Human resource management - Essay Example

? Impacts of Transforming the Human Resource management Strategic human resource management is representative of a new transformation in human resource management field. The management is a shift from transactional and tactical duties in the traditional human resource management. This transformation has had major impacts in organizational management. The concept of SHRM has evolved as a bridge between the management of organizational human resource and business strategies. The major impact has been seen through the alignment of the human resources to the performance of the firm to give it a competitive advantage. Modern organizations are increasingly becoming sensitive to productive human resource practices and policies. Strategic human resource management leads to increased productivity and better financial performance. One of the major impacts of strategic management of human resources is the sustained competitive advantage through increased form specific competencies. Strategic human resource management has led to mobilization of new competencies. It has also led to destruction of attributed that cause vulnerability and competitive disadvantage (Gilley & Gilley, 2000). The new strategy places emphasis on people as being the actual resource and critical differentiators in the building of business enterprise. The strategy has led to increased human application resulting to better generation of values. Success comes from managing people effectively (Schuler & Jackson, 2000). The new strategy in human resource management insists that employees must internalize the goals and missions of an organization. This enhances their responsiveness and performance. The new strategy in HRM has had a major effect through introduction of learning processes that enhance the capacity of the organizational needs (Salaman et al, 2005). This has led to identification of knowledge and competencies that are necessary to meet the organizational goals and consumer satisfaction. Strategic human resource management emphasizes on the intellectual capital in an organization. The transformation from human resource management to strategic human resource management has been founded on the need to have a strong organizational knowledge base (Gilley & Gilley, 2000). Organizational performance cannot be fully dependent on coordinating human resource policies sorely. Rather, such coordination needs to be linked to the needs and goals of the organization (Salaman et al, 2005). The needs and goals are reflected in the strategies on the organization and hence the name strategic human resource management. This transformation addresses the sustainability of human resource management while taking into consideration the changing market needs. One of the positive outcomes of the SHRM is the recognition that organizations are only effective if the human resources are managed with an aim to deliver the right number of employees with the necessary attitude and organizational behaviors. The strategic human resource management has led to increased motivation in the running of the organizations (Salaman et al, 2005). This strategic transformation has created a link between the strategic aims and implementation of business strategies in the organization. Under this premise, the people and processes within an organization are managed in such a way that the aims of the business strategy are fostered (Schuler & Jackson, 2000). Furthermore, this has created a central and integral approach to managing multiple human resource duties. Some of these functions include training and selection. Some of the positive impacts of strategic human resource management include enhanced goal accomplishment and company survival (Schuler & Jackson, 2000). This is intertwined with the successful implementation of the business strategies. Research shows that the transformation has led to higher performance and in the management of organizational resources. The transformation to strategic human resource management has been a profitable response to the present day volatile market situation (Rothwell et al, 2008). This has caused organizations to turn to measurement approaches like the use of the score cards. This has provided insight into the role of human resources in value addition in any organization (Gilley & Gilley, 2000). Strategic human resource management is related to organizational performance. Therefore, the nature of human resource polices can have a positive or negative impact on the performance of a firm. In assessing the impact of the transformation to strategic human resource management, research appreciates that operational performance of an organization must be seen to be a function of the technology, people and processes (Rothwell et al, 2008). This interrelationship is a function of competence. For example, for people to make full use of technology, they must be competent. Therefore, strategic human resource management has established a practical link between human resource effectiveness and organizational performance (Gilley & Gilley, 2000). There is increased awareness on the impact of strategy execution in organizational management. The impact of the transformation traditional to strategic human resource management has resulted in the recognition of the causal relationships between decisions and outcomes. This is the core or organizational success. The transformation has inspired organizational leadership push for drive strategic success (Schuler & Jackson, 2000). Strategic human resource management has attracted high-quality personnel (Rothwell et al, 2008). This has caused the workforce to match the operational needs of the firm. Moreover, it has become easier to acquire, develop and retain talented employees who are sensitive to productivity and innovation. Strategic HRM has created a working environment emphasizes on the core values and diversity among employees (Schuler & Jackson, 2000). Besides, talent management is increasingly becoming harmonized with the organizational strategies and mission. Organizations have the chance to use well-motivated employees in meeting the future needs of the organization. Strategic human resource management has resulted in a performance culture in organizations (Salaman et al, 2005). This is a direct result of employees’ empowerment, participation and increased shareholder value. Strategic management empowers employees to show discretionary behaviors that lead to risk taking and better business performance. Strategic human resource management has altered reward management. This is because strategic management places value on people and