Human Resources Management: The Importance Of Strategic Human Resource Management

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Strategic Human Resource Management Strategic human resource management is the procedure of relating the human resource function with the planned objectives of the organization in order to enhance performance. In simpler words, Strategic Human Resource Management is a different way of running an entire organization. Human Resource focuses on the objectives that will be achieved and how the right people can be placed on the right positions to maximize those accomplishments. Secondly, SHRM focuses on entire systems when solving organizational issues rather than individual methods. In addition to the focus on systems, SHRM is about lining up with the company's objectives of superior performance by creating a competitive advantage. The drastic changes taking place in the workplace and the work force has led to the remarkable development of traditional human resource management to strategic human resource management. SHRM are considered very important for any organization as they focus more on strategic issues rather than operational ones. The most important priority of Strategic HR management involves managing people in the organization, and incorporating all human resource policies and programs within the framework of a company’s strategy. Also all decisions on finance, marketing, technology or operations are done by an organization’s people. Strategic management is considered to be a nonstop activity which requires a consistent tuning of three main mutually dependent poles: the principles of the management, the environment, and the resources available within the organization(diagram a). Diagram a HRM and its importance in organisations Successful companies are those which consider their labour as their most important ass... ... middle of paper ... ...trategic organizational change within the organization. • Create an efficient training program. • Propose a compensation method which motivates employees. • Constitute benefit packages and determine their success level. • Recognizing doctrines for developing, employing and preserving human resources. • Make informed business decisions by the use data and statistics. • Influence technology to improve the contributions of the HR function to a business. • Build up financial and budgetary expertise. Although the signs of recession haven’t gone yet, businesses are recognizing that in 2015, they will have to take necessary steps to maintain their workforce. This could be through an increased emphasis on training and engagement programs or by investing in areas that will optimize expenditure, such as incorporated technology systems or enhanced candidate attraction schemes.

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