MNGACC ASS1 (1)

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Fanshawe College *

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MGMT6043

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Business

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Apr 3, 2024

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Assignment #1 Darwin Mantasha Khan Ramandeep Kaur Sana Haj-Asaad Lawrence Kinlin School of Business, Fanshawe College FINA-6014-(01)-24F: Management Accounting Professor Kerry Watson January 26, 2024

PART A Describe the human resource function that is at the center of your article (e.g. Training, Organization Development, Recruitment, Health & Safety, Strategy, Industrial Relations, etc.) a. Define the function as you understand it to operate. The human resource function at the center of this article is Strategic Human Resource Management (SHRM). It's a specialized approach to human resource management that aligns HR practices and policies with the overall business strategy of an organization. It goes beyond the traditional HR focus on day-to-day employee management and aims to contribute to the achievement of company goals. Strategic Human Resource Management (SHRM) is a modern way of handling people at work. It's like making sure everyone in a company is working together to reach significant goals. SHRM focuses on being flexible, having a work culture that fits the company, and making sure the business performs well. (Emeritus, 2023). Additionally, according to Haan (2023), Strategic Human Resource Management (SHRM) is like a smart way of organizing work in a company. It's about making sure that what the HR team (the people who handle employees) does fits perfectly with what the whole company wants to achieve. For example, SHRM involves creating rules and plans in HR that match exactly with what the company wants to do. It's like putting together

HR programs and policies, such as how employees are paid, trained, and how their performance is managed, so that everything helps the company reach its goals. b. What value does it contribute to the organization e.g. it ensures the selection of top-skilled, technical resources? Aligning HR policies with overarching company strategy is how Strategic Human Resource Management (SHRM) provides firms with enormous benefit. Through specialized training and development programs, this alignment provides a laser-like focus on accomplishing company objectives while also improving employee performance. The organization is given the tools it needs to succeed in the future. SHRM's emphasis on employee development. In the end, reduced expenses related to turnover are achieved by SHRM through promoting strong employee interactions and establishing a favourable work environment, which increases job satisfaction and retention. Moreover, competitive pay packages and chances for career advancement help draw in top personnel, which is another way that SHRM helps. The flexibility and continuous evaluation it provides allow companies to efficiently manage changes, and its involvement in strategic decision- making guarantees that HR insights support knowledgeable leadership decisions.

c. What are the financial impacts/implications (generally, of the function? There is a growing body of research that demonstrates the positive impact of SHRM on organizational outcomes. A recent meta-analysis of over 500 studies found that SHRM is associated with better financial performance, higher levels of innovation, and improved customer satisfaction (Siemsen et al., 2010). It is found that organizations with effective SHRM practices had better financial outcomes, higher levels of employee engagement, and lower levels of employee turnover (Khan, 2023). Strategic Human Resource Management (SHRM) generates direct financial impacts by incurring costs related to specific programs like training, compensation, and performance management. These initiatives enhance employee skills and well-being. Additionally, SHRM contributes indirectly by curbing turnover rates, reducing recruitment costs, and fostering employee productivity. The organization's long-term financial health benefits from improved employee retention and enhanced productivity, reinforcing SHRM's strategic significance in optimizing resources for immediate needs and ensuring sustained financial success. d. How does the function get funded to operate? Where does the money come from to run it? How? Strategic Human Resource Management (SHRM) is funded through allocations from the overarching budget designated for the human resources department. Organizations dedicate resources to facilitate the

execution of strategic HR initiatives, covering various expenses such as training programs, recruitment endeavors, and employee engagement activities. Notably, SHRM funding may be specified within the general HR budget, while some organizations may opt for a distinct budget exclusively for strategic initiatives. This tailored financial allocation ensures that SHRM receives dedicated resources, underscoring the significance of strategic HR planning and implementation in achieving organizational objectives. e. What financial information do you think the function might need to be efficient and contribute to the organization? HR forecasting prevents and maintains the company's financial and active operational lines by limiting the impact of unforeseen circumstances. Human resource forecasting helps businesses and organizations determine and figure out whether to increase staff members, decrease the workforce, or relocate and shift resources. It is most appropriate to have this project carried out by human resources departments as they are in charge of recruiting, onboarding, and training. Human resource forecasting is critical because it helps businesses run ethically by preventing overstaffing and wasted revenue or productivity. (Iancu, 2023) Pay ranges and categories, wage variation, and other compensation measures may be more accurately calculated and tracked if a defined reward system and compensation plan is established by HR. Decisions

about pay and benefits are similarly made openly and consistently. To keep internal equal wages in place and remain within the budgeted amount, a compensation program and plan are essential. Precise and necessary financial data can assist in the search for and management and utilization of resources to enhance employee skill sets, which in turn will boost organizational productivity. (Iancu, 2023) f. Anything different/additional that you think will better demonstrate your knowledge of your selected Human Resource function. Strategic Human Resources Management can assist the organization because it facilitates the combination of technology with SHRM procedures, which in turn leads to improved organizational productivity and performance, technology integration is an essential component of strategic human resource planning. Competitive advantages may be achieved by creative use of technology in the areas of human capital recruitment, hiring, training, development, and retention. When it comes to an organization's long-term strategy, the two most important factors are the HR department and technology. Consequently, management should take on more independent and supportive complementary functions inside SHRM. The employee will feel more involved and invested in the company and their job

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