Spotlight on Strategic Human Resource Management

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Table of Contents

Introduction
Definition of SHRM
Strategic management
Models of strategic management
Hierarchy of strategy
Human resource strategy models
New roles of HR Professionals
Conclusion
Works Cited

Introduction

In the Greek language, strategos (strategy) mean commander in chief. In human resource management, strategy refers to decisions and actions taken by senior management of an organisation. Strategic human resource management (SHRM) refers to management processes and consistent HR practices focused on achieving organisational goals and objectives.

Definition of SHRM

SHRM has a variety of definitions given by various scholars. There is a wide variety of perception on strategic human resource management. Some people believe that it is a formal management process that helps managers to accomplish future organisation goals.

Other people view SHRM as an evolving process that assists managers in dealing with difficult issues (Purcell 59). A few people argue that strategic HR lacks theoretical clarity.

Strategic management

Strategic management constitutes actions, resolutions and decisions that organisations make to achieve long term objectives as well as improve performance. Activities and decisions made by the management of a given organisation affect all its employees. A key objective of SHRM practices is to gain competitive advantage (Bratton 38).

The success of an organisation depends on its employees. Employees are sometimes referred to as resources. They are the main asset of any organisation. An organisation ceases to exist without the presence of employees. Employees provide a competitive advantage to an organisation.

They are the main determinant of success in organisations. In order to be successful, an organisation has to embrace strategic management practices. Examples of these practices include recruitment, motivation and retention.

Models of strategic management

Strategic management continuously affects the senior management, its environment and resources. All activities of an organisation affect each other. An organisation’s missions, goals, environmental study, strategy and strategic evaluation are all part of strategic management.

The senior management team should align their positions to the goals and objectives of an organisation. Missions, objectives and values that an organisation would like to achieve, ought to be addressed by senior managers. Environmental analysis (SWOT analysis) is an acronym for strength, weaknesses, opportunity and threats in organisations (Boxall & Purcell 35).

During strategic formulation in organisations, the management examines how strategic factors affect strategic decisions. Actions and decisions are made at various levels of an organisation, i.e., corporate, business or departmental level. It is crucial to identify the chief decision-making individual in an organisation.

This may help employees to comprehend the centre of power and its effects on an organisation. Techniques that managers used to implement strategies are essential to the organisations. The leadership style of managers helps in implementing strategies. Strategies used by managers are not only valuable, but also have a massive effect on the organisation’s success.

Hierarchy of strategy

Human resource management departments deal with issues that affect employees. These issues include salary, benefits, training and recruitment. Strategic human resource management is a development of HRM, because it meets the needs of an organisation and its employees. It requires planning for future employee and company needs. SHRM improves HR practices of an organisation when properly implemented.

Strategic human resource management may be implemented at different levels of an organisation, e.g. the corporate level strategy. At this level, the management decides what business an organisation undertakes to achieve its goals.

The business level strategy defines how the organisation competes with others. It involves three major competitive strategies, e.g., cutting leadership costs, separation and focus. At a functional level strategy, departments of the organisation (e.g. Marketing, Finance and HR) are involved in achieving the business level strategy in most organisations (Bratton 44).

Strategic human resource management requires an organisation to plan for not only itself, but also for its employees. This helps increase the number of retained skilled employees in an organisation.

When an organisation retains its employees, it cuts the cost of hiring and training new ones. Retained employees are also very instrumental in any organisation because they have much experience in solving all challenges that come their way.

The size of an organisation is a vital element to the strategic human resource management while planning. This is because small and large companies have different needs. Large companies are able to afford employee programs, i.e., benefits and training while small companies cannot. Managers need to plan for HR strategies after defining the size and financial abilities of the organisation (Bratton & Gold 36).

An organisation needs to review its recruitment procedure when coming up with a human resource strategy. Techniques used to interview new employees can be improved to acquire the right candidates for the organisation’s needs.

A developed training program should be available to assist new employees understand the company policies, as well as introduce them to ongoing projects. Strategic human resource management is a continuous process. This implies that employees ought to have continuous training and assessment (Stone 67).

