Discussion Of Strategic Human Resources Management

In this particular task we will discuss the Strategic Human Resource Management. What it is, what is the importance of SHRM in the modern business, purpose and the contribution of SHRM in the business.

With the increased global competition and the innovation of new technology and knowledge ,human resource management became the most critical function of organisation. Therefore, the workforce which was considered as resources became assets and are valuable for gaining competitive advantage for organisation. HRM helps organisation in aligning individual goals and objectives with the corporate goals and objectives, and rather than working as dictator HRM works as facilitator and promotes participative approach of workforce.

In short, the SHRM focuses on the efficient and effective management of people in achieving the organization’s vision or purpose.

Conceptually, the SHRM goes beyond a set of coordination functions and activities of an organization’s human resources. One of the fundamental ideas underlying the SHRM theory is that the organization can create a strategic fit or synergy between its HR strategies and organizational strategies. In other words, the organization should be able to side with its HR strategies and policies with whatever their organization might exist for. SHRM if designed carefully can become the driving force for organizational success. For, it is the HR that stands in the key position to influence growth and development of any organization. Variables such as customers and stakeholders, the quality of products or services, revenues or development outcomes are greatly determined by HR strategies and polices.

Definition of SHRM

Strategic human resource management can be defined as the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation, flexibility and competitive advantage. In an organisation SHRM means accepting and involving the HR function as a strategic partner in the formulation and implementation of the company’s strategies through HR activities such as recruiting, selecting, training and rewarding personnel. [ezinearticles.com,2010]

Task 1.1 Importance of SHRM

With the hard core competition and the tough market conditions it is getting hard for the organisations to survive in the market .organisation have to develop themselves in such a way that they can survive and gain competetive advantage over its competitors.this is where shrm comes into picture as SHRM helps in the long term planning of the business.SHRM is a proactive management of people. It is a two way process where organisation meeting need of people and employees meeting needs of organisation SHRM helps in aligning individual goals with that of organisational goals and objectives by developing the skills of the employees by training and motivating employees. SHRM have provided new dimension for training and development by encouraging and facilitating innovation and creativity.

Employees are motivated by enriching their work experience . Instead of the performance Appraisal s performance and talent management have taken place.

Strategic Human Resource Management blurs the distinction between a specialized Human Resource Management function and core operational activity, SHRM

Aims to achieve strategic fit by integrating Hr strategies and business strategies vertically.

{Adopted from: People management}

DEST’S Strategic Human Resource Management Framework

According to survey in 2007 by Australian government a

DEST Strategic Human Resource Management Framework is designed which explains the development of the department which shows to retain talented people in challenging environment department is introducing new and innovative strategies while delivering fundamental human resource services like the salaries, payroll and recruitment.

A strong emphasis on leadership is used as a key strategic element to help and support for department people. the department has built and maintained a creative and engaged workforce able to deliver the growing and diverse education, science and training agenda.

{Adopted from: Curtin.edu,2011}

This diagram illustrates the HRM function factor are the specific factors that influence the compatability of HR practices ,while firm level factors are analysed as major determinants for matching hr activities with strategy.personal factors which embrace the capabilities of both employees and manager are identified as common determinants for both horizontal and vertical fit.

Task 1.2 Purpose of SHRM

The aim of SHRM is to ensure that the strategic decisions are made having a major long-term impact on the behaviour and success of the organisation by ensuring that the employees of the organisation are skilled, motivated and highly committed to achieve the organisational goals and also attain the competitive advantage against other rivals. Some of the SHRM activities are listed as below:

Resourcing:SHRM main activity is to have right people to do the right job at the rightime.Main emphasis is laid on the efficiency and effectiveness of staff.resourcing is a process and pay.which have planning,recruitment, selection ,induction.

Retention: once the staff is hired emphasis is laid on the retention of staff by providing them necessary training and development, by motivating them, by providing them job security ,job enlargement and using the reward management like the the performance related pay.

Flexibility: employees are provided with the flxibilty of work life balance, getting job done from home, like the part tiome jobs for students and mums and the maternity or the paternity holidays and the sick holidays to retain staff.

Therefore the purpose of the shrm is to deploy right people for the right task and look after the flexibilty and training and development of employees.The purpose of Shrm can only be achieved by proper planning and implementation.

Task 1.3 Contribution of SHRM

In today’s economy the HRM plays an important role in achieving the main objective of the organization. it has lot to contribute as the policies of the organization is set by the Human resource management jointly with the approval of the senior level management hence a lot is depend on the contribution of SHRM in the organization .For any HRM to make positive contribution to the organizational achievements it is necessary that the HRM should know the business ,the core competencies and their competitive advantage along with expectations of the organization and their customers .there is a need to evaluate key drivers in the business performance . This will help the HRM in formatting the stratergic according to the need of the organization .the organization’s mission and vision is the key factor

For example if the organization is a Fast Food Industry where generally the vision is customer centric, customer satisfaction and the value of time. All these requires a well trained workforce usually available for the job to be done on time hence improving quality of work-life can have a substantial impact by reducing errors & accidents, reducing absenteeism & turnover, and improving productivity & customer service. Thus contribution of the strategic human resource management in today’s economy and style of business can makes substantial impact to the objectives of the organization and thus in turn participate in helping the business of the company to grow to higher limits.

