Strategic Human Resource Management
“Human resource management is the process of employing people, training them, compensating them, developing policies relating to them, and developing strategies to retain them” (Diaz, 2012). In recent years, there has been a dramatic shift in the human resource function. Traditionally, management viewed the HR function as purely administrative and professional. Human resource managers continually transform and adapt to the ever changing workforce demands. Human resource management is a vital asset to any organization, as they are a strategic partner that enhances the skills of an organization helping to ensure the organization’s success. Human resource managers are tasked with being versatile enough to switch …show more content…
Human resource managers advocates for employees, representing employee concerns, and encouraging employee contribution. Keeping an employee committed to an organization will increase the employee’s ability to deliver results. “Managing the work and organization facets that unleash and support the optimal expenditure of employee energy is a key issue for human resource managers in the attainment of team and organizational goals” (Ehnert, Harry, & Zink, 2014).
Nowadays, human resource professionals are expected to contribute to the planning and strategy of the organization. HR is responsible for helping to turn future plans into workforce capabilities and management practices to achieve successful results. HR has the shared responsibility to deliver business distinction. “HR professionals who have the business acumen to contribute to business strategy at the highest organizational levels are leading the shift in the HR profession from administrators to strategic advisors” (Management, …show more content…
According to Forbes, there are several ways to becoming an invaluable strategic business partner. Human resource managers have to know and understand how an organization functions. “Get clear about how all the different parts operate together, and what gets in the way of their smooth operation” (Andersen, 2013). Preforming market research about the competition will help to generate a basic understanding about specific department’s needs and what can be done to make the department more productive. The human resource department is not to only assist in employee relations, human resources can serve the organizations overall needs as
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Human resource management can be viewed as the spider web that entangles a company’s workforce. HR departments are involved in employee’s work lives from the recruitment and selection process, to the training and development, performance reviews, and the compensation
Organizations’ other resources can be hired, retained and discarded at any time but human resources needs special treatment. It needs to be carefully hired, deserve an extra effort to retain it and requires training & development to upgrade and improve its capabilities. Other resources depreciate with the passage of time but when the human resource gains more and more experience, it becomes more beneficial for the organizations. These characteristics have brought human resources to be the central element for the success of an organization. (Mohammed, Bhatti, Jariko, and Zehri, 2013, pg. 129, para. 2)
Human Resource Management is the utilization of human resources to achieve organizational objectives. Various studies have concluded that an organization?s human resources is its people. It can be a significant source of competitive advantage. Achieving competitive success through people requires a fundamental change in how managers think about an organization workforce and how they view the work relationship.
" This global London-based mining and mineral company was severely impacted by the global recession in 2008. Such an impact forced unprecedented workforce reductions worldwide and decentralized HR management had to be brought in under a single umbrella to ensure an orderly and efficient system that would support the organization’s future productivity."( Case Study OneRedesigning HR HRMG 5000 - Student Simple). Human resources have a strategic significance if managed efficiently and productively. The company revamped and managed its HR functions in a manner so as to achieve the strategic goals of the
This paper will attempt to give a broad overview from the available literature within three areas. First, the paper will explore the historical relationships of HR and organizational strategy. Second, the paper will give an overview of current practices and trends. Lastly,...
1)” HR people aren’t the sharpest tacks in the box.” There is an increasing gap between the capabilities of those functioning in HR and the business intelligence needed for them to be successful strategic partners in a business organization. Anthony Rucci, EVP at Cardinal Health Inc., summarizes this in one statement, “…business acumen is the single biggest factor that HR professionals in the U.S. lack today.” Therefore soft skills are not enough. The core burden of Human resource Manager is to serve the organization’s business objectives; therefore, if Human Resource Manager does not understand all aspects of business, he or she will not be able to do his or her duties effectively. Those skills must be used in context with the strategic function of the company.
The HR Professionals must also work hard to add value to the organization's competencies to expand and prosper internationally by building global HR networks (Saeed, 2004). This is in addition to their traditional responsibility to resource, manage, and develop employees. The companies continuously face declining revenues, shrinking market share, increasing costs, and depleting shareholder value; therefore; the HR processionals should works to deliver sustainable value to the
According to our textbook Human Resource Management (HRM) is the policies, practices, and systems that influence employees’ behavior, attitudes, and performance. “The human resources management process involves planning for, attracting, developing, and retaining employees as the HRM planning provides the rights kinds of people, in the right quantity, with the right skills, at the right time (Lussier, 2012, p. 240).” According to our textbook the typical responsibilities of the Human Resources department fall into three categories, and they are administrative services and transaction, which handle hiring employees. The second involves business partner services that focus on attracting, evolving, retaining employees by having a clear understanding
Wright and McMahan defined Strategic Human Resource Management (SHRM) as "the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals" (1992:298). This field moves away from traditional personnel management' and heads toward the view that employees play an integral role in the development of an organization's competitive advantage and as such carefully planned HR initiatives should be implemented to increase their value to the firm. SHRM conceptualized with Walker's (1978) article, which highlighted the need for linkage between strategic planning and human resource planning. However, it originated with Devanna, Fombrum and Tichy's (1984) article which analyzed in great detail the link between business strategy and HR. The field of SHRM has enjoyed a remarkable ascendancy during the past two decades as both an academic literature and focus of management practice.
Human Resource Management (HRM) is fundamentally another name for personnel management. It is the process of making sure the employees are as creative as they can be. HRM is a way of grouping the range of activities associated with managing people that are variously categorised under employee relations, industrial/labour relations, personnel management and organisational behaviour. Many academic departments where research and teaching in all these areas take place have adopted the title department of human resources management. HRM is a coordinated approach to managing people that seeks to integrate the various personnel activates so that they are compatible with each other. Therefore the key areas of employee resourcing, employee development, employee reward and employee involvement are considered to be interrelated. Policy-making and procedures in one of these areas will have an impact on other areas, therefore human resources management is an approach that takes a holistic view and considers how various areas can be integrated.
Noe, R.A., Hollenback, J.R., Gerhart, B., (2010). Human Resource Management: Gaining A Competitive Advantage. New York, NY. The McGraw-Hill. (p. 555-561).
In today’s fast moving, unpredictable business environment, human resource management is more crucial than ever to a business’s success. As the ‘VUCA’ world continues to change and evolve, human resource practices will continue to transform to adapt to the business environment. As a concept, human resource has been constantly redefined, undergoing countless analyses and discussions by various theorists and business people in order to ascertain why HR activities are so important, and the changes in the business environment that led them to be this way.
Human Resources are a vital department within companies, it’s not just a place to go when troubles occur, but too often they are misunderstood and underutilized. Human Resource has become a major feature of a company 's overall strategic plan because of the following; Strategies on how making the company more efficient in all areas. Meanwhile, having different training and building communication skills. In addition to, this function presented in any management helps in maximizing employee performance. By following or understanding these methods you can tell why HR has become an importance to a successful company.
It is important for HR personnel to have knowledge of the business, customers, leadership traits, the right HR systems and appropriate delivery systems. Understanding the business is a key element for HR to become effective. Every business is unique and therefore, the HR has to understand the unique elements of the business which determines how the human capital behave. Understanding the business enables the HR function to analyze the strategic objectives for each activity. In other words, the HRM is in a better position to add value if they understand the business.( Vogelsang, 2013) For instance, HR management in Coca Cola Company is involved in creating policies, practices and regulations that ensure hiring and maintaining the right employees to maintain its position in the beverage industry.