The paper “ Strategic Human Resources Management and Leadership” is a breathtaking example of an assignment on management. The author explains how strategic Human Resource (HR) Management differs from operational Human Resource Management. The main difference between strategic and operational HR professionals is based on their roles. Operational human resource oversees the day to day operations, which are vital in ensuring that employees’ needs are met. Operational HR is also involved in overseeing the payroll and also maintaining the HR information system. They also ensure that employment laws are followed and are consistent.
For example, at IBM, operational HR management is seen when the firm maintains and manages its HRIS. IBM has a paperless online employee enrollment. The system requires maintenance which is done by operational HRM. Strategic HR management is based on ensuring that they predict the company outcomes and making sure that there is adequate manpower to help the organization to achieve its goals. Strategic HR ensures that they come up with ways of contributing to the company's long term goals. The main aim of strategic HR is making sure that the productivity of the workforce is improved to enable return on investment (Mello, 2006).
An example of strategic HRM is practiced at McDonalds. This is through their staffing, reward system, employee development and maintenance and employee relation (Harris, 2009). 2. What are the core strategic HR activities? Core strategic HR activities include: evaluating the state of economy, determining the expertise of the workforce in relation to the current economy, carrying out employees evaluation, coming up with restructuring options, looking for ideas which can lead to achievement of business objectives, performance and retention, adjusting the performance metrics, supervising training, designing the employee motivation systems.
For example, carrying out performance evaluation exercises in an organization is a strategic HR activity (Schuler & Jackson, 2007). Another core strategic HR activity is enhancing innovation. This was evidenced at Apple Inc. under the leadership of Steve Jobs. HR at the company engaged the workforce in creativity through creating an environment that supported it. This was a strategic move as it enabled the company to stay ahead of competitors (Israelite, 2010). 3. What is the relationship between corporate strategy and HR strategy? Corporate strategy is linked to the HR strategy in modern organizations.
Business has become knowledge-based and human resource has gained a lot of importance. HR has become a center stage in business and is used to create value when linked with the corporate strategy. For the firms which have strong HR strategies, the major challenges they face, which include mergers and acquisitions are based on the corporate strategy dimension. The HR has to work together with the corporate strategies to ensure processes such as integration based on acquisition enables the company to grow.
Corporate strategies and HR strategies are related due to the fact that they work together in enhancing business performance. This is seen in organizations such as IBM (Boxall & Purcell, 2003). An example of a company that was able to link corporate strategy with HR strategy is Lincoln Electric Company. The company uses cost leadership and uses incentives to enhance competition and teamwork among employees. The company distributes a portion of its profits to employees annually based on their output, cooperation, quality, and contribution. This innovative HR strategy has enabled Lincoln to gain a large market share.
Another company that has succeeded through linking HR strategies with corporate strategies is Cisco. The company has grown through acquisition (Krishnan, 2005).