Successful Business Through Effective Human Resources Strategies

PART 1
‘Ensure the success of your business through effective human resource strategies’
Strategic Human Resource Management provides an all-inclusive framework for which all the people management practises is applied in order to achieve the organisational objectives. Strategic Human Resource Management takes into account the organisational goals in the intended general direction so as to be able to achieve its objectives. The fact that intellectual capital is a key source of competition for organisations, and the fact that it is people that implement the organisational strategic plans.
Foot and Hook (2005) defines strategic HRM as the process by which Human Resource function is linked with the organisational strategic objectives in order to improve organisational performance. For example, if a multinational organisation is to function successfully, then all the strategies at all levels must interrelate.
Strategic HRM therefore is tasked with broader issues within an organisation that are related to organisational structure, culture, effectiveness and its performance by matching resources to organisational needs, developing unique competencies and knowledge, and managing organisational changes. Strategic HRM is also concerned with both management and development of human capital requirements. Often there is confusion between HRM and HR strategies, but as Armstrong and Redmond (2011) notes, there is a clear distinction between the two. HR focuses on what must be done, what must be changed and how the changes are to be achieved. Groschl (2011) suggests that HR strategy has two major elements; strategic objectives and strategic plans.
The Harvard vs. Warwick Model of Strategic HRM
The Harvard Model of HRM consists of six components...

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...nding of employee’s abilities by recognising achievement, evaluating job progress, and then designing appropriate training programme to fulfil employee needs. Appraisal is based on job results obtained by the employee. Performance appraisal helps to identify areas that an employee needs to enhance in order to grow professionally. There needs to be open communication channels to improve working relationships.
• Promote, demote or transfer regarding to performances
After each employee performance has been evaluated by their supervisor, the most recent job description on file will be reviewed and updated accordingly, both by the supervisor and the employee. Employee salaries are then reviewed appropriately, with the amount of increase or decrease recommended by the administration within the organization and approved by the board of trustees (Schuler and Luo, 2004).