Strategic Human Resource Management
The report talks about the strategic human resource management and performance management. It explains that how SHRM plays a significant role in every organization to meet the organizational goals and objectives. It explains the importance, function, approaches, and role of strategic HRM in the firm.
The term “Strategic human resource management” was introduced by the Kaufman (2012), where he explained that Strategic human resource management include the human resource elements such as discipline, hiring, payroll and it also involves the working with workers in a collaborative manner in order to improve the quality of work, boost and improve retention and maximize the mutual benefits of job for the employees.
According to Tiwari & Saxena (2012), it is the process of attracting, rewarding, developing and retaining employees for the benefits and advantages of both the workers and organization. Thus, the goals and objectives of the human resource department affect the goals and objectives of rest of the association.
According to Arulrajah, Opatha & Nawaratne (2016), SHRM is the integral part of strategic planning It formulates and executes the human resource practices and policies which produce the employee behavior and competencies in order to achieve the association strategic aims and objectives.
“Strategic human resource management” may be defined as connecting and accepting the human resource function as a strategic partner in the execution and formulation of the organizational strategies through the human resource activities like recruiting, training, rewarding and selecting the personnel. On the other hand, it may be defined as the connecting of human resources with strategic long-term goals and objectives in order to improve the trade performance and develop the organizational culture to promote the innovation, competitive advantage and flexibility (McNulty & Hutchings, 2016).
The term strategic human resource management can be defined as the pattern and outline that designed the human resource development and activities in order to achieve the organizational goals and objectives of the company.
After the various researches, it has been found that SHRM is focused on the issue and problems of HRM in organization perspective rather than individual perspective context. The role of SHRM provides support to business and trade activities of the organization. It maintains the relationship between strategic management and human resource management in the company. According to McNulty & Hutchings (2016), strategic HRM addresses and deals with broad organizational issues and obstacles relating to the organizational performance, effectiveness, changes in culture and structure, development of distinctive and unique capabilities, matching resources to future requirements and needs, Management of changes and knowledge management (McNulty & Hutchings, 2016)..
A study has been conducted by the Kontoghiorghes (2016) where he analyzed that SHRM plays a significant role in every organization. It develops the plans and process for enlistment, training, incentive, and compensation in order to attain the organizational goals and objectives. It ensures the chances of growth and success of the company. It is the procedure and process to use the technique of human resources such as training, compensation, recruitment and worker relations to build a strong association. This management provides clear direction and guidelines to employees for doing the work effectively. It continuously monitors and analyzes the internal and external environment of the company. It also evaluates and checks the progress and success of the company. It creates a strategic environment which will maintain the team spirit and teamwork in the organization. Therefore, it is the integrated part of the company (McNulty & Hutchings, 2016).
Importance of SHRM
According to Tarique & Schuler (2010), Strategic Human response administration assumes a vital part of the development and growth of the business association. All the association activities are managed with effectively and efficiently. There is a connection between’s the ways and techniques in which each and every phase is addressed, the approaches, effectiveness, organizational success, and profitability. It helps to increase the globalization in the organization. It identifies the organizational needs and requirements and utilizes the human resources. According to Cascio (2015), it formulates and reviews the HR policies and practices and it develops the guidelines for the HR managers. It set the performance evaluation standards and methods to analyze the performance of employees. It identifies the relationship among the different department and assigns the duties and responsibilities to them (Lengnick-Hall, Beck & Lengnick-Hall, 2011).The key exercises of SHRM are discussed below.
Equal Opportunity/ Diversity: Diversity describes the people differences, in a business setting; it regularly concentrates on a specific arrangement of attributes which are: sex, ethnicity, religion, inability, age, sexual introduction, area, conjugal status.
Staff planning: It is the procedure of investigation an association’s future needs in terms of number, abilities, and areas. It enables the company to anticipate and plan for the future employees. In this way, the key activities of SHRM play a vital role in the association (Festing, 2012).
The function of SHRM: According to Lengnick-Hall, Beck & Lengnick-Hall (2011), functions of SHRM are discussed below.
Employee engagement: It is the important key success factor for the growth and success of the company. The helps to the association to improve the efficiency of the employees and it also helps to retain the talent and potential of employees. The high employees’ engagement has been proved beneficial for the company to increase the productivity of the company. This management teaches the HR managers that how to increase the employee’s capabilities and competencies.
Introduce best practices: SHRM introduces the best practices and policies to perform the tasks and duties. It provides the best practices to help the entrepreneurs in order to meet the success of the company. It provides the job satisfaction to workers.
Teach Tools and techniques: According to Thurston, D’Abate & Eddy (2012), the SHRM conducts the various researchers in order to introduce the various new HR techniques and tools. This management teaches the company to conduct needs and requirements evaluation in the organization. The company uses these HRM techniques to resolve the various obstacles and key challenges of the association.
Improve HR effectiveness: It is the primary function of this management and it plays a crucial role in an organization. The strategic HRM improve the efficiency and productivity of the workers. It encourages the employees for doing work effectively. The HR professionals teach that how to provide realistic and rational information about the employment. The HR managers learn that how to incorporate and integrate the job expectations and organizational culture.
Public research: The SHRM continuously publishes the external and internal scientific research. This will help to improve the high employee turnover within the organization (Thurston, D’Abate & Eddy, 2012).