SHRM contribute to the paradigm of the business.Shrm provides a value added core responsibility of HRM.

HR Planning: The ongoing process of systematic planning to achieve optimum use of an organization’s most valuable asset – its human resources.(investopedia,2011)

Hr Planning assist organisations to recruit ,retain and optimize the deployment of the personnel need ed to meet the business objectives and to respond to the external environment.The three key elements of the HR planning process are forecasting labor demand, analyzing present labor supply, and balancing projected labor demand and supply. This may include the development of training and retraining strategies.(bnet,2011)

Utility of Human Resource Planning in an unstable econonmic environment can be stated as follow:

Employee Maintainence: Tha administration and monitoring of workplace.Safety ,Health and welfare policiesto retain competent staff and comply with the statuatory standards and regulations.Employee Maintainence gives access to the employee data in regard to the personal and workplace information.

Performance Management:Accordng to Armstrong and baron -‘Performance Management is a process which contributes to the effective management of individuals and teams in order to achieve high levels of organisational performance. As such, it establishes shared understanding about what is to be achieved and an approach to leading and developing people which will ensure that it is achieved’.

Performance Management should be Strategic- About broader issues and long term goals and the Integrated -which links with the various aspects of the business ,people Management and individuals and teams. Peformance Management helps in the performance improvement and development of the individuals,teams and overall organisation.it also helps in managing behaviour iensuring that every there is better working conditions within the organisation.Performance mangament is a continuous process .Business starts of with the corporate goals and the departmental goals followed by the agreement on performance and development, leading to the development of plans betweenindividual and managers with continouous monitoring and feedback supported by formal reviews. Managers play aa important role in the performance management as they define individual behaviours ang assign duties and responsibilities and inform individuals about their accountibilities. Performance management is continuous improvement of the business processess, skills and behaviour of individuals and groups.

Long Term Consequences: HR Planning main purpose is to recrit, retrain , optimise and deploy people.But HR is also responisble ethically to individuals working for the organisations.Ii has its responsibity towards individual for devolping their skills by providing them training .Training should lead the organisational effectiveness. HR is responsible towards the society for its well being following the ethical issues and the corporate governance.HR policies should be ethical and complaying with the laws.

Because of the unstable Economic Environment large number of efforts are needed by the organisation sto sustain.Most of the organisations are trying to elimainate wastage like redundacy to get rid of the people who are not doing their job properly, Multitasking is pervailing and companieis are investing only on those employess who are capable and competent of multi tasking to assess sustainability. Hiring and training of new staff need lot of expenditure so companies is trying to train the staff internally from within the organisation.

Task 2.1 Business Factors that underpin Human Resource Planning In an Organisation.

Different business facors that underpin the Human Resource Planning in an organisation can be stated as follow:

Competetive advantage: Human Resources within the organisations are treated as assets than capital.Having the Capable and Competent workforce than the competitor provides a competetive edge to organisation over the rivals.

Talent management: Talent management is the systematic attraction, identification, development, engagement/ retention and deployment of those individuals who are of particular value to an organisation, either in view of their ‘high potential’ for the future or because they are fulfilling business/operation-critical roles.(cipd,2011)

From Business perspectives hiring those people who have the right skills that will be helpful to the organisation.

Labour Market: HR Planning is affected by the labour Market which deals with the demand and supply of the skilled and unskilled workforce available in the market. Due to the Unstable economic Conditions their is to much of supply and less demand for the workforce .

Strategy of the Organisation: Depending on the Strategy of the Business if they are the having a leader plan or the survival plan Hr will recruit and train staff.

Finance: Heavy investment is needed in recruiting ,training and retaining staff . Different levels of management have Different raes of remuneration.According to the Finances Available to the HR Department Recriument or Training of workforce is done.

Expansion or growth: Expansion or growth requires recriument and promoting of the workforce.

Law: HR policies and planning has to abide by the law .Law relating to the women working, pay, holidays or the ethical issues.

Internal /External Environment: Environment affect the operations and the working of the orgaistions. As the market is turbulent therefore the Hr planning is affected by the economeic conditions .

Organisational need : Depending upon the structure or the culture of the organisation HR act . To provide flexibilty there can be number of part timers within the organisation.

Apart from these factors HR planning is also affected by the mission and purpose of the organisation and the resource planning of the organisation.

Task 2.2 HR Requirement in a given situation

In a given situation HR requirement is about the workforce analysis.HR main job is to have right number of people with the right skill available for the job. Any training and development required is also analysed by the HR.HR estimates the cost of training and development. It is the responisibity of the HR to retain the staff.Basically HR is involved in all the activities related to the human resources such as recuiting,selecting, training, retaining .

Task 2.3 Develop a HR Plan For an organization

Organizational objectives are defined by the top management and the role of HRP is to sub serve the overall objectives by ensuring availability and utilization of human resources. 

HR Demand Forecast: Helps in estimating future quantity and quality of people required.

There are several good reasons to conduct demand forecasting