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strategic human resource management as a concept
importance of developing an Human resource plan in strategic human resource management
importance of developing an Human resource plan in strategic human resource management
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Human Resources Strategic Direction
The decisive difference in the business climate of any organization is determined by strategy. A successful execution of a business strategy, being the ultimate goal, if inclusive of the Human Resources Department, then like all other departments within the organization will be strategy-driven. Human Resource’s future, by understanding the paramount importance of human and intellectual talent, is on the verge of becoming seen as more of a strategic business partner within many organizations today. Organizations are beginning to understand the validity of tying human capital into the critical skills, knowledge, and competencies needed to be competitive. This paper will attempt to show. What I believe the future of Human Resources will be. No longer solely implementing policies and programs, perceived only as an organizations administrative tool. However will eventually be seen as a legitimate, strategic, business partner.
Strategic vs. Benchmarking
Before looking at what the future of Human Resource Management (HRM) may hold.
Hylton 2
It is important to understand the difference between HR as a strategy and organizational benchmarking. Strategic HRM is the linking of HR, with the strategic goals and objectives of an organization. Strategic HRM is a partner in the formulation of the company’s strategies as well as in the implementation of those strategies through HR activities, i.e. recruiting, selecting, training, and rewarding personnel, “HR professionals should judge their performance relative to their firm’s own strategy rather than the HR efficiency of other organizations” (Becker, Huselid, 2003, p. 58). This is an effort to improve business performance, thus developing organiza...
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...Schoonover (2000) HR Competencies for the Year 2000:The Wake-Up Call!
TUI Course CD for MGT 511, Spring 2007. Available from Touro University International, Cypress, CA.
Cox, Taylor H. Jr. & Blake, Stacy, 1991, “Managing Cultural Diversity: Implications for Organizational Competitiveness” The Executive, 5 (3), 45-57.
Cox, Taylor H. Jr., 1991, “The Multicultural Organization” The Executive, 5 (2), 34-48.
Patrick Wright, Lee Dyer, and Michael G. Takla (2000)"Execution: The Critical 'What's Next?' in Strategic Human Resource Management" A working paper from the Cornell Center for Advanced Human Resource Studies, 99 – 11.
Boudreau, John W. & Ramstad, Pete M. (2000) “Professional Business Partner” To “Strategic Talent Leader”: “What’s Next” for Human Resource Management, A working paper from the Cornell Center for Advanced Human Resource Studies, 02 – 10.
Noe, Raymond A., et al. Human Resource Management: Gaining a Competitive Advantage. 7th ed. New York: McGraw-Hill/Irwin, 2010. Print.
Lengnick-Hall M.L.; Lengnick-Hall, C.A.; Andrade, L.S.; Drake, B. 2009. “Strategic human resource management: The evolution of the field.” Human Resource Management Review, 19, pp. 64-85.
Snell, S. A., Youndt, M. A. and Wright, P. 1999. Establishing a framework for research in strategic human resource management: Merging resource theory and organizational learning. Human resource management: critical perspectives on business and management, 371.
Ramlall, S., Welch, T., Walter, J., & Tomlinson, D. (2009). Strategic HRM at the Mayo Clinic: A case study. Journal of Human Resources Education, 3(3), 13-35. Retrieved from http://business.troy.edu/jhre/Articles/PDF/3-3/31.pdf
MacMillan, I. C. (1984) ‘Gaining competitive advantage through human resource management practice,’ in Human Resource Management, Vol. 23, Iss. 1, pp. 241-255.
In education, human resource planning serves as a link between human resource management and the overall strategic plan of the sector (Human Resource Planning, 2012, p.17). According to Beardwell & Holden (...
...an approach of partnership is critical for organizations that want to gain competitive advantages. Butler, Ferris & Napier (1991) state this as, “the more management believes that HRM contributes to corporate success, the more its role will be integrated into the firm’s strategic planning process.” (as cited by Rose & Kumar, 2006, pg. 3). Additionally, organizations that apply energy and resources to HRD benefit from an increase in human capital. López-Cabrales, Real & Valle (2011) state the benefits of building human capital as, “If the company adopts appropriate procedures of personnel management, human capital can be orientated to the achievement of sustainable competitive advantages” (pg. 5).
Noe, R. A., Hollenbeck, J.R., Gerhart, B., Wright, P.M. Human Resource Management, Gaining a Competitive Advantage. Boston: McGraw Hill Companies Inc., 2000.
Contemporary organizations are faced with the challenges of changing economic and market conditions, productive labor, competition, and the struggle for survival. Traditionally, organizations have focused on material assets, cost cutting, and reduced employee expenses as a means of increasing competitiveness and profits (CSU-Global, 2013). However, this approach is becoming a less viable tactic in today’s complex and dynamic environment. Instead, an organization must recognize the value and importance of its people in implementing the strategies which lead to business success (CSU-Global, 2013). This places an organization’s human resources (HR) in a prominent role when developing strategic plans for the future.
Schuler, R. S. and S. E. Jackson (2008). Strategic human resource management, John Wiley & Sons.
Human Resource executive are often confronted with many obstacles in the process of doing their job. Some of the major issues HR experts are encountering is retaining and rewarding of the best employees, the training of business managers, and the formation of corporate philosophies that make the business appealing to preeminent employees (SHRM, 2012). One source that assist corporation in the assessment of Human Resource issues is the Society for Human Resource Management (SHRM). The mission of this organization is to offer sustained professional development opportunities, promote national networking, and to in general improvement the concerns of a business that they identify in the state of evolution.
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.
Sondhi, V. and Nirmal, P. 2013. Strategic Human Resource Management: A Reality Check. Review of Management, 3 p. 4.
In the fields of management and business, Strategic Human Resource Management (SHRM) has been a powerful and influential tool in order to motivate employees to perform productively. (Ejim, Esther, 2013). According to Armstrong (2011), SHRM refers to the way that the company use to approach their strategic goals through people with a combination of human resource policy and practices. The purpose of SHRM is to produce strategic capability that the organisation must ensure such that employees are skilled, committed, and well-motivated in order to achieve a sustainable competitive advantage, (Armstrong, 2011). Particularly, the organisation must be able to carefully plan strategic human resource ideas, aimed to increase the productivity.
Strategic Human Resource Management can be regarded as a general approach to the strategic management of human resources in accordance with the intentions of the organization on the future direction it wants to take. It is concerned with longer-term people issues and macro-concerns about structure, quality, culture, values, commitment and matching resources to future needs. It is considered as all those activities affecting the behaviour of individuals in their efforts to formulate and implement the strategic needs of business. It is also viewed as the pattern of planned human resource deployments and activities intended to enable the forms to achieve its goals.