STRATEGIC HUMAN RESOURCE MANAGEMENT

Strategic Human Resource Management



Strategic Human Resource Management

Critically assess whether strategic HRM leads to 'high performance'

Introduction

A strategy is the way of approach of an organization to a situation, which maybe uncertain, or to gain a competitive edge. The organizations today are big, future-oriented and specific plans are formulated to achieve organizations objectives and goals (Hill, McGraw. 2012). Strategies are typical in guiding the organization at all the three levels which are corporate, than business and thirdly functional. At corporate level, there is involvement of the whole organization, business level is either division in a multi business company or involves a single major activity and finally functional involves managerial levels of entire organizations. At each level, goals are set that would help the entire organization reach the goal it has set forth (Hill, McGraw. 2012).

Strategies can vary according to the type of organization and their focus. While one may be focusing on to produce low cost products, the other might aim at high quality product with higher price. The firms invest heavily on research and development to come up with new and improved ways to reach organizational goals. In a fast changing environment of today, human resources have become an important tool for every organization. Human resource systems can help firms develop competencies to contribute towards competitive advantage. Strategic human resource management deals with the linkage between overall strategic objectives of the business and the right human resource strategy and implementation (Journal of Naval Science and Engineering, 2002). There have been published sources that show positive relation of adopting HR practices and business performance. This linkage will enable HR managers to design system that help in achieving better results and higher performance.

Strategic Human Resource Management (SHRM)

Globalization has largely influenced the environment businesses deal in today. There are no constant factors and ways that can lead to sustained profitability for the organization. There is an ever changing customer demand, investor expectations and product market competition. Thus, there is need of continuous improvement through performance by reducing costs, innovating products and processes. The people who make any organization are its human resources. They are the most essential assets of an organization and how they are managed will directly affect the performance of the company. Traditional methods to gain competitive advantage through products and process have changed considerably replaced by human resource management and strategy. Human resources are the backbone for any company, hence, it is important for the firm to hire and retain skilled people, keep them motivated and committed towards achieving organization goals.

Strategic human resource management (SHRM) is a relatively new word coined. It has emerged in the context of the role of human resource management systems in a firm performance as a means of competitive advantage. The awareness has widely spread that the successful human resource policies and practices will increase their performance and will also show in firm's quality and overall financial presentation.

The role of strategic human resource management in an organization is to thoroughly link strategic needs ...