Senior managers should continuously observe and study the behaviour of employees. They should also study both the internal and external environment. This will make them be aware of, and understand all changes taking place in the organisation’s environment. In order to achieve organisation goals, the senior managers ought to have special qualities, i.e., pro-action and innovation.

Human resource strategy models

Organisations arrange departments in relation to how decisions are made. The arrangements are known as models. These models assist in communication within the organisation and from one employee to another. The most common models of strategic human resource management are control-based and commitment-based.

Models assist in analyzing the environment, and determining the goals and strengths of the organisation. They also help in motivating employees so that they can maintain the standards of the organisation (Bruce 98).

Control-based models organize departments in a top down structure. In this model, HR departments are managed by senior managers who operate between the employees and the executive in communication.

The organisation’s policies are communicated to the employees from the executives through senior managers. This model limits the influence of employees on the decision-making process. This is because they have to communicate through the senior managers.

The commitment-based model creates a flat organisation structure which allows channels of communication within the company. Managers in this model assist in creating efficient avenues of communication. Employees are allowed to present their ideas to decision makers. The decisions made in this model often favour the employees (Bratton 50).

New roles of HR Professionals

Strategic human resource management has forced the roles of HR managers to change, in order to suit their responsibilities. The role of the HR has gradually changed with time because there are changes in human resource management. HR managers are nowadays involved in developing strategies for organisations.

Human Resource managers must be ready to change tactics as fast as changes in the organisation occur. As a result of constant changes in the organisation, HR managers should endeavour to make changes in the organisation to fit the needs of employees. The work environment should allow communication, growth and leadership to co-exist.

According to Dave Ulrich, HR managers need additional roles such as a strategic partner, employee advocate and change mentor. As a strategic partner, the HR professional must contribute ideas of development and achievement of goals and objectives.

The HR manager contributes in business strategy matters such as hiring, appraisal systems, employee development and recognition. These HR managers and staff have to develop a business mind to be able to contribute and account for their decisions.

As the sponsor or advocate of workers, HR professionals have a duty to speak on behalf of their employees. HR managers should aim at making the working environment favourable for employees. Some of the roles will include creating communication channels, empowering employees and promoting organisational culture. The HR manager should be able to solve employee problems and offer development opportunities.

As the Change mentor or champion, the HR professional should advocate for change in the organisation. The professional should be aware of the changes that the company is implementing, and associate them to the needs of the organisation.

Having sufficient knowledge of changes in the organisation enables the management to communicate effectively to the staff. The HR professional should be quick to communicate change effectively. HR professional should constantly communicate the organisation’s goals, values and missions to the employees. Effective communication of these facts will lift the organisation to success (Heathfield 3).

Conclusion

Strategic human resource management sparingly promotes the relationship between the management and employees. It also assists in achieving the goals and objectives of an organisation. To achieve these goals, HR professionals have to work together with the executive to align the needs to change. They have to strategise their operations for a fruitful employee relation.

Works Cited

Boxall, Peter & John Purcell. Strategy and Human Resource Management. Houndmills, Basingstoke: Palgrave MacMillan, 2008. Print.

Bratton, John. Strategic Human Resource Management. n.d. Web. <https://www.macmillanihe.com/companion/Bratton-And-Gold-Human-Resource-Management/>

Bratton, John, & Jeffrey Gold. Human Resource Management: Theory and practice. Houndmills, Hampshire: Macmillan, 2003. Print.

Bruce, Peter. Human Resource Management Casebook. Forest, N.S.W: Pearson Education Australia, 2003. Print.

Heathfield, Susan. The New Roles of the Human Resources Professional. n.d. Web. <https://www.thebalancecareers.com/the-new-roles-of-the-human-resources-professional-1918352>

Purcell, John. The meaning of Strategy in Human Resource Management. London: Thompson Learning, 2001. Print.

Stone, Raymond. Managing Human Resources. Milton: John Wiley & Sons Australia, 2008. Print.

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