Importance of Strategic Human Resource Management - Coursework Example

Strategic Human Resource Management Name Course Name and Code Date Introduction Strategic human resource management is aimed at assisting businesses address the needs of their employees and at the same time meeting the goals of the company (Maxwell and Lyle, 2002). Human resource management entails the aspects of a business, which has a significant impact on the employees for instance firing, pay, benefits, hiring, training as well as administration (Maxwell and Lyle, 2002). Moreover, human resources may also provide such things as work incentives, sick and vacation information days as well as safety procedure information. As evidenced by scholars, strategic human management comprises of the macro concerns of a business regarding the quality, structure, values, culture, commitment and matching resources to the future needs as well as other longer term individual aspects (Maxwell and Lyle, 2002). Strategic human resource management offers direction on how to lay the foundation for strategic advantage by building an effective organizational structure as well as design, employee value proposition, culture, systems thinking, the right communication strategy and preparing the business for change such as the mergers, downturns and acquisitions (Maxwell and Lyle, 2002). Apparently, strategic human resource management is the management of people (Gratton et al. 1999). Strategic human resource management necessitates thinking ahead and planning the means through which the company will meet in the best possible way the needs of its employees and how the employees will on the other hand meet the needs of the company (Gratton et al. 1999). As a result, this can significantly affect the way the operations are carried out in a business improving the hiring practices, employee training programs and assessment programs as well as discipline. Evidently, strategic human resource management is the best way to cultivate a working atmosphere conducive to productivity (Gratton et al. 1999). This is because thinking and planning ahead helps the company improve the rate of skilled employees who choose to remain working with them. As a result, the company is able to reduce on the money spent on finding as well as training new employees (Gratton et al. 1999). Besides, the corporate social responsibility and sustainability are also within the ambit of this discipline (Wright and McMahan, 1992). This is especially evident within the organizational values and their expression in the businesses decision making (Beer, 1997). Strategic human resources management stresses on the organizational codes of ethics, managing the societal effects of organizational decisions, philanthropy as well as the importance of the human resource proficient in enhancing the quality of life of their families, employees and the community at large (Wright and McMahan, 1992). This paper seeks to review the literature on strategic human resource planning with an aim of emphasizing the effectiveness of the concept in ensuring an effective operation of the organizations. Reviewed literature As stated by Ulrich and Brockbank, human resource managers are in a position to view the universe using the eyes of their staff and represent them. Moreover, they also look through to the global market and communicate with their staff on what is deemed right to create value as well as attain and maintain a competitive advantage (Brockbank &Ulrich, 2003). It is apparent that most attempts at the human resource begin without defining value. The human resource function must change how people perceive its role in delivering value to managers, shareholders, customers as well as employees and not only on how the human resource services are administered and delivered (Brockbank &Ulrich, 2003). In the past, several significant contributions on the information regarding management of people have been noted with particular attention being focused to the human resource management (Beer, 1997). This is because this has been representing a distinctive approach to managing people (Beer, 1997). Of interest however, the researchers have emphasized holistic nature of human resource management, most of the first research on the aspect was mainly dedicated to a constrained number of concerns. As a result, it has therefore received critique as micro analytic (Gratton et al, 1999). Contemporary research however indicates that researchers have sought to emphasize the importance of human resource management and their influence on the performance of the organization. Evidently, it is from this premise that interest on strategic human resource management arose (Gratton et al. 1999). The fast change of environment, inventions to offer competitive services and products, globalization as well as the changing investor as well as consumer wants have turn out to be the fundamental framework for almost all establishments (Clark et al. 2000). For organizations to effectively compete, it is of paramount that they enhance their performance by lessening costs, improving quality as well as differentiate their services and products (Beer, 1997). In order for the organizations to advance their enactment and construct a competitive advantage, its human resource ought to give emphasis on an innovative