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
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.’
The changing competitive realities have provided the HRM function with and unprecedented opportunity to create significant share- holder value, through the effective management of the firms HRM system. We emphasize the importance of the global or overall HRM systems because we believe that it is the systemic and interrelated influence of HRM policies and practices that
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
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).
In simple term, strategic human resource management is concern with the ways in people is crucial to company effectiveness. According to Miller (1987) strategic
The term Human Resource Strategy is well defined as - “Human Resource management (HRM) is a strategic approach to managing employment relations which emphasises that leverage people 's capabilities is critical to achieving sustainable competitive advantage, this being achieved through a distinctive set of integrated employment policies, programmes and practices.” [ Bratton and Gold,4e,p3]
3. Why is it important for HR management to transform from being primarily administrative and operational to becoming a more strategic contributor?
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,
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
It makes it realistic by motivating the workforce, developing commitment in them and improving communication.(Armstrong M,2003) Traditional Personnel management deals with short term planning and controlled externally. With employee relations’ perspective, it has low trust and less communication. It has lot to do with labour management.(limited to the people and not deals with strategy) On the other hand, HRM emphasizes that employees are critical to achieving sustainable competitive advantage and is central to organisational strategic performance.(Bratton and Gold,1999).HRM plays great role with organisation’s corporate strategy. But to do this, all HR strategies must be integrated and must be in line with overall business strategies.(Lecture Notes,2004 Topic 1)
Strategic human resource management as described by Nel et al. (2011:562) is “long-term, top-level management decisions and actions regarding employment relationships that are usually made and performed with the overall general strategic management of
Strategic human resource management as described by Nel et al. (2011:562) is “long-term, top-level management decisions and actions regarding employment relationships that are usually made and performed with the overall general 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
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.
The strategic human resources management of the means every person from within organization from the top of management level to the bottom of ground staffs are doing things that make the organization successful. According to Schuler, R. S. (1992) strategic human resources management is defined about integration and adaption within organization .Its concern to ensure HR management is fully integrated with the strategy and these HR policies are adjusted and used by the employees and their line managers as part of their everyday work.