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In the 21st century, it is very easy to see people talking about human resource management and strategy human resource management. Why does it happen? Because Human Resource Management has become the most important thing to administrative. A business, an organization can be very strong in finance and having very large markets at the present. However, It is very difficult to develop sustainably if organization was in the lack of a properly strategy human resource management to respond to quickly and strongly changes in future.
What are human resource management and strategy human resource management? What can be their main challenges, what are their functions, and what should a organization does to succeed in bussiness? Most of above question are discuss in this essay.
In an organization, there are many businesses subject to administrative as financial management, production management, marketing management, administration, .... However, human resource, its self, is considered the most important resource of business and strategic human resource is key part of the business strategy of the business.
When qualified staff is high, they deal with better facilities, modern equipment. Thus, their jobs are more complex and the importance of human resource management is rising and rising.
There are many definitions of human resource management. According to Susan M. Heathfield, Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human Resource Management can also be performed by line managers. Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. Human Resource Management is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives. Human Resource Management is moving away from traditional personnel, administration, and transactional roles, which are increasingly outsourced. HRM is now expected to add value to the strategic utilization of employees and that employee programs impact the business in measurable ways. The new role of HRM involves strategic direction and HRM metrics and measurements to demonstrate value. Human Resource Management is the management of people within their internal organization, the organization's treatment of businesses with employees. The focus of human resource management (HRM) is on managing people within the employer- employee relationship. Specifically, it involves the productive use of people in achieving the organization's strategic business objectives and the satisfaction of individual employee needs.
Strategic human resource management is a branch of Human resource management or HRM. It is a fairly new field, which has emerged out of the parent discipline of human resource management. Strategic human resource management can be defined as the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation, flexibility and competitive advantage. In an organisation SHRM means accepting and involving the HR function as a strategic partner in the formulation and implementation of the company's strategies through HR activities such as recruiting, selecting, training and rewarding personnel.
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Strategic human resource management is the process of linking the human resource function with the strategic objectives of the organization in order to improve performance. (Article Source - http://www.palgrave.com/business/brattonandgold/docs/bgcha02.pdf).
Strategic human resource management (SHRM) is "the integration of HRM policies and actions with business strategy. This integration is reflected in three aspects: (1) mount the HR policies and strategies with each other; (2) develop additional policies to encourage each other and dedication, flexibility and quality of work of employees, and (3) the role of internationalization in charge of the region." (Guest- 1987 and Boxall & Dawling- 1990).
Basic functions of HRM:
HRM consists of three basic functions as follow:
Attracting human resources: This feature focuses on how to ensure adequate number of staff with appropriate qualifications to the business of the enterprise. In order to be able to recruit the right person for the job, the enterprises should be based on production plans, sales plans and use of employee status within the enterprise to identify those tasks that need to recruit people.
Training and Developing human resources: This function focuses on how to improve staff's capacity, and to ensure that employees in enterprises having right skills and craftsmanship to complete their job as well as to help employees develop individual talents as much as possible. Managing human resources effectively is a consistent assessment of skills and knowledge of staff to meet current and future demand of the business. Principles of training and developing is to get the right skilled people for the the right jobs.
Maintaining human resources: This function forcus on how to effectively maintain and use human resources in the enterprise. This consists of two sub-functions that are stimulating, motivating employees and maintaining as well as developing good working relationships in the business.
Model of human resource management in Vietnam:
The three functions (attracting, training and developing, maintaining) are equally important. They have close relationships and directly influence each other to serve the objectives of the HMR. The key factor in this model is the mission and objectives of the enterprise.
Model of human resource management
(Source: Tran Kim Dung, 2009, Human Resource Management, 7th edition)
Human resource management system has closed relationship with cultural and organization culture. HRM system is strongly influenced by environmental factors such as macro-environment, political and law system, economic and social development, technology and natural conditions. Especially, from the organization structure and national culture, in general, every business will have its own structure and culture. They interact and coordinate with human resources management to create particular image and style of business.
