It is now increasingly common to find business strategies that are inextricably linked with, and incorporated into, strategic HRM, defining the management of all resources within the organisation. When the mission statement is written in this way, it is easier to take a strategic approach with the HR planning process.
HRM has the responsibility to acquire, develop, utilize, and maintain employees. Organisations must define their own unique strategy according to their specific context, culture and objectives. It then looks at strategic HRM in relation to business strategy, human capital management and business performance.
Human capital management can complement and strengthen strategic HRM by: Gives a degree of discipline and formality to the management of a business. In order to justify its own existence HR functions had to be seen as more intimately connected with the strategy and day to day running of the business side of the enterprise.
The issue of strategic HRM initially came to prominence around the early s, at which time academics developed definitions of strategic HRM as: Inducing the vision and mission of the change effort.
However, the best organizations are those that embrace technology and find the right technology uses for their businesses. Thus, strategic HRM means a strategic look at HR functions in line with the business functions of an organisation.
Human resources may also provide work incentives, safety procedure information, and sick or vacation days. Strategies are broad statements that set a direction.
That same organization, however, can create a new product, for example, which might again put the organization in the growth phase.
The pattern of planned human resource deployments and activities intended to enable the organisation to achieve its goals3.
In addition, once the HR department determines what is needed, communicating a plan can gain positive feedback that ensures the plan is aligned with the business objectives. Analyse the opportunities and threats existing in the external environment.
Organizations oftentimes do not have the money or the inclination to research software and find budget-friendly options for implementation. It is actively involved in five principal areas of business viz.
Role in strategy implementation: Strategy is concerned with determining which option will provide maximum benefits. This is true for Essar Steel Ltd. His newly revised model looks at five main areas of HR: There has recently been a renewed interest in this issue, largely driven by the realisation that in a fast-changing economy some degree of planning is vital to ensure the organisation is developing sufficient capacity to adapt to new trends and take advantage of emerging opportunities.
They have the following manufacturing facilities: This factsheet looks at how the concept of strategic HRM has developed since the early s and makes a distinction between strategy and strategic planning. Instead of focusing on internal human resource issues, the focus is on addressing and solving problems that effect people management programs in the long run and often globally.
Brainstorming about HR goals, values, and priorities is a good way to start. Right Sizing Human Resources: Acquiring right man for the right job at right time in right quantity, developing through right kind of training, utilizing the selected workforce, and maintaining the workforce are the organizational objectives of HRM.
Strategic HRM and business strategy A good business strategy is informed by people factors.
Assessment of employees and strategizing on how to retain the best employees is a task that HR managers oversee, but other managers in the organization will also provide input.
Another important aspect is the understanding of the organizational life cycle. Helps to integrate the behaviours of individuals into a total effort. Besides, HRM is also of great help to make the organisation competitive and make the best use of intelligence available. In other words, make a SWOT analysis of organisation.
The success of an organisation depends on the people therein. Partnership with the entire organization to ensure alignment of the HR function with the needs of the organization. A poor mission statement might read as follows:Human resource management’s mission is to coordinate people within an organization to achieve the organization’s goals.
Learning Objectives Demonstrate the mission of human resource management, in both the broader organizational perspective. Video: Strategic Human Resource Management: Definition & Importance In this lesson, we'll use a sports analogy and a real-life business example to learn how strategic human resource management.
Assess the purpose of strategic human resource management activities in an organisation & evaluate the contribution of strategic human resource management to the achievement of an organization’s objectives.
While personnel management mostly involved activities surrounding the hiring process and legal compliance, human resources involves much more, including strategic planning, which is the focus of this chapter. The Supermarket's Strategic Human Resource Management encompasses a wide range of activities that the management have to undertake, in order to integrate the organisation's human resources with its objectives.
An approach to managing human resources, strategic human resource management supports long-term business goals and outcomes with a strategic framework.
It focuses on longer-term resourcing issues within the context of an organisation's goals and the evolving nature of work, and informs other HR.Download