitment process to modern approach in which forecasting and succession planning plays a crucial role for handling different contingencies which might affect the performance of employees and the company.
Effective HRP also reduces turnover of employees by appraising their performance and providing them career growth opportunities (Kehoe and Wright, 2013). It is necessary that the HR department implements effective strategic human resource policies for enhancing organizations performance by hiring employees who fit the qualification criteria and who are versatile to adapt as per company’s culture.
During the recruitment and selection process, the HR department should implement a right model of recruitment and selection based on the job criteria. There are different recruitment models which can be implemented by the company such as retained search, executive search, outplacement, recruitment process outsourcing (RPO), contingency hiring and others (Ash, Hodge and Connell, 2013). For example, while hiring employees for top-level managerial positions, HR department should implement executive search model in which corporations seek out highly qualified candidates for filling executive and senior-level positions. However, incorrect implementation of a model can result in negatively affecting employees as well as the company.
For example, HR department can implement policies of strategic human resource management during recruitment and selection process and use ‘Executive search’ model for hiring senior-level employees from outside the company. However, it can cost current employees who are expecting to get a promoting to the top-level position (Doldor et al., 2012). Employees working in the corporation might be expecting a promotion, and use of executive search model can negatively affect their expectations. This can lead to increasing disputes between employees, and they are more likely to resist new management.
The performance of employees who did not get promoted by the company is more likely to be hindered by this policy. It can result in increasing issues such as the conflict between employees, absenteeism and an overall reduction in performance (Klotz et al., 2013). Therefore, strategic human resource management policies might improve organizational performance, but in the long run, it negatively affects employees and the company as well.
The companies implement strategic human resource policies for deciding compensation and rewards of employees. After hiring qualified and talented employees in recruitment and selection process, it is necessary that the corporation retains such employees. Organizations implement compensation and reward theories for improving employees’ performance and retaining them into the company (Gupta and Shaw, 2014). While selecting appropriate theory for improving employee performance, it is necessary that requirements and expectations of employees are taken into consideration by the HR department.
For example, the corporation can implement Reinforcement Expectancy theory for providing compensation to employees in order to improve their performance. The theory assumes that reward-earning behavior is most likely to be repeated by employees which mean employees are more likely to perform better again if their performance is acknowledged once. The Expectancy theory was given by Vroom which provides that an employee is more likely to be motivated if he/she knows that good performance will definitely provide a reward (Renko, Kroeck and Bullough, 2012).
Maslow Hierarchy Theory
However, while implementing this theory, it is necessary that HR department assess employees’ requirements and expectations to ensure that they are satisfied with their earnings. Employees who did not receive earning as per their expectations may be demotivated to perform better in the future.
Similarly, while proving rewards to employees, it is necessary that uniformity is maintained or else it can negatively affect employees’ performance. Organizations use rewards to motivate employees and encourage them to perform better in order to earn higher rewards. However, this may lead to increasing conflicts and negative working environment between employees who earn rewards and workers who did not earn rewards (Aslam et al., 2015). For example, if an employee performs exceptional and gets higher rewards, it can improve company’s performance, but it can negatively affect the performance of other employees as well. Employees who are not able to earn higher rewards are likely to get demotivated or jealous by employees who earn higher rewards and gets appraisals from top-level managers. As per Equity theory, uniformity in pay structure is necessary. In case the company not paying an employee for his dedication and hard work, it might lead to lower productivity, high absenteeism and increased turnover (Bell and Martin, 2012).
Therefore, strategic human resource management might increase organization performance by distributing rewards and higher compensation, but, it can result in reducing the performance of employees who are not able to earn such rewards which negatively affect both workers and the company.
It is also analyzed that when a change in strategy takes place, the organization provides training to its employees. Training is the method in which new skills and knowledge are developed of the employees. Training also helps to enhance the overall performance and productivity of the employees. If proper training is given by the top management then it can be easy for the company to enhance the overall productivity of the organization. Successful organizations are analyzing the need to consider best training and development practices to increase their competitive advantage (Haff and Triplett, 2015).
Training and development is an important factor in every organization and it is also a part of strategic human resource management. Strategic positioning of training and development helps to encourage organizational goals and objectives. If the strategic approach to training is taken into consideration than it can be easy to be more targeted, measurable and effective for the employees (Ford, 2014). It is seen that strategic training and development is related to searching, designing and delivering a training program to the workers so that they can be capable enough to conduct the activities of the organization with efficiency. At the time of giving training to the employees, it is also seen that the change that is implemented in the organization is explained effectively so that activities can be conducted according to the change that is implemented. In this situation, there are many people who are able to learn and adapt the change but there are many employees who are not able to work according to the new instruction or change implemented in the organization (Smith, 2016).
Assessing Employee Motivation
So, in this case, the performance of many employees is enhanced and the positive outcome can also be achieved through this technique. Through training, the confidence level is also enhanced as they know how to complete each and every activity of the organization with efficiency. If the changes that are implemented in the organization are not adopted by employees than it creates frustration and also employees leave the organization. So, training can enhance the performance level of the employees but can also affect the behavior and working pattern of the employees (Marchington et al., 2016).
Strategic performance management is also the part of strategic human resource management. It is analyzed that traditional performance management system failed to achieve the organization objectives just due to communication. Strategic human resource performance creates a connection between the strategy and culture of an organization and also it has the ability to manage the performance of the employees so that positive results can be achieved. It also links the overall objectives and performance management to drive the skill and capability requirements and to ensure that core values of the company can be achieved. It is seen that flow of communication is not always effective (Anitha, 2014). The flow of communication does not take place effectively from top management to the subordinates. The message that is given is not transferred to the subordinates in a proper manner. It can also mislead the corporate strategy of the organization.
If there is a communication problem in the organization then the direct impact is seen in the performance. It is important for the organization to maintain proper communication channel so that the activities can be conducted smoothly. If employees of the organization are communicating properly then it is seen that organization can enhance the performance of the employees. Organization employees can be affected and their productivity can also be hampered if there is no proper channel of communication (Heng et al., 2016). Effective communication is related to strategic performance management in which there is a link between strategy and culture of a company and it is related with the capability to manage employees performance so that positive outcome can be achieved. By not having proper communication channel it is seen that negative impact can also be seen in the image of the company and also on the overall profitability.
So, every organization should focus on maintaining proper communication channel so that goals and objectives can be accomplished effectively. It is important for the organization to consider Weber’s classic organizational theory. This theory states that the organization should have clear roles and responsibilities and also communication should be structured and clear in the organization so that employee’s productivity can be enhanced effectively. There should be no scope of confusion in the information given by the top management. The companies should have a proper structure where employees give a contribution towards their roles and responsibilities assigned to them. If there is no proper structure in the organization then it can affect the overall productivity of the company (Buckingham and Goodall, 2015).
Conclusion
By analyzing the paper it is seen that strategic human resource management plays a great role to conduct the activities of the organization. Strategic human resource management helps to enhance the overall performance level of the employees. In the first phase of the paper, the discussion is made on strategic human resource management and strategic management. In the next phase of the paper, the discussion is made on the overall organizational performance of the organization. The next phase is related to the factors that affect the overall performance of the employees like motivation, recruitment and selection, compensation and reward, training and development and also on the performance management. These are also the human resource practices which are supported by different theories that come under strategic human resource management. In this part also discussion is made that how it can cost to the employees in the future. These factors help to enhance the overall performance of the employees but it can also negatively affect the employees. If these factors negatively affect the employees than negative impact can also be analyzed on the overall sales and profit of the organization.
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