Strategic Hrm Essay

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Why is strategic HRM so important for organisations? Explain how strategic HRM can be facilitated and how it can contribute to an organisation.

Strategic HRM: can be defined as the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that brings up innovation, flexibility and competitive advantage. Strategic HRM involves setting employment standards and policies. Moreover it is not any particular human resource strategy but it is a framework for shaping and developing many people management strategy. (Sarah Glimore and Steve Williams, 2009) It is the pattern of planned HR operations and activities intended to help an organisation to achieve its
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Strategic HRM practices when properly implemented can also create a social atmosphere in which employees have a good feeling about the organization. Moreover it is suggested that State Owned Enterprises (SOEs) and Private Owned Enterprises (POEs) can have more benefits and change their performance drastically by adopting Strategic HRM practices in their business. The article proposed that when a firm’s human resource practices are consistent with the firm’s strategic goals then the organizational efficiency and performance would be enhanced (Ngo, Hang-Yue; Lau, Chung-Ming; Foley, Sharon, 2008).

Another study was done to analyse the impact of strategic HRM on company’s performance which has identified several strategic HRM practices. These practices include internal career opportunities, formal training systems, results-oriented appraisals, employment security, participation, and job descriptions. Within the practices of strategic HRM, the internal career opportunities, refers to the preference for hiring employees initially from within the organisation. Training systems mentioned as the extensive training opportunities for the employees of the company. Appraisals are conceptualized in terms of outcome-based performance ratings. Employment security reflects the degree to which employees feel secure about continued employment in their jobs and employee participation, both in terms
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