Human resources management is one of the key managerial functions of organizations. Without proper human resources and its management it is always very tough for the organizations to go ahead to achieve the goals and missions. Organizations develop strategies to sustain in the business or market. There is a hue competition in these days for each and every organization which operates within the current business and economic environment. Strategic management is also another part which gives an organization the chance to realize the mission and vision of the organization along the line of the present market environment. In order to achieve the success in the strategic management it is necessary to align with the other organizational management function like human resource management. It is the people who deliver the main functions of an organization. Thus role of human resource management is crucial for the organizational strategic management and corporate strategies for betterment of the organization. In this paper illumination is given to the human resource management and its role to ensure a sound corporate or organizational strategy.
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There are two main approaches to human resource management. The traditional approach always advocates the resource based management of the human resources. The organization treats human of the organization as resources and tries to align with the productivity goals and targets. The other approach to human resource management typically involves the human resources in the mainstream process of organizational management. The employee relation is the focus of this approach which is quite modern approach which has been followed by the practitioners since 1980s. This approach got the major impetus from the early 1990s when the workers really tried to push them in the decision making process to feel like they are aligned with the organizational decision making and strategic components.
Competitive strategy and business strategy are the two major strategic dimensions for each and every business organization in these days. According to Johnson and Scholes (2008) strategy is a direction and scope of an organization over a long term which achieves advantages through the configuration of resources in a challenging environment to meet the needs of customers and satisfy the stakeholders. Business strategy is concerned with the different strategic decisions with choice of products, meeting needs of customers, gaining advantage over competitors and exploiting new opportunities.
Human resource management ensures the right people at the right place within an organization. Through the management of human resources organization can have the higher level of productivity with quality. The productivity is important to ensure that the products and services meet the needs of the customers. The situation of the human resource management within an organization gives a picture to forecast the future condition of the organizational productivity and innovation. Then the business strategy can be formed according to the forecasting. It is the manpower who will be the major deliverers of the products and services. Thus the human resource management aids the business strategy by large. In terms of two approaches to HRM it can be said that traditional approach gives the picture how well the human resource is used to achieve the highest possible productivity and the modern approach tells the story how the people can influence and shape the decisions by their own views and opinions where they try to align their goals with the organizational mission and vision. Thus it can be said that the approaches to HRM aid the business strategy by providing the picture of the productivity and future innovation in decisions with the practice of democracy.
According to US office of personnel management (1999) the relationship between HR and management is becoming more collaborative. HR executives are beginning to earn a seat at the management table. HR offices are becoming more consultative and involved in day-to-day line management activities. Nevertheless, there is still a long way to go if HR is to become a strategic partner at all levels. It shows that alignment between the agency planning or corporate strategy and human resource management is getting better in the modern era. The necessity of alignment is quite high. Scholars tried to classify HRM strategies based on different corporate HRM arrangements (Hueslid, 1995). In the recent times business leaders has recognized that the HR function has a direct impact on bottom line results. HR plays a critical role in shaping the corporate success and planning. That is why the practice of HRM has to be aligned with the corporate strategy and it also needs to be put on the top of the agenda of organizational and corporate objectives. HRM gives the proper view of the organizational productivity as said earlier. Business and corporate strategy always are made on the basis of the productivity and competitive advantages. As the HRM gives the entire scenario of the productivity and it ensures the innovation and knowledge to play out the competitors within the market.
Effectiveness of HR strategy and its impact on corporate strategy
Always on Time
Marked to Standard
Effectiveness of HR strategy can be measured by using many performance appraisal tools. HR strategy means the strategy to ensure the right people at right place performing at their best. Thus the effectiveness of HR strategy means how well the HR managers have allocated right people in the right place. Second phase of the effectiveness measurement delineates the performance of the human resources. Performance appraisal and the entire recruitment or selection process appraisal is very much important to find out how far the process or HR strategy is effective. Performance can be appraised through the performance management tools like 360 degree feedback, benchmarking, balanced scorecard and self assessment forms. Thus the process that is required to measure the effectiveness of HR strategy includes 360 degree feedback, benchmarking, review, balanced scorecard, self assessment. 360 degree feedback is more specific to provide the view whether the human resources are performing well or not. Balanced scorecard provides broader scenario of the organizational performance as well as the effectiveness of the human resources. Review of the implementation process of HR strategy gives the impression of effectively of HR strategy. Benchmarking is another process which is very effective to provide quantitative scenario of the effectiveness of HR strategy.
Effectiveness of HR strategy and its impact is quite an essential aspect for the corporate strategy. Effective strategy of HR can bring the all information and also can coordinate the knowledge that is essential for the business. With these things the strategy can be made very easily at corporate level. Corporate strategy can be affected if the HR strategy is not effective enough and it has been already said that human resource is the key to success for each and every business entity. If the human resource performs well then the task of a corporation gets easier. Always corporate strategy needs fair amount information and knowledge base to be an effective one. If the effectiveness of HR strategy is not there then the corporate strategy gets faulty and sometimes corporate strategy needs some reform to set new HR strategy. This kind of process makes the scenario complex.
