Strategic Human Resource Managment

Content

1.0 INTRODUCTION ....................................................................................................................................... 2

2.0 STRATEGIC HUMAN RESOURCE MANAGEMENT .................................................................................... 4

2.1 A STRATEGY ......................................................................................................................................... 4

2.2 HUMAN RESOURCE MANAGEMENT ................................................................................................... 4

2.3 STRATEGIC MANAGEMENT ................................................................................................................. 5

2.4 STRATEGIC HUMAN RESOURCE MANAGEMENT ................................................................................ 5

3.0 CHANGING OBJECTIVES AND ROLES OF SHRM ....................................................................................... 7

3.1 GLOBAL LABOUR MARKET .................................................................................................................. 8

3.2 CHANGING CHARACTER OF WORKFORCE........................................................................................... 8

3.3 WORKPLACE FLEXIBILITY ..................................................................................................................... 9

4.0 HUMAN RESOURCE STRATEGY ............................................................................................................... 9

4.1 KNOWLEDGE MANAGEMENT STRATEGY ............................................................................................ 9

4.2 EMPLOYEE’S ENGAGEMENT STRATEGY ............................................................................................ 10

4.3 TALENT MANAGEMENT .................................................................................................................... 11

5.0 HUMAN RESOURCE AND BUSINESS ENVIRONMENT ............................................................................ 11

5.1 LEGAL ENVIRONMENT ...................................................................................................................... 12

5.2 DEMOGRAPHICS TRENDS .................................................................................................................. 12

5.3 TECHNOLOGY .................................................................................................................................... 13

6.0 COOPERATE SOCILA RESPONSIBILITY.................................................................................................... 14

7.0 CONCLUSION ......................................................................................................................................... 15

References .................................................................................................................................................. 17

1.0 INTRODUCTION

Technological advancement, global competition, new knowledge, rapid growth of knowledge

and other internal and external environmental change are the main factors that make an

organization to evaluate its operation both in local and on a global perspective. In most cases,

many organizations are forced to adopt new business strategies and change how they operate. At

times they are forced to introduce new technologies, changing their organizational structure and

evaluating their work process in order to adapt to changes in demand both at local and global

perspective (Edward, Susan, 2013). The most important factor to consider in any organization

whatsoever human resource management as it is the profitability function in a business.

This article entails a deeper thought on the aspect of strategic human resource management and

how it helps organization to improve its performance. First the article will tackle the issue human

resource management and strategic management as they form the basis for strategic human

resource management. Critical evaluation on the roles of strategic human resource management

and various strategies that organization can employ to add value to strategic apex of

organizations which include best practices and resource-based view will be our key focus.

Business environments being an important consideration in any organization can’t be left out in

this discussion. The key issues associated with organizational external context include social,

demographic, technology knowledge and economic business environment. A discussion on

various international contexts confronting the organizations in the business world today and also

evaluating different models and frameworks that explain corporate social responsibility and

business ethics. This assignment will analyze and argue derive points with the use of relevant

academics literature and use of theoretical insight and if need be relevant examples will be cited.

The main objective of this study is to evaluate and discuss the roles played by strategic human

resource management as well as its impact on organization performance and how it helps in

creating competitive advantage. Our main focus is on a globalization perspective.

2.0 STRATEGIC HUMAN RESOURCE MANAGEMENT

2.1 A STRATEGY

A Strategy is a process of deciding an organization direction, where it wants to go and the

process it intends to use to get there. It outlines the firm’s objectives and all the managerial

processes to attain those objectives. A strategy not only dictates longer-term goals of the firm but

also is concerned with how those goals should be achieved. A good strategy is one that works,

one that guides purposeful action to deliver the required result (Michael, 2011).

First of all, before even discussing strategic human resource management let us consider human

resource management and strategic management. Both are the pillars that make up the whole

structure. An organization is made up of employees who have been assigned tasks and their

responsibility is to work together to achieve organization’s goals. This is made possible by the

help of a manager who co-ordinate all functions of management which are staffing planning,

organization, leading and controlling in an effective an efficient manner. Staffing which is also

referred to as human resource management function is considered as a necessity in management.

2.2 HUMAN RESOURCE MANAGEMENT

Human resource management a process of recruiting, developing employees through training,

managing salaries and wages, and compensating employees, attending to their legal issues,

resolving disputes and taking into consideration health and safety concerns (Gary, 2013, 30).

