23 Mar 2015 27 Apr 2017
Human resources management strategy is very important for every organisation to function smoothly. Faced with rapid change organizations need to develop a more focused and coherent approach to managing people. In just the same way a business requires a marketing or information technology strategy it also requires a human resource or people strategy.
Strategic human resource management is a branch of Human resource management. It is a fairly new field, which has emerged out of the parent discipline of human resource management. Much of the early or so called traditional HRM literature treated the notion of strategy superficially, rather as a purely operational matter, the results of which cascade down throughout the organisation. There was a kind of unsaid division of territory between people-centred values of HR and harder business values where corporate strategies really belonged. HR practitioners felt uncomfortable in the war cabinet like atmosphere where corporate strategies were formulated.
Strategic human resource management is crucial large as well as small companies. In small companies this process may be as simple as the manager or the owner himself taking time to observe employees, along with assisting, assessing and giving regular reviews. However larger companies will require a whole department to be in charge of such activities for the development of employees. The quality of staff members can be improved by meting their needs in such a way that it may benefit the company. Investing in employees and providing them with tools they need to thrive and prosper in the company proves to be a good investment in the long run for the company.
So ahead in the literature review we will look in deep about the Strategic human resource management and the company following SHRM in their daily practice and how effective it is for running their organisation effectively.
http://ezinearticles.com/?What-is-Strategic-Human-Resource-Management?&id=549585
http://www.accel-team.com/human_resources/hrm_08.html
Strategic human resource management is a complex process which is constantly evolving and being studied and discussed by academics and commentators. Its definition and relationships with other aspects of business planning and strategy is not absolute and opinion varies between writers. So there are many definations for strategic human resources management.
A comprehensive Human Resource Strategy plays a vital role in the achievement of an organisation's overall strategic objectives and visibly illustrates that the human resources function fully understands and supports the direction in which the organisation is moving. A comprehensive HR Strategy will also support other specific strategic objectives undertaken by the marketing, financial, operational and technology departments.
Strategic HRM can be regarded as a general approach to the strategic management of human resources in accordance with the intentions of the organisation on the future direction it wants to take. It is concerned with longer-term people issues and macro-concerns about structure, quality, culture, values, commitment and matching resources to future need. It has been defined as:
Strategic HRM is based on HRM principles incorporating the concept of strategy. So if HRM is a coherent approach to the management of people, strategic HRM now implies that that is done on a planned way that integrates organisational goals with policies and action sequences.
A good business strategy, one which is likely to succeed, is informed by people factors. One of the driving factors behind the evaluation and reporting of human capital data is the need for better information to feed into the business strategy formulation process. In the majority of organisations people are now the biggest asset. The knowledge, skills and abilities have to be deployed and used to the maximum effect if the organisation is to create value. The intangible value of an organisation which lies in the people it employs is gaining recognition by accountants and investors, and it is generally now accepted that this has implications for long term sustained performance.
http://www.cipd.co.uk/subjects/corpstrtgy/general/strathrm.htm
http://www.strategichrinc.com/
According to Wright & McMahan, 1992, Strategic Human Resource Management refers to:
"The pattern of planned human resource activities intended to enable an organization to achieve its goals."
Strategic human resource management concentrates on human resouce plans that have long term goals. It has a number of differences with the conventional human resource management methods. It does not focus on matters related to internal human resources. The principal objective of strategic human resource management is to enhance the efficiency of the employees through stressing on business hindrances that take place external to human resources.
There are three goals for this process:
Develop the Strategic Human Resource/People Plan/Document and yearly priorities.
Ensure successful implementation and change.
Build and sustain high performance in people management over the long term.
Following are the principal characteristics of strategic human resource management as per Gratton and Truss:
http://finance.mapsofworld.com/strategic-management/human-resource.html
Strategic human resource management (SHRM) is the purposeful resolution of human resource administration and policy issues so as to enhance a public agency's effectiveness. It requires understanding how personnel functions interrelate in context, recognition of their importance, and commitment by personnel managers, employees, supervisors and political leaders to work together for change (Klingner and Nalbandian, 1998, p. 386).
An HR strategy will add value to the organisation if it:
The first of these areas will entail a careful consideration of existing or developing plans and strategies to identify and draw attention to common themes and implications, which have not been made explicit previously.
The second area should be about identifying which of these plans and strategies are so fundamental that there must be clear plans to address them before the organisation can achieve on any of its goals. These are likely to include:
In addition, the HR strategy can add value is by ensuring that, in all its other plans, the organisation takes account of and plans for changes in the wider environment, which are likely to have a major impact on the organisation, such as:
The six broad interconnected components of this system consist of three planning steps and three execution steps.
