Strategic Human Resource Management

   Introduction                     

   Human Resource Management, also known as Employee Relations or Labor Management, refers to the work systems and employment models of a company. It involves managing both individuals and groups of employees and is not limited to any particular style or ideology. The process involves the participation of both line and specialist managers, and it typically requires a combination of messages tailored to different workforce groups. This definition is based on Purcell & Boxall's (2003) description on page 24.

Strategy “The determination of the basic long-term goals and objectives of an enterprise and the adoption of courses of action and the allocation of resources necessary for carrying out these goals.” Alfred Chandler, Strategy and Structure, (MIT Press, 1962), P. 13

 • At the core, its is the debate between best fit and best practice • Used for gaining a competitive advantage • Innovation • Offer something new; different from competitors • Quality Enhancement • Products and services • Cost Reduction • Attempt to be the lowest cost provider • Optimal strategy depends on the wants and nature of competitors

Strategic HRM 

“Strategic HRM is about how the employment relationships for all employees can be managed in such a way as to contribute optimally to the organization’s goal achievement.” Legge (2005) P. 223

Types Of  Strategy

 • Business • Examines correspondence between each firm’s competitive strategy and its system of high-performance work practices • Operations • An internal approach; connected to the work organization inside a firm • Resource View • Views human resources as sources of sustained competitive advantage

How Can Businesses Benefit from HR Strategic Planning?

Strategic human resources management is crucial for businesses as it empowers HR departments to make informed decisions. An effective HR strategy enables companies to create plans for improving productivity, cutting down costs, boosting profits, and enhancing employee satisfaction. Both the sales and HR departments work together to determine whether a company should expand into new markets, acquire another business, or merge with another company.

Before developing a growth plan for the business, it's crucial to understand its current position. Start by identifying both strengths and weaknesses and work towards improving them. Additionally, look for potential opportunities to develop new products or services. To attract more customers, it's important to know what the target market demands and provide it accordingly. Choose the most effective marketing methods that suit business to reach the target audience.

Strategic Human Resources Management Benefits

Strategic HR involves careful consideration and analysis. Due to that, here are specific benefits of human resource strategic planning for businesses:                

1. Identify areas of weakness and strengths
2. Develop strategies to address these weaknesses and strengths
3. Establish sub-goals and objectives to measure progress toward the end goal
4. Make sure there is alignment between business strategy and human resources strategy
5. Ensure that all aspects of the organization revolve around the same set of goals and objectives
6. Create a culture of continuous improvement
7. Evaluate the effectiveness of programs and policies
8. Increased job satisfaction
9. Employee retention                                                                                                        
   
   

Why Strategic Human Resources Is Important

SHRM is essential for businesses as it helps them attain their objectives. By synchronizing HR programs and policies with the company’s business strategy, SHRM can aid in enhancing employee performance, developing the workforce, and fostering a positive work environment. Moreover, SHRM can help businesses save money by reducing turnover and improving productivity.

• Improve employee performance: SHRM can help businesses improve employee performance by creating systems to track and improve performance.
• Develop the workforce: SHRM can help businesses develop the workforce by identifying employees’ development needs and providing training and resources to help them improve.
• Create a positive work environment: SHRM can help businesses create a positive work environment by managing employee relations.
• Reduce turnover: SHRM can help businesses reduce turnover by designing compensation and benefits programs that attract and retain employees.
• Improve productivity: SHRM can help businesses improve productivity by improving employee performance and creating a positive work environment.

HR Practices Linked With Competitive Strategy 

                                  

Recruitment • Training • Career     Path • Promotions • Socialization • Openness                                               

High-Performance Practices

Features • Comprehensive selection/recruitment procedures • Incentive compensation • Extensive employee involvement/training • Expected Results • Improve knowledge, skills, and abilities of employees • Increase motivation • Reduce shirking • Enhance retention of quality employees (reduce tenure of non-performers) Huselid (1995) P. 635                                                                                                       

High Commitment Practices                                                                                 

The High-Performance Paradigm has several unique characteristics. It involves sophisticated selection and training processes and places emphasis on values, human relations skills, and knowledge skills. It also uses behavior-based appraisal methods, has single-status policies, and implements contingent pay systems. Additionally, it follows traditional Personnel Practices that include job security, above-market pay and benefits, and grievance systems. These details are mentioned in Godard's (2004) book on page 351.                                                                                                          

Conclusion                                                                                                  

By systematically combining human resource practices with the chosen competitive strategy, a company can increase its effectiveness. While the success or failure of a firm is not solely dependent on its strategic human resource management practices, these practices play a crucial role in determining the outcome.

        

Reference

  

                                                                                       

Josh Fechter, HR.University https://hr.university/shrm/strategic-human-resource-management/ Accessed on 20.10.2023

Kelly Main, (Jan,2023) Strategic-human-resource-management   Available at https://www.forbes.com/advisor/business/strategic-human-resource-management/

Strategic-human-resource-management by Purcell & Boxall (2003) P. 24 

Article on SHRM, MIT Press, (1962), P. 13

Article on SHRM, Legge (2005) P. 223

Article on SHRM, Huselid (1995) P. 635          

Article on SHRM, Godard (2004) P. 351