Strategic Human Resource Management and Organisational Stakeholders - Case Study Example

Strategic human resources management Name: Lecturer: Course name: Course code: Date: Strategic Human Resource Management (SHRM) and Organisational Stakeholders that a HR Manager Will Need to Satisfy. Introduction The concept of strategic human resources management has its design tailored to assist organizations achieve the needs of human resources while promoting the goals and objectives of a company. Strategic human resource management handles matters that concern employees of an organization. These matters relate to aspects such as recruitment, dismissal, training, appraisal, salaries, and wages. Strategic human resources management may also extend its role to include job incentives, vacation, and sick leaves. One distinct factor associated to this type of management is the fact that it employs proactive nature of employee management in handling and administrating the organization’s workforce or employees. Strategic Human Resources Management Strategic human resources management aims at enabling employees deliver the best for the company, and at the same time, meet their needs. Murlis & Amstrong (2007), highlight that this is because proper handling of employee requirements motivates them and thus leads to delivery of good quality products from them. Therefore, this type of management aims to achieve better delivery of services from its employees through proper management of their wishes. Notably, to achieve this goal, the organization has to think beyond the present and forecast into the future employee needs. Strategic human resources management must initiate changes such in areas like training, improvements of work environment, assessments, employment, payment, and discipline of the its workforce. The motive behind this management has its basis on the fact that better management of employee affairs and issues helps to improve the overall performance of an organization as it motivates them perform to best of their abilities and improve the quality of products. Organizational Stakeholders In an organization, stakeholders refer to people or companies that lose or gain from the success or loss of an organization. This implies that if the business gains, they benefit, whereas a loss in the organization affects them negatively. A firm has many stakeholders who participate in the quest to achieve its success and feel the impacts associated with loss or failure of the firm. Some of the stakeholders include the government, suppliers, customers, employees, shareholders, competitors, and community (Kellliher 2012). Competent managers think about the magnitude of roles played by stakeholders of an organization before embarking on any act, as anything that the firm executes affects these stakeholders. The stakeholders influence and stake in the success or failure of the organization. Additionally, these stakeholders also feel the impacts of firm’s failure or success, such that achievement or failure in a firm affects them directly or indirectly. Some organizational stakeholders who play a crucial role in success of a firm include employees, customers, and suppliers. Amstrong (2003), conceptualize that the stakeholders are very important for the success of a company and thus managers should employ them to help the organization progress. Each of the stakeholders plays a vital role in the organization. This is because failure of one among these stakeholders to deliver leads to an overall effect, which affects all the other stakeholders and the firm. Employees Employees are the workforce hired by an organization, so that they help the firm in delivery of products and services. The employees, also known as human resources, render their service of product or service delivery for a reward of wages or salaries (Mathis 2011). Historically, organizations treated employees as objects used to achieve their desired ends. Managers undermined the feelings, needs, and requirements of organization’s workforce and strived to attain the success of the firm through exploitation of human resources. However, with advancement of technology and other global facets, Competent managers realized that for success of any firm, they had to address employee needs. The underlying factor here is on the phenomenon that motivated employees to work hard and deliver products of high and good quality, which satisfies end consumers. The objective of strategic human resources management is to improve the performance of an organization through proactive management of employees. According to Murlis &Amstrong (2007), managers should employ strategies such job incentives, improved pay, provision of good working environment, appraisals, and fair treatment. By employing these strategies managers, create a feeling of appreciation and value in the minds of employees who in turn work hard and deliver the best for the company. Consequently, consumers receive products or services that satisfy their needs and match their expectations. Therefore, the organization will witness increased purchases of their products and a subsequent increase in the levels of revenues received from the purchases. The overall outcome of this development will be success of the firm and achievement of its desired goals. Employees who are not motivated or valued by the firm do not put forward their best. Thus, they work