Analysis of Strategic Human Resources Management - Research Paper Example

Introduction The future plans of an organization are important in determining the manner in which to manage the human resources. It is important to note that the success of an organization depends on the skills, competence and the level of commitment in the human resources. They are therefore core to successful implementation of strategies and realization of organizational goals. Strategic human resources management is the practice involving promotion of an organizational culture aimed at developing skills amongst the employees and ensuring that their performance is enhanced through all the available means for the purpose of improving their productivity in order to accomplish the organizational objectives (Armstrong 2009 p. 40). It involves ensuring that employees are contented and enthusiastic in regard to the work. The main concern is usually to provide a solution to the issues that may affect the productivity of the workers in the long-run, and development of a working framework and resources to enhance employee performance. Strategic Human Resource Management The activities of strategic human resource management involve generating behavioral changes in the employees to match the strategic goals of the organization. These activities promote decision making skills among the employees thereby engaging them in innovative processes in the business. It involves evaluating the capabilities of each employee and deploying them for the most appropriate tasks where they can yield the best results (White and Druker 2000 p.91). It is a combination of a variety of strategies for human resources. These strategies include; reasonable employee reward schemes, career development, working framework for improvement of productivity amongst others. These strategies are important in harmonization of the working structures of an organization. Employees are empowered to make personal goals and strive to achieve them. Michael et al (2003 p. 176) observes that the impact of human resource management on the productivity of employees is what strategic human resources management highlights. Strategic plan differs from strategy in the sense that the former is an illustration of a process that entails the official process of achieving the organizational goals, mainly used by organizations dealing with a wide scope of activities. The strategic plan in that case is an outline of how human resources are to be utilized in accomplishment of organizational goals. On the other hand, strategy is an aspect of all organizations, detailing the organizational culture and processes that are essential in keeping it in operation. The strategy for human resource management is unique to each organization. In combination with the principles of human resources management, it forms the basis of strategic human resources management (Kirton and Greene 2004 p 71). In that sense, the implication is that strategic human resources management is an advancement of HRM through adopting a designed approach which incorporates organizational objectives, guidelines and processes to be undertaken. A successful business strategy usually focuses on human resources, which equips the management with knowledge in regard to the available human capital to help in accomplishment of organizational goals. Human resources are usually a substantial asset for the organization and therefore strategic human resource management is a significant consideration in regard to developing a competitive business strategy. It helps in organizing the available expertise, and capabilities amongst the employees to generate a complex pool of human resources capable of satisfying all the requirements of production in the organization. From this, it can be inferred that business strategy is not the origin of strategic human resources management. The two aspects are equally important in the realization of organizational objectives (George and Jones 2005 p 96). This is because the manner, in which the employees are dealt with, inspired and allocated tasks and their capacity to perform is what generates a good business strategy. Integration of business strategies in to the strategic human resources management is common in many organizations. The two can be intertwined through the use of business strategy to develop the strategies for human resources from the business strategy. This means that a business strategy aimed at the improvement of customer satisfaction, the business strategy will be geared towards upgrading the employee’s skills through career development (Charlie 2007 p.19). Strategic Human Resources Management and Human Capital Management It can be argued that strategic human resource management is similar to management of human capital. This inference can be true if analyzed from different dimensions. For example, strategic human resource management involves developing strategies involving the major organizational goals as well as the principles, and resource allocation that are mainly meant for the top management. On the other hand, the strategies are generated for the purpose of improving the organizational productivity, thereby putting the employees at an important position as assets that are significant for the realization of organizational objectives (Edwards 2006 pp. 101-119). To further bring a clear relationship between human resources and human capital management is the structure of the strategies. They usually integrate the human resource goals and the practices that are developed to match with the prevailing conditions, supplementing the human resources. It is assumed that the employees are held as assets for the organization rather than part of the expenditure that the organization incurs, and that human capital and human resources management are both targeted at generating an incorporated and tactical method of managing the employees (Arne 2001 pp. 475-504). This is usually the major focus of managers in organizations on top of managing the people. However, none of the two concepts takes the place of the other in the business. Human capital management plays a significant role in supplementing and reinforcing the aspect of human resource management. This is achieved through emphasizing on quantitative management with the focus on the establishment of a distinct point of focus in regard to the human resource involvement and realization of organizational goals. More over, the manner in which to perform the measurements is