3. Why is it important for HR management to transform from being primarily administrative and operational to becoming a more strategic contributor?
Prior to any discussions regarding HRM alignment with business strategy, it is necessary to distinguish the role of traditional HR from the role of strategic HRM. The Journal of Management published an excellent article written jointly by Brian E. Becker and Mark A. Huselid. The article was entitled Strategic Resource Management: Where Do We Go From Here? Becker and Huselid made a distinction between Human Resources and Strategic Human Resource Management. According to Becker and Huselid, the distinction between HR and HRM centers on two important facts. First, traditional HR focused on individual performance and in contrast, HRM focused on organizational performance. Second, HRM uses human resources systems to solve business problems conversely, traditional HR kept human resource functions separate from the business functions (Becker & Huselid, 2006).
Strategic human resource management (SHRM) is, indeed, one of the most pivotal concepts in today's business and management field. It is because SHRM sets the vision of HR and it also a critical HR decision making tool (Wang, 2010). A successful HR strategy can be implemented in the long run to improve the overall employee motivation along with productivity so as to improve business performance and develop organizational culture that nurture innovation, flexibility and competitive advantage (Ulrich, Brockbank & Johnson, 2009). Therefore, SHRM is the important in driven the most successful businesses.
One of the current trends in strategic human resources management (strategic HRM), is research regarding whether a company’s human resources department should put more effort in the strategic or organizational aspect of the company. Should a company focus more towards one aspect than on the other? In order to find answers to this question, researchers are using different theories, methodologies, evidences, gabs in research, and conclusions. The purpose of this literature review is to collect knowledge about the current thinking and research of the function of strategic HRM to improve the overall performance of a company.
The main focus of research now is to see if there is a “link between strategic HRM practices and organizational effectiveness” (Torrington et al., 2014).To find out if the link does exist there are two main types of research that have been done in the
Introduction: HRM plays a vital role in supporting business strategies while taking any business decisions at higher level of organizations. Human Resource Management which can make the effective use of human resource in order to enhance organizational performance and as a strategic business partner, human resources management can justify adequate funding for human resources activities. This assignment aims to investigate different human resource management issues. It will also provide us a clear view about the role and importance of HRM in achieving organisational effectiveness. It discusses about the formulation and implementation of HR strategies along with the contemporary issues impacting SHRM.
Most of the successful organizations today have undertaken strategic HRM practices that are in some way or the other inked to these seven factors; employment security, selective hiring, decentralization of decision making, high compensation, training, flat hierarchy and information sharing. HR policies can be used to reinforce appropriate culture.
It is important for HR Management to transform from being primarily administrative and operational to becoming more strategic contributor because of the involvement of competitive advantages through a company s’ employees. Strategic HR managers need proceed with the professional growth by hiring employees with high potential and giving them opportunity to learn and make lot of experience from their job roles where can access to brightest future in the industry. Secondly, the executive succession where the strategic HR managers will hiring the potential successors and grooming them with experience and advancement to be ready for replacement of the owner of company. A company can be in right direction if proceed with the strategic succession planning. Third is the labor cost efficiency. Strategic HR department mainly focus on their top performers who effort the most to organizational goals and long-term company success. A strategic HR philosophy ensures the employees satisfied perfect where by paid to
Aim: This research will help us understand the role played by Strategic Human Resources Management in Organizational success, what role a HR manager plays in improving organizational efficiency and how it differs from traditional Human Resources Management.
Wright and McMahan (1994) define strategic HRM as “the pattern of planned Human Resource deployments and activities intended to enable the organisation to achieve its goals.” A HR function should impact the success of an organisation; a policy must remain current and suitable to both the internal and external environment. Ulrich and Lake (1990) affirm, ‘HRM systems can be the source of organisational capabilities that allow organisations to learn and capitalise on new opportunities.’
Human resource management (HRM) has evolved into a huge industry in the business arena. The evolution and advancement of technology has created a global platform for HRM. The effect of globalization in many organizations has opened the door for HRM, and it is a crucial component for a successful business strategy and plan. This paper will define HRM, and discuss HRM’s primary function and role in an organization’s strategic plan.
Today 's fast-paced, competitive business environment has resulted in "rediscovery" of the human resource management function as a group that may be able to enhance firm competitiveness and performance by being "strategic" (Dyer & Kochan, 1995; Ulrich, 1997). Strategic Human Resource Management is a term describing an integrated approach to the development of Human Resource Strategy that will enable the organization to achieve its goals (Armstrong, 2005). Whiles strategy is an action that managers take to attain one or more of the organization’s goals. Strategy presents a general direction set for the company and its various components to achieve a desired state in the future. This results from the detailed
In simple term, strategic human resource management is concern with the ways in people is crucial to company effectiveness. According to Miller (1987) strategic
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