Human Resourse Management Essay

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Human Resourse Management

This essay will review the role of human resource management (HRM) in the strategy process. This will include the function of recruitment and training programs in HRM, the concept of strategic fit and how human resource management can lead to a competitive advantage.

The manner in which an organisation’s personnel are managed has a tangible influence on the productivity of the employees, which ultimately acts upon the firm’s bottom line. Corporate success is dependent upon the integration of the human resource plan and the corporate strategic plan.It has become a widely held premise that people provide organisations with an important source of sustainable competitive advantage and that the effective
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53). This process is critical to the strategic objectives of the firm. If changes in the ‘people market’ can be anticipated, and if this is attended to at the senior level, human resource management (HRM) can act as a proactive commercial adviser. However, the relationship between overall strategic planning and HRM is largely dependent on the perceptions of both HRM and senior management towards the contribution that the workforce can make to corporate success. For example, companies that are aware of the strategic value of human resources are more likely to integrate HRM with the overall strategic plan (Nankervis, Compton and McCarthy, 1993: p. 56).

Strategic human resource management (SHRM) is "the process of identifying the organisation’s strategic goals and the use of these goals as the basis for personnel practices and procedures" (Butler, Ferris and Napier, 1991: p. 64). Comparing the performance of organisations that utilise it with those that do not can show the importance of SHRM. Numerous studies and reports have concluded from their study of the corporate sector that the strategic management of human resources leads to a competitive advantage, (see Collins, 1987; Butler, Ferris and Napier, 1991; Koch and McGrath, 1996; Armstrong and Long, 1994; Schuler and MacMillan, 1984;
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