Understanding the Strategic Human Resource Management Field - Assignment Example

Strategic Human Resource Management Strategic human resource management basically entails management of people in a hands-on manner. Strategic human resource, if applied well, enables employers to meet and employee’s needs and the employees boost the company by also meeting its needs. Therefore, strategic human resource management bears results that are two ways; meeting employees’ needs and fulfilling the company’s aims and objectives. In other words, strategic human resource management brings an alignment between the human resource of a company and its goals. Most people have the mentality that management of employees or human resource is the most difficult task, but nothing can be further from the truth; managing human resource is very easy and enjoyable, as long as the managers get to acquire the right knowledge and skills that will enable them to understand their workforce better (Analoui 2007). What are generic approaches to strategy? Why does knowledge of different generic approaches to strategy matter? What implications does this have for our understanding of the SHRM field? The determinant of the direction to which a company is headed and the ease with which competitive advantage can be achieved in the company is known as business strategy. Generic strategies in business can be traced all the way back to the late 1970’s, and these strategies have evolved since then. Generic strategies have three aspects which, if correctly implemented, can enable the enterprise to have competitive advantage. The three aspects or generic strategies include cost leadership, differentiation and focus (Pynes 2008). In cost leadership, the company aims at being the producer of the lowest cost. Everything the company does, be it obtaining premises, recruiting, training, et cetera; it does with the aim of lowering costs of production as much as possible. However, the products are not sold in the market at a low price because of the low cost of production; the company takes advantage and gets the largest profit margin above that of the other competing products in the market (Deb 2006). In differentiation, the company differentiates its goods or services through out different markets and groups. Therefore, each group is targeted differently, and the company maximizes on each group individually. One good example of differentiation of services is in the airline companies. The strategy of focus is mainly used by organizations that are small, those organizations that cannot afford to either maximize on cost leadership or differentiation. Therefore, the organization focuses on a specific niche market and applies either cost focus or differentiation focus on the niche market, so that competitive advantage will be attained specifically for this niche. This explains why focus is referred to as the niche strategy (Whittington 2001). It is important to have knowledge of different generic approaches to strategy because each of these generic strategies leads to the same thing; competitive advantage, but each strategy uses a different route to get you there. Therefore, it is important to have knowledge in these different strategies so that the correct choice and combination will be implemented. Strategic human resource managers need to also have deep knowledge about these generic strategies so that they will direct their efforts correctly towards hiring, training and compensation issues (Storey 2001). What are the theoretical and practical limitations of the "fit’ models of SHRM? What implications does this have for our understanding of the SHRM field? In strategic human resource management, there are two major types of fit; horizontal and vertical fit. Horizontal fit represents the compatibility among the practices in SHRM like human resource, policy, strategy et cetera. On the other hand, vertical fit represents the systematic arrangement and accuracy in alignment of business strategy, human resource strategy and human resource practices. These two models of fit in SHRM have been used for quite a long time. However, studies have shown that these two fit models have their share of limitations (Legge 2005). The horizontal fit is limited in that it can only be effective if the human resource management of an enterprise puts deliberate emphasis on balancing the practices in human resource. Another limitation is that the horizontal fit can only be effective if the organization implementing it is one that has a variety of options of practices in human resource at its disposal. Otherwise, an organization that has few options is disadvantaged. The horizontal fit is also limited in that the HR practices being balanced have to be heavily invested in, and this automatically translates into a more strenuous budget (Analoui 2007). The vertical fit also have its limitations the first one being the fact that it only works effectively with specific types of strategies. Therefore, not every generic strategy can be used with vertical fit. Another limitation is that the values and culture of an enterprise affect it. The values and culture of an enterprise are the greatest determinants of the types of human resource practices in the enterprise. Therefore, the types of human resource practices influenced by values and culture may prove to be incompatible with the generic strategies, making it impossible for vertical fit to work (Analoui 2007). This knowledge is important in SHRM because the managers who have this knowledge will be deliberate in balancing the HR practices. Also, they will be able to carefully choose the right generic strategies and business strategies that will work with the right fit model. Knowledgeable human resource managers and other managers of an organization will also be careful on the values and culture that they allow to grow in the organization, so that the right HR practices will be done, hence making it easier for strategies and the practices to align for better competitive advantage (Deb 2005). What are the theoretical and practical limitations of the best practice and resource based models of SHRM? What implications does this have for our understanding of the shrm field? The best practice model is aimed at obtaining the best performance of an enterprise by implementing practices that are the “best.” In SHRM, practices that are considered best entail giving the human resource/employees the first place in order for profits to be realized. Such practices include training, encouraging independent teams within the organization, creating a sense of job security for the employees, increment of compensation when high performance is achieved, selective hiring and integration of “status” positions to reduce gaps. However, the model of best practice is limited because most of these individual practices are applied in conjunction with each other, making it impossible to be certain about the practice that is most effective. This causes extremely high commitment for the management (Storey 2001). The resource based model works by having main focus on the resources an enterprise has. Focus is also placed on the contribution these resources make in enabling the enterprise to have sustainable competitive advantage over others. The limitation with this model is that it only works best when the internal resources of the enterprise are very unique and difficult to mimic. This is almost and impossible thing to accomplish and the human resource management go through a hard time trying to attain this (Deb 2005). Which structural form, if any, is most suitable for an SHRM approach? It is difficult to conclude on the specific structural form of strategy to apply in SHRM. There is no strategy that can be independently applied for success to be attained, and it is therefore important for SHRM managers and personnel to have full knowledge of the different practices and strategies so that they can be selective on the combination they should make. When an overall plan is made on the best mix of practices and strategies, it should be then ensured that all employees and managers are made aware of the overall strategy of the enterprise, so that there will be free communication between and among the parties involved (Legge 2005). The best practice approach, which is commonly regarded as the universal approach, should be implemented because of its universal compatibility in any setting. However, it should only be used as part of a long term plan, not a short term one. This should be implemented hand in hand with the contingency strategy, which is based on different scenarios. Therefore, the universal strategy can be adopted as a whole by the organization but applied in different measures according to the different divisions and situations within the organization. Also, for more competitive advantage and for ease of the organization’s compatibility to most approaches, values, culture, the HR practices and business strategies should be carefully selected (Deb 2006). Can culture be managed? What implications do the different positions have for hr specialists? According to Hofstede as quoted by Analoui, culture is “the software of the mind” (Analoui 2007). Culture is basically comprised of inventions and developments by groups over time as they look for ways of dealing with and adapting to different situations. Culture cannot be changed, but it can be managed. In SHRM, it is of importance to know how to manage both the culture of the organization and the different cultures of the human resource in the organization. Culture management is necessary for attainment of sustainable competitive advantage by an organization, and it is therefore important in SHRM to have the knowledge of how to manage culture within an organization (Analoui 2007). Culture management cannot be done without first knowing what the organization’s culture is if truth be told. This needs to be done in openness and without prejudice or bias. When the culture is identified, the second step is determination of what should be practiced instead if the organization’s vision is to be realized. After this, a solid plan needs to be drawn that will enable the organization to change from its present cultural status to the cultural status it ought to have (Armstrong 2000). Leaders of an organization need to know that it is their first responsibility to manage the culture of their organizations and the human resource. However, care should be taken not to try changing cultural practices on short term basis, as this may cause a meltdown in the HR of the organization. Since culture takes time to build up, it also takes time to slowly let go of it and to adapt changes in the same (Deb 2006). To what extent and why is a knowledge economy possible in the UK context? UK has been one of the countries affected by the economic recession, and it is in the process of recovering its economy. As this happens, the eyes of the world are on UK to see what its economy will be like after it recovers itself from the effects of the global economic recession. It has been predicted that more than half of the gross domestic product from UK will be as a direct result of having a knowledge economy. This means that UK will have to heavily invest in ensuring that its local workforce is mainly comprised of skilled laborers as opposed to the huge percentage of unskilled ones (Whittington 2001). The UK government will also have to put major focus on acquiring assets that are intangible to match with the many tangible assets the country already has. Intangible assets include assets like development of new and up to date software applications and investment in research and development. This means that the government will put a very huge percentage of its investment in developing its IT industry (Storey 2009). This means that action needs to be taken in encouraging O-level students to take courses related to IT, because of the fact that UK needs close to 200,000 fresh human resources into its IT industry on a yearly basis until full recovery is attained. This is possible to attain, especially because the GCSE system has been revised, and studies in computing have been introduced at this level (Storey 2001). What would authors from a critical management studies perspective see as the function of performance management? Performance management is a strategy implemented in organizations, in which constant and consistent evaluations are done on performance. Also, performance management entails implementation of activities and practices that are aimed at improving performance and attaining the company’s goals. Performance management is not only done by managers and employers, but employees also help in doing it. They do this by raising concerns when they identify an area that needs improvement or change. Therefore, managers in SHRM should work hand in hand with employees to attain the best performance management mix (Deb 2009). The main function of performance management is improvement in productivity. The best way in which productivity can be measured is by comparing the input and the output. Output should always be greater than input for the performance to be good. Performance management should also help the human resource to grow. Therefore, any notable improvement in performance noted after doing a performance appraisal should be rewarded so that employees will be encouraged. Performance management is also used to help manage time, in that the management identifies which groups or individuals are best at doing a certain job, and it then delegates the duties according to the individual’s or group’s performance in that job (Deb 2009). Strategic human resource management has so much importance that it cannot be ignored or done away with, especially in the current status of the global market which is full of competition. Every enterprise, big or small, needs strategic human resource management in order for it to gain sustainable competitive advantage so that it will stand the competition in the market. Managing human resources has today become a very crucial thing, and an enterprise cannot afford risking poor human resource management. SHRM also helps in identifying areas in which customers lack satisfaction, and it also works as an eye opener that enables organizations to be aware of the strategies employed by their competitors. References Analoui, F. 2007. Strategic Human Resource Management. London: Thomson Learning. Armstrong, M. 2000. Strategic Human Resource Management: a guide to action. California: Kogan Page Publishers. Deb, T. 2005. A Conceptual Approach to Strategic Talent Management. New Delhi: Indus Publishers. Deb, T. 2009. Performance Appraisal and Management. New Delhi: Excel Books. Deb, T. 2006. Strategic Approach to Human Resource Management. New Delhi: Atlantic Publishers & Dist. Legge, K. 2005. Human Resource Management: Rhetorics and Realities. Basingstoke: Palgrave Macmillan. Pynes, J. 2008. Human Resources Management for Public and Non-Profit Organizations: a strategic approach. New Jersey: John Wiley and Sons. Storey, J. 2001. Human Resource Management: A Critical Text, 2nd Ed. London: Thomson Learning. Storey, J. 2009. The Routledge companion to strategic human resource management. London: Routledge. Whittington, R. 2001. What is Strategy – and does it Matter? London: Thomson Learning. Read More