Benefits of Strategic Human Resource Management - Essay Example

What HR activity would you expect to be present in an organisation for the activity to be termed ‘strategic HRM’? Introduction: Human Resource Management is an administrative process. It deals with the various aspects of business such as hiring, firing, developing employees, benefits, pay and administration. HRM is highly valuable in the organizational structure. In the modern situation, the Human Resource Management is upgraded, that is it is Strategic Human Resource Management (SHRM). The Strategic Human Resource Management deals with the HRM functions, and meeting the needs of the workers on employees, for achieving the organizational goals. In the current organizational situation, the human resource activity expects more. The most important goal of SHRM is to acquire and maintain human assets in the form of workforce, to fulfill the goal of organization. This study focuses on the current human resource activity, performing a strategic role in the organization. The functions of management and staffing are important in every organization. SHRM is a part of Staffing. It represents recruitment and selection of employees, training and development of employees, performance evaluation, employee’s motivation etc. Strategic Human Resource Management is the management of employees. It needs thinking, planning to meet better requirement of employees from the organization. This study relates to the HR activity of recruitment and selection of employees, for explaining some cases of strategic decision while recruiting employees in the organization. This study analyzes the new role of strategic contribution of HRM, and the performance of the business. These topics are included and analyzed, as they form the main part of the study. Analyzing of SHRM: Strategy, in the business world, mostly denotes how the top management of and organization leads the organisation in a particular way, to accomplish its objectives, specific goals, vision, and its overall function in the society in a given atmosphere. The importance of strategy lies in facilitating an organisation to realize competitive benefits with its distinctive capabilities, by focusing on the current trends in the organisation, and the future trends as well. Strategic Human Resources Management: “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” (Sinha 2007). In an organization, SHRM means involving and accepting the HR activities as a strategic creation, and implementation of the organization’s strategies through human resource activities such as recruitment, selection, training, and development of personnel. The activities of SHRM systematically connect people with the organisation, particularly in the combination of corporate strategies and HRM strategies. HR strategies are basically programmes and plans that deal with and solve essential strategic issues associated to the human capital in an organisation it is supposed that combination between business strategy and HRM, contribute to the successful management of human capital, to improve the performance of the organisation. The primary motive of SHRM is to increase the productivity of employees by focusing on the obstacles of business. The important role of SHR manager is to analyze the key area of human resources; which strategies are used for implementing for the future, and to improve employee’s motivation and productivity. The Strategic Human Resources Management covers the staffing functions of the organization. In this case following the strategic management of Dell Company. There are some human activities like recruitment and selection of employees, training and development, performance evaluation etc., for using the strategic plan. “Accordingly, with the advent of technological innovations in career management, researches provide that Dell Inc. utilizes the traditional interview process in selection and recruitment of potential employees. With some considerations brought about by the current trends in business, the selection interview process of Dell Inc. still include the standardized way. Since Dell Inc. management gives particular importance on their employees and labor itself, there is a need to measure the reliability and validity of the selection interview of potential job applicants” (Dell Recruitment and Selection 2008). Recruitment and Selection: In this case Dell Company is using the strategic human resource management in the process of HR activity like Recruitment and selection. To achieve quality, organizations must begin with outstanding people. It is easy and extra cost-effective to advance excellence during better collection than through any other method. The procedure of figuring absent in advance what kind of employees and skill will be required for the future is one of the important strategic steps in an organization is able to take to effectively employ management executives, and it must really take place the prior to the requirement for recruitment of any particular place. Selection is the process of choosing the right candidate at the right time at the right place. Selection is the associate of recruitment in strategic HR planning. It is a crucial process for the company because good quality selection decisions make sure the organization of their economic investments in their workforce. Training and Development: As SHRM helps in identifying and analyzing the business environment threats and opportunities, it helps to build a clear strategy in order to compete with those external factors by developing and maintaining highly competent workforce. Proper training and development helps the organization in ensuring high productivity. Training and development steps of a company include: 1. Establishment of Training and Development Policy of the Company (Training and Development Plan’s Sample, Mission statement, Aims and Objectives) 2. Training and Development Needs Identification 3. Training and Development Plan Development 4. Training Methods Selection 5. Training and Development Implementation 6. Training and Development Process Evaluation Company can go ahead of the competition, by investing in the personnel development. When the workforce become more efficient and effective in their jobs, managing them by the top authority will become an easier task. This will also help them to adapt with the assigned jobs as they get matured within the company. This needs a high level of co-ordination among training and development and other staffing functions like recruitment and selection, employee incentive system and performance appraisal. While taking the example of Dell Computer’s, company established Dell learning to meet their needs in relation to human resources. Dell Learning’s objective is to bring Learning in accordance with the company objectives and to make it directly and openly available. The other objectives are to create clarity about the competencies necessary to maintain Dell’s hyper growth. So, the company has to set aside more than half portion of its training program to aim new employees, job skills and products. Dell has established a corporate team (centralized) for the purpose of training and development. Training Managers were authorized to develop educational plan based on business, to hold responsibility for executing the plan by business leaders, to ensure the sufficiency of the resources for plan execution and to report on the impact of the plan. One team has to produce learning tools for training, regarding Dell’s products and services sales. Another team manages training rooms, registration, scheduling etc. third group oversee the project development and team constitutes highly qualified and experienced professionals. Training has three different parts, like Regional (Non-HR) Training, Regional (HR) Training and Corporate Training held by senior management team. Training and development process of Dell is associated with SHRM, as the training program designed by the company is based on business strategies and goals. Performance Appraisal: Performance Appraisal is an ongoing process in every organization. It is essential to understand each and every employee’s capability and competencies and relative worthiness for the organization. Performance Appraisal helps to rate an employee in accordance with their performance. Dell has adopted a better performance management system. It always connects with the individual goal with the performance of the organization. The system helps the company to make out the upcoming generation of Dell leaders and lift up the performance of all Dell work forces. The performance management process needs an annual formal review, promotion and allotment of performance rewards. Every year managers will provide a continuous feedback, training and on- the job development to employees. Performance Appraisal will be conducted throughout the year. The Dell Company follows 360 degree performance appraisal. That means an employee’s performance will be evaluated by many other people like subordinates, colleagues, suppliers, customers etc. This will help them in establishing a more authenticating relationship between employer and employees. The 360 degree performance appraisal system involves talking to every person working with an employee and the information flow is in two ways. Dell management always communicates with their employees and will explain about the process going on, company’s strategy, company’s market position, its future plans and the steps required to take to achieve the objectives. Company successes will be celebrated with their workforce and through e-mail communications teams will be appreciated for their special achievements. The effective performance management system adapted by the Dell helped them in gaining more market share and in building brand loyalty, which are more important in succeeding in today’s competitive world market. Dell use performance appraisal in order to specify the strength as well as the weakness of and individual staff so that personnel development plan can be formulated for each and every person in the organization. This will improve the competitiveness of the workforce of the company, which helped them a lot in distinct them that of competitor’s. This is the reason for the success of Dell Computers over years. The workforce is able to meet their individual objectives through the proper performance management system and thus the organization objectives also. Reference List Dell Recruitment and Selection. 2008. Thinking Made Easy: Business, Marketing, Management. [Online] Available at [Accessed on 28 March 2012] Sinha, R 2007. What is Strategic Human Resource Management? 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