Purpose of SHRM activities
According to Singh, Darwish, Costa & Anderson (2012), the SHRM process plays a significant role in the company to meet the long term and short-term goals and objectives.
1: Scanning the environment: It is the first step of this process. This process starts with the scanning and scrutiny of the environment. In this stage, the management analyzes the external and internal factors of the association. The external factors include the political, technological, legal, economic, and sociocultural factors which influence the business activities and operation of the company. The internal factors encompass the organizational culture, business processes, hierarchy, industrial relations, and SWOT analysis. All these factors play an integral role in the company.
Therefore, the HR department collects all the important information about the competitors’ strategies, vision, strengths, weaknesses, and mission. This can be done by the scanning and evaluation of environment. Thus, the human resource managers identify the work culture, values, skills and abilities of the workers (Tiwari & Saxena, 2012).
2: Identify the sources of competitive advantage: It is the next step of strategic HRM process. It identifies the competitive advantage like products, price, brand positioning, customer service and delivery. Therefore, the HR professional helps in acquiring and obtaining the competitive advantages by conducting the various effective and efficient training and development programs. It will also improve the skills and abilities of the employees.
3: Identify HRM strategies and policies: The department uses the various strategies and policies to increase the productivity and revenue of the company. These strategies help to enhance and develop the employees’ capabilities and potentials (Liang, Marler & Cui, 2012).
- Learning as socialization: It is another part of the SHRM process and it plays a vital role in an organization. It includes the various techniques, methods, training courses, education programs, coaching sessions to ensure the employee’s performance and abilities.
- Engineering: This strategy focuses on developing and creating communities of practices, policies and social networks within and outside the company. Therefore, it is very important for the organization (Dimba& Obonyo, 2015).
- Devolved informal learning: It increases the awareness of employees for taking the learning opportunities and benefits. It enhances and builds the various career development programs to maintain sustainability in the organization.
- Empowered informal learning: Through this approach, HR professionals focus on the development of learning environment. The learning environment includes the designing of the new processes, provision of shared spaces and designing of new work location.
4: Implementation of HR strategies: According to Liang, Marler & Cui (2012), HR strategies plays an integral role in the success and growth of the company. The HR managers implement the various plans, policies, practices, and actions (Martin, Farndale, Paauwe & Stiles, 2016).
5: Monitor and evaluation: It is the final step of strategic HRM process. In this stage, Human resource department evaluates and monitors the performance of employees. It also evaluates the outcomes and strategies of the organization.
The approaches of human resource management are discussed below.
- Resource-based approach: According to Dimba& Obonyo (2015), it is the best approach of strategic HRM and plays a significant role in this management. The resource-based approach developed by the Barney in 1991. The approach will address the strategies and procedures of expanding and growing the firm vital potential and capacities by the improvement and development of supervisors and employees. This approach emphasizes the firm resources as the primary determinants of competitive performance and advantage. The resource-based approach includes the resource mobility and resource diversity. The Resource diversity refers to the different resources and competencies and the resource mobility (Nolan & Garavan, 2016).
- High commitment management approach:The High commitment administration approach is the critical and vital approach of SHRM and it is the important part of the human resource management. It improves and empowers the shared responsibility of individuals. This approach depends on the abnormal state of loyalty, trust, and confidence. It emphasizes the human duty, self-governance, power, and strengthening of employees. The approach concentrates on the workers’ relationship and their duties towards the employment. It concentrates on the recruitment and selection of the right people with excellent skills, abilities, and knowledge for doing the right job. The potential employees help to maintain the trust in the organization (Chuang, Jackson & Jiang, 2016).
- High involvement management approach: It is another approach to the strategic human resource management. This approach gives chances to employees to make decisions about their employment and business. In this approach, top administration includes the employees to take an interest in the business exercises of the association. It enhances and builds the proficiency and efficiency of workers. Through the involvement in administration, employees learn many things from managers and top administration. Managers share knowledge and experience with employees through the high involvement management approach (Chuang, Jackson & Jiang, 2016).
- High-performance management:It is the primary important approach of SHRM. It monitors and evaluates the attitudes and performance of the employees. This approach provides the various kinds of promotion and compensation and incentive schemes to the workers to improve the productivity of the workers.
- Strategic fit approach:This approach plays a significant role in SHRM. This strategy manages the performance and efficiency of the employees. In this way, the company can meet long-term organizational goals and objectives.
Now it is assumed that Strategic HRM is very important to expand the business and improvement of organizational learning in globally. It provides new opportunities and prospects for the promotion of team learning in the company. According to Kooij & Van de Voorde (2015), SHRM provides the teamwork and favorable learning aspects within the organization. This management helps to define the collective and communal processes to identify the efficiency and performance of the employees. It provides motivation and satisfaction to the employees for doing the work (Martin, Farndale, Paauwe & Stiles, 2016).
Conclusion
The report is based on the strategic human resource management of the company. The strategic HRM is the core part of the HR department and it plays a crucial role in order to maintain the sustainability of the organization. The scope of the strategic HRM is very wide and it plays a vital role in association growth and success. This management attracts the more candidates in the market.
References
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Chuang, C.H., Jackson, S.E. and Jiang, Y., 2016. Can knowledge-intensive teamwork be managed? Examining the roles of HRM systems, leadership, and tacit knowledge. Journal of management, 42(2), pp.524-554.
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