Organisations are increasingly taking a more strategic approach to the management of their human resources. Explain why this may be so and discuss some of the conflicts and tensions that arise when attempting to integrate corporate and HR strategy.
This paper reviews and explains why organisations are increasingly taking a more strategic approach to managing their human resources function and integrating this function with the corporate strategy development of the organisation. The paper is divided into three key parts: • Introduction and Context – This section presents the issues and provides a brief context into the situation highlighting the resulting variances in the approaches taken by management. • Current Situation,
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Knowledge transfer was identified by the research of Easterby-Smith, Lyles & Tsang as critical in bringing the level of impact of the human resources function to a strategic level. There is less of a conflict in building the learning capability of the organisation from other examples. Nevertheless, the challenge is ensuring that the senior management and staff overall remain committed to the knowledge learning and development that will take place in their organisation even if they know that this will lead to increased importance and strategic role for the human resources function. In a large number of firms, the learning that occurs in organisation plays a considerable part in the success of these organisations (Ryan, Gospel & Lewis, 2007). • Ensuring support from the work force. A critical part in the evolution of the human resources function into one with a strategic role is the support of the work force. As the human resources function becomes a more strategic function, this could impact the way the work force is managed, and may lead some to disagree or challenge the changing status quo. This can be particularly challenging for firms which currently have unions in place that are not able to see and
Human resource departments today have a more distinct, calculated position within organizations, and human resource strategy influences the bottom line. “One of the challenges for HR leaders is convincing executive leadership teams that human capital is one of the most important resources in which the company can invest” (Mayhew, 2014, p.). Subsequently, “this return on investment is an essential part of the argument for including HR as part of an overall business strategy” (Mayhew, 2014, p.). Human resource departments utilize the information given to them from company executives and leaders, coupled with their respective expertise on all things personnel, and they plan and implement staffing concerns for the betterment of the organization. From preparing job analysis, to comparing inventory and forecasting, it is the responsibility of human resources to consider the objectives of an organization and fulfill those goals while operating the specific planning relative to HR.
The existing rift between the dean’s office and the aggrieved staff brought the administration of business to a virtual ‘ground zero’. It is important that the following factors be associated with the causes of these problems;
In my role as HR, I need to be prepared for the rapid changes in the business environment; organizations are increasingly looking at human resource as a unique asset that can help provide a sustained competitive advantage., I will ensure the HR strategy is in alignment with the business strategy of the company I am responsible for. Obviously, my ultimate goal is to provide a full-fledged effort to ensure the productive and fruitful integration between HR strategy and Business strategy.
Schuler and Jackson (1987) propose the model of Human Resource Management as the business strategic policies and practices of the organization. This framework is to achieving competitive advantage in different industry condition. They argue for fit in different industry condition and business strategic. It includes innovation, quality enhancement and cost reduction. This business strategic associated with particular employee role behaviors and HRM policies and practices.
The practise of Human Resources is moving from the traditional forms of managing people to a more strategic form whereby the Human Resources function is closely linked with organisational performance and success. This strategic form of human resources has increased the need for the Human Resource professional to understand the linkages between Corporate Strategy, Human Resource Strategy and Employee Integration.
Strategic Human Resource Management has been developed to give companies a competitive edge over other companies. Since widespread access to and the use of technology have resulted in tighter margins for maintaining a competitive edge,
By extension, intellectual assets and the organizational system that attract, develop and retain them are emerging as significant elements in the strategic decision making. This evolution in the role of human resources (HR) follows directly from the demand of rapidly changing product markets and the corresponding decline of command and control organizational structures. A skilled and motivated workforce providing the speed and flexibility required by new market imperatives has increased the strategic importance of human resources management (HRM) issues at a time when traditional sources of competitive advantage ( quality, technology, economics of scale etc. ) have become easier to imitate. In effect, while the markets for other sources of competitive advantage become more efficient, surrounding the development of a (High Performance Work) force. Remains a significant unrealized opportunity for many organizations.
