1.0 IntroductionOrganizational innovation is a concept where an organization works in new ways to encourage and promote competitive advantage. It involves ways in which management of work processes in knowledge management, customer performance, customer relationships and customer retention, is done by organizations and individuals. The core purpose of innovation in an organization is to improve or change a service, process or a product. Individuals are encouraged to think creatively and independently in applying their personal knowledge to the challenges of the organization. Organization innovation needs an innovation culture that support new ways of doing business, new processes and ideas (Mayle, 2006).
In a rapid technological development, innovation and change in organization, human resources importance is still the key to the progress and development of an organization. Strategic human resource management involves the relationship between human resource management and strategic management in an organization. Strategic HRM aligns the function of human resource to the objectives of the organization. It helps in the alignment of skills possessed by employees with the goals to be achieved by the organization. It therefore deals with equipping oneself with the skills and knowledge to bring out the best out of the organization’s employees.
Strategic HRM also deals with utilizing human resources in a way that enables an organization harvest long term benefits like core competence, profits and achieving other goals (Armstrong, 2000). Strategic HRM helps the organization analyze its opportunities and threats and be able to develop strategies to achieve its vision in future. The organization will also have competitive intelligence due to strategic HRM and have a way of motivating employees. Strategic HRM also provides development and maintenance of employee competence.
An organization is also able to determine its weaknesses and strengths in order to take appropriate measures. It is also able to check whether employees’ expectations are properly addressed. Armstrong (2000) also explains that for an organization to cope with innovation and change taking place, strategic HRM policies and plans must be put in place to help cope with the changing conditions and comprehend the business mechanism better by recruiting and maintaining professional employees. Effective HRM policy deployed will enable an organization undergoing change and innovation run effectively.
This report will discuss the key issues to be addressed in developing strategic HRM plans and policies. However key issues in the organization need to be addressed when developing strategic HRM plans and policies. 2.0 Issues to be addressed in Strategic HRM plans and policies2.1Recruitment and the number requiredProcedures of hiring employees should be defined by the policy. The strategic HRM policy should also define the time frame in which the increase of workforce is expected to be done and the job performance of employees checked.
The number of employees hired should be enough to meet the organization objectives. According to Bert (2010), an overdone size of organization workforce will lead to a surplus or underutilized staff. On the other hand if less number of people are employed the staff available will be overstretched and make it hard to meet service and production deadline, thereby lowering the quality level. The organization output can be improved by understanding the relationship between work organization, productivity and technological development. This means a lot in terms of the number of staff needed (McKimmie, 2010).
To improve output, the organization needs a large number of staff in the production department. However if there is improvement of production process during the innovation of the organization then the organization may need only a few staff members. Where staff members are overstretched due to the fact that they are few, productivity may be low. To some extent workforce requirements can be established by use of necessary techniques.