Strategic Human Resource Management And Challenges Commerce Essay

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Managers use the term human resource strategies to refer to the specific human resource management courses of action the company pursues to achieve its strategic aims. For example, Dell The essence of Dell's competitive strategy has always been to a low- cost leader. That's why human resource managers' use various HR strategies to support Dell's low-cost aim Dell deliver most of its human resource services, not through a conventional human resource department, but via the web. A manager tools section on Dell's internet contains about 30 automated web applications. This allows mangers to perform human resource tasks that previously required costly participation by human resource personnel. The internet also check job posting, and monitor their total compensation statements. This dramatically reduces the number of human resource people required to administer these activities, and thus the cost of doing so. This is turn support Dell's low-cost strategy.

Now a day's human resource managers face three strategic challenges.

1- One (as at Dell) is the need to support corporate productivity and performance improvement efforts.

2- Employees play an expanded role in employer's performance organizations like Toyota's-- such a high technology team-based production are largely useless without extraordinary high level of employee competence and commitment.

3- The third challenge is that employers see that their human resource units must be more involved in designing not just executing the company's strategic plan.

Today's stress on going competitive advantage through people renders such arrangements inadequate. Instead, top management needs the input of the human resource team in designing the strategy, since it is the team charged with hiring, training, and compensating the firm's employees. Human resource managers will therefore need a basic functional understanding of how the firm makes money. What activities and process are most critical for value creation as defined by customers and capital markets? Human resource professional need to understand the basis of strategic planning and of the basic business functions such as accounting, finance, production, and sales, so they can take their "seat at the table" when top management is crafting the firm's strategic plan.

What factors should management consider in HRM?


Recruitment is the process of searching for prospective employee and stimulating them to apply for jobs in the organization.

Recruitment Methods:-

Internal existing employee


Supervisor/Manager Recommendation

Succession planning

Using Existing Contracts

Unsolicited Enquires

Previous Applicant

Previous Employees

Existing Employees Contracts.

External Contacts:-

Professional Referrals

Job Centers

Private Selection Consultants

Management Selection


Resettlement services

Temporary Agencies





Career Exhibitions

Conferences/Open days

2-Job Analysis:-

This is the process of getting detailed information about job. Here we give the importance of job analysis according to HRM.

The Importance of job analysis to HR Manager.

Job analysis has been called the building block of everything that the personnel department does.

Some of the human resource activities that use job-analysis information includes selection, performance, appraisal, training, and development, job evaluation, career planning, work redesign and human resource planning.

The Importance of Job Analysis to Line Manger:-

Manager must have detailed information about all the jobs in their work group to understand the work-flow process.

Managers need to understand the job requirements to make intelligent hiring decision.

Since the Manager is responsible for ensuring that each individual is performing his or her job manager must clearly understand the satisfactorily, the task required in every job.

Job Analysis Information

A job description is a list of the tasks, duties and responsibilities (TDRS) that the job entitles.

A job specification is a list of the knowledge, skills, abilities, and other characteristics (KSAO) that an individual must have to perform the job.

3- Training and Developing Employees.

The process of teaching new employees the basic skills they need to perform their jobs. This might mean showing a new web designer the intricacies of your site, a new salesperson how to sell your firm's products, or a new supervisor how to fill out the firm's weekly payroll sheets.

Here I again quote an example of Wisconsin-based Signicast Corp. Decided to build a new, high- tech plant, or computerized plant. Terry Lutz, the firm's president, know signicast would need a new type of employees to run that plant, and new screening and training programs to hire and train them.


The U.S armed Forces are taking army developed video- game-type training programmers called Full-Spectrum Command and Full- spectrum Warrior for training troops in urban warfare.

Honda example:

When Honda decided to build a new plant in Alabama, it had to hire thousands of new employees in an area where few people worked in manufacturing. Honda and the Alabama state employment agency first screened the applications by eliminating those who lacked the education or experience. And then gave preference to applicants near the plant. About 340 applicants per six-week session received special training at a new facility about 15 miles from the plant, two evening a week. It included classroom instruction, watching videos of current Honda employees in action, and actually practicing particular jobs. Finally HR department do the final screening. They interview the candidates, review their training record, and decide which ones to hire.

4- Performance and pay/Motivation and Incentives:

Financial rewards paid to workers, whose production exceeds some predetermined standard. Basically this system was started in late 80's.If any of the worker or employee gives the best of him; he/she should receive some reward in shape of pay increase or incentives.


Being a good manager, he should make some department or group which can help employee's problems. These problems can be helping new employees or helping the old staff with legal stuff or work issue. It can be personal issues as well. Like sometimes employees are having bad time in domestic life and cannot concentrate on their work. So these groups can help and guide the employee with more broad vision.


In SHRM this factor is very important to listen to the all employee's suggestions, whether the employee is new in the company or working in it for long. New comers sometimes bring new ideas with them; it might be from their previous work place or educational institute. And the old worker can help with their experience in the same work place. Good management always keeps on having employees meetings to keep them up to date and listen to all their new and good ideas.

7-Benefits and Services:-

"Indirect financial and non-financial payments received by the employees for continuing their employment with the company. They include things like health and life insurance, pension, time off with pay, and child care assistance".(Gerry dessler)

Verizon Example:-

Verizon communication, facing strong competition and the need to reduce its employees after several managers, needed a way to convince thousands of its employees to take early retirement. In this case, Verizon required a plan that was economically sensible, as well as one that complied with different laws that apply to retirement and other benefits.

8-Coaching / Mentoring:-

Employees are trained and educated through methods other than teaching classes and seminars. Chief among these are management responsibilities of coaching, mentoring, and building your organization into a learning organization. Find coaching, mentoring, consulting, knowledge management and how to build a learning organization resource. In every company now a days there is new innovations and technologies are being introduced for profit maximization and customer satisfaction, due to that every employee need to be trained and come to know about innovation how to work with this new technology.


Tesco is one of leading brand in supermarket industry; recently Tesco had introduced self checkout tills. This is a big innovation in supermarket industry and due to that customer who buys only few things has been no need to stand in a long queue he just use these tills, but some time customers don't know how to use it that's why Tesco trained their employees about this innovation for the better service provided to the customers.

Creating a Mentoring Culture

Build a Mentoring Culture

Coaching for Improved Performance

Leadership Success Secrets: Leadership Inspiration

Group Mentoring

Tips for Effective Coaching

Mentoring and Baby Boomers: Mentoring Is a Strategic Business Imperative

What Do You Mean My Company

9- Team Building / Work Teams

"Employee contribution, teams, and employee empowerment allow people to make decisions about their work. This employee involvement, teambuilding approach, and employee empowerment increases loyalty and fosters ownership. These ideas tell you how to do team building and effectively involve people. In this concept good or experienced managers built teams in which old and experienced employee's leads these teams and these peoples know system of the company and know as well how to do smart work that's why new comers follow these peoples and done better job in few days".


Strategy Human resource management is relatively a new term in the management but has very many important implications. By the introduction of SHRM the organizations have managed to improve their potentials. The employees and the organizations are connected to each other through SHRM. It has been the want of the organizations to formulate new ways to produce goods and services. It is the duty of the SHRM to find the right person for the right job for the growth of any company.

It is the responsibility of the HR department to find the goal achieving people from the market and also train them to gain excellence. There have been introduced new techniques in SHRM which are useful for the HR managers for the uplift and perfection of the organizations. It is the responsibility of the HRM department to find and know the problems of employees and then to solve them. By this way they can retain low employ turnover, attract new employees and also improve of the employ development. In the modern world it is important for each organization to use its full potential. SHRM helps the organization to move forward and move forward quickly