Priority issues of human resources development
In order to make human resource management respond well to its challenges, functions of human resource management should be expanded and those isues should be prioritied for development:
Change management: This is considered the top priority areas of human resource management. It helps employees and businesses to get a flexible way in adapting to environmental changes.
Apply the achievements of the informatics revolution on activities of human resources management.
Develop and apply the skills of human resources management.
Improving human resources strategy to become an important part of organization ones.
Developing cultural environment in line with demand and main purpose of the organization.
CHALLENGES OF INCREASED GLOBAL COMPETTION
Globalization has reduced trading barriers for developed countries to 90%. International trade has increased 17 times in coparision with 6 times increasing in real quatity produced for the last 50 years. Investing among contries has rearched the maximum level. (page 21, Tran Kim Dung, 2009, Human Resource Management, 7th edition).
Internet and other achievement of informatic technology have changed the way of doing business and set higher requirements for intellectual labors. Internet has also provided a basis for rational organization and operating performance and business. It creates many opportunities for the exchanging, contacting and expanding the scope of work as well as breaking down barriers in traditional labor market. However, when the remote working method has become more popular, they have caused greater pressure in competing to attract human resources.
However, globalization has also made the competion among bussinees stiffer. Bussinesses have faced lots of chellenges from both domestic and international competitors. The global culture has affected the coporate one in many companies. For instance, employees of some companies are monitored via the Internet while their other peers work for international companies from their home contries,â€¦ Those factors have required companies to apply comprehensive and effective management mothedologies.
CHALLENGES OF WORK- LIFE BALANCE:
Steven L. Sauter, chief of the Applied Psychology and Ergonomics Branch of the National Institute for Occupational Safety and Health in Cincinnati, Ohio, states that recent studies show that "the workplace has become the single greatest source of stress".
Michael Feuerstein, professor of clinical psychology at the Uniformed Services University of the Health Sciences at Bethesda Naval Hospital states, "We're seeing a greater increase in work-related neuroskeletal disorders from a combination of stress and ergonomic stressors".
According to the study, 91 per cent of respondents said workers were more likely to behave ethically on the job when they have a good work/life balance, and 60 per cent said job dissatisfaction was a major reason for people to lie, steal and cheat.
It is clear that problems caused by stress have become a major concern to both employers and employees. While employees would like to work less and earn more, employees need to do stratergic human resource to make it better.
CHALLENGES OF PROFITABILITY:
Together with other challenges, gobal competition and work-life balance have made large influence on organization's profit.
Total revenue and profit of Sacom Join Stock Company (SAM) - www.cafef.vn
Let's consider the case of Sacom Join Stock Company (SAM): Years ago, Sam was protected by VNPT- the largest telecommunications group in VietNam. However, with the changing of technologies and competitive environment, SAM has to fairly compete with other enterprises, especially, cheap goods with high technology involved from China. SAM's profits severely reduced and just improved after the implementation of right Strategic HRM.
Human resource has become one of the most important resources of all organization. It is also an bussiness advantage in competing with others. The maintenance and development of human resources properly become a guideline for the success of businesses. Therefore, people must recognize the role of human resources management accurately and completely.
Human resources management is not only a task of the HR department but is also responsibility of all managers in the business. From the general manager to the lowest level managers are all responsible for lower levels and skills such as:
Recruiting the right person for the right job.
Guiding new employees to familiar with their jobs.
Training for staff to new job.
Improving job performance of subordinates.
Creating a professional work environment, efficiency and teamwork atmosphere at work.
Help subordinates understand the policies, processes and procedures of the organization.
Controlling labor costs.
Creating professional development opportunities for subordinates.
Maintaining professional ethics.
Creating a safe working environment and protect the health of subordinates.
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Tran Kim Dung, 2009, Human Resource Management, 7th edition