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Strategic means planning and human resources management refers to the planning or maintaining the employees in an efficient way to achieve the organisational goals. Human resource deals with effective recruitment, development, compensation and utilization of human resource by an organisation. Strategic management is a distinctive approach to human management which seeks to achieve competitive advantage with a highly committed workforce using structural and personal techniques. This includes mentoring and training of employees which will help the new employee in getting used with company policies and the current project which he in. Training, rating, assessment and investigating the employee performance will make him a consistent performer. In today's world both small companies and large companies follow strategic HR management. Strategic human resource management is aligned with the company's objective, the planning and other things are done to achieve the mission, vision and objective of the organisation. They have a wide focus on company's future.
Strategic human resource management also focuses on employee issues and also organisational issues such as quality, culture, value and employee required for future needs. It is an overall framework which determines the shape and delivery of every individual strategy. Strategic HRM is based only on HRM principles and both are done in a planned way putting the future at its focus with the organisational goals, policies and action .
Human is the great assest in an organisation, the skills, knowledge and ability of eaxch and every individual should be utilised in an efficient way to create an value, strategic human resources is a key to business strategy, employee management, business and employee performance.
1.2 Purpose of Strategic Human Resource Management
Dell Perot Systems
Dell is an American multinational information technology corporationÂ based inÂ Round Rock, Texas, US that develops, sells and supportsÂ computersÂ and related products and services. Bearing the name of its founder,Â Michael Dell, the company is one of the largestÂ corporations in the world, employing more than 96,000 people worldwide. Dell had 46,000 employees as of Jan. 30. About 22,200 of those, or 48.3 percent, were in the United States, while 23,800 people, or 51.7 percent, worked in other countries, according to a filing with the Securities and Exchange Commission. They are the third largest PC maker in the world. Dell is listed at #38 on theÂ Fortune 500Â (2010). FortuneÂ also lists Dell as the #5 most admired company in its industry.
Dell has grown by both organicÂ andÂ inorganicÂ means since its inception-notable mergers and acquisitionsÂ includingÂ AlienwareÂ (2006) and Perot Systems (2009). May 3, 2010,Â Fortune magazineÂ listed Dell as the 38th largest company in theÂ United StatesÂ and the 5th largest company inÂ TexasÂ by total revenue. It is the 2nd largest non-oil company in Texas (behindÂ AT&T) and the largest company in theÂ AustinÂ area.
Dell traces its origins to 1984, whenÂ Michael DellÂ createdÂ PCs LimitedÂ while a student at theÂ University of Texas at Austin. The dorm-room headquartered company soldÂ IBM PC-compatibleÂ computers built from stock components. Michael Dell started trading in the belief that by selling personal computer systems directly to customers, PCs Limited could better understand customers' needs and provide the most effective computing solutions to meet those needs. Michael Dell dropped out of school in order to focus full-time on his fledglingÂ business, after getting about $300,000 in expansion-capital from his family.
Dell became the first company in the information technology industryÂ Â to establish a product-recyclingÂ goal (in 2004) and completed the implementation of its global consumer recycling-program in 2006. Dell routes technical support queries according to component-type and to the level of support purchased. Dell Inc. brands its service agreementsÂ Â at five levels for their business customers:
Retention of employees
The HR activities starts with staffing and recruitment, this involves lots of activities such as advertising and sourcing the candidates in numerous ways according to the organisational capabilities, large organisation prefer walk-in, website, consultancies and employee referral. The HR manager interviews and chooses the right candidate as per the recruitment. Once the employee is recruitment is trained on orgnisational activities, policies and work profile. Human has so many problem in his life including personal and professional problem, human needs are very hard to satisfy. The employee may look for a change in organisation due to numerous factors. It could be monetary wise and work related.
The organisation Dell Perot systems Chennai, India has many issues pertaining to employees. Employees come from different parts of Chennai and they find lots of employees terminating from the organisation because of travelling long distance. HR with strategic plans suggested and implemented pick-ups and drop facility for employees through cab, that was one amazing successful which made employees stay in the organisation.
The employees were given additional training to develop leadership skill, professional qualities and other trainings. Performance appraisal and annual salary increment. See to that the employee needs are addressed as soon as possible to retain the employee in an organisation, human is the important asset in an organisation. All facilities and needs of employees are satisfied which created a long stay of employees in an organisation.
Reducing time-frame of recruitment
Initially recruitment takes place for 2 to 3 days as there is 3 level of interview. As per the feedback of the people who come for interview this was taken into consideration to the senior manager, now people who come to organisation were happier they could know the result within a day, all levels of interview such as aptitude test, HR interview and manager interview were completed within a day time, people could join the organisation and carry on with their work or choose for the next better option. Joining formalities including submission of documents were done side by side at the time of induction. This created a huge impact on the organisation; many corporate companies in India are now following the same attitude.
Production is the output of an employee, employee recruited will be trained to the particular project and frequent updates were given to employees upon the task. Every employee will be assigned with their work and their target, it could be a daily or weekly or monthly that depends on the process they are in. The employee needs to complete to the target , if suppose employee is unable to meet the target then he would be given additional training to train in the place where he lacks. This production is the main output for an organisation. To say it is going to make profit for an organisation, when product come in quality should be added to it. The output made should be of fine quality. For example if 100 product is made out of which 50 is of good quality and 50 is slightly damaged, it is of no use so the quantiy and quality should be equally maintained
1.3 Contribution of SHRM
Strategic human resource management contributes a lot to an organisation.
Growth of an organisation
Organisation growth depends on the employee of an organisation, so the employee plays a main role here, to choose the employee the HR manger should be skilful. It is a kind of life cycle. HR manger chooses right candidates trains them and assign them to a project, then quality, production and quantity comes in. HR team makes several strategic plans puts focus on the mission, vision and objective working towards the attainment of strategic goals.
Increase of revenue
This can be done by capturing the market, most organisation do that in global world. Now we have Dell laptops and service done throughout the world, the company belong to America and now we have consumers all over the world, the distribution channels and customer service has been set up in all over the world considering the economical, social, human resources and climatic conditions of the country.
= Expanding customers
= Good service to customers
= Positive comment from user
= Differentiate from other competitive product
= User friendly technologies to customer
This would definitely create an increase in revenue.
Satisfaction to stakeholders
Stakeholders are one, who has interest in an organisation,
"The satisfaction of stakeholders depends on "hard" factors (e.g. economical,
Financial and legal) and "soft" factors (e.g. psychological, social, political and
As said by Gerrit Muller there is several internal and external factors economic, financial, legal, psychological, social, political, cultural and geographic factors. These factors give a good result then it gives satisfaction to stakeholders. Communication is one important aspect in stakeholders. Communication within the organisation and outside the outer organisation is important. If there is a positive feedback from all ends then it leads to satisfaction of stakeholders.