The role of the Human Resource Manager is evolving with the change in competitive market environment and the realization that Human Resource Management must play a more strategic role in the success of an organization. Organizations that do not put their emphasis on attracting and retaining talents may find themselves in dire consequences, as their competitors may be outplaying them in the strategic employment of their human resources. With the increase in competition, locally or globally, organizations must become more adaptable, resilient, agile, and customer-focused to succeed. And within this change in environment, the HR professional has to evolve to become a strategic partner, an employee sponsor or advocate, and a change mentor within organization. As the area of human resource management becomes more strategic and more global it is becoming more important and critical to the organization. While not all companies are recognizing this yet, those that are most effective and most admired, seem to be the ones that are. As a consequence they are doing many things that make
To address my research question on why there is a need for the presence of a relationship between strategic management and strategic human resource management, and how we can make this relationship come about. Firstly, I started off by defining the two concepts of human resource management as well as strategic management. Secondly, I discussed the organisational history and the role of HR in the past, and where it (HR) is going. Thirdly, I discussed the existence, importance and implication of this relationship. Lastly, I discussed the means of making this relationship come
Theme to consider: What is strategically managing human resources? How do we distinguish it from ‘plain HR’?
“Corporations began viewing employees as assets rather than as cogs in machine. ‘Human resources management’, consequently, became the dominant term for the function—the ASPA even changing its name to SHRM in 1998. (SHRM)” The realisation from organisations that their most prised and valuable asset is their employees. This lead to development and integration of HRM and has become crucial to plan an organisation’s strategic approach “to generate a competitive advantage, the resources must be valuable, rare, imperfectly mobile inimitable. (Taylor, Beechler & Napier 1996)” To understand why
Bredin (2008) notes a shift from traditional to strategic Human Resources Management and the implications for the organisation. Ulrich (1997) suggested how Human Resource Management and the role of a Human Resources Business Partner can contribute to an organisation’s competitive advantage. Ulrich suggests that to deal with the challenges, the organisation should move away from the traditional HR approach and apply four new strategic HR roles, namely Strategic partners, Administrative Experts, Employee Champions and Change agents. This model aligns HR strategies with the organisation’s strategies. The HRBP role creates the people strategy for meeting current and future HR needs of the organisation and works to ensure that the organisation is resourced accordingly to benefit the organisation in a positive and efficient manner.
Emerging into a Strategic partnership has many Human Resource departments, managers, and trainees on its side. Many corporations and business are currently taking part in various dramatic changes with multiple implications for the different manage changes of human resources at this time. Of course, there are many changes, but the most important one is the serious deployment of different information technology and the growing amount of organizations have created by different training and development programs. Another important change in the Human Resource world is the business environment. As time goes on, like any good thing becomes updated. Through these next few years the increasing complexity and knowledge is going to be in affect.
The role of the Human Resource Professional is evolving with the change in competitive market environment and the realization that Human Resource Management must play a more strategic role in the success of an organization. Organizations that do not put their emphasis on attracting and retaining talents may find themselves in dire consequences, as their competitors may be outplaying them in the strategic employment of their human resources.
Within this essay an in depth analysis will be conducted on the difference between Human Resource Management and Strategic Human Resource Management using contemporary perspectives. Human Resource Management (HRM) is the process of managing human resources in a systematic way. It is a practice devised to maximise the performance of employees and is concerned with the application of management principles to manage organisational personnel while paying attention to the policies and systems of the entity (Delaney & Huselid, 1996). Strategic Human Resource Management (SHRM) is a function of management which entails development of policies, programmes and practices related to human resources, which are aligned with business strategy so as to achieve the strategic objectives of the organisation (Patrick M. Wright, 1992). Its primary purpose is to improve the performance of the business and maintain a culture that encourages innovation and works continuously to gain competitive advantage. In this essay the Resource-Based View, High Performance Management and High Commitment Management perspectives of Strategic Human Resource Management and Traditional and Collaborative