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Importance of strategic human resource management
Importance of strategic human resource management
Roles of human resource in strategy formulation
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Strategic Human Resource Management
“Human resource management is the process of employing people, training them, compensating them, developing policies relating to them, and developing strategies to retain them” (Diaz, 2012). In recent years, there has been a dramatic shift in the human resource function. Traditionally, management viewed the HR function as purely administrative and professional. Human resource managers continually transform and adapt to the ever changing workforce demands. Human resource management is a vital asset to any organization, as they are a strategic partner that enhances the skills of an organization helping to ensure the organization’s success. Human resource managers are tasked with being versatile enough to switch
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Human resource managers advocates for employees, representing employee concerns, and encouraging employee contribution. Keeping an employee committed to an organization will increase the employee’s ability to deliver results. “Managing the work and organization facets that unleash and support the optimal expenditure of employee energy is a key issue for human resource managers in the attainment of team and organizational goals” (Ehnert, Harry, & Zink, 2014).
Nowadays, human resource professionals are expected to contribute to the planning and strategy of the organization. HR is responsible for helping to turn future plans into workforce capabilities and management practices to achieve successful results. HR has the shared responsibility to deliver business distinction. “HR professionals who have the business acumen to contribute to business strategy at the highest organizational levels are leading the shift in the HR profession from administrators to strategic advisors” (Management,
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According to Forbes, there are several ways to becoming an invaluable strategic business partner. Human resource managers have to know and understand how an organization functions. “Get clear about how all the different parts operate together, and what gets in the way of their smooth operation” (Andersen, 2013). Preforming market research about the competition will help to generate a basic understanding about specific department’s needs and what can be done to make the department more productive. The human resource department is not to only assist in employee relations, human resources can serve the organizations overall needs as
Noe, Raymond A., et al. Human Resource Management: Gaining a Competitive Advantage. 7th ed. New York: McGraw-Hill/Irwin, 2010. Print.
HRM in any company is a weighty issue that needs much attention where business performance is linked to a HR strategy (Caldwell 2008; Ulrich et al. 2008). In the recent past, competition has become stiff, such that organizations need to come up with other means to compete in the extremely dynamic market world. Thus, companies have shifted their emphasis to Strategic Human Resource Management (SHRM) where they enhance and empower their personnel in order to increase the productivity and the services offered into the market (Mello 2006). This goes against the traditional ways of increasing the means of competition where organizations place emphasis on tangible resources. In the past, organizations competed in terms of machinery and acquisitions. This has changed greatly due to the changing customer tastes and the diversity of the market in the present (Delery & Doty 1996; Lengnick-Hall et al. 2009).
“Hr is shifting from focusing on the organisation of the business to focusing on the business of the organisation” (Zulmohd 2011). David Ulrich points out four distinctive roles of HR which makes the organisation most effective and produce competitive advantage. He planned to change the structure of HR function and build HR around roles. The four key HR roles identified by Ulrich, one HR business partner/strategic partner – aligning HR and business strategy which plays an important role in setting strategic direction. It builds strategic relationship with clients and strategically manages the development of the workforce. The second key role is administrative expert which creates and must deliver effective HR processes made to tailor business needs. It also involves managing people and HR related costs. To continue to the third key role, change agent which understands the organisations culture, and takes the responsibility to communicate those changes internally and gain its employees trust. The final key role identified by Ulrich is employee advocate which is a core in HR role represents employees and helps to improve their experience, protect employees’ interests and confirm strategic initiatives are well balanced. Employee advocates must also “ensure fair, ethical and equitable people processes and practices.” “David Ulrich’s HR Model is about defining the HR roles and
Organizations’ other resources can be hired, retained and discarded at any time but human resources needs special treatment. It needs to be carefully hired, deserve an extra effort to retain it and requires training & development to upgrade and improve its capabilities. Other resources depreciate with the passage of time but when the human resource gains more and more experience, it becomes more beneficial for the organizations. These characteristics have brought human resources to be the central element for the success of an organization. (Mohammed, Bhatti, Jariko, and Zehri, 2013, pg. 129, para. 2)
Human resource management and the organizations in which it takes place are facing challenges from a changing environment. Hiring the proper people with the appropriate skills is an essential part of maintaining the workplace. Economic issues which include downsizing, organizational culture, productivity, ethics, demographics, and diversity plays a significant role when redesigning a company 's Human Resource Department. Success in the field of Human Resource requires an update of knowledge continually. Training, certifications, hands-on experience, and tactic knowledge helps to perform a difficult redesigning task with speed and sensitivity. Human Resource actions are comprised of but not limited to equal employment, staffing, compensation, benefits, labor relations, and safety. Ethical issues are
I ensure that HR is involved in the development and implementation of business strategies. And I ensure that HR and business objectives are aligned in order to achieve the shared goals. In addition, I introduce and implement systems, policies, and processes designed to help employees and the business in reaching the strategic objectives effectively and efficiently. For instance, when Qatar announced that it will be hosting the world cup in 2022, numerous construction projects emerged to accommodate this event. And many were awarded to my company. Accordingly, the business strategy was to deliver the projects on time and with high quality. Thus, I designed an HR strategy which incorporates recruiting qualified employees and training existing ones. That is, I transformed the business goals into
Introduction A comprehensive Human Resource Management Strategy plays a vital role in the achievement of an organisation’s overall strategic objectives and visibly illustrates that the human resources function fully understands and supports the direction in which the organisation is moving. A comprehensive HRM Strategy will also support other specific strategic objectives undertaken by the marketing, financial, operational and technology departments. In essence, an HRM strategy’s aim should be to capture the ‘people’ part of an organisation and its medium to long-term projection of what it wants to achieve, ensuring that. It employs the right people, those have the right mix of skills, employees show the correct behaviours and attitudes, and employees have the opportunity to be developed the right way.
