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The strategic human resource management process
Role and importance of human resource
The strategic human resource management process
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Human Resources professionals (HR) initial roles remain closely aligned with personnel and administration, performing duties such as hiring people, budgeting, to help their organization function well. However, effective HR Professionals serve a much more pertinent role to their organization, by using their knowledge skills and abilities to help their organization become more successful. Thus, it is important for HR professionals to work closely with the management they serve in order to gain a better understanding of the organization’s vision, and what the organization hopes to achieve. Human Resource Management needs to align their strategic planning with the organization’s strategy in order to develop and maintain a completive advantage in the field they are competing.
According to Reed and Bogardus (2012), strategic planning is “the systematic way of setting the direction for an organization and developing tactics and operational plans to ensure its success” (pg. 111). Strategic planning is a behavioral science and can be described as an organization’s process of forecasting organizational strategies for what it hopes to achieve and how to g o about achieving their desired outcomes (Darvish and Zahra, 2014) . It is an effective process for determining goals and helping the organization’s management team to focus on what it is they ultimately want to achieve. Organizations use strategic planning as a control mechanism as well, for the purpose of deciding and the implementation of its strategies. Additionally, strategic planning identifies with the organization strategies to improve the bottom line. There are no set ways to plan because planning depends on the organization’s objectives, culture, and current situation/s....
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...ractices. . Human Resources planning will forecast the available employees, their skills and other resources to boost the organization’s strategic advantages. HR professionals needs to know the organizations culture in order for them to maximize their abilities to support the organization success. For example, HR can hire well by matching prospective hires talents to fit the organization’s needs, they can manage employee time to increase performance under budget constraints, HR strategically uses employees to serve business goals Strategic and financial objectives.
In conclusion, If well planned and implemented strategic planning may possible result in higher profitable for the organization. If an organization is competing in the global market, strategic planning will help them to maintain or maximize their advantages in their respective competitive market.
Background Information In implementing a strategic plan for Coastal Medical Center, our consulting team has conducted many analyses and formed numerous strategies in order for Coastal Medical Center to be successful. Such assessments include an internal analysis, external analysis, gap analysis, and SWOT analysis. In conducting these analyses, our consulting team was able to better understand the internal environment, external environment, where the organization currently stands in terms of performance, and the major strengths, weaknesses, opportunities and threats that oppose the Coastal Medical Center. From our inquiry, we will be able to establish a strategic plan that best fits the organization’s needs.
After analyzing the Coastal Medical Center, it is apparent that the employees and staff have no conception of the mission, vision, and values of this health care facility. In addition to this lack of structure, CMC has many projects in the midst of production that lack support of a common goal, employees are unsatisfied with their jobs, the two boards lack ability to agree on strategic decisions for the organization,, and the medical center has a dismal reputation when it comes to quality care.
Human Resource Management involves the productive use of people in an organisation to collectively achieve the organisation's strategic business objectives. Human resource management also involves employer employee relationship and the satisfaction of the individual employer needs (Stone 2006, p. 4). It is an essential function of an organisation. It has become more prominent in recent years as organisations have to improve their productivity and international competitiveness. In modern times, no organisation can afford to rest on their laurels; to be competitive in the global marketplace, organisations need to rethink their strategies towards human resources.
Now, what is strategic planning? Strategic planning is a process that redefines and strengthens the values, purpose, vision, mission, goals and objectives of an organization. The planning process an organization undergoes helps identify the outcomes it wants to achieve through its programs and the specific means by which it intends to achieve them. Some strategic planning can be a process for setting future directions, to reduce any risk, train supervisors
Strategic and Financial Planning “Plans are worthless, but planning is everything” (Eisenhower, 1957). Businesses that fail to plan are very likely to fail and at best will not recognize the full spectrum of profit avenues available to them. Strategic planning helps firms define how they will make money in the future. Financial planning goes further into depth, using the strategic plan as a baseline and helps firms determine their short-term and long-term budgets as well as the possible effectiveness of their plans. The innovative nature of business requires firms to plan out new initiatives to determine costs they will incur, possible profits from sales, and what kind of risk they will encounter.