set of urgencies, which are strategic, and business oriented and less traditional human resource functions oriented (Gratton et al. 1999). Studies reveal that the strategic priorities entail flexible workforces, employee empowerment, job designs that are team-based, incentive compensation and quality improvement practices (Maxwell and Lyle, 2002). It is evident that the strategic human resource management was designed to help businesses address the needs of their employees and at the same time meeting the goals of the company. According to studies, there are two main aspects of strategic human resource management (Wright and McMahan, 1992). They include the importance accorded to the integration of human resource management into business as well as the corporate strategy and the development of the management of human resource to the line managers instead of the individual experts (Wright and McMahan, 1992). The term integration is defined by scholars as the extent to which the issues of human resource management are perceived as part of business strategy formulation (Brockbank &Ulrich, 2003). On the other hand, development is defined as the extent to which the human resources practices comprise and give responsibilities to the line managers rather than the personnel specialists (Beer, 1997). It is apparent from past researches in this field that there are a number of benefits accrued to the incorporation the management of human resource into the business strategy (Wright and McMahan, 1992). They include offering a wide range of solutions to address difficult organizational problems, ascertaining a successful execution of corporate strategy, contributing an important ingredient to attaining and upholding effective organizational performance, assuring that all human, financial and technical resources are accorded equal as well as due consideration in the setting of goals as well as evaluating the execution capabilities, ensuring that the subordination as well as the neglect of human resources aspects to strategic considerations are limited, offering long term focus to human resource management and helping the organization to attain a competitive advantage (Brockbank &Ulrich, 2003: Wright and McMahan, 1992) . In the contemporary firms and organizations, the people who constitute human resources are considered as significant resources to any organization (Maxwell and Lyle, 2002). Evidently, people and the way of managing people is becoming of paramount due the fact that other sources of competitive advantage are no longer as powerful as they should be (Gratton et al. 1999). For the reason that competitive advantage basis have changed, it is important that a dissimilar structure of allusion that considers the matters of human resource management as well as strategy be developed (Maxwell and Lyle, 2002). The traditional sources of a businesses’ success for instance the product as well as process technology, economies of scale, protected markets among others could still offer a competitive advantage. Nevertheless, the organization in question should make a good use of its human resources as they are of paramount to its sustainability (Clark et al. 2000). Similar to the understanding that the human resources are remarkably important to any organization, the function of human resource management is similarly moving up the ladder in the organizational ladder (Gratton et al. 1999). Apparently, the main aim of the human resource management is to ascertain that the firm acquires as well as retains highly skilled, well-motivated and committed personnel it requires. This entails captivating to evaluate as well as fulfil forthcoming needs of people and heighten as well as cultivate the in-built capabilities of persons, which include their employability, assistances and prospective by offering erudition as well as incessant expansion prospects (Maxwell and Lyle, 2002). This comprises of the selection and recruitment procedures, training activities and the management development linked to the needs of the business (Maxwell and Lyle, 2002). As it is revealed by studies, strategic human resource management denotes a first-hand change within the human resource management field (Wright and McMahan, 1992). Strategic human resource management emphasizes on the function that human resource management system play in business performance. In particular, it emphasizes on the configuration of human resources as a way to attain a competitive advantage (Wright and McMahan, 1992). Most organizations have realized that successful human resources practices and policies enhance the performance of various areas for example quality, productivity and financial performance. The competitive advantage aspect was first introduced by Michael Porter. According to Porter, the aspect arises when an organization creates some value for its customers. He stressed on the significance of diversity, which includes presenting a creation, and service, which is unique within the industry (Wright and McMahan, 1992). As a result, the firm is able to capture the attention of a particular product market or buyer group in an effective and efficient way as compared to its competitors. He later derived the generic stratagems that the establishments could use to remain competitive. According to Porter therefore, a