Peter Cappelli presents his readers with what I would like to bring to HR when he says, “One of traditional HR’s biggest difficulties has been supporting business strategy, because it’s such a moving target these days”(137). The way of the future for Hr is to align business strategy with HR to bring coherence between the both. When HR is engaged within the business strategy of their company, this will bring unity thus contribute to higher profits. Another change in HR talked about in the same article by Cappelli is, “Companies seldom have long-term plans with straightforward talent requirements”(138). Hiring from within a company’s workforce is cost effective on many levels. This eliminates the cost of poor hiring, promotes moral, and encourages loyalty towards their employer. I am encouraged by these articles because people are at least talking about change. Talking about change is the beginning to change. My education at Cal State Dominguez will be completed soon and I look forward to working within Human Resources at a great company, along with running my own business on the side. Who knows maybe some day my own business will become successful enough to hire my own HR
Understanding the strategic potential of HRM is a relatively recent phenomenon. Strategic HRM attempts to bring HRM to the boardroom. It requires personnel policies and practices to be integrated so that they make a coherent whole, and also that this whole is integrated with the business or organisational strategy.
An organizational human resources department utilizes the hiring and firing process to meet the organization’s personnel needs. Organizational human resource departments are charged with the oversight of an organizations administration department. The practice of hiring and firing people is a process employer’s conducts on a daily basis. This process has to be done in a proper manner and not in haste. The implication that can occur from the improper hiring and firing process could and can have a positive or negative impact on an organization. Therefore, employers must carefully evaluate their decision to hire/fire individuals and its impact on the organizations’ workplace environment and others employees. Human Resource Management is important for an effective organization. In today’s organization, HRM is valuable to the organization because of increase legal complexities and its known for improvement in productivity. However, management should realize that poor human resource management could result in an outburst of hiring process followed by firing or layoffs. According to (Satterlee 2013, p. 194), “Hiring the best candidate who is also a good fit for the organization is crucial for the success of an organization, because a poor hiring decision will have repercussions across the entire organization”. Satterlee made a valid point because poor hiring could have an impact on the bottom line performance of the firm. In other words, HRM is the contributing factor to the success of the organization including motivating and maintain the staffs. The purpose to the motivation is to ensure that all employees grow to a full potential. According to (Sims 2006, p. 5), “HRM efforts are planned, systematic approaches to increasing organizati...
According to our textbook Human Resource Management (HRM) is the policies, practices, and systems that influence employees’ behavior, attitudes, and performance. “The human resources management process involves planning for, attracting, developing, and retaining employees as the HRM planning provides the rights kinds of people, in the right quantity, with the right skills, at the right time (Lussier, 2012, p. 240).” According to our textbook the typical responsibilities of the Human Resources department fall into three categories, and they are administrative services and transaction, which handle hiring employees. The second involves business partner services that focus on attracting, evolving, retaining employees by having a clear understanding
Human resource is the most valuable and unique asset of an organization. The successful management of an organization’s human resource is an exciting, dynamic and challenging task , especially at a time when the world has become a global village and economies are in a state of flux. The lack of talented resource and the growing expectation of the modern day employee has further increased the difficulty of the human resource function.
However, the true impetus driving these attributes of success results from employees. The act as the success catalysts in raising the competitiveness of the firms and their failure or absence is likely to cause a vacuum through which any organization would fail and disappear into obscurity (Kaliannan & Adjovu, 2015). Consequently, human resources (HR) policies have to be compatible with business strategic planning. It would be inappropriate to consider employees as variable expenses. Rather, they ought to be categorized as assets bearing in mind that they are precious and a critical source of competitive advantage as their skill, capabilities and experiences are for the benefit to the company. Thus, the human resources management practice adopted to the by the company need to contribute in improving performance to grow and gain sustainable competitive advantage (Paşaoğlu,
Changing Roles. Traditionally, HR has been an administrative position-processing paperwork, benefits, hiring and firing, and compensation. However, recently HRM has moved from a traditional to a strategic role, the emphasis is on catering to the needs of consumers and workers. Before, HR was seen as the enemy and employees believed that HR’s main purpose was to protect management. Now, the position requires HRM to be more people oriented and protect their human capitol, the staff. In addition, human resource management has to be business savvy and think of themselves as strategic partners in the 21st century.
Human Resource Management (HRM) is fundamentally another name for personnel management. It is the process of making sure the employees are as creative as they can be. HRM is a way of grouping the range of activities associated with managing people that are variously categorised under employee relations, industrial/labour relations, personnel management and organisational behaviour. Many academic departments where research and teaching in all these areas take place have adopted the title department of human resources management. HRM is a coordinated approach to managing people that seeks to integrate the various personnel activates so that they are compatible with each other. Therefore the key areas of employee resourcing, employee development, employee reward and employee involvement are considered to be interrelated. Policy-making and procedures in one of these areas will have an impact on other areas, therefore human resources management is an approach that takes a holistic view and considers how various areas can be integrated.