Strategic Human Resource Management - Coursework Example

Strategic Human Resource Management (SHRM) Human resources are people’s contribution to the organization in terms of efforts, skills, and capabilities to enable it to continue existing (Salaman, Storey & Billsberry 45). SHRM is a distinctive approach to management of people in such a way that the firm attains a competitive advantage via the development of workforce that is highly committed and skilled in carrying out their duties to fulfill the goals and objectives of the firm. From this definition human resources is concerned about bringing together the skills of employees of a firm in order to keep it alive (Armstrong 65). To move from HRM to SHRM involves management of the human capital of a firm in such a way as to attain some type of competitive advantage. The SHRM is concerned with ensuring that the workforce is committed to attaining the goals and objectives of a firm in addition to ensuring that the employees are highly trained for the job held in order to give the firm a competitive advantage To make human resource management strategic there ought to be an integration of human resource management and corporate strategy. The formulation of human resource management policy is also placed at strategic level to attain SHRM (Hernandez 13). In order to come up with SHRM the resolution of human resource problems must link HRM and strategy formulation at an early stage and the resolution of strategy implementation problems should be done by early adjustment of these strategies (Chanda, Krishna & Shen 77). In the definition of SHRM, authors agree that human resource cannot be used to resolve hiring problems at the last minute. Thus, SHRM requires that the human resources be involved from the initial planning stages in terms of the required human resources (Schuler & Jackson 16). This allows human resources to make need analysis so as the only the required human resources are hired. This also allows human resources to make any adjustments to fit new or changed strategies for the company (Mello 32). Some authors argue that for a human resource management to be strategic it must fulfill the following requirements (Salaman, Storey & Billsberry 38). First, the management ought to be active and not reactive. Second, the policies should be highly integrated. Third, the role of orchestration should be played by the senior management. Finally, the senior management should be involved in articulating the policies of the firm. Considering the above description of SHRM, we can say that the concept of SHRM is not all about hiring new employees but instead the HRM is an important part of the strategy formation of a company. The roles of the SHRM thus involve recruitment, selection, hiring, and development of employees of a firm to give the organization competitive edge in terms of labor. It is also apparent that for the concept of SHRM to be successful, the senior management ought to be involved in articulating the firm’s policies (Hernandez 26). The senior management also ought to give authority and respect required to make HR department to be a vital organ of the firm’s strategic vision (Mello 41). The senior management is required to take an active role in provision of human resource needs to ensure it attains the set strategic plans. Thus, the senior management should be ready to communicate to human resource managers in addition to listening to them. Therefore, for a HRM to become SHRM the human resource should be involved in planning for human resources instead of playing a reactive role. Thus, SHRM focuses on new set of priorities, which are more business and strategic oriented, and less concerned with traditional functions of the HRM such as staffing, appraisal, training, and compensation (Schuler & Jackson 72). The strategic priorities that SHRM is concerned with include flexible workforces, team based job designs, quality improvement practices, and incentive compensation and employee empowerment. The SHRM diagnose the strategic needs of a firm and plans for talent development that is needed for the implementation of a competitive strategy and attainment of operational goals. Authors consider SHRM as a process, an outcome, or a combination of both. As an outcome, SHRM entails HR deployment pattern that is planned and activities geared toward enabling the firm to attain its goals. It is also considered an organizational system that helps a firm to have a sustainable competitive advantage through its workforce. SHRM is seen as a process, which links HR practices to business strategy (Salaman, Storey & Billsberry 63). It is argued that SHRM is an approach that is competency based to personnel management, which puts focus on the durable, imperfectly imitable, and non-tradable resources development. As a process and an outcome, SHRM is seen a link between HR functions and strategic goals and objectives of a firm to improve the performance of the business and cultivate organizational culture which promotes innovation and flexibility. SHRM is also defined as a means through which the HR functions are seen as a strategic partner in the formulation of the strategies of a company in addition to implementation of these strategies via HR activities such as recruitment, selection, training, and rewarding of employees. Three theoretical perspectives of SHRM have been put forward by some authors. The first perspective is based on the “one best way” concept of human resource management that is aimed to improve the performance of business (Schuler & Jackson 132). The second perspective involves the need for aligning policies of employment and practices with business strategy requirements for successful business. This perspective assumes that varied business strategies require different types of HR strategies. The third perspective is resource-based view of the organization and the perceived value of human capital (Storey 54). This perspective focuses on the quality of available human resources to the firm and its ability to learn and adapt faster than the firm competitors. The Universalist approach perceives HRM as best practice. This approach is based on the premise that a high commitment model of human resource management is related to high performance of the organization in all contexts in spite the competitive strategy of the firm (Millmore et al. 88). One of the Universalist approaches is based on four HRM policies, which are expected to produce desirable organizational outcomes. They include strategic intention, commitment, flexibility, and quality. Thus, SHRM uses strategic building and human capital to attain competitive advantage instead of being supportive, focusing training, recruitment and taking care of employee benefits. Roles of strategic human resource management in an organization As discussed above, for HRM to become SHRM it ought to be part of the team, which makes strategic decisions and helps in setting the tone for the firm. In doing so, the SHRM should perform roles such as leadership role, a managerial role, and re-engineering role. Leadership