important in order to make clear the factors to be measured, the manner in which to conduct the measurements as well as ways in which the results are represented. Under such circumstances, the significance of the measurements in directing the human resources in strategy development is highlighted (Feldman 2008 p. 66). Generating the focus for basing the strategies for human resources, and important procedures on the employees helps in facilitating the achievement of business objectives. Reinforcement of human resources is also accomplished through provision of a definition of the connection that exists between the strategy of the organization and the human resource management strategy. It is further supplemented by enhancing the understanding that the employees in an organization are more of an asset than expenditures, as well as creating a strong emphasis on the significance of human resource professionals as crucial partners in the business. These arguments portray the fact that both concepts are significant components in the management of people in the organization (Geoffrey 2004 pp. 78-81). It also indicates that the two concepts are significant in the appropriate utilization of human capital through strategies based on resources. The connection between human capital management and Strategic human resources management can also be illustrated through determining the connection between human capital and strategic human resource management in regard to the utilization of human capital to bring value to the organization. This assessment is significant in availing information in regard to the ability of employees in achieving the business strategy. Organizations that successfully manage human capital are usually capable of achieving organizational goals. It can therefore be concluded that strategic human resources management is significant in defining the structures for evaluating and managing the process of achieving business strategies. Therefore, human capital management is not a substitute for strategic human resource management. Rather, it complements it and in turn it is developed through strategic human resource management. Strategic Human Resource Management and Business Performance Human resource management practices usually have a strong impact on the organizational productivity. The level at which the human resource strategies match with each other as well as other business strategies is significant for the organizational performance. The job structure and career development plans are significant in determining the performance of a business. These human resource practices improve the skills of individuals, making them enthusiastic concerning the work, and utilizing the opportunities presented by the management to participate in the accomplishment of the organizational goals. The relationship between the management and the employees facilitates the accomplishment of organizational goals through team work. It promotes a good organizational culture that makes objectives achievable. The employees are motivated to be innovative and willing to work. Business performance is enhanced by the development of strategies for human resource management which match with a structure that integrates the employees and the business strategy. This is the framework under which people should be managed in order to achieve the organizational strategy. Through it, the different features of human resource management are complemented, thereby improving the business performance. Each organization needs to assess its own situation and develop human resource management strategies that best match the situation since each strategy will uniquely improve business performance depending on the business working environment. This means that there is no overall strategy that all organizations can use to improve business performance. Starbucks is one of the organizations that have successfully improved in productivity through adherence to these models of strategic human resource management. Proper alignment of human resource management strategies is necessary in order for organizational activities to progress successfully. Recruiting workers and relocating some from one department to the other involves human resource management strategies in order to ensure worker satisfaction in the organization (Shultz 2008). Organizational learning is significant in the promotion of harmonious relations amongst the employees and it falls under this office. Many organizations are known to fail due to employees’ dissatisfaction, which culminates in internal resignation, especially when they feel intimidated to resist openly (Robbins, 2005 p. 91). Lack of cooperation from the employees presents a hindrance in the achievement of goals, even if the organization does not suffer from financial drawbacks. Strategic human resource management is significant in enhancement of employee productivity (McKain 2004 pp. 75). It plays a role in emphasizing on training, explaining processes, giving instructions on particular tasks and constant worker upgrading which are fundamental to realization of the organizational goal of satisfying customers' requirements. Human resource practices enhance reinforcement of worker performance in order to instill positive thoughts in them regarding the managers as well as the customers Starbucks is listed as one of the companies with prudent guiding principles in regard to human resources practices. The corporation is known to present a healthy work environment that enhances the productivity of employees (Antonio 1993 p. 92). Staff retention has been achieved in the organization which is attributed to strategic human resource management. Low Cost versus High Commitment The recent advances in administration of employment in organizations are being achieved through high commitment management due to the fact that assessment and management of workers in organizations is increasingly becoming difficult due to introduction of modern technology. High commitment management is helping the organizations to manage worker performance through laying emphasis on career development. It is a significant tool for managing human resources through improvement of employee satisfaction by creating good working conditions and providing incentives to motivate the employees. High commitment can be achieved through various ways that help in improving worker satisfaction (Wright 2004 p. 17). These include; flexible working, career development through training and upgrading the