Effective human resource management ensures that the organization acquires proper result by

working through people. It is the function of human resource manager to ensure that they employ

proper strategy keeping in mind modern advancements in technology and global trends. This

introduces the concept of strategic management.

2.3 STRATEGIC MANAGEMENT

Strategic management is the process undertaken by the managers to identify and describe

business strategies to better the overall performance of the organization. It can also be described

as decisions and actions taken by the managers and which dictates the result of the organization

outcome. It specifically deals with developing and implementing appropriate decision about the

direction in which the firm is moving (John and Robert, 2013). Strategic management gives

employees a wider perspective and they can also understand their roles and how their job

description fit into the organizational plan.

Human resource management and strategic management together they form strategic human

resource management. Dessler (2011) argues that strategic human resource management entails

developing and implementing best practices and policies of human resource in order to generate

behaviors and competence in employees that the organization need to attain its goals. Michael

(2011) provided a similar definition. In his definition he describe it as a series planned human

resource deployments and processes that result in realization of organization goals.

2.4 STRATEGIC HUMAN RESOURCE MANAGEMENT

Human resource management strategy is a process that ensures that human resource management

fully integrates business strategies and the strategic needs of the firm. The overall goal of

strategic human resource management is effectiveness. This entails effective application of

human resource to meet organizations objectives (Catherine, David and Clare, 2014). Our

Company of interest is Toyota which fully implemented its philosophy of ‘quality first’. Using

this philosophy they have been able to sustain the market and stayed a head of their competitor

for the past five decades. They have achieved this through implementing total quality

management using human resource management strategies. Toyota in now the world leading

motor vehicle industry. For any organization to achieve a strategic goal they need to come up

with a critical alignment to human resource management as a function which ascertains that

quality is maintained. This ensures for example in recruitment process human resource manager

will hire people for quality rather than quantity or production output. The aspect of strategic

human resource management ensures that effectiveness and efficiency are maintained at all

levels. This can be done through employees training and development, motivation and rewards

(Catherine, David and Clare, 2014).

Human resource management strategies ensure that human resource policies cohere across all

levels of management and hierarchies. It also stipulate the guidelines that ensure that human

resource practices accepted, adjusted when the need arise and implemented by all managers and

employees as part of their daily activities (Charles, 2006).

In the modern world, strategic human resource management should not only be a function of

management but also a function to be used by other managers and executives at all levels of the

management. This is mainly because roles of employees are vital to the growth of the company

The raid increases in globalization, technological growth and advancement in information system

amongst other factors have made competition to be relatively high. Many organizations which

are driven by the market have been forced to strategize and set their objectives right in order to

sustain the market. Some of these objectives being cost reduction, increasing sales, improving

productivity, quality assurance, product creativity and winning more customers. These goals can

only be achieved through one way which is strategic human resource management (Catherine

David and Clare, 2014).

The most effective way of measuring strategic human resource management is through the

overall performance of the firm. Performance is a concept that covers what goals the firm has

achieved and the whole process of achieving the goals. Michael Armstrong (2011) argues that

work and performance can be conceptualized as a system which comprises three elements of

input, all the activates and processes transforming input to output and the and the output arranged

in a linear sequence. The outcome of the whole production process by the use of key

performance indicators which are the profitability and productivity. Mark and Brian (2011)

conducted a research on firms in order to establish the relationship between performance and

human resource management. The outcome of this research indicated that the firms with a higher

index of human resource strategy had economically and statistically high-performance level.

3.0 CHANGING OBJECTIVES AND ROLES OF SHRM

Globalization being the key factor in many businesses today many organizations has taken a new

direction in strategic human resource management. Human resource is considered as an

important function of organization performance in today’s world and therefore many successful

organizations take the matter with a seriousness that it deserves. The international human

resource is one factor that is changing the way an organization perfumes its strategic human

resource functions. Globalization and technological advancement have made many multinational

firms consider the use of international workforce (Homri, 2005).

3.1 GLOBAL LABOUR MARKET

The international workforce has become an integral part of many organizations today.

Developing an effective global workforce makes it more difficult for the competitor to emulate.

In order to elaborate this in details consider this example, Robert Half international company

which is a professional consulting firm has more than 400 of its employees in different locations.

This company introduced the aspect of international human resource back in 2009 during the

recession period. They started hiring more experienced workers to its rosters of temporary

workers. Since then globalization in conjunction with modern technology many companies

adopting the aspect of international human resources.

