Strategic Human Resource Management

Writing Assignment #4

Strategic human resource management can be defined as the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation, flexibility and competitive advantage. In an organization SHRM means accepting and involving the HR function as a strategic partner in the formulation and implementation of the company's strategies through HR activities such as recruiting, selecting, training and rewarding personnel (Sinha, 2007). This is the effective way of organizing the workforce by the adoption of a specific strategy, where employees' performance can help to achieve the planned organizational targets, such as increasing revenue or improving the profit margin. However, there is no common strategic human resource definition that fits every situation (Lotinggi, 2008). This paper will focus on strategic human resource management at Smarte Carte, Inc. and attempt to make a determination if the company uses SHRM effectively or if there are areas where improvements could be made.

Smarte Carte Inc., is a vending services company that specializes in unattended vending in four segregated markets: luggage carts for rent at airports, shopping carts and baby strollers at shopping malls, electronic locker storage at a variety of locations such as transportation facilities, ski resorts, theme and water parks, and massage chairs located in airports, malls, fitness centers, and now even Wal-Mart. They have operations throughout the U.S. and Canada and a growing presence in Australia and New Zealand. Smarte Carte’s corporate office is located in St. Paul, MN where they employ 65 employees while employing approximately another ...

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...ing enough in internal training and compliance audits to lower their risk in expensive employee litigation.

Two key strategies that Smarte Carte has implemented in the recent past is a greater reliance on expert outside legal counsel for fighting and resolving labor law cases and adding employment practices liability insurance to prevent or cap large settlements in labor law disputes. With employment law becoming an increasingly complicated dimension of the employment relationship, it is more likely that managers unversed in the changing aspects of laws may commit violations (Mello, 2011). The reality of it boils down to even when you’re correct and did everything right in handling an employee situation, it costs an organization a significant amount of money defending itself. Smarte Carte’s strategy for utilizing outside counsel and EPLI is a good strategy.