MANAGING THE HUMAN RESOURCES

Managing the Human Resources

Managing the Human Resources

Introduction

The field of human resource management (HRM) has undergone significant changes in today's turbulent environment. Both the practices and profession of HRM have changed dramatically due to the emergence of new economic paradigm which characterized by massive competition, globalization, innovation and creativity, speed, the advancement of information and technology, short cycle product and quality and also the importance of intangible assets, specifically human resources.

Underpinning Knowledge

Strategic human resource management (SHRM) takes these ideas one step further by emphasizing the need for HR plans and strategies to be formulated within the context of overall organizational strategies and objectives, and to be responsive to the changing nature of the organization's external 'environment' (i.e. its competitors, the national arenas). A strong implication of SHRM theory is that HR plans and strategies should be developed on a long-term basis, taking into account likely changes in the society, industrial relations systems, economic conditions, legislation, global and technological issues, as well as new directions in business operations.

Competitive Edge in Managing People

Roles and Accountability

According to Noe et al. (2004), some of responsibilities of HR departments are: analyzing and designing jobs, recruiting and hiring employees, training and developing employees, managing performance, planning and administering pay and benefits, establishing personnel policies and also supporting organizations strategy. HR staffs are accountable for these roles. In other words, they as a source of SHRM & strategic partner, administrative expert, and employees advocate and change agent.

According the table above, There are four criteria for the company to gain the competitive advantage which that can compare with other firms. During the time that we are currently living, the high technologies such as computerization, telecommunications and the internet are making a major impact across various sectors of business. The people is the most important source for the company and the more and more firms are increasing their attention to think how to gaining competitive advantage through people.

Application Of Knowledge

Gaining Competitive Advantage through People

Human resources plays critical role to organizational effectiveness and successes. Human resource can also develop and sustain competitive advantage. It implies that the HR managers should also be included in strategic decision-making by senior management and hence HR managers would be able to formulate Human resource strategies that support organizational effectiveness.

Critical Analysis

The Importance of SHRM: Strategic Human Resource Management

'Strategy' gathered widespread recognition in managerial practice since the 1960s. Global competition, economic recessions, rapid technological innovation and an increase in the number of white collared professionals, forced organizations to develop an integrated approach in achieving competitive advantage. Today, strategic planning is applied across various functional areas including Human Resource Management.

The challenge of managing human resources is to ensure that all activities are focused on business needs. All human resource activities should fit together as a system and be aligned with human resource strategies. These strategies, in turn, should be aligned with the business strategy.

Achieving Competitive Edge

Now days, the technological change has made globalization of markets and production a tangible ...