In the world of global competition, rapid technological development, the importance of human resource holds the key for the development of the overall organization. Strategic human resource management is a modern approach which links human resources with strategic objectives and goals to improve business performance and develop organizational culture (HR book) to promote innovation, flexibility and competitive advantage with the aim of implementing the complex strategies for the realization of the goals. Basically, it deals with policy formulation, and overall goal setting with the major concern being positioning of the organization in its environment through its HR activities such as recruiting, selecting, training, and rewarding personnel (Boxall, 1992). The main focus is on human resource programs with long-term objectives and increase employee productivity by focusing on business obstacles that occur outside of human resources. It is considered to be the key to enhance business performance.
In the world of globalization and internationalization, older solutions and recipes that worked in local context do not work. As a result, Human Resource Management professional faces issues of human resource flow, employee participation, reward system and high commitment work system. Cross cultural (Armstrong, 1992) issues plays a major role. There are various issues associates with the strategic HRM in the global context such as increased competition, may not be local or even national but through free market ideology (Armstrong, 1992), speedy technological change, internationalization of market integration, cross cultural issues, shifting of economic gravity from 'developed' to 'developing' countries, and frequent change of ownership and resultant corporate climates.
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HR professionals can play a vital role for the execution of the strategy in the organization. Before implementing strategies in the organization, understanding of the implication in various organizational components in long-term is very important. Non-HR components such as Finance, Sales, Marketing and Operations department are core of any organization. Understanding these components and having a good relation for the formulation of the strategy is essential. Organizations are not free from politics and internal rivalries which is a hindrance for the implementation of the strategy. In those cases, they should build a good relationship with them and other top line executives. Gauzing the HR in terms of business results to achieve the targeted goal, being confident and optimistic for the business change and always branching out for the support of any kind will help in implementation of the strategy.
Organizations can evolve around the following areas for the best implementation and total profitability of the organization:
Focusing in areas such as competencies and guidance around the acquisition, deployment and development of human capabilities through performance management, clear understanding of roles and responsibilities of each employees, and implementation of control mechanism in those areas with effective reward system helps increase profitability of the organization.
Managing the projecting in an effective manner making sure that when implementing new 'people systems' they are implemented correctly and aligned with other business systems side by side.
Facilitating the 'transfer' of certain core competencies and skill sets to everyone in a management.
The desire for work -life balance in the work place is unhidden truth. Finding ways to provide what employees seek will help employers to recruit, engage, and retain talent across the organization. Particularly, with added flexibility and recognizing the knowledge and talent as significant to the organization will encourage those employees to remain in the workforce longer and pass along their experience and knowledge to the younger counterparts. However, perception (OB Book) of employees is always one challenge to organizations. They take it as an earned freedom to excel and always expect for better environment. HR manger should possess mentoring capability to balance those views in the organization. As an efficient manager, it is always imperative to create a culture where different generations of employees are not only valued but are truly desired by the organization to enhance the profitability of the organization.
Implementation of SHRM in an organization is challenging. Strategic human resource management takes on the main modern challenges which are faced by human resource management.Â Employee participation, performance management, employee reward system, high commitment work systems and human resource flow because of globalization are heightened issues for the challenge. Because of the change in technologies, globalization of market integration, cross cultural issues, increased competition which may not necessarily be local, introduction of new concepts of general management, constant change in ownership, resultant corporate climates, HR managers and top management faces issues in implementation of strategy.
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StrategicÂ human resource managementÂ is vital for every organization: Large organization and Small Organization too.. In small organization, the process may be simple as the manager or the owner himself must be taking time to observe employees, along with assisting, assessing and giving regular reviews. However, in Large Organizations, they require a whole department to be in charge of those activities for the development of employees. The quality of staff members can be improved by meeting their needs in such a way that it may benefit the organization. Investing in employees and providing them with tools which they require to flourish and prosper in the company proves to be a good investment in the long run for any organization.
Purcell and Boxall argue that, "Strategic HRM is concerned with explaining howÂ human resource management influencesÂ the performanceÂ of an organization." They also point out that, "Strategy is not the same as strategic plans." Strategic planning defines how things need to be done and it usually takes place in larger organizations in the form of a formal process. However, it is also true that strategy exists in all organizations regardless of their size; though it may not necessarily be written down or expressed. SHRM defines how the organization behaves and tries to cope with itsÂ businessÂ environment. Because strategicÂ human resource managementÂ is based on human resource managementÂ principles it always incorporates the concepts of strategy; which proves that human resource managementÂ is actually a coherent approach to the management of workforce
So, strategic human resource management is designed to assist organizations to meet the needs of their employees in the best way they can so that company goals can be promoted. We can also say that SHRM is actually managing people proactively because it requires planning ways for an organization to meet the needs of its employees, thinking ahead, and also helping the employees to meet the needs of the organization. This process changes the outlook and affects the way things are done at a business site, in other words it helps to integrate modern ideas and models into the traditional human resource practices to come up with better solutions which not only benefit the employees but the organization. This is mainly a process where everything is improved, from theÂ hiringÂ of employees, to the training, assessment and discipline techniques used by the HRM department.
A crucial aspect concerning SHRM is the concepts of fit and flexibility. The degree of fit determines the human resource system's integration with organization strategy.Â It is the role of HR Managers to ensure this fit in between Human Resource System with the Organization Strategy
As global business competition shifts from efficiency to innovation and from enlargement of scale to creation of value, management needs to be oriented towards the strategic use of human resources.Â Strategic human resources management practices enhance employee productivity and the ability of agencies to achieve their mission. Integrating the use of personnel practices into the strategic planning process enables an organization to better achieve its goals and objectives. Combining human resource practices, all with a focus on the achievement of organizational goals and objectives, can have a substantial affect on the ultimate success of the organization.Â To manage future operations effectively, it is essential that companies produce "business leaders" and "innovators" through SHRM Approach.