Employee retention and redeployment
Redundancy cost is very high in this modern era. Organizations have to cope with the poor performance of the people or work force. If there is any necessity to improve the level of performance then the organizations have to provide training to those people who have been in the range of poor performance. After improving their skills and abilities then they can be redeployed. Whenever there is post then the employees should fill up the post. It is better to redeploy rather than redundancy or recruitment. It saves the money for the organization. Through the redeployment strategy or policy organization can retain the necessary or minimum number of staffs. Sometimes it becomes difficult for the organizations to retain staffs due to the lack of enough financial benefits. Organizations always look to cut cost and that is why they do not want to give more financial benefit to the employees. Then the staffs or employee tend to leave the organizations very often. To reduce the number of employee leaving organization the redeployment policy is very useful. Through the use of redeployment policy the employee can be retained as the staffs might feel more secure and they might also know that they are subject to be called on for the posts created.
But this kind of policy can lead the employees towards the poor performance. To cope with poor performance it is necessary to conduct reviews and regular training. The training can help them to increase their standards or level of performance to get the posts which can be filled up by the redeployment policy. Thus the strategy for the organization is to cut cost through redeploying employees and at the same time the proper training and development scheme has to be run quite regularly. If the organization goes along with the redeployment then the relationship with the employee might also get better which will make the working environment more suitable for the achievement of goals and objectives of the corporation.
Learning Organization to promote 'Intellectual Capital' and knowledge management
Learning organization is a new phenomenon in the management and organizational literature or practice. In the past the bureaucratic practice within the organizations made them a very closed system. After the enough augmentation in the research of open system or open organization the concept of learning organization has been emerged in the management field. Through the learning organization can have the chance to learn from the outside environment. Many new ideas and knowledge sharing is possible through the learning organization concept. Thus the innovation is possible. PedlerÂ (1997) defined learning organization as "an organization that facilitates the learning of all its members and consciously transforms itself and its context". Organizations learn by its own. People within the organization also try to learn and if the organization is learning organization then the employees learn very quickly through the team learning or group learning. The provision of learning organization allows the staffs to learn by themselves. They can learn through discussion within themselves, meetings with others, information sharing and gathering. Learning organization can be created through the demolition of barriers which restrict learning, good listener, sharing knowledge and information with others, inviting others to share there views, recognizing and acknowledging other's effort and skills, learn from the best performances and many like these.
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Self managed learning provides an organization and its employees with a whole host of benefits. These are just a few:-
Cost effective learning solution
Part of a blended learning approach
Learning resources aligned to own organization
Self-study and learning managed at own pace
Just in time learning so likely to be more effective
Learning resources sourced to accommodate different learning styles
Intellectual capital is broadly defined (Edvinsson and Malone, 1997) as the sum of a company's intangible resources (including knowledge, technology, brand reputation, competencies, etc.). Intellectual capital and knowledge management can be promoted through the knowledge based view of the organization. Learning organization can invite the new ideas, technology, new innovation, new branding and other competencies which are related to the organizational human resources. Through the establishment of the learning organization or the invitation of open system within the organization the intellectual capital or knowledge management can be promoted.
Role of performance review and strategies for management development
Performance review is very important to achieve the overall corporate strategic goals and objective. Regular review of the employees' performance gives the idea about the organization and its employees. Review gives idea about the lacks on which the managers and staffs need to work for the improvement. Review can provide new ideas and new benchmarking system. The new benchmarking system can give the employees a chance to assess themselves according to the benchmark and get the better performance results. Through the review of the performance the organization get the information about the employees and then can decide for various human resource actions such as new selection or recruitment of staffs or redundancy. Sometimes it helps to decide about the redeployment as well. The review always provides a clear and specific picture of overall employee performance and individual as well. Individuals can get suggestions on the basis of the review to improve their performance in near future. The review can make sure that the employees are going along with the overall organizational and corporate level objectives or goals those were set earlier.
Thus it can be said that the role of performance review is very important to manage the human resources of the organization and overall the productivity of the organization.
It is universally acceptable that organizational management is vital element to achieve the improved business performance. Management development has been defined in many ways. Management development is perceived as an attempt to increase managerial effectiveness through planned and deliberate learning processesâ€¦ that means both the formal and informal processes (Mumford, 1989). Strategies of management development are,
More duties and responsibilities for the individual and line managers
Involvement of the managers into each and every decision making process
New ideas and information in the managerial tasks
Organizational research and study to increase the level of management and productivity
Leadership has to be very bold and at the same time employee friendly
The managers need to focus both on the task and employees
The managers have to do fair amount of in house study and research in order to realize what are the individual needs and organizational needs.
Management development can ensure that managers are getting used to new technologies and new ideas. It ensures the new changes in the ear of very competitive business. Change is obvious and the practice of open or learning organization can be achieved through the management development strategy. The strategies of management development can provide the picture of the employee performance and needs according to which the future strategies can be shaped.
Approaches to Employees relations
Increasing international competition and rapid pace of technological change are favoring organizations that are lean, fast and flexible (Miles, 1989). Large change in the approaches to employee relations can make the organization fast, flexible and lean. Thus the aspect of employee relation is very much important in this modern era of business. Alternative approaches to employee relation suggest that the employees are part of the organization and they need to take part in the decision making process very often. The voices of the employees are very important to ensure the employee relation. Awareness among the employees in the organization in these regarding the democratic and non authoritarian organizational culture has made them very much in favor of the culture which ensures their participation. If there is no or enough participation the employee relation gets deteriorated.
Human resource strategy and corporate strategy should be aligned together to make the business successful and the discussions which have been made in the previous section of this study showed that way. The key concepts and practices of human resource are discussed that can suit with the corporate strategy and organizations need to follow those theories to make the practices perfect.