The Concept of Strategic Human Resource Management - Essay Example

?HRM Define the concept of strategic human resource management (SHRM). Then discuss any three “big issues’ that a HR manager need to understand usingrelevant examples to reinforce your discussion. Strategic HRM Defined Strategic human resource management is defined as the overall plan or direction that an organization intends to pursue in order to achieve its objectives through the people (staff) (Michael Armstrong, 2001). Intellectual capital is the main source of competitive advantage and therefore the management should incorporate the needs of its human resource throughout its objectives and plans. Jeffrey Mello, a renowned management writer defined strategic human resource management as “consistent development of practices, policies, and programs to enhance the ability of an organization in achieving its strategic objectives.” Despite the visible disparities in concepts and definitions, the people are vital aspects of strategic HRM. The main aspect of SHRM is the people and the people’s needs. Thus strategic human resource management involves aligning the goals of an organization with those of the people. This is a challenging task since in most cases the goals or the objectives of an organization and those of the people are unrelated (Samuelson and Marks, 2012). For instance, many employees are only concerned with their income and the need to propel their careers. On the other hand, an organization is concerned with productivity efficiency and cutting of production costs. These two objectives are dissimilar and have opposing orientation. However, the success of an organization is dependent on the level at which it HRM unites the goals of the organization with those of the employees. For instance, a HRM should device policies that maintains productivity or cuts down on cost while maintaining the productivity and satisfaction of individual employee. Thus for an organization to attain its strategic objective, the staff must share into the objectives and vision of the company. This aspect creates the first challenge of strategic management as described by (Henderson, 2006, p. 123). Henderson (2006) claims that integrating the people with organizational goals are the most challenging undertaking in HRM. Moreover, the integration process creates management problems. For example, it is difficult or impossible to compel employees to accept a pay cut in order to save a company from collapsing. Conflicts between organization and employees objectives are classical scenarios in most companies. For example, employees object paid leave despite knowing that their companies are not making sufficient profit. To implement strategic HRM, the HRM should understand the meaning of Strategic HRM, aims of Strategic HRM and approaches to Strategic HRM Meaning of SHRM Before embanking into any Strategic HRM practices, a HRM must understand its meaning and significance within an organization. Firstly, the managers should understand SHRM as an action of competitive advantage. With such basic definition, the HRM will be able to define other aspects of HRM and apply them effectively. Many HRM studies have the following general approaches to the meaning of HRM. Use of planning A systematic approach towards personnel management and design Strategic use of human capital Attainment of competitive advantage The points stated above can be combined to develop a practical meaning of SHRM. Ideally, strategic HRM deal with organizational issues that are concerned with changes in structure, organizational performance, culture, and aligning resources with future needs of the organization. Thus, strategic HRM is concerned with human capital development as well as building production capacity of an organization. Alternatively, SHRM deals with human capital issues that are affected by strategic plans of a company. Aims of SHRM The main aim of strategic HRM is continued relationship between the people and the organization management into the long term. Behind this rationale is the concept of defining and achieving competitive advantage through human resource management. Unlike other HRM concepts, SHRM considers strategies of utilizing human capital in the realization of a company’s goals and objective. Indeed, effective integration of HR practices with the needs of the employees is a decisive factor in organizational success. The Three “Big Issues’ Managing Work-Life Balance According to Raymond (2011), work balance is an important aspect in employee motivation. The author explores the role of work balance and employee’s motivation. Employee satisfaction is a major issue in organizational behavior and Strategic HRM. In fact, employee motivation determines their behavior within an organization. For example, motivated employees will request minimal sick-leaves compared to under motivated employees. Moreover, a company that has satisfied employees performs better than one without. For example, the UAE has a unique workforce due to the large number of migrant workers. As a result, most companies lack social support for their workers. Moreover, workers in the UAE are so busy, that they lack time to socialize or engage in social activities. Companies should therefore be concerned with the welfare of their employees as they are concerned with the output. Thus, workers should have an all-inclusive schedule