Strategic human resource management

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  1. STRATEGIC HUMAN RESOURCE MANAGEMENT

Strategic human resource is planned process of human resource deployment to achieve organizations goal, it is consist of correct HR practices and management decisions. Wright and McMahan (1992), the logic of strategic management according to articulation of the black box it shows the link between the HR architecture and its subsequent performance. Brian E. Becker and Mark A. (2006), essential part of the SHRM is systematically link the people with the firm. Schuler and Jackson (2007: 5)

Human resource management is important department in most of the organization, it is directly or indirectly involves all management decisions, implementation and actions, it’s mainly focus on make a strong, long term relationship between the management and it employees. Beer El Al (1984), HRM is connected with all the all the activities including hiring people, employing and managing them, the management covers with Strategic, knowledge, human capital, corporate social responsibility, resourcing, organization development, learning and development and performance and reward management. M Armstrong. S Taylor. (2014: 4).

In the UK numerous arguments, development and criticism occurred to the Human resource management, Legge (2005: 101) criticised the statement of Armstrong 1987; Fowler 1987, and UK academics, Henry and Pettigrew (1990:18), they mentioned that HRM was strongly normative at the start and it is identified and provide proposed solution noticeable changes, while providing more attention to the demanding deficiencies – in attitudes, direction, scope and coherence – of old personnel management. Armstrong argued that HRM is no more and no less than to personal management it’s clearly indicating the important of treating people as key resource, main concern of the top management and its strategic planning process of the organization.

The Contingency Model

According to contingency theory HRM practises are mainly depend on its environment and situations, its mainly focus on making a relationship between the organizations HR practices, policies and strategies and its business strategy adapt to its external and internal environment. Paauwe (2004: 36) clarified: ‘ connection between the independent variables such as HRM policies and practices, it is different to each company according to their size, age and technology, capital intensity, degree of unionization, ownership, location and industry sector.’

The Harvard Model

Human resource management has an impact or power on all management decisions, making good relationship between the organization and employees while finding the while finding the actions affecting the relationship, organization should consider employee as a potential asset than variable cost, also its says about the responsibility of line manager. The line manager has more responsibility to make sure HR policies and competitive strategy.

Characteristic of SHRM

Strategic HRM is a process of an organization to utilise their people to achieve goals, SHRM considers people as a main asset to the organization, they can achieve these goals by using HR strategies and practices and integrated HR policies. M Armstrong. S Taylor. (2014: 18). HR practices help the organization to make their decision on strategic plan, through strategic plan organizations can achieve their decision on overall or precise HR strategy, SHRM is consider not only strategic also integrate with business and HR, example how they do business and plan to do.

1.2 Importance of the Strategic Human resource Management

An effective HR strategy sets to achieve what an organization needs to achieve

  • Able to satisfy and fulfil business requirements.
  • It can be an effective and efficient programmes.
  • The actions can find and anticipate requirement and the problems.
  • It is logically connect support each other
  • Identify the needs of the organization and its other stake holders also line managers and employees.

Human capital management

This theory mainly consider on how people contribute to the organization using their skills, knowledge and abilities to increase the productivity. Management should clearly explain the objects, needs and wants of the organization to employees, by making the relationship with them and their trade unions. M Armstrong. S Taylor. (2014: 7, 28). Creating mutual interest between the organization and their employees by providing required support to their families and showing interest in response to that asking employees to do the same think to the organization. J Mello (2014: 22)

Corporate Strategy

Showing the organizations responsibility to the society and environment through managing the business ethically. Designing and implementing policies which help to increase the employees and their contribution to the organization by their effectiveness, creating new programmes to increase the effectiveness among them to respond to the change and the functions. M Armstrong. S Taylor. (2014: 27).

1.3 Framework of Strategic Human Resource Management

The Harvard Model

According to Beer et al (1984), Organization should consider people as an important asset than a variable cost, he believed that many problems are demanding larger and longer eventually shows the necessity of the long term relationship in managing people. The framework shows that problem can be solved only when general manager want see how their employees going to perform on new development in the organization, such as following HR policies and practices to achieve their specific goals. Armstrong (2003)

Line manager should ready to face increased responsibility to setting policies with mission and arranging competitive strategy also identify the right method to develop and implement his personal activities mutually. Beer et al (1984)

Huczynski and Buchanan (2001) and Loosemore et al (2003) mentioned that Harvard model equipped the required connection between organizations performance, the business environment and SHRM decisions. It provide more easy method to identify how SHRM influencing other organizational activities.

The Harvard Framework (Beer et al., 1984)

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Advantages of the model according to Boxall (1992) and Armstrong (2003)

  • Identifying stakeholder which helps organization to corporate with them.
  • It acknowledges a broad range of contextual influences on management’s choice of strategy, suggesting a meshing of both product-market and socio-cultural
  • It provided the doubt of supervisory style, meantime giving more space to the employee influence.
  • It identify and increase the interest among the employer, employees and different interest groups.
  • Strongly depend on management voice, not controlled by the environment or situation.

2.1 Strategic Human Resource Process

HRD Audit

HR Roles in Building a Competitive Organization

Future/Strategic Focus

Management of Management of

Strategic Human Transformation

Resourcesand change

PROCESSPEOPLE

Management ofManagement of

Firm InfrastructureEmployee

Contribution

It is varies from short term operational to long term strategic, HR professional should understand the both strategic and operational method to provide more focus on long and short term activities, these two process define the most important principal of HR activity. D Ulrich (2013: 24)

  1. Managing the Strategic Human Resources.
  2. Managing the Organizations infrastructure.
  3. Managing the employee’s contribution.
  4. Managing the organization change the transformation.

2.2 Role of top management

Strategic HR role of front- line management

Strategic leader should be able to anticipate and forecast necessary changes to the organization in the future. (Hitt, Ireland, & Hoskisson 2007: 375). It involves in different function in the organization, managing the employees according to the need of the organisation is important role for the management. The leadership should accept and build a strong connection between organizations external and internal business environment. (Huey 1994: 42–50)

Some of the recognized characteristic which strategic leadership contribute to implement the effective strategic management.

  • Determine and plan the strategic direction.
  • Organization function should be balanced.
  • Adequate use of organizations resources.
  • Following correct practices ethically
  • Implementing organizational culture

Strategic manager should follow all the above strategic action to contribute, implement and achieve all the organisation strategic leadership goals. (Hitt et al. 2007: 384). Reason for the most of strategic management’s failure is poor implementation and lack of leadership.

HR Function

Now both private and public sector organization facing the challenges to increase their corporate performance, HR function most important among that, to achieve the organizations efficiency and effectiveness in their target performance they need a transformation, only they can achieve this by recreating HR function. MI Hunter, MA Boroughs, MT Bendrien, MS Constance… - 2012 - books.google.com

Technology has the important part in transformation of HR, in the traditional HR effort and cost are high because of the lack of technology. Now HR transformation in to the new technology provides the increased performance and added value to the HR function and business itself, familiar with this connection of the strategic effort is important, eventually it will leads to achieve the key (transactional and administrative) activities of the HR’s next generation. MI Hunter, MA Boroughs, MT Bendrien, MS Constance (2012: 2) - books.google.com

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