Strategic Human Resource Management in Enhancing Organizational Competitive Position - Essay Example

Strategic Human Resource Management Student’s Name: Instructor’s Name Corse Code and Name: University: Date of Submission: Strategic Human Resource Management Human resource of an organization consists of one of key drivers that determine how successful an organization can be in its operations. Human resources, who comprise of employees in an organization, are unique in that their performance is influenced by their biological nature. Their emotions, attitude and tiredness nature, affect the level of their service delivery in an organization. Human resource management is, therefore, essential in enhancing their performance, as well as retaining them in the organization, where necessary (Taylor, Beechler & Napier 1996, pp. 959-985). This literature provides a detailed discussion of the significance of strategic human resource management and its key aspects. Strategic performance is one of key drivers of successful performance of a business organization. It is significant, particularly as a result of changing organizational environment, as well as newly established companies. Effective staffing is associated with development of the organization and employees concerned. Strategic human resource management is, therefore, a two way oriented process (Michael 2008). Expenditure on employees in terms of compensation and maintenance, costs more than forty percent of the by budget expenditure in many organization. It is, therefore, expected that the company should receive attractive returns from the employees. To achieve this, human resource management should strategize on ways to best utilize the human resources, so as to add value to their organization. This should be guided by the human resource management policies and labor laws, to avoid exploitation in the name of making profits. Another significance of human resource management is maintenance of quality of goods and services produced by a company. As demand for goods and services increases, it calls for an organization to expand their capacity with the aim of increasing their output. Human resource is a variable input in production, and hence it increases as the output is increased, unless there used to be an overstaffed situation. Through strategic human resource management, an organization evaluates the current employees to establish their ability to maintain the required quality of goods and services (Jeff 1996, pp .831-851). From this point, the company may establish specification of the people they want to deploy to assist the current employees in maintaining the required quality, along with quality of goods produced. Strategic human resource management is significant in increasing productivity of an organization. This process evaluates the output per individual employee, and comes up with strategies of enhancing their productivity. This is achieved through the provision of required skills and knowledge, particularly through training and development programs (Hambrick & Fredrickson 2001, pp. 51-62). It also enhances a friendly environment for employees to boost their performance and efficiency. In addition, strategic human resource management facilitates allocation of resources to employees at their work stations, so as to boost their performance and efficiency. Organizational culture is one of the key factors influencing organizational performance and corporate relations. Organization culture consists of common believes and conducts adopted by people in an organization, with the aim of distinguishing an organization from others. Developing an organizational culture takes time, and requires proper planning to ensure that the culture developed is in line with a company’s mission, vision, and objectives (Barney & Wright 1998, pp. 31-46). Strategic human resource management assists in coming up with a guiding principles to employees in defining their expected behavior as they relate in an organization. Strategic human resource management is critical in enhancing organizational competitive position. With its value added determination strategy, employees strive to be identified with the value realized by an organization. It also assists in determining employees who are redundant, or whose value to the organization is not significant. Such individuals are assisted through training and development to improve their performance in order to add value to the organization. As a result of this strategy, the overall performance of an organization improves, and hence the organization gains competitive advantage over its competitors. Strategic human resource management is essential in enhancing order in an organization, and development of organization structure. Human resource management assists in defining tasks in an organization, specification of employees to perform them, decision making structure, as well as reporting system in an organization (Lado & Wilson 1994, pp. 699-727). In this case, people in an organization are aware of their duties and responsibilities, and to what limit they should act. This reduces the chance of conflict between employees as a result of closing ways in their activities. It is through these guidelines that an organization structure is formulated. Communication and flow of power in such an organization takes place smoothly. There are various key aspects of strategic human resource management including manpower planning, recruitment, performance management, training and development. Strategic human resource management assists in establishing manpower requirement in the future, with the aim of meeting an organizational expansion or performance improvement (Boudreau 1995, pp. 73-84). In this case, the organization plans on how many employees are required and their qualification. On the other hand, it establishes the timing regarding when they are required to drive the intended changes. There are two components of manpower planning including succession planning and turnover. In succession planning, an organization identifies the key posts which are likely to be left vacant, and start on a process to identify an appropriate candidate and embark on training them to fill the post when the current holder leaves. Turnover in an organization takes place as a result of retirement, resignation, and redundancy. Retirement turnover occurs when an individual or a group reaches their old age, and hence they are given an opportunity to lest after a long