their roles in fulfilling organizational strategies. This has increased the levels of job engagement commitment and knowledge sharing. Rewarding people according to their contribution in an organization leads to fulfillment of organizational goals. Another impact of the transformation from transactional to strategic human resource management is the cost reduction and better adaptation in the economic environment (Rothwell et al, 2008). The traditional strategies were known to protect the products, markets and economies of scale. The aim was to offer competitive leverage. However, organizations have realized that human resources are offering increasingly vital services for sustainability. Human resource management systems have been redefined under the SHRM. Employees are being entrenched into the decision making systems if organizations (Salaman et al, 2005). Managers believe that organizational leadership must involve employees when developing organizational goals. Employees are productive when they are involved in the running of organizations (Schuler & Jackson, 2000). Studies show that strategic HRM causes organizations and employees to have a joint commitment to the goals and core values of the organizations. Attributes to be found in a transformed entity Sensitivity to environment The internal processes of an organizational change are greatly influenced by changes in the environment. This theory projects this as the single most important responsibility of strategic human resource management (Salaman et al, 2005). The argument discusses the consequences of the strategic human resource management actions in the outside environment of an organization (Rothwell et al, 2008). This attribute justifies the initiatives by SHRM in terms of productivity benefits and rational benefits in relation to environmental performance. Organization’s interests The next major attribute of strategic human resource management is the development of appropriate strategies to defend the interests of the corporate (Schuler & Jackson, 2000). An organization must identify environmental pressures like demand, competition and technology and design a strategic response. Strategic HRM assures that organizational change is pushed by the perspective of the management. This attribute assumes that managers have informed understanding of the principles of organizational changes (Rothwell et al, 2008). Strategic human resource management approach should identify and understand the need for organizational change. Strategic human resource management is a means of developing organizational capability to offer and execute organizational strategies (Salaman et al, 2005). This is because the concept of SHRM is a strategic response to the environmental changes. This response becomes entrenched in to the system and structures of the organization. Strategic planning Strategic planning is the rational analysis that helps to improve the organizational performance. This attribute is known to steer organizational performance and development (Gilley & Gilley, 2000). The idea of this attribute is to concentrate the individual efforts in to organizational team effort. It also assists in quality control and management. Strategic human resource management is aided by strategic planning and performance appraisal systems (Rothwell et al, 2008). Many organizations are using strategic planning as a means to exercise team building. Some organizations are also using performance appraisals. Strategic human resource management demands an environment that involves extensive consideration of objectives and measurable goals. Performance appraisal helps human resource managers in judging decisions that pertain to promotions, transfers and payment. Costs are risks Uncertain business environment The concept of SHRM has been a potential source of costly mistakes. Customer uncertainty, technological changes and competition have increasingly become some of the major challenges of the strategic human resource management. Uncertain organizational and business atmosphere demands continuous rethinking in terms of investment strategies (Rothwell et al, 2008). Important aspects about an organization like structure, strategic actions, culture, and communication systems become affected. Organization’s strategic thinkers and decision makers must be equipped with the knowledge to handle this risk. This can be done with assessing different probable outcomes (Gilley & Gilley, 2000). This enables them to develop strategic planning and robust decision making processes. This allows an organization to accommodate continuous change and adapt to dynamic business environment. Uncertain business environments demand agility and strategic flexibility. Agility is the ability for a firm to adapt to unpredictable and changing business environment (Schuler & Jackson, 2000). Strategic flexibility helps organizations to develop and maintain competitive advantage. The risk of uncertain business environment causes the organizations to continuously develop new strategic assets. Workforce or expertise shortage Some labor markets are already relying on imported workforce or migrants. Some of the countries affected include Australia and Canada. Workforce shortage poses a major threat to strategic HRM and causes the decision makers to perceive staffing as a strategic opportunity to promote competitive advantage for many organizations. Workforce shortage means that talent becomes valuable and rare. This is coupled by difficulty in outsourcing. Organizations which attract and retain talent can outperform the rest (Schuler & Jackson, 2000). Organizational strategy and human resource management becomes one of the ways to propel employer brand image and workforce competition. Such strategic initiatives can influence recruiting and the mindsets of the applicants. Strategic HRM responds to labor shortage risk by effecting human resource policies that attract and retain quality workforce. The risk of workforce shortage has caused the introduction of flexible employment patterns. Organizations have turned to using either contracts, working hours, working environment or structures to increase the competitiveness of working conditions. Older workers are entrenched into a strategic HR planning strategy. Flexible working patterns are being offered as a means to counter this risk. Workforce shortage has caused organizations to enhance strategies of attracting, motivating and utilizing the mature workforce. This is effected through incentives and working conditions that retain competitive workers. References Gilley, J. W., & Gilley, A. M. (2000). Organizational learning, performance