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Introduction In order to define Human Resource Strategy, one must first understand the concepts behind an organisation’s business strategy and its HRM practices. Various definitions of ‘strategy’ exist, almost all of which boil down to the simple fact that it is the general direction of an organization, which it must strive to go in the long term. The responsibility of adhering to the business strategy falls on the managers, who must use the resources at hand, keeping in context with the business environment their particular organisation is in, in order to achieve the goals laid down in the strategy by the stakeholders. Using the above-established definition of strategy and applying it to the context of Human Resource Management, one comes to the conclusion that HRM Strategy is the plan to organize Human Resources in such a way that they can be utilised to accomplish corporate objectives. In order for this to happen, and for the Business Strategy to be adhered to, the HRM Strategy must be aligned to it. When drawing up an HR Strategy, corporate objectives such as growth must remain the centre of attention. Development, Training and Performance Management within an HR Strategy Serious planning of areas such as training and development of employees must be undertaken in order to utilise the available human resources to their maximum effectiveness. Training and development, which provide a company with a continuously higher skilled workforce, must not be seen as a standalone solution. For it to be effective and eventually successful, other aspects of the HR strategy, such as reward strategies, recruitment and company structure, must be kept in line together with training and development. When all aspects of an HR strategy are in... ... middle of paper ... ...cially on smaller firms, if and when implemented correctly, trainging,development and performance management can return quite a lot in terms of increased productivity and efficiency. Works Cited Armstrong, M. (2006). A handbook of human resource management practice (10th ed.). London: Kogan Page Limited. Hendry, C., & Pettigrew, A. (1986). The practice of strategic human resource management. Personnel Review, 15(5), 3-8. Huselid, M. A. (1995). The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of management journal, 38(3), 635-672. Kirkpatrick D. L. (1959). 'Techniques for evaluating training programs.' Journal of American Society of Training Directors, 13 (3), 21–26. Miles, R. E., & Snow, C. C. (1984). Designing strategic human resources systems.Organizational dynamics, 13(1), 36-52.
Mathis, R. L., & Jackson, J. H. (2010). Human resource management (13th ed.). Mason, OH: Thomas/South-western
Bohlander, George, and Scott Snell. Managing Human Resources. 15th. Mason, OH: South-Western Pub, 2009. 98-147. Print.
Noe, Raymond A., et al. Human Resource Management: Gaining a Competitive Advantage. 7th ed. New York: McGraw-Hill/Irwin, 2010. Print.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2014). Fundamentals of human resource management (5th ed.). New York, NY: McGraw-Hill Education.
Jiang, K.F., Lepak, D. P., Jia, J., and Baer, J. C. 2012. “How does human resource management influence organizational outcomes? A meta-analytic investigation of mediating mechanisms.” Academy of Management Journal, 55, pp.1264-1294
Gomez-Mejia, L. R., Balkin, D. B., & Cardy, R. L. (2007). Managing Human Resources (5th
Dessler, G. (2011). A framework for human resource management (6th ed.). Upper Saddle River, NJ: Prentice Hall. ISBN: 9780132556378
Noe, R., Hollenbeck, J., Gerhart, B., & Wright, P. (2014). Fundamentals of human resource management (5th ed.). New York, NY: McGraw-Hill.
In the 1980’s, the birth of a new concept called ‘Human Resource Management’ was born. This trend comes after an intense period of Taylorisation, Fordism and now, McDonaldisation. HRM came to counter balance these trends and to consider the concept of the Man as a Man and not as a machine. For the last several decades, the interests of companies in "strategic management" have increased in a noteworthy way. This interest in strategic management has resulted in various organizational functions becoming more concerned with their role in the strategic management process. The Human Resource Management (HRM) field has sought to become integrated into the strategic management process through the development of a new discipline referred to as Strategic Resource Management (SHRM). In current literature, the difference between SHRM and HRM is often unclear because of the interconnections linking SHRM to HRM. However, the concepts are slightly different. Thus, we can ask, what is strategic human resource management? What are the main theories and how do they work? What do they take into account and how are they integrated? What are the links between SHRM and organization strategy? In order to answer to these questions, we will precisely define strategic human resource management, followed by a look at the different approaches built by theorists, and finally, we will see the limits between the models and their applications depending on the company’s environment. Discussion Strategic Human Resource Management: definition Strategic human resource management involves the military word ‘strategy’ which is defined by Child in 1972 as "a set of fundamental or critical choices about the ends and means of a business". To be simpler, a strategy is "a statement of what the organization wants to become, where it wants to go and, broadly, how it means to get there." Strategy involves three major key factors: competitive advantages (Porter, 1985; Barney, 1991), distinctive capabilities (Kay, 1999) and the strategic fit (Hofer & Schendel 1986). Strategies must be developed with a relevant purpose to sustain the organizational goals and aims. SHRM is one of the components of the organizational strategies used to sustain the business long-term. SHRM defined as: “all those activities affecting the behaviour of individuals in their efforts to formulate and implement the strategic needs of the business. (Schuler, 1992)” or as “the pattern of planned human resource deployments and activities intended to enable the firm to achieve its goals.
Fisher, C., Schoefeldt, L., & Shaw, J. (1996). Human resource management. (3rd Edition). Princeton, NJ: Houghton Mifflin Company.
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.
Byars, L. L. (1997). Human Resource Management. Chicago, IL: The McGraw-Hill Companies, Inc. Mills, D. Q. (1994).
However you define the activities of management, and whatever the organisational processes are, an essential part of the process of management is that proper attention be given to the Human Resource function. The human element provides a major part in the overall success of the organisation. Therefore there must be an effective human resource function. In the past, most organisations viewed Human Resource Management (HRM) as an element function, that is an activity that is supportive of the task functions and does not normally have any accountability for the performance of a specific end task. Because of the emphasis on analysis and precision there is a tendency for strategists to concentrate on economic data and ignore the way in which human elements and values can influence the implementation of a strategy. 'Economic analysis of strategy fails to recognise the complex role which people play in the evolution of strategy - strategy is also a product of what people want an organisation to do or what they feel the organisation should be like.?(1).
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.
Whether an organization consists of five or 25,000 employees, human resources management is vital to the success of the organization. HR is important to all managers because it provides managers with the resources – the employees – necessary to produce the work for the managers and the organization. Beyond this role, HR is capable of becoming a strong strategic partner when it comes to “establishing the overall direction and objectives of key areas of human resource management in order to ensure that they not only are consistent with but also support the achievement of business goals.” (Massey, 1994, p. 27)