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Why Human Resource Management Is Essential To Strategic Thinking

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Discuss why human resource management (HRM) is essential to strategic thinking, and identify several key aspects of strategic HRM. Introduction “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 …show more content…

For a company to understand the business strategy, it also needs to need to understand the workforce strategy. Within an organisation, the culture also needs to reflect the strategy requires by the organisation. An example of this is that an innovative workforce will not succeed if the culture within the workforce is to work on a budget. If an innovative company like Dyson had the work culture of working to, then the employee’s main focus would prioritise the budget and the company would not nurture the employees to be creative. This would be in vast contrast of what Dyson’s strategic approach where the employees would be discouraged to research, make mistakes and innovate. Some of the key points required for HRM strategy are: (Robert & Heneman 2003) * Obtain key talents: What is the HR talent required to move the organisation and achieve the overall strategy. * Culture and behavioural changes: Does the staff have the correct culture and skills to change the culture and behavioural changes. An example of this is that a staff member from K-Mart does not have the same culture as a staff member working in a boutique store. The boutique store offers services to make you look your best, where a K-Mart employee culture is more operations based, to ensure that stock is plentiful for the customer. * Leadership capabilities: are required to drive the HRM strategic

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