STRATEGIC HRM

Strategic HRM

Strategic HRM

Introduction

This paper will discuss the role of Strategic HRM and how it creates the competitive edge in a private sector organization. The study would be based on discussing how competitive advantage can be created on the basis of resource based view.

For this study the company we have selected is Tesco PLC which is one of the biggest business retailers globally. The company has been able to develop an international grocery store and a merchandising chain in UK. The company employee 145, 000 staff throughout the world and has annual sales of £1bn. This sales figure has made Tesco the largest retailer in terms of domestic and combined sales and the third largest company in the world after Wal-Mart (United States) and Carrefour (France).

Human resource management is considered as the backbone of every organization and there is a need of developing strategic resource which can help the organization to compete with others. Human resource processes are sequences of action by which the organization attracts, socializes trains, motivates, evaluates, and compensates its human resources (Analoui, Labbaf, 2000, p. 217). Organization of work concerns the design and management of jobs. Activities dealing with work design are perhaps the most fundamental of all human resource processes due to work's direct effect on the value of organizational output. Performance management valuates work and provides performance feedback to employees. This process also rewards employees through compensation and other incentive practices. Hiring and career progression acquires talent for the organization and provides for employee retention. Education and training develops employee talent and skill. Work environment secures the workplace from health, safety, and other threats that might prevent or inhibit work. Lastly, support and satisfaction maintains employee well-being and contentment.

Strategic Human Resource (SHRM)

SHRM concerns the management of people and conduct of work in the context of organizational performance (Dovev, Pamela, Poonam, 2012, p. 1467). A focus of SHRM has been on identifying specific human resource practices tied to general performance (Analoui, Porum, 2008, p. 609). A human resource practice is a specific activity, such as using an employee survey to assess work climate. Those practices thought to be strongly linked to performance often earn "best practice" or similar labels. Analoui (2000), for instance, proposed seven universal human resource practices thought to drive high performance including employment security, selective hiring, self-managed teams, generous performance based compensation, general training, information sharing and reduction in status differences.

Activities associated with these processes are consistent with those commonly thought to express SHRM (Analoui, Hosseiny, 2001, p. 339). Strategic human resource management (SHRM) can be defined as the link between human resource management (HRM) and strategic management in an organization. SHRM is based on many organizational concerns which are related to management of change, organizational effectiveness, performance structure, culture, employee development, competence and developing resources for future business requirements. Traditional HRM was concerned with the regulation and functions related to recruitment, training, selection, compensation and benefits and performance measurement. On the other hand, SHRM involves scheming and applying a set of internally ...