HRM

Integrating Strategic Approach to Human Resource Management



Introduction1

Review of Literature3

Background of Human Resource Management3

Strategic Human Resource Management4

Definition5

Impact on Organisational Performance6

Critical Analysis9

External Pressures for Nestle10

Product Quality11

Analysis of the HR strategy pertaining to “Quality” as a strategic goal12

Analysis of the HR strategy pertaining to “Improved Services” as a strategic goal13

Recommendations15

Integration of Performance Appraisal as strategic approach to Human Resource Management15

Integrating HR inputs into strategy formulation16

Conclusion16

References19

Integrating Strategic Approach to Human Resource Management

Introduction

In today's competitive world, organisations have to identify the rolling stones for successful business. There are many factors which contribute towards the success of an organisation. Besides infrastructure & operations, Human Resource Management plays a vital role in establishing organisations' future. The sustainability of a business has a direct link towards the most important asset, which is the “workforce” (Marler, 2012, p.7). It is the productivity of an efficient work force that leads a company towards its mission. Human resources have the potential to direct & regulate organisations into new business dimensions. Therefore, it is vital to allow employees to make the most out of their interpersonal capabilities. Every employee encompasses a unique set of skills, which are translated into expertise. In this regard, an organisation's culture must stimulate the professional development of employees. It has been observed that the most flourishing companies have the most effective human resource management techniques (Jeffery, 2006, p.15). Managing human resources is not only an art of so called “management tactics”. Today, it has become an evidence-based practice, adding value to the organisations' success. Many organisations depend on HRM consultants in order to acquire effective approach to Human Resource management (Reghis, 2008, p.280). As HRM has become a professional subject of interest, companies dedicate a large portion of finances to them.

An organisation develops various strategies pertaining to a business unit. Further, a company's mission determines its strategic objectives. Many contemporary approaches have been devised for strengthening human resource management (Lentz, 2007, p.39). According to business experts, strategies must be aligned at distinct levels (Bratton, n.d, p.1). Strategic approach to human resource management has been gaining value in the triumph of HR consultancy. In order to improve performance, strategic objectives must be mapped against Human Resource functioning. Strategic Human Resource Management has established its key principles in theory. The concept elaborates the best practice principles of linking the managerial processes to the HRM procedures (Werner & Desimone, 2012, p.37). In this approach, the policies of HR are joined with the strategic goals of a company. Many organisations develop SHRM (Strategic Human Resource Management) regulations but very few observe them practically. One may notice a huge gap between the theoretical implications & practical implementation. Researchers & practitioners have investigated various aspects of SHRM. There are many questions relating to SHRM: the question of developing HR strategy being the first in the list. Big Corporate decisions are likely to be regulated by the guidelines of SHRM (Harrison, 2010, p.n.d). In this regard, this paper explores the effect of strategic approach to HRM ...