skills of supervisors. There are several ways through which firms can implement flexibility. These include policies on flexible hours. Flexibility of working hours allows fulfillment amongst the employees within the place of work as well as outside. This is usually beneficial to the business through improved productivity amongst the employees, which is attributed to job satisfaction. The employees are able to take care of family obligations as well as those of the work place (Bratton, and Gold, 2007 pp. 121-124). In that state, it is most likely that they will be more productive than working under tight schedules that do not allow them to take any other responsibility outside the paid work. The needs of employees towards work life balance are specific to individuals. These usually depend on the age, marital status, gender and other such factors (Bach, 2005 pp. 89-93). High productivity in employees is attributed to job satisfaction. Productivity in employees results when managers ensure flexibility in their objectives and careful analysis of the workers’ needs in order to understand the areas where flexibility is highly needed. They are supposed to know which actions should be undertaken and which ones should be avoided. (Beardwell, and Claydon, 2007 pp. 76-78). Emphasizing on training, explaining processes, giving instructions on particular tasks and constant worker upgrading is fundamental to realization of the customers' requirements. Workers’ performance can be taken up and reinforced in order to instill positive thoughts in them regarding the managers as well as the customers. Managers should embark on taking into service employees who are competent in doing a particular job. They should also be willing to do it and are controllable when employed. These consequences in happy employees, whose productivity is a major contributor to customer contentment (Leopold et al 2005 pp. 65-67). This leads to high commitment. Upgrading of the skills of supervisors and managers is fundamental in ensuring the best performance in workers. This is because people’s skills time and again create the divergence involving unbeaten and unproductive supervisors. These abilities principally add to the possibility of good performance in the workers. Being careful on the way that employees are treated is an asset to the management. Treatment of workers has an effect on their job performance. Careful managers are diplomatic and present directions that avoid sounding like orders. Rather, they treat workers in a fair manner and shun preferential treatment. They pay attention to the workers’ point of view. They are always accessible for assistance and encourage proposals. Establishment of individual development goals which are in line with organizational requirements culminates in happy employees (Pilbeam and Corbridge 2006 pp.91-94). High commitment is achieved through investing in flexible work change programs that involve constructive discussions between workers and the managers. Managers request workers for their assistance while setting departmental or organizational goals. They also invite them for recommendations concerning the procedures for achieving the organizational goals. Getting workers to be part of the organizational goals is the most appropriate means of ensuring that the goals turn out to be reality (Armstrong, 2002 p. 33). The employees possibly may have an idea of the problems that they may come across in the process of achieving the organizational goals as well as ways of overcoming these problems. Promotion of new working procedures enhances flexibility which brings high commitment amongst the employees, thereby becoming smart workers with improved productivity. It also allows an organization to be capable of drawing experienced personnel in to the production system from external sources where they may be available. People may shun from joining organizations that are too rigid for them. It can be as simple as providing new working equipment for the workers or adopting new ways of working and constant improvements in the work place (Thorpe and Homan 2000 pp. 34-37). Strategic human resource management policies that promote flexible working have enabled many companies to satisfy their workers resulting in high commitment. BT which is a broad band providing firm in the United Kingdom has been successful in worker satisfaction through allowing workers flextime and also the choice of where to work. Currently, more than 100 000 of its staff work from home. This has been proved to increase the savings by more than £10 million per year. The company also saves more than £128m per year through video taped face to face meetings as well as holding conferences through the web. The company has been able to retain skilled female workers who usually quit before their time for retirement to spend time with their children (Stephen and Stephen 1998 p. 161). Richards, Layton & Finger which is a professional association in Delaware is a law firm which has been able to maintain its staff through flexible work practices. Staff and attorneys with family needs benefit from the flexibility of the firm and they are also provided with dental and general health benefits for themselves and their domestic relations (Thornton and Alex 2007 pp. 75-78). The companies have achieved a lot in terms of cost reduction. These are good examples of companies that have succeeded through the adoption of strategic human resource management. Conclusion Human resource strategies are significant in ensuring that employees are fairly treated in an organization. They are applied in developing employee reward schemes that are important in ensuring that the skilled ones are retained in the organization, and that the employee turnover is minimal. These strategies are useful in career development, which ensures that the organizational productivity is maintained. Strategic human resource management is an important supplement for the general human resource management approaches since it is usually focused on improving the productivity of employees. Organizations are continuously adopting the strategic human resource management practices approaches which are significant in improving organizational performance. This is an important development towards accomplishment of organizational goals. It is true that organizations can improve their productivity through adoption of strategic human resource management practices. Bibliography 1. 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