because they have to work. As a result, many products delivered by these employees will be of low quality. Additionally, the level of customer care that customers receive will be poor. This translates to reduced revenues, as consumers will look for other firms that deliver products of their choice. Therefore, employee management is very important for every manager since it greatly determines the success or failure of an organization (Randall 2008). Management of employees is very important for the success of a firm, for example, if managers ensure that there is proper remuneration for employees, job incentives for best performers, the product quality, as well as the organization’s market share will improve. Consumers Consumers are also among important stakeholders in the achievement of organization’s success, which is one of the major goals of strategic human resources management. Consumers are the end users of a product or service of a firm. Amstrong (2003), asserts that consumer satisfaction should be the underlying element in every organization, as they are the essence of the firm’s existence. When a firm fails to meet consumer expectations, consumers get dissatisfied from the low quality of products. Therefore, they leave and visit other organizations that deliver. As a result, revenues from the purchases in the organization will drop translating to reduced income and loss. Hence, it is important that managers treat consumers well and motivate their employees so that they can deliver products and services, which meet consumer expectations. Managers must understand the needs of customers so that they can be in a position to produce services and goods that match their expectations. For instance, managers can use interview schedules, questionnaires, direct correspondence, and employee feedback to assess the level of satisfaction, identify existing knowledge gaps, and address them (Mathis 2011). When consumers realize that organization values and respects their demands, they will market the firm to other potential consumers through word of mouth marketing and subsequently increase their level of purchases. Thus, the firm will experience increased revenues and achieve its success objectives. This is because modern consumers are concerned with the product or service quality and the level of customer care that an organization accords them. Suppliers Suppliers are individuals or firms that deliver raw materials needed by the organization to produce finished products. Randall (2008), argues that competent managers employ aspects that ensure improvement and fair treatment of suppliers. If the organization does not pay suppliers on time, give them correct information, and duly address their concerns, they may deliver the wrong products. In addition, misinformation of suppliers can lead to delivery of products in wrong quantities or qualities; suppliers may also delay delivery time. Therefore, managers should give suppliers the right information concerning the nature of products that they require, correct quantities and qualities, as well as the standard time for delivery and payment. Furthermore, managers must ensure that suppliers receive their dues at the right time as per the agreement. For an organization to achieve its success, it has to value its suppliers. Managers who compromise the needs and concerns of suppliers drive them away. This can result in the absence of some raw materials required to produce a given good or service and as a result absence of the given product. Furthermore, poor treatment of suppliers discourages them and therefore, they may delay delivery, or deliver raw materials of low quality. This greatly affects the quality of products that the organization provides to its consumers. If the products are of low quality, then it results in consumer dissatisfaction and a subsequent reduction of purchases due to low customer turnover (Kellliher 2012). Thus, for the firm to succeed, managers must treat suppliers in a fair and just manner. Conclusion Strategic human resources management entails improving company goals and objectives while addressing the requirements of employees. To achieve these goals, managers must employ a number of stakeholders. Stakeholders are very fundamental in the development and achievement of organizational goals and objectives. They play a very crucial role in the quest to help organization achievements. Organizational stakeholders are those who are within the organization and can assert their influence in the affairs of the organization, they comprise of employees, consumers, and suppliers. They are very important and managers cannot underscore their participation in improving the company. It is also evident that one stakeholder cannot work without the rest and that all the organizational stakeholders must work together for the success of an organization. References Amstrong, M. (2003). A Handbook of Human Resources Management Practice. London: Kogan Page Publishers. Kellliher, C. (2012). Strategic Human Resources Management. New York: Oxford University Press. Mathis, R. (2011). Human Resources Management: Essential Pesperctives. New York: Cencage Learning. Murlis, H., & Amstrong, M. (2007). Reward Management: A Handbook of Remunaration Strategy and Practice. London: Kogan Page Publishers. Randall, S. (2008). Srategic Human Resources Management. New Delhi: Wiley India Pvt Limited. Read More