3.2 CHANGING CHARACTER OF WORKFORCE

The easy access to information has really changed the way work is done today. This is facilitated

by the rapid growth of technology and the aspect of globalization. The workforce is diverting

from the physician workforce to service delivery. The service sector produces services instead of

goods. This may include services like warehousing, security, social services, art and

entertainment among others. In the modern economy, the service sector is considered to be

advancing at a faster rate compared the industrial and agricultural economy. Many countries of

the world today including China, Australia, United States and the United Kingdom have put

more emphasis on the service sector.

3.3 WORKPLACE FLEXIBILITY

This is human resource strategy which allows employers and employees to make necessary

arrangements about work and the condition that is suitable for them. This approach enables

employees to have a stable work. This enables them to improve quality, quantity and efficiency.

4.0 HUMAN RESOURCE STRATEGY

These are well-defined policies whose functions are to ensure that the responsibilities of human

resource management are met with the overall goals objectives and future expectations of the

company. Human resource strategy is designed to instill skills, attitude and integrity among

staffs that will help the organization achieve its goal. Human resource strategy is made up of

principles that facilitate managing the human resource through best policies and practices. On a

global perspective, proper strategies should be adopted in order to employ proper workforce

within the organization (Charles, 2006). The best strategies that an organization can employ to

create a competitive edge include the following:

4.1 KNOWLEDGE MANAGEMENT STRATEGY

Organizations strive to ensure that their workers have the opportunity to continuous acquisition

of knowledge and professional skills. The knowledge management strategies main aim is to

identify information and pass so as to facilitate learning. This is the best strategy that is used by

human resource management to link people to information in accordance with the view of the

firm. Gary D (2013) argues that the main secret of the firm out doing its competitors is found

with people and the knowledge they acquire.

4.2 EMPLOYEE’S ENGAGEMENT STRATEGY

This is the process of employee’s involvement and satisfaction in a business organization Gallup

(2009). It occurs when employees are more serious to their work and are motivated to attain the

highest level of performance. An analysis was made indicates that for an organization to really

understand what triggers engagement and the outcome it has on the organization we need to

consider social exchange theory which estimates that loyalty, commitment and directional are a

result of engagement of employee to a good employer (Sparrow and Balain, 2009).

4.3 HIGH-PERFORMANCE STRATEGY

High-performance strategy stipulates the organization's goals and how it intends to achieve those

goals. It also spells out how a company can gain its competitive advantage by working through

people. The process of supporting an organization to achieve its objective is through the

development of high-performance work system. Organization performance can only be achieved

through strategic management of personnel (Ashly, Rob, Tom, 2007).

4.3 TALENT MANAGEMENT

The main purpose of talent management is to ensure that only the best people win. Talent

management involves understanding the strategic stand of an organization, making strategic

necessary future decisions, and turning strategy into action. Talent management mainly focuses

on understanding and satisfying business needs that drive the firm to gain its competitive

advantage and development.

4.4 LEARN AND DEVELOPMENT STRATEGY

This is a human resource strategy that enables all organizational processes to be planned and

implemented. It provides a guideline that ensures only skilled and highly experienced employees

are employed. Learning and development strategies have their main objective in establishing

learning organization and promote learning culture within the organization.

5.0 HUMAN RESOURCE AND BUSINESS ENVIRONMENT

As stated earlier human resource management is an important function of the management that

stipulates the outcome of the organization. Therefore managing business environments that

surround human resource is an important factor to consider. This involves understanding how to

manage business environments which is a crucial base for comparative advantage in any

organization (Mathis, Robert, and John, 2014). Managing human resources in a global

perspective is challenging but the management should develop proper human resource strategies

that will help in managing the global human resource. Some of the global factors that affect the

business external environment of human resource across countries include:

5.1 LEGAL ENVIRONMENT

Human resource regulations and laws may vary depending on the country. Most of the Asian and

European countries, labour and employment laws make it difficult to downsize the number as the

cost of rehiring former employee is very high.in some other countries, the law addresses the

issues concerned with employment and discrimination while in others countries employment

discrimination may is accepted due religious ethical differences. In any country whatsoever

human resource department is under constant pressure to work within the law as the law affects

every process of human resource department including hiring, training compensation and

termination (Monir H. 2005). These factors reveal that human resource managers have to

conduct a thorough review of employment-related regulations and laws before conducting its

operation in a country. With the recent trends in world labour market and technological growths

many companies especially those from service industries prefer employing people online from

different countries to work for their home countries. This reduces the risks of law compliance.