role In playing leadership role, HR managers are involved in creating a vision for the firm. They should be involved in looking for leadership styles that is capable of developing the human resource endowment of the firm and to cultivate flexibility, commitment, innovation, and readiness to change. As leaders, HR managers help to steer the direction of the employees of the company toward attaining the goals and objectives of the firm (Storey 34). This may involve gearing the attitudes and culture of the firm in such a way that the employees approach their jobs and the people they serve in a better way that can increase the performance of the firm (Millmore et al. 83). By acting as leaders, HR managers are able to prevent re-engineering short falls that most often results from breakdowns in leadership. They are also in better place to bring about change in the firm. HR managers in SHRM thus work beyond the economic contract. Thus, they act as transformational leaders who empower workers. They shift their focus from away from managerial control process and innate power relations towards psychological individualization and contract of the employment relationship. Managerial role HR managers in SHRM also play a managerial role. They do this by providing employees with training and direction they need to improve their performance. Formal and informal work related learning helps HR managers to attain substantive HRM goals. These include enabling employees to be committed, flexible and to perform qualitative work for the firm to make it have a competitive advantage (Schuler & Jackson 121). This formal and informal learning strengthen the competencies of the organization and act as advantage for competitive advantage especially when the employees are capable of learning faster than the competitors of the firm (Hernandez 68). HR managers also give feedback to the work that is being done, and how employees can improve their performance. HR managers are also involved in directing employees work in a team to get tasks done efficiently (Condrey 66). Re-engineering role Normative models of HRM emphasize the need for organizational structure. For instance, the soft model involves job designing to encourage vertical and horizontal compression of tasks and at the same time encourage greater work autonomy (Storey 34). Through redesigning of work organizations, various names have emerged to describe the redesigned work organizations. They include high performing work systems, high commitment management, and business process re-engineering (Mello 43). In SHRM a flattened hierarchy, work team and decentralized decision-making is encouraged by HR managers. High commitment management involves adoption of certain practices by the HR managers that may lead to better performance of the firm (Salaman, Storey & Billsberry 61). These practices include provision of employment security, extensive training, selective hiring, information sharing, and encouraging formation of self-managed teams, reduction of status differentials by abolishing hierarchical structures, and high pay based on the performance of the firm. In high performing work systems involves close vertical fit between the HRM practices and the strategy of the company (Millmore et al. 67). This ensures that there exist coherence between the processes and policies of HR managers and the external business or market strategy. In the business process, re-engineering model a sophisticated approach is adopted by HR managers. This involves close examination of the strategy of the firm in order to determine the appropriate HR policies and practices. The HR managers are expected to communicate the full range of expectations and duties to newly recruited employees (Hernandez 78). In SHRM, the managers are expected to seek for employees who enjoy working autonomously and are ready to learn new ways of performing their duties. After recruitment, the HR managers are involved in putting in place process that motivates workers to learn and work hard. Conclusion The Strategic Human Resources management requires that the function of HRM be fully integrated with the strategy and the strategic needs of the firm. It also requires that the HR policies are coherent across policy areas and across hierarchies. Furthermore, it requires that HR practices are adjusted, accepted, and used by line managers and employees as part of their everyday work. Thus, SHRM practices are macro-oriented, proactive and long term focused in nature. It views human capital as assets or investments not expenses that can offer a firm a competitive advantage. By implementing SHRM practices, a firm is likely to improve its performance. Since SHRM focuses on the alignment of human resources with firm strategy, it helps an organization to gain competitive advantage. HR managers in firms implementing SHRM strategy go beyond being supportive, focusing training, recruitment and taking care of employee benefits and instead uses strategic building and human capital to attain competitive advantage. The HR managers in SHRM are part of the team, which makes strategic decisions and helps in setting the tone for the firm. In doing so the HR managers performs such as leadership role, a managerial role, and re-engineering role. In playing leadership role, HR managers are involved in creating a vision for the firm and developing the human resource endowment of the firm and to cultivating flexibility, commitment, innovation, and readiness to change. HR managers play a managerial role by providing employees with training and direction they need to improve their performance. HR managers play reengineering role by providing employment security, extensive training, selective hiring, information sharing, and encouraging formation of self-managed teams, reduction of status differentials by abolishing hierarchical structures, and high pay based on the performance of the firm that motivates workers to increase their output. Reference Armstrong Michael. A handbook of human resource management practice, 10th Ed. London: Kogan Page Publishers, 2006. Chanda Ashok, Krishna Sivarama & Shen Jie. Strategic Human Resource Technologies: Keys to Managing People. New York: SAGE, 2007. Condrey Stephen. Handbook of human resource management in government, 3rd Ed. New York: John Wiley and Sons, 2010. Hernandez Robert. Strategic human resources management in health services organizations, 3rd Ed. London: Cengage Learning, 2009. Mello Jeffrey. Strategic human resource management, 3rd Ed. New York: Cengage Learning, 2010. Millmore Mike, Saunders Mark, Lewis Philip, Thornhill Adrian, & Morrow Trevor. Strategic human resource management: contemporary issues. New York: Financial Times Prentice Hall, 2007. Salaman Graeme, Storey John & Billsberry Jon. Strategic human resource management: theory and practice, 2nd Ed. New York: SAGE, 2005. Schuler Randall & Jackson Susan. Strategic human resource management, 2nd Ed. New York: Wiley-Blackwell, 2007. Storey John. The Routledge companion to strategic human resource management. London: Taylor & Francis, 2008. Read More