firm’s business performance is largely affected by the industry’s environmental performance (Wright and McMahan, 1992). Similarly, the resource-based opinion denotes that the basis of a firm’s competitive position lies in the extensive use of the many valuable resources at the disposal of the firm (Clark et al. 2000). According to the resource-based view, it is apparent that human resource schemes could result to a continued competitive advantage by enabling the creation of capabilities, which are unique to the organization (Clark et al. 2000). The continued superior performance in most companies is linked to the firms’ specific competences for handling its human resources to obtain a competitive position. On the contrary, to the level those human resources schemes constrain the enlistment of new capabilities as well as abolish present capabilities, they could lead to organizational susceptibility as well as competitive position (Clark et al. 2000). Therefore for a firm to be successful, its strategic human resource management, ought to be driven with a comprehensive understanding of the bigger picture of the institution to be in a position to influence the policies as well as the key decisions (Guest, 1997). Typically, today’s strategic human resource management focuses on the talent development and personnel retention. Besides, it also enhances the values, beliefs, ethics, and spirituality in the organization particularly in the management of the workplace diversity (Wright and McMahan, 1992). Recommendations Apparently, strategic human resource management demands a thorough assessment of a firm’s internal as well as external environments. These factors should be reviewed way before formulating the human resource strategies. The factors include cultural challenges, economic, demographic and technological. The consistent assessments of strategy and proactive management have been pointed out as important to ensure successful management of human resources. Besides, strategic human resource management denotes a first-hand alteration within the human resource management field. Moreover, it emphasizes on the function that human resource management system play in business performance. In particular, it emphasizes on the arrangement of human resources as a way to attain a competitive advantage. For these reason it is therefore recommended that organizations adopt successful human resources practices and policies that enhance the performance of various areas for example quality, productivity and financial performance Conclusion The principal challenge facing organizations in contemporary society is to survive as well as prosper in the turbulent world. To achieve this, most organizations find it necessary to sustain a high productivity and levels effectiveness as well as have a global focus. Strategic management of firms is recommended as one of the methods for managing the environmental turbulence. The goal of the human resource management is to advance the productive contribution of the employees while at the same time attempting to achieve other individual employee and societal objectives. Evident from the research paper is that the arena of strategic management therefore entails the macro concerns of an enterprise regarding the quality, structure, values, culture, commitment and matching resources to the future needs as well as other longer term individual aspects. In addition, it offers direction on how to lay the foundation for strategic advantage by building an effective organizational structure as well as design, employee value proposition, culture, systems thinking, the right communication strategy and preparing the business for change such as the mergers, downturns and acquisitions. From academic research, it is evident that strategic human resource management is a major foundation of a continued competitive advantage. Therefore, all businesses should acquire it if they want to ensure sustainability and maintain a competitive advantage over its rivals. References Beer, M 1997, ‘The transformation of the human resource function: Resolving the tension between a traditional administrative and a new strategic role’, Human Resource Management Journal, vol. 36, no. 1, pp. 49-56. Brockbank, W. &Ulrich, D., 2003, Competencies for the new HR. Arlington, VA: Society of Human Resource Management Clark, T, Grant, D & Heijltjes, M 2000, ‘Researching comparative and international human resource management’, International Studies of Management, vol. 29, no. 4, pp. 6–23. Gratton, L, Hope-Hailey, V, Stiles, P & Truss, C 1999, ‘Linking individual performance to business strategy: the people process model’, Human Resource Management, vol. 38, no. 1, pp. 17-31. Guest, DE 1997, ‘Human resource management and performance: A review and research agenda’, International Journal of Human Resource Management, vol. 8, no. 3, pp. 263- 276. Maxwell, G & Lyle, G 2002, ‘Strategic HRM and business performance in the Hilton Group’, International Journal of Contemporary Hospitality Management, vol. 14, no. 5, pp. 251 – 252 Vernon, P 2004, ‘Delivering on the promise of HR transformation’, Strategic Human Resources Review, vol. 3, no. 6, pp. 20. Wright, PM & McMahan, GC 1992, ‘Theoretical perspectives for strategic human resource management’, Journal of Management, vol. 18, pp. 295-320. Read More