The top three components represent the need for planning. Organizations must determine their strategic direction and the outcomes they seek. This is usually accomplished with some form of strategic planning. Classic strategic planning is a formal, top-down, staff-driven process. When done well, it is workable at a time when external change occurs at a more measured pace.
However as the pace and magnitude of change increases, the approach to strategic planning changes substantially:
Once strategic planning is under way, a process must be undertaken by the organization to design and align its HRM policies and practices to provide for organizational success. The remaining step in planning is to determine the quality and quantity of human resources the organization needs for its total force.
The rest of the HR strategic system exists for and is guided by these plans, policies, and practices. These execution components contain mechanisms that generate the correct skill sets, invest in staff development and performance, and productively employ them in the organisation. The last component provides a means to assess and sustain the competence and performance of the organization and the people in it with regard to outcomes that the organization seeks.
http://gametlibrary.worldbank.org/FILES/844_HR%20planning%20principles.pdf
In company called HLB UK LTD the management system, human resource is given due importance while planning goals and long term strategies. The skills that are necessary to meet the organizational goals are developed in employees. This point is considered during the planning phase and included in the policies devised for meeting goals. Nowadays, the human resource department does much more than just recruiting employees for the company. Using the human resource effectively in order to give the company a competitive advantage and completing the set targets, are some of the priorities.
The mission statements reflect the strategies, goals and the overall approach of companies. The values inherited and the policies devised by firms are based on the mission statements; which are the driving force that motivate the employees to move ahead.
Let us see at the Advantages of Strategic Human Resource Management in HLB UK LTD:
There are many advantages and benefits that strategic human resource management offers.
But at same time there are some limitations as well of SHRM which are faced by the company which are as followes:
But if implemented efficiently, strategic human resource management helps in improving the productivity of employees and utilizes their expertise in meeting the company goals.
Organizations and companies succeed, or fail, based on the quality and effectiveness of their employees. Today's successful firms recognize that to compete in global markets, they must have world class Human Resource managers who are active participants in strategic and operational decision. Whether they are reengineering the pay and benefits of the company or implementing Total Quality Management (TQM) programs, Human Resources Managers play a central role. The goal of strategic management in an organization is to deploy and allocate resources in order to provide the management with a competitive advantage. It goes
Without saying that two out of three classes of resources (organizational and human)
Correlated with the human resource functions. Towards maximum effect, the HRM
functions must be integrally involved in the company's strategic management process.
develops its strategic goals and mission, it's external opportunities and threats, and its
internal strength and weaknesses to generate alternatives. In his second phase, strategic
management process determines a plan of actions and deployment of resources to
achieve the pre-specified goals. This kind of strategic approach should be emphasized in
human resources management.
http://www.prometa.com/1d3ef1e0.png
Large and small organizations to provide for the coordinate human resources. The
Society of Human Resources Management identified six main functions:
1- HR planning, recruitment, and selection
2- HR development & training
3- Compensation and benefits
4- Safety and health
5- Employee and labor relations
6- HR research
Performing job analysis that is “ the process of determining and reporting pertinent
information relating to the nature of a specific jobâ€. This can be done using a motion
Study, a time study or a statistical sample to draw inference about the demands of TacticalApplicationsStrategicApplicationsOperationalApplications Planning, Recruitment and selection
Manpower planning Labor force tracking Labor cost analysis and budgeting Turnover analysis Recruiting Workforce planning/scheduling Training and Development Succession planning Performance appraisal planning Training effectiveness Career matching Skill Performanc evaluations Questionnaires, interviews and observation are tools to analysis jobs. This analysis produces job description and job specifications. The following step is the
Work activities of an individual or a group to achieve certain organizational
Objectivesâ€
Organization and ensuring that the organization has the right number of qualified
People in the right jobs at the right timeâ€. First of all be familiar With the business strategy, define the impact of this strategy over the specific units Of the organization. Define the skills needed and the additional human resources Required and develop action plans to meet the needs.
http://unpan1.un.org/intradoc/groups/public/documents/ARADO/UNPAN006257.pdf
The areas of business planning, human resources planning, and strategic planning and performance measurement are outgrowths of the desire of managers, stakeholders and stockholders for direction and accountability. These strategic planning sites bring excellent resources to the strategic planning effort.
Overall we have seen that the strategic human resource management plays very important role in every organisation which we have seen in case of HLB UK LTD as it increases effenciency of the organisation. A comprehensive Human Resource Strategy plays a vital role in the achievement of an organisation's overall strategic objectives and visibly illustrates that the human resources function fully understands and supports the direction in which the organisation is moving. So it is very important for every company weather large or small to have the strategic human resource management as it is the one of the very important tool for business to run smoothly and flexibaly.
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