It is used in discharging the board of directors’ responsibilities. It also provides the framework. It also provides the framework for decision making. It also helps for the assessment of an organization’s objectives while it is also used as a tool to monitor progression. Organizations use strategic planning to define overall mission and focus on objectives. With strategic planning, a sense of continuity, direction, leadership and effective staffing is provided. Lastly organizations use it to provide commitment, credibility and communication within the organization.
Strategic Planning results in a written document that serves as a blueprint to guide the organization towards its future goals, but far more important than the strategic plan document, is the strategic planning process itself.
According to Thompson et al (2007), strategic planning is a competitive move and a business approach that managers make use of in order to achieve the targeted levels of performance, grow the business, conduct operations, attract and please customers and compete successfully. On the other hand, according to Johnson, Scholes and Whittington (2008), strategic planning includes making of strategic choices to position a firm at an advantage against competitors in the long-term. Strategic planning can also be defined as a top management function concerned with making decisions in connection with the determination of the organization functional policies, objectives, strategies, mission, philosophy and vision (Sababu, 2007). To put it briefly, strategic planning is a long-term and a rational process, action oriented and futuristic in nature since it transforms strategic thoughts into strategic actions and involves selecting from among likely courses of action to make strategic decisions that bring an organization to its general objective (Namaswa, 1989, Bruce and Longdon, 2000, Drucker,
There are some benefits of strategic planning. Strategic planning may have a direct impact on your business and organization.
Strategic planning is an organizational process in which it looks towards developing and sustaining success or balance in its ever changing environment.
Strategic plans:-Strategic plans are taken by higher level management such as CEO and top level management for the lower level planning. Strategic planning can be for two, three, five or even ten years. Strategic plans are made for profitability, improving productivity, achieving growth, improving customer services etc.
Human resources is the personnel of a business regarded as a significant asset in terms of skills and abilities, it’s the business function that is responsible for policy and process decisions and is involved in recruitment. Within HR there are many distinctive roles such as HR planning and job analysis, recruitment and selection, reward management, appraisal, training and development, health and safety, workforce diversity and industrial relations. Each role is directly involved with the people within the organisation, they provide knowledge and support to each individual. Human resources is prominent in the planning process that sets out where the organisation wants to
Although there is no consensus or an unique definition to the objectives and it can vary from country to country, business to business and organizations to organizations etc., HR with the purpose of supporting the delivery of the organisation’s strategy and objectives through management of people and performance is one of the main accepted definitions worldwide. This combined with HR functions that have gone beyond simply being the people function into overall performance , HR professionals with a complex set of competencies and supreme behaviors to guide the organizations to achieve the strategy, make the HR roles and responsibilities even more complex
It is a systematic process of identifying and evaluating the necessity and availability of human resources for attaining the organization 's strategic goals (Mathis &Jackson, 2007).Besides studying the abilities of its employees, HR planning also evaluates the outer environment to meet the labor resources requirements of the company. It includes forecasting of potential workforce requirements of the organization and taking essential actions to fill in the vacancies. The HR strategies must be compatible with the organizational objectives. Faol emphasized in 1930 that link between human resource plans and its business objectives and strategies is an indispensable tool of any organization (cited in Rothwell and Kazanas, 2003, p3).HRP attempts to stress the means through which people are assigned and developed to increase the efficiency of organization. HR planning assesses the number and type of employees that a company would require to execute its jobs effectively and
Human resource management consist of all the activities and intended decisions that will help to improve the effective of the human resource (employees) and of the enterprise as a whole. The importance and aim of the HR policy is to recognize the work performance of employees and the aim is to bridge the gap between management goals and the essentials of the workplace Human resource consultant is responsible for helping clients with strategically integrating effective human resource processes, they do this by daily operations with programs and practices. The other role for the HR is to maximize the client’s performance that will be relating to the human resource. For them to increase the performance they do this by coming up with new “best prices” products or services as well to provide feedback to clients regarding their performance related to annual management objectives. For them to complete this, the HR consultant may need to perform needs assessments or an official inspection of an organisation or corrective plan, and when required, organise and coordinate cross-functional Human Resource teams to assist the client with developing and implementing performance improvement corrective plans, programs or processes.