Strategic Human Resource Management

Strategic Human Resource Management

Introduction

Facing the intense competition, fast paced innovations and technological changes, organizations now find it increasingly critical to manage economic uncertainties, managerial complexities and resources scarcity to be strategically aligned with business goals. HR plays an influential role in this regard as it can be the foremost source of setting up and managing required culture and structure in the organization (Armstrong & Baron 2002). It includes the shift from traditional style of managing to the modern way of managing consisting of talent management, capability mapping, latent recognition, employee withholding, leadership growth, succession planning and optimum usage of human resource. The evidence if work place crisis, stress and strain can also be managed by managing people strategically. Thus, HR teams should understand the need of a business environment which can set the stage for strategic planning of survival of organization in competitive markets (Kaufman & Miller 2011, pp. 530)

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Strategic Human Resource Management

Strategic human resource management is considered as a complex process which can be defined as the integration of various processes, people and programs of the organization and using these resources in an effective way. In managing strategically, human resources are aligned according to the goals and intentions of the organisation which it wants to achieve in the future. It involves long term planning and aligning of peoples' issues and concerns about quality, structure, values, resources and commitment (Martin et.al 2012, pp. 512).

Strategic human resource management can be used in many areas including

Succession planning

Performance management

Reward management

Training and re-training for skill development

Managing change

People centred organizational development interventions

Value creation through HR

Leveraging Human Potential

Competency Building (Kar 2012, p. 55).

Need of SHRM

Strategy can be understood as a multi-dimensional concept where roadmap is set by broad statements. These statements are converted into measurable, specific and achievable set of plans. These actions are then linked to accountable individuals by empowering them with decision making to achieve stated goals in given time frame. Strategic human resource management leads in strategy formulation through SWOT analysis and competitive intelligence. (Kar 2012, pp. 57)

The growing competition and globalisation has led organizations to introduce innovative approaches to human resource management. It also calls for enhancing HR capabilities and competencies. HR activities are now not limited to providing required human resource but also includes achieving the goals of organisation by strategically managing the resources. In order to meet the desired goals, commitment from people is expected (Reid 2000, pp. 22). Thus, HR should formulate policies which are coherent to personal goals of employee and organizational performance. This results in optimum use of resources and strives for meeting business challenges. HRM policies should also be integrated with business objectives and should support organizational culture. By creating a supportive and conducive environment, individual's capabilities, team work facilitation, total quality management and innovation are enhanced. It helps people to grow, adapt and respond to the flexible organizational system. Organisations now focus on implementing decentralized approach by delegation and empowerment. The organization now support control systems by breaking the organizational hierarchy to a ...