time service. Human resource management can plan for replacement in case of retirement. It is easy to tell who is to retire, when, and which post they hold. On the other hand, planning for redundancy turnover can be partially planned, particularly when it is influenced by internal factors (Graeme, Storey & Billsberry 2005). For example, when an organization has planned to change its operation and restructure some posts that are redundant. Human resource management can, therefore, predict when the posts will be redundant, and when those affected will leave the organization. However, external factors such as economic factors and changes in labor policies, may lead to uncontrollable employee turnover. Strategic human resource management may not plan for turnover as a result of resignation. However, the management should formulate a way to reduce chances of instant resignation, which may indicate poor employee relation with the organization (Schuster 1998). Recruitment is another key aspect of strategic human resource management. It is a long process, and starts with determination of the need for additional manpower in an organization. The human resource management receives requests from other departments concerning the need for additional human resource (Shelby 1991, pp. 187-212). From this point, the human resource department along with assistance from the concerned department establishes the rank and grade of the individual or a group required. From this point, the human resource department decides on terms of appointment, selection process, and probation. The terms of appointment put into consideration include the qualities required, as well as time frame for the engagement. Some common terms of engagement based on time include permanent, agreement, part time, and consultancy. The selection process involves several steps including advertising, selection, and placement. After placement, the successful employee is put under probation to establish how practical they can be to fit the intended post and serve according to expectation (Arthur 1992, pp. 670-687). Performance management is another essential strategic human resource aspect whose objective is to improve employee productivity in the long term bases. This aspect entails how to effectively enhance the effectiveness through a process, leading to the realization of individual potential. The key aspects of performance management include motivation, and performance appraisal. Motivation is a complex process, which involves influencing individuals to devote their efforts and energy towards achieving organizational objectives (Price 2007). Strategic human resource management assists in developing motivational programs. Some of motivational agents include fair compensation, favorable working conditions, and fair employment relation. Performance appraisal is a process through which actual performance of an individual is a measured against the predetermined objectives. Deviations between the two are investigated to establish the reasons behind it, and means of avoid their occurrence in the future are formulated. Excellent performers are rewarded, while underperforming ones are assisted on how to improve it in the future. Performance appraisal is a continuous process with a specified period. Feedback is an essential concept in this process; devoid of the feedback, individuals subjected to the appraisal have nothing to do with it. They are not aware of when they performance according to expectation or not, and hence it does not have any value to them. Training and development constitutes of crucial aspects of strategic human resource management. The two aspects’ main objective is to improve employees’ performance through the acquisition of knowledge skills, ability, and attitude. Human resource management formulates training and development programs in line of organizations goal and objectives (Michael 1995). When an individual or a group is in deficiency of skills and knowledge to enhance achievement of these goals and objectives, they are subjected to these programs. Training takes place during the induction process, management development, vocations, in-service, and at work, as tasks are executed. The training process should be carried out in a collaboration between the employee in question and the management. On the other hand, development constitutes the identification of potential in an employee, and assists in its realization. List of References Arthur, JB 1992, “Affects of human resource systems on manufacturing performance and turnover,” Academy of Management Journal, Vol. 37, No. 3, pp. 670-687. Barney, J & Wright, PM 1998, “On becoming a strategic partner: The role of human resources in gaining competitive advantage,” Human Resource Management, spring, Vol. 37, No. 1, pp. 31-46. Boudreau, JW, 1995, “The Motivational Impact of Utility Analysis and HR Measurement,” Journal of Human Resource Costing and Accounting, Vol. 1, No. 2, pp. 73-84. Graeme, S, Storey, J & Billsberry, J 2005, Strategic human resource management: theory and practice, Sage, California. Hambrick, DC & Fredrickson, JW 2001, “Are you sure you have a strategy?” The Academy of Management Executive, Vol. 15, No. 4, pp. 51-62. Heathfield, SM 2007, Human Resources. Viewed 26 Jul 2007 . Lado, AA & Wilson, MC 1994, “Human resource systems and sustained competitive Advantage: A competency-based perspective,” Academy of Management Review, Vol. 19, No. 4, pp. 699-727. Jeff, W J 1996, “Linking employee perceptions of service climate to customer Satisfaction,” Personnel Psychology, Vol. 49, No. 4, pp. 831-851. Michael, A 2008, Strategic Human Resource Management: A Guide to Action, Kogan Page Publishers, London. Michael, CC, 1995, Human Resource Management, Civil Servant Branch Viewed March 26, 2012. . Price, A 2007, "Employee Involvement, Employee-Centred Management and Empowerment." Adapted from Price, A 2007, Human Resource Management in a Business Context, 3rd edition, Thomson Learning, UK. Viewed 26 July 2007 . Shelby, AN 1991, “Applying the strategic choice model to motivational appeals: A theoretical Approach,” The Journal of Business Communication, Vol. 28, No. 3, pp. 187-212. Schuster, FE 1998, Employee-Centered Management: A Strategy for High Commitment and Involvement, Quorum Books, Westport. Taylor, S, Beechler, S & Napier, N 1996, “Toward an integrative model of strategic international human resource management.” Academy of Management Review, Vol. 21, No. 4, pp. 959-985. Read More