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Human resource management uses strategy to accomplish its aspects, policies and practices through strategic sectors such as job analysis, staffing, training and development, maximize performance, compensation management, HRM service delivery, gender equality and achieve success in the long run.
Human Resources Management definition
HRM is ascertained as the approach employees are recruited, organized, developed, appraised, motivated and maintained. "It is a method of maximizing economic return from labor resource by integrating HRM into business strategy."(Keenoy, 1990, p.3 found at Alan Price 2004, p33). The procedure of managing human talent is to fulfill an organization's objectives. Successful organizations are particularly accomplished at gathering different kinds of people to achieve a common aim. This is the main aspect of human resources management. (Scott Snell, George Bohlander 2010, p.4)
Strategic Human Resources Management definition and objectives
Companies in developing countries can enhance financially by strategically lining up and investing in their HR policies and practices. Strategic HR orientation is denoted as the combination of HR planning, selection, performance evaluation, compensation, development and training practices with the business strategies of the organization.(Emerald, Source: Human Resources Management Digest Vol:12,2004)
A strategy is a way of planning and scheduling before acting. It usually involves the creation of an objective and a set of action plans for accomplishment. "It implies consideration of the competitive forces at work in managing an organization and the impact of the outside environment on organization actions."(William P. Anthony et al, p.9, 1999)
The environment within which an organization functions is active. External and internal forces are changing the standards of the game, and the organization must improve or affiliate new strategies to remain competitive. An alternation in strategy will find out the direction of its operation within the organization containing the human resource management function."(William P. Anthony et al, p.3, 1999). " The traditional role of HR is the attraction, retention, motivation and development of human resources according to current and future requirements. However, HR can also develop and sustain competitive advantage. This suggests that the head of the HR function should be included in strategic decision-making by senior management. This will enable the HR director to formulate strategies that support organizational strategies."(Emerald, Source: Human Recourses Management Digest Vol:12 , 2004)
Strategic human resource management approach has many functions in the organization. In the field of planning and strategy formulation, it participates in formulating overall organizational strategic plan and combining human resource operations with company strategy. Moreover, has high status and authority for top personnel officer. Its area is to concern with all managers and employees. Also, is involved in making strategic decisions. Another function is that it is fully integrated with other organizational functions: marketing, finance, legal and production. While, allocates all human resource activities (e.g. training, recruitment, staffing, Equal Employment Opportunity).
Organizations are designed to accomplish certain goals. Strategic thinking concentrates on these long-term objectives. Thompson and Strickland (1998) provide a model for strategic management based on five major actions that incorporate objective setting:
Deciding the kind of business in which the organization will operate, developing a strategic vision and creating a set of values with a general strategy.
Recognizing the strategic issues for the business and placing strategic goals.
Developing strategic action plans.
Carrying out and enforcing strategic action plans for units within the business.
Estimating, adjusting and refocusing strategy for the future.
(Alan Price 2004 p.299)
HRM Strategies sectors
The HRM Strategy is composed by sub-strategies, the aims of which are described as follows:
A. Job analysis is the process of acquiring information about jobs by determining the duties, the tasks, or activities, the qualifications of a job and the proper individual that suits to that position. (Scott Snell and George Bohlander 2010, p.152.) It is followed by a job description with "a list of a job's duties, responsibilities, reporting relationships, working conditions, and supervisory responsibilities-one product of a job analysis" (Dessler 2005) combined with a job specifications list of a job's human requirements that is, the requisite education, skills, personality" (Dessler 2005). The job descriptions and job specifications disclosed through job analysis should be as accurate as possible if they are to benefit to those who make HRM decisions. The main goal of job analysis is to improve organizational performance and productivity.
Planning. Strategic planning includes a set of processes for reaching decisions about the organization's long term goals and strategies. Human resources planning are the process of assuming and providing for the actions of people into, within, and out of an organization. Strategic human resources management connects Strategic planning and HR planning. "It can be thought of as the pattern of human resources as effectively as possible, where and when they are needed, in order to accomplish the organization's goals". (Scott Snell and George Bohlander 2010, p.50).
