Strategic Human Resource Management

7458 Words Dec 15th, 2010 30 Pages
Strategic Human Resource Management

1. Introduction

In the late decade of 1980, the organisations realized the significance of their employees as a capital asset or human resources; and by adopting and implementing a set of HRM practices (such as recruiting, training and developing people etc.) aimed to succeed a sustainable competitive advantage based on a business strategic view by making the employees’ involvement the main key point of the new human resource management into the business process; and by establishing the organizational culture that they are part of the organization (Kaufman 2001: 506). During this period, the HRM is transformed into a Strategic HRM approach in order to sustain in these modern business challenges.
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2. Understanding Strategic Human Resource Management (SHRM)

Human resource as a strategic partner in an organization means accepting the Human Resource functions as a strategic partner in the formulation of the company's strategies as well as in the implementation of those strategies. In particular, human resource are recruiting, selecting, training and rewarding personnel to increase the capacity of a business to execute its strategies, HR needs to understand on knowing how to measure the monetary impact of their actions, so they can be able to demonstrate the value added contribution of their functions.

Primary actions of strategic human resource should convert business strategies into HR priorities. In any business setting environment, whether it's a corporate, functional, business unit or product line, a strategy is always there either clearly in the formal process or document or completely through a shared agenda on priorities. Human Resource as a strategic business partner identifies the HR practices that make the strategy happen. This whole process of identifying HR priorities is called organizational diagnosis through which an organization is able to determine it strength and weaknesses.

The important areas in organization that reflects any organizations…