Concept Of Strategic Human Resource Management – The role of HR is changing. Earlier considered a support function, HR is now becoming a strategic partner in helping a company achieve its goals. Taking a strategic approach to human resources means going beyond administrative tasks such as payroll processing. Instead, managers need to think more broadly and deeply about how employees will contribute to the company’s success.
Strategic human resource management (SHRM) is not just a function of the HR department – all managers and executives should be involved because the role of people is so important to a company’s competitive advantage (Baker & Huselid, 2006). Furthermore, organizations that value their employees are more profitable than those that do not (Huselid, 1995; Pfeiffer, 1998; Pfeiffer & Veiga, 1999; Wellborn & Andrews, 1996). Research shows that successful organizations have many things in common, such as providing job security, selective hiring, using self-managed teams, being decentralized, paying well, training employees, and reducing status quo antagonisms. information to do and share (Pfeifer & Veiga, 1999). , When organizations enable, develop and motivate human capital, they improve accounting profits as well as shareholder value in the process (Bryan, et al., 2002). The most successful organizations manage HR as a strategic asset and measure HR performance in terms of its strategic impact.
Concept Of Strategic Human Resource Management
Employees provide human capital to an organization. Your human capital is the set of skills you’ve acquired on the job through training and experience that increase your value in the marketplace. Society for Human Resource Management
Strategic Human Resource Management Planning Model
An organization’s human capital is defined as: “A company’s human capital assets are the collective sum of the characteristics, life experience, knowledge, intelligence, energy, and enthusiasm that its people choose to invest in their work (Weatherly, 2003).
Unfortunately, many HR managers are more effective in the technical or operational aspects of HR than the strategic, even though the strategic aspects have a greater impact on company success (Huselid, et al., 1999). In the past, HR professionals focused on compliance with regulations, such as those set by the federal government, and tracked simple metrics such as the number of employees hired or the number of hours of training provided. However, the new principles of management require a focus on results, not just numbers and compliance. Just as lawyers count how many cases they won—not just how many words they used—so human resources professionals need to track how employees use learned skills to achieve goals. Not just the number of hours spent. in training (Ulrich, 1998).
John Murabito, Cigna’s executive vice president and head of human resources and services, says human resources executives must understand a company’s goals and strategy and then provide employees with the necessary skills. Too often, HR executives get caught up in their own initiatives without understanding how their role contributes to the business. This is dangerous, because when it comes to the human resources department, “anything administrative or transactional has to be outsourced,” says Murabito (Marquez, 2007). In fact, the number of HR outsourcing contracts in excess of $25 million is on the rise, with 2,708 active contracts in full swing in 2007 (Shared Experts, 2009). For example, Bank of America outsourced its human resources administration to Arinso. Arenaso will provide time, payroll processing and payroll services to Bank of America’s 10,000 employees outside the US (HRO Europe, 2009). To avoid outsourcing, HR must remain relevant and take responsibility for its business results. In short, the people strategy must be fully aligned with the company’s business strategy while maintaining a focus on results.
Beyond the basic need to comply with HR rules and regulations, the following figure summarizes the four core elements of HR. In high-performing companies, each element of the HR system is designed to reflect best practice and maximize employee performance. The different parts of the human resource system are strongly aligned with the goals of the company.
Steps To Strategic Human Resource Management
When hiring, inform potential new employees about the nature of the jobs they will be expected to perform. This includes explaining the technical competencies required (for example, collecting statistical data) and defining behavioral competencies. Behavioral competencies may have a customer focus, such as the ability to empathize with and support customers’ feelings and perspectives, or a task management focus, such as the ability to complete tasks effectively or know when to give direction. .
Also, clarify the organization’s culture by discussing the values that underpin the organization – describe your organization’s “heroes.” For example, are your company’s heroes the people who go the extra mile to make customers smile? Are these the people who work all night to develop new code? Are they the ones who can network and reach the company president to make sales? By sharing stories like these from company heroes with your potential employees, you’ll help reinforce the things that make your company unique. In turn, this will help job candidates determine whether they will fit your organization’s culture.
Design jobs that involve complete work are challenging but doable. Job design refers to the process of combining various elements to create a job, taking into account organizational and individual worker needs as well as health, safety and ergonomics. Training employees to have the knowledge and skills to perform all parts of their job and giving them the authority and accountability to do so (Lawler, 1992). Job enrichment is important for retaining your employees.
One company that gets the training right is Motorola. As a global company, Motorola operates in many countries including China. Finding and hiring skilled employees to work in China poses special challenges. In a recent survey conducted by the American Chamber of Commerce in Shanghai, 37% of US-owned enterprises operating in China said that recruiting skilled workers was their biggest operational problem (Lane & Polner, 2008). In fact, more companies cited human resources as a problem than regulatory concerns, bureaucracy, or intellectual property rights violations. This is because Chinese universities do not produce candidates with the skills required for multinational companies. As a result, Motorola created its own training and development programs to fill this gap. For example, Motorola’s China Accelerated Management Program is designed for local managers. Another program, the Motorola Management Foundation Program, helps train managers in areas such as communication and problem solving. Finally, Motorola offers a high-tech MBA program in partnership with Arizona State University and Tsinghua University so that top employees can earn their MBAs in-house (Lane & Polner, 2008). Such programs are designed for low-skilled but highly motivated Chinese workers.
Strategic Human Resource Management: Specifying Shrm Free Essay Example
Evaluate and pay people based on their performance, not just appearances at work. Provide rewards for skill development and organizational performance, emphasizing teamwork, collaboration and accountability for performance. Help employees develop new skills so they can progress and earn higher pay and rewards. Compensation systems that include incentives, achievement sharing, profit sharing and skill-based rewards employees who learn new skills and put those skills to work for the organization. Employees who are trained in a wide range of skills and problem solving are more likely to be successful and feel more satisfied at work. Their training enables them to make more valuable contributions to the company, resulting in higher rewards and greater commitment to the company (Barnes, 2001). The company also benefits from increased employee flexibility, productivity and commitment.
When employees have access to information and are empowered to act on that information, they are more engaged in their jobs and more likely to make the right decisions and take the necessary actions to promote the organization’s goals. . Similarly, rewards need to be linked to performance, so that employees are naturally inclined to pursue results that will reward them as well as contribute to the organization’s success.
Another key to successful SHRM in today’s business environment is embracing diversity. For decades, “diversity” has meant avoiding discrimination against women and minorities in employment. Today, diversity has gone far beyond this limited definition; Diversity management is about appreciating and utilizing the different perspectives and ideas that individuals bring to the workplace. Diversity is a key contributor to innovation and successful problem solving. As James Surowiecki explains
The more diverse a group is in terms of expertise, gender, age, and background, the greater the group’s ability to avoid the problems of groupthink (Surowecki, 2005). Diversity helps company teams to offer more creative and effective solutions. Teams whose members have complementary skills often perform better because the members can see each other’s shortcomings. Members will be more willing to make a variety of mistakes, which means they will be better able to catch and correct those mistakes.
Strategic Human Resource Management: A Paradigm Shift For Achieving Essay Example
Human resource management is becoming increasingly important in organizations because today’s knowledge economy requires employees to contribute ideas and participate in the implementation of company strategy. HR is therefore becoming a strategic partner by identifying the skills employees need and then providing the necessary training and structures for employees to develop and deploy those competencies. All aspects of HR – Selection, Placement, Job
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