The first step in strategic planning is to set up a mission, vision, and values for the organization. The mission is the basic intention of the organization, likewise its area of operations. "It is a statement of the organization's reason for existing. The mission is often written in terms of general clients it services". According to the scope of the organization, the mission may be expansive or restricted and limited. The strategic vision of the organization overlaps the mission statement to determine a perspective on where the company is headed and what the organizations can be transformed into in the future. Even though the terms mission and vision often are used interchangeably, the vision statement specifies the long-term direction of the company and its strategic purpose. "Organizational core values are the strong enduring beliefs and principles that the company uses as a foundation for its decisions". Values are also positioning limits on what act is taking into account as ethical and acceptable. (Scott Snell and George Bohlander 2010, p.51-52 ).
B. Staffing(selection-recruitment-placement). Support the organization with an acceptable, adequate, motivated, and changeable workforce, thus certifying that knowledge is contained and improved in the organization.
Selection. "In addition to job specifications, managers and supervisors use job descriptions to select employees and orient them to jobs. Employers must be able to show that the job specifications used in selecting employees for a particular job relate specifically to the duties of that job." (Scott Snell,George Bohlander 2010, p.151).
"Recruitment is a process of locating potential individuals who might join an organization and encouraging them to apply for existing or anticipating job openings." (Scott Snell, George Bohlander 2010, p.188).
C. Training and Developing. The goal of training and development programs of all organizations should be to maintain or improve the performance of individuals and, in so doing, that of the organization.
"Training. Training refers to providing instruction to develop skills that can be used immediately on the job. It has a narrow focus and should provide skills that will benefit the organization rather quickly.
Human resource development on the other hand has a broader scope. It involves developing knowledge that may be used today or sometime in the future. It is more focused on meeting the organization's general long-term needs. The pay-off is less direct and can be measured only in the long term." (William P. Anthony et al 1999 p. 337 )
D. Performance management-Performance appraisal.
"The strategic process it increasing the effectiveness of organizations by improving the performance of the employees and by developing the capabilities of teams and individual contributors."(Armstrong and Baron, 1998, found at Alan Price 2004)
Performance appraisal can be denoted as a procedure designed to help employees understand their roles, aims, expectations and performance success. (Scott Snell, George Bohlander 2010, p.362). Appraisals are useful tools not only for estimating the work of employees but also for developing and motivating employees. By showing an individual where his/her strengths are and underlining points that stills need improvement. Additionally, augmenting behaviors that have created strong positive results should motivate the individual to continue to perform in his manner. It is also a way to help individuals manage their performance and a human resource objective that determines who should promote, demote, transferred or even terminated. (William P. Anthony et al 1999) .The appraisal system must be flexible enough to combine different management philosophies, employee subcultures, and geographic locations. Diversity system management and its proper handling among different cultures and education of employees lead to innovation which is a competitive advantage that achieves long-term success.
E. Compensation Management ( classification system ,pay and benefits) Create a competitive, motivating and cost-effective system that amplifies the organization's ability to pull and absorb high-ability staff, recognizes group and individual contributions and certifies all positions are allocated at appropriate levels in accordance with objective equal principles and the labor law.
F. HRM service delivery in the organization offices through supporting HRM services that are clear, flexible, reliable, confidential and empowering via the development of HRM capacity and efficient HRM policies, processes and systems.
G. Gender Equality. Cultivate measures to enhance the gender balance especially among senior staff and create policies to promote and reinforce women.
Strategic Human Resources Management through its process has as a main goal to make the best handle of its employee's issues (selection-recruitment-training-development-compensation-appraisal) and to achieve the best results as possible. According to literature and articles, the leadership has to make a balanced combination of culture with using clear communication of job possibilities and strong human resources policies for compensation, promotion, development and training, of employee involvement giving more responsibility and accountability. Furthermore, leadership has to be committed to organization, its mission and vision and to employees and follow them appraising people's skills, motivate and challenge its workers and keeping them productive. Thus, top management it is essential to develop organization's objectives and then find a way to improve the needs and rights of each generation into these goals resulting from all these a strong workplace diversity system. This diversity system empowering and motivating employees leads to innovation, the innovation leads to competitive advantage and finally organization will have the long-run success achievement. (William P. Anthony et al 1999)