that allows them time to socialize with others. Moreover, HR managers should come up with forums that encourage socialization among employees. Such forums include, discussions, debates, co-operate sports and outings. Understanding and Capitalizing On Globalization Understanding and capitalizing on globalization is a major aspect of strategic human resource management. As most businesses take their operations to the international arena, HR managers should be equipped with relevant skills and strategies to handle hr challenges that come with globalization. Firstly, the managers should set strategies of managing different business and production unit across various countries. Moreover, the managers should have the capacity to handle staff from different cultures and nationalities. Advanced management skills will be required to handle such issues. Application of information technology and advanced management tools will also be necessary. For a company that is going international, a vital component for implementing the global strategy is international human resource management (IHRM) that determines the success or the failure of the foreign market venture. Firms can use several approaches at their disposal when faced with staffing decisions for global operations. In ethnocentric staffing approach, firms fill in the managerial positions with staff from their headquarters or parent country nationals (PCN). These act as expatriates and in this approach, and the subsidiary staff come from the host country. This approach provides the parent country with more control of the firms operations (Mathis and Jackson 2011, p. 43). However, the host country nationals (HCN) have restricted career progression and control over activities leading to frustrations. In polycentric staffing approach, the firm hires local managers (HCN) to fill the key positions in the host country. This enables upwardly mobile personnel, as there is career progression and more control of operations. This approach is more effective in multinationals as people in and out of the subsidiary system accept the system. However, difficulties arise when it comes to controlling and coordinating between the host and parent country. Understanding Cultural Transformation Cultural transformation is inevitable in today’s organizations. Organization culture refers the overall behavior of members within a particular organization. Organizational culture plays a critical role in determining the productivity and overall satisfaction of employees. Due to operation constraints and other factors that affect workers, cultural transformation is necessary. A HR manager needs to understand the significance of transforming organization cultures. The manager should also be aware of factors that may necessitate the change of organization culture. Further, the manager should have the tactics that would guarantee a smooth transition. This is because people are reluctant to adapting new changes (Janssens and Steyaert, 2012). It has been established that most workers especially senior members of the staff prefer conservative mode of operation. For example, automation of operations within an organization has always caused uproar with staff. This is because members of an organization are always reluctant to adapting new changes. In an ideal case, cultural transformation should be a gradual process rather than an instant change (Luthans and Doh, 2009). This will allow members of staff to adapt to the new changes. Moreover taking gradual change allows members to take the necessary training and preparation for the new changes. Moreover, HR managers should know when to introduce cultural transformation. The main indicators for a culture change include underproduction, high levels of employee turnover, general employee dissatisfaction, and lack of strong teams. If a HR manager notes either of these indicators, a cultural transformation is necessary. Conclusion Strategic human resource management is the integration of employees and organizational objectives. The process requires HR managers to utilize both operational and HR policies. For successful strategic HRM, a managers needs to understand the meaning, aims and approaches of HRM management. More importantly, the HRM needs to know the different challenges that affect strategic HRM and ways of avoiding them. Integrating the goals of employees with those of an organization is costly aim often posing a challenge to HR practices. Effective managers need to understand managing work-life balance, capitalizing on globalization and cultural transformation. Thus, human resource managers need to be conversant with related challenges and ways of avoiding them. Works Cited Henderson, R 2006, Compensation management in a knowledge-based world (10th ed). Prentice Hall, US. Janssens, M and Steyaert, C 2012, Towards an ethical research agenda for international HRM: the possibilities of a plural cosmopolitan framework. Journal of Business Ethics, 111:61–72 Luthans, F and Doh, J 2009, International management: Culture, strategy, and behavior (7th ed.). McGraw-Hill Irwin, London. Mathis, R and Jackson J 2011, Human resource management (13th ed.). South-Western Pub, England. Raymond, J 2011, Human Resource Management (7th).Queensland, Australia: John Wile & Sons. Australia. Samuelson, W and Marks, S. G 2012, Managerial economics (7th ed.). New Bakersville: MPS Read More