5.2 DEMOGRAPHICS TRENDS

Demographic changes have a major impact on human resource strategies all over the world. The

workforce has really diversified. This has made many organizations around the world to make

drastic changes on strategic human resource management. In some countries like the United

States and European countries, the changes are happening a greater rate imposing challenges to

human resource professionals on how to manage the new generation workers (Noe, Raymon,

John, Hollenbeck, Barry, Gerhart, Patrick And Wright, 2013).

5.3 TECHNOLOGY

Technological advancement provides a platform for the better implementation of strategic human

resource management from a global perspective. The world of technology is growing at a higher

rate, therefore human resource department have to be on their toss to keep up the pace. However

different countries have embraced technology in a different way. Some are still lagging behind.

This act as the main challenge to the international human resource management. Technological

change comes with its advantages and disadvantages. I most cases many countries have been

forced to reduce the number of employees as they are not required anymore (Michael A., 2011).

5.4 ECONOMIC ENVIRONMENT

Global and national economies are the biggest external influence that affects human resource

management both at a global and national economy respectively. The change I international

economy has a more or less equal effect on all national economies. This is mainly driven by the

integration of world economies. Therefore any undesired effects in the world effect on world

economy impose similar effects on national economies. That is to say, the rate of employment

and sales would significantly increase.

On the other hand, stable economy or growth of the world economy would have a positive effect

on the national economy. This would lead high employment rates and increase in salary and

wages. Economic changes do not only affect the talent management but also the ability to

employ at all. In 2001 the Australia economic crisis affected many countries in the region. Like

many countries, Turkey was greatly affected by the crisis (Gallup, 2009).

6.0 COOPERATE SOCILA RESPONSIBILITY

Cooperate social responsibly is one of the concepts that has become dominant in the modern

business environment. It is therefore important for an organization to develop policies and

procedures regarding its social responsibility. Cooperate social responsibility can be described as

the relationship between the company and its external environment that is global corporations,

governments and most importantly individual citizens that surround the organization. It also

describes the relationship between the firm and its stakeholders.

The general activities of an organization have a greater impact on its environment and it is

therefore, important for an organization to consider this fact in its accounting process. The

performance of an organization heavily depends on the relation it has on the environment as they

are the one who contributes to the purchase of the firm's product. The reputation of a company is

an important aspect to consider if it wants to grow and increase its competitive advantage. The

firm should contribute to the growth and the well-being of the society and abide by law and order

(Ashly , Rob , Tom, 2007).

7.0 CONCLUSION

In conclusion strategic human resource management is an important aspect of the management in

any organization across the world. In today’s globalized world, the human resource managers are

a constant pressure both from inside and outside the business to develop strategies that properly

manage their employees for the maximum profit realization in their firm. Managing and co-

coordinating employees is an important function of management. Therefore business should

develop proper business strategies for managing human resources in order to gain competitive

advantage. According to our discussion it a clear evident that there are several factor that shape

how the organizations should evaluate its workforce. Some of the major concerns are the

diversification of workers in terms of work and workplace depending on gender, age and culture.

Human resource management is changing from production based to service based. This is geared

by the rapid growing rapid service industries in the modern world. Companies like Uber and

Facebook are rapid growing and a proper strategic human resource management is required.

Secondly for a company to outdo its competitors it has to have we well defined strategies some

of which include talent management, employee’s engagement ,performance management, reward

and learning and knowledge strategies. This strategies provide a clear guidelines that the

organization follows to attain its objectives and at the same time gain competitive advantage.

Technology has provided a base that has helped in the adoption of the global labour workforce in

a more convenient way. Employees can be able to access jobs from a global perspective and at

the same time human resource benefit by selecting most qualified labour force for their

organization all over the globe. This has opened a way to the success of many businesses today.

It has enabled many businesses to improve on quality and regulate salary payment. Technology

has also enabled better implementation of strategic human resource management.

References

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<http://gen.lib.rus.ec/>.

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Resource Management: Gaining a Competitive Advantage’. 8th ed. New York: McGraw-

Hill/Irwin. Retrieved <http://downloadslide.com/>.

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