Strategic Human Resource Management - Research Proposal Example

Research Proposal on Strategic Human Resource Management Name Date of Submission Abstract In this research, there is an attempt to establish the effectiveness and desirability of Strategic Human Resource Management (SHRM) and in the process establish any relationship existing between SHRM and the competitive edge of any business organization. This research will also show the deliberate emergence of this favorable new system from the traditional approach of Personnel Management and the differences between the old and the new. The research will delve into what has been done in SHRM and then formulate a plan to collect and analyze data for the purpose of establishing the suitability of SHRM over traditional HRM in businesses. Table of Contents Introduction 4 Background 4 Aims, Objectives and Research Questions 5 Aim 5 Objectives 5 Research Questions and the Hypothesis 5 Literature Review 6 Differences between SHRM and the traditional HR 8 Differences in scope 8 Difference of Approach 8 Differences in Nature 8 Difference of Application 8 Research Methodology 9 Data Collection 9 Sampling 9 Sample Size 9 Data Analysis 9 Time Frame 10 References 10 Introduction Background Strategic Human Resource Management has been defined as the linkage of human resources with the set objectives and strategic goals in a bid to develop the organizational culture and boost business performance, so as to foster flexibility, innovation and a competitive edge. For any organization, SHRM should be viewed as an important Human Resource (HR) function and accepted as a vital strategic partner of the business in question. It is also vital for the formation and subsequent implementation of all business strategies through activities such as Recruitment, Selection, Work Training and Performance Appraisals (Armstrong, 2006, p.12). Today, management in Human Resource is not just an activity of administration. The HR manger in any organization has additional responsibilities than in the past (Wrightt, 1998, p.339). The HR department has since become a very strategic partner that determines the competitiveness of a company in a globalized arena. Globalization has caused mixed demographics in the workplace, rapid changes in the business arena, technological advances and emerging business concerns, thus demanding that HRM is smartly handled (Devana, Tichy & Fombrumm, 1981, p.52). For any organization to succeed in achieving a competitive edge in a globalized market, the HR faculty is required to not only look at the transactional activities and administrative aspects, but also to come up with business strategies that synchronize with the set goals. If this is undone, the organization will soon loose relevance. Considerable financial gain has been recorded in organizations that aligned HRM systems with the set Organizational goals (Huselid & Becker, 1997,p.143). Excellence and performance are reached in companies where Human Resource practices are well aligned to the set business strategies (Golden, 1985, p.432). Aims, Objectives and Research Questions Aim In conducting the research, we will seek to understand the resulting competitive edge of an organization upon implementing SHRM and how this system is positively different and better in managing Human Resource which was traditionally referred to as Personnel Management. Objectives 1. To explain and explore how traditional Human Resource Management is mainly biased towards transactional activities 2. To analyze the better and proactive approach shown in Strategic HRM 3. To explore the importance and benefits of Strategic Human Resource Management over traditional Human Resource Management. Research Questions and the Hypothesis 1. Is traditional HRM biased towards transactional activities? 2. What is a proactive approach in strategic HRM? 3. Is there any relationship between SHRM and the competitive edge of an organization? Answer: yes. There are significant relationships between SHRM and the competitive edge of a business organization 4. Is there any relationship between the traditional HRM and SHRM? Answer: yes. A very significant relationship exists between traditional HRM and SHRM. 5. IS there any relationship between the implementation of SHRM in a company and the recorded financial gain? Answer: yes. Financial uplift in a business organization can be partly attributed to SHRM. Literature Review SHRM is a broadened approach to the more traditional HRM since, in the case of SHRM, the HR works to link up its activities with the broader business strategic goals of an organization. (Armstrong,2006, p.74). In this new approach, the HR department has performance appraisal systems through which the performance and competencies of individual employees are evaluated and whether the performance results in the achievement of strategic goals in line with the business’ plans. Before SHRM, the HR-then Personnel Management-used to only identify competencies for the job at hand, as determined by requirements of the organization. In the new system, the performance appraisal is backed up by good reward plans, whereby rewards are given to employees of outstanding performance. This works as a strong motivation strategy in retaining the most competent employees and earning their goodwill and loyalty. As such, any forward thinking company should have a good reward plan to help motivate their employees and improve the company’s overall culture (Devana, 1981). There are many internal and external factors which influence strategy formulation in a company. They include Political, Economical, Social and Technological factors, commonly referred to as PEST (Formbrun, 1984, p101). A good company should therefore have communication support systems to enable it get relevant information on changes in the said factors. The smooth functioning of organizations is influenced by changing workforce demographics, economic growth, growth of substitute markets, political changes among other factors. All these factors strongly influence business and the HR should be aligned to possible changes (Golden, 1985, p.451). It is imperative that the HR, in the long run, develops long-term strategies in accordance to the business goals. In order to do this, the HR should make rationalized decisions on job recruitments, training, career development and designing of reward systems. (Golden, 1985,p.437). Strategy formulation usually requires that the HR take a closer look on important factors such as the prevalent culture, leadership style of the CEO and other important conditions of business. Factors such as organizational history, vision, mission, technological investment, financial investment, laws, rules and unions will determine culture and the leadership style (Golden, 1985). To attain the coveted competitive edge through the HR, the HR should add to its competencies in a bid to become more than just an administrator of personnel. Apart from the usual roles of handling payrolls, grievance handling, recruitment and processing of medical and insurance claims, the HR should demonstrate other competencies such as: having good knowledge of business activities, measuring its contribution to business growth and understanding strategic issues (Huselid & Becker, 1999, p.175). Some of the obstacles shown to hinder a proactive HR role include: The inability of the HR to professionally study the involved market. A prevalent risk aversive trend of most HR professionals. Demonstrated low confidence when it comes to implementing innovative approaches. Another key obstacle to a proactive HR is the likely lack or weak support from management who think that the HR has no role whatsoever in strategic business planning (Devanna et al., 1981,p.69). Differences between SHRM and the traditional HR Differences in scope Traditional HR was expected to play only a reactive role in supporting managers to achieve set goals. The HR was only involved in transactional roles such as recruitment, manpower planning and employee evaluation. SHRM has broader roles which include providing guidance and leadership, increasing transparency and strategic planning among others. Difference of Approach Traditional HR placed too much importance on procedures, policies and established rules. SHRM on the other hand has shifted efforts from policy and rules to the fulfillment of set goals by using creative means (Huselid, 1997, p.183). Differences in Nature Traditional HR was reactive, had no interest in the function of business and had little interaction with other departments. SHRM is proactive, has good integration with company strategies and interacts elaborately with other departments (Hendry ,1990,p.40). Difference of Application Traditional HR was focused on its particular administrative roles with no knowledge of core business functionalities. SHRM is integrated to all business strategies, participates in their formulation and has knowledge of market tends and other business factors (Hendry, 1990,p.43). Research Methodology In this case, quantitative methods are suitable since they are good at collecting in-depth information and help in the comparison of various aspects over any periods of time. Questionnaires should be designed and presented to Managers and CEOs of chosen organizations for collecting relevant data. The data will be instrumental in determining how effective SHRM is and how it brings about a competitive edge. Data Collection Sampling Care must be taken in selecting the sample since wrong choices will lead to incorrect research results. The sample will have inputs from different industries, with a preference to medium sized organizations with a good HR department. Simple and random sampling will be used where respondents will be from organizations of 500 plus employees given that SHRM is in practice. Sample Size At least 15 organizations, employee strength of 500- plus employees and should span at least 4 different industries. A heterogeneous population will justify the favorability of SHRM against traditional HRM. Data Analysis Upon collection of the data through interviews, the data should then be analyzed to arrive at a conclusion on the effectiveness of SHRM over traditional HRM. The contribution of SHRM to creating a competitive edge should be outlined. Statistical tools such as linear or multiple regressions shall be used to come up with a relationship between SHRM and a company’s competitive advantage. Time Frame Activity Number of Days Selecting the sample 14 days Selecting the sample size 8 days Preparation of questionnaires 12 days Meeting/ Calling Managers 27 days Analyzing the data 14 days Storing the data 7 days Preparation of final report 11 days Total 93 days References Armstrong, Michael, 10th ed., 2006. A Handbook of Human Resource Management Practice, , London: Kogan Page Ltd. Brockbank, W. 1999. If HR were really strategically proactive: present and future directions in HR’s contribution to competitive advantage. Human Resource Management, 39 (5): 335-357 Devanna, M.A., 1981. Human resource management: A strategic perspective. Organizational Dynamics, 10 (4): 51-69. Devanna, M.A., Fombrun, C. & Tichy, N. 1981. Human resource management: A Strategic Perspective. Organizational Dynamics, 8 (4): 50-69 Fombrun, C.J. 1984. The external context of human resource management. In C.J. Fomburn, N.M. Tichy, & M.A. Devanna, (Eds.), Strategic Human Resource Management: 4-29. New York: John Wiley and Sons. Golden, K.A. & Ramanujam, V. 1985. Between a dream and a nightmare: on the integration of the human resource management and strategic business planning process, Human Resource Management, 25 (5): 428-455. Hendry, C. & Pettigrew, A. 1990. Human resource management: An agenda for the 1990’s. International Journal of Human Resource Management, 1 (1): 18-44. Huselid, M.A. & Becker, B.E. 1997. The impact of high performance work systems, implementation effectiveness, and alignment with strategy on shareholder wealth. Academy of Management Proceedings, 140-187. Read More