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Strategic Human Resource Management is a procedure that connecting the functions of human resources to improve the performance of the organization through formatting the strategic objectives. Strategic human resource management helps the organizations to manage their employees in an effective way so that they can increase their performance and put their efforts to accomplish the goals of organization. The companies become enable to meet the requirements of their employees through the design of SHRM. Human Resource Management covers all aspects of any business that have any effect on the employees like; hiring the new employees and fire the old, trainings, benefits, pay, and administration as well. Moreover, SHRM also provide safety, work incentive, procedural information, and leaves on vocational days and sick days (Gannon et al., 2012).
Through strategic human recourse management any global company can run their business successively. The strategic human resource management is a term that conveys sense of HRM in strategically way. The strategic process needs some connections to take place to manage the aims of any organization that is known as strategic management (Massey, 1994). This is also help to make decisions as the human resource management is an approach that concern with the essential components of business strategy in any organization. This is a relationship among strategic management and human resource management as it refers to the wishes of organization overall direction to achieve its goals and objectives through motivating employees (Budhwar, 2000).
Key Features of Strategic Human Resource Management
Haynes and (2000) stated the following are the key features of Strategic Human resource Management:
HR practice and policy has explicit linkage among each other and organizations have their respective goals and environment
Individual intervention of HR in some of the organizations are linking schema that is supportive mutually
Human resource management has much responsibilities to develop the line
Importance of HRM in organizations
Strategic human resource management normally helps the companies to meet the requirements of their employees in better way so that the employee may get higher satisfaction and they will remain retain to the company. Strategic human resource management also compact with enterprisers that influence the employees. The companies can increase their competitive advantages through making effective and efficient strategies (Han and Zhao, 2013).
In current global and competitive marketplace the companies can become lower cost leaders through implementing SHRM in their organization. The competitive advantages lie on the managerial efficiency and good performance that can only improved by the Strategic human resource management. The technology could also be increased by the Strategic human resource management, because the management can introduce such strategies that increase the usage of the advanced technology and the employees can be trained by starting some programs to aware them (Chen at el., 2003).
Employees are the essential part of the organization as the performance of the organization depends upon the performance of the employees, as they can lead the organization towards higher productivity and profitability through increasing their performance and efforts. The employees can increase the overall performance of the organization through increasing their capabilities and delegation with their work. The employees will put their effort to improve the profit rate of the organization when they will satisfied and they are getting their needs and requirements, they will do hard work to achieve the goals of the organization (Edgar and Geare, 2005).
Theoretical Perspectives of SHRM:
To explain the exact meaning of Strategic human resource management the researchers and philosophers has developed the number of hypothetical models of Strategic human resource management so that the aspects of SHRM may explained in detail and complete meanings can be illustrate. Organizations required Strategic human resource management to contribute in the success bottom-line of the organization. The models have their respective overlap and each model is for specific situation (Chang and Huang, 2005).
Models of Strategic HRM:
Strategic human resource management comes into view as a sequence in which various feed and follow activities one another. The strategic management process is typically broken down into five steps (Haynes and Fryer, 2000).
1. Mission and goals
2. Environmental analysis
3. Strategic formulation
4. Strategy implementation
5. Strategy evaluation
In the environmental model of strategic human resource management the analysis is based on the external and internal environment such as; strength, weakness, opportunities and threats as well. In this model the organizational managerial team focus ion the external and internal environment of the organization and develop effective strategies to improve the performance and business of the organization and also remove the weakness of the organization by adopting the opportunities (Edgar and Geare, 2005).
Strategic formulation is another model of the strategic human resource management that involves senior managers appraises the interface among the strategies creation choices and strategic factors to guide the managers to introduce new strategies that are more effective and efficient for the organization to lead the organization towards the prosperity and higher profitability.
Explanation and analysis of an HRM framework
The nature of the strategies provide a specific framework to the organization to increase its ability of making decision and strategies to improve the performance of the organization and gain higher level of profitability. The strategies provide integrative and contingency-based framework along with the incorporation with the goals of the HRM (Smyth and Scullion,1996).
The organizations can get framework with the holistic concept based form that will encourage the organization to take a decision in the betterment of the organization and to improve the business of the organization. It enables the management to take any sudden action on the reform of Human Resource Management. The framework of strategic human resource management can be used to create the basis of the organization in more strong way and future work on the procedures and policies of human resource management (Liu, 2004).
The organizational design is included in the framework that influences the performance of the employees in any aspect in the human resource management environment. The interrelated elements of the framework identify the diverse elements to make the human resource management for the common business system. The frame work of strategic human resource management has six components that help the organizations to increase their productivity in such a way the demand of the customers increase by getting higher quality of products.
HRM process and development of strategies
The organization works to achieve their goals and towards the understanding of one description. The organization can achieve their goals by formulation of effective and effecting strategies that can help them to increase their performance and lead the organizations towards success and prosperity. The organization can attain higher level of profitability and productivity by adopting human resource management process to increase the performance of their employees by facilitating them with bonuses, incentive system, and appreciations. For formulation of such strategies that can help the organization to achieve their goals have some processes and formers usefulness in the meticulous design of the process. The processes of HR are followings (Chang and Huang, 2005).
Human resource planning
Benefits administration and employees payments
Performance of the management and employees
Mariappanadar (2012) argued that, the understanding and deeper knowledge about the goals of business and models of business can help the organization to identify the potential threats and the expected opportunities and quality of HRM that is required by the organization. Every organization needs the process of human resource management to get success and prosperity by developing their business and making their external and internal customers both.
Human resource management and its effective strategies can increase the business of the organization and increase the performance of the organizations. The development of the organization depends upon the human resource management as it increase the capabilities of the employees and that help them to increase the performance of the employees all these facts increase performance of the organization.
Roles in strategic HRM
The strategic human resource management practices are significant to improve the organizational learning and organizational development. For the development organizations have to follow the responsibilities and rules of strategic human resource management. The rules of strategic human resource management are essential for any organization to lead their business towards success and prosperity as this increase the employeeâ€™s satisfaction and make them more effective and delegated to achieve the goals of the organization. It promotes the quantity of transport of information between the varied team members (McConville, 2006).
Strategic human resource management can increase the team performance through engaging the team in a friendly environment and the employees are more delegated to achieve the goals of the organization. SHRM encourage the positive behavior in the team members to create well define framework that will increase the capabilities and confidence of the employees. The SHRM plays vital role in the performance of the employees, as the employees are essential part of the organization because the performance of the organization depends up on the performance of the employees, as much as the performance of the employees will increase the organizational performance also increase and this will lead the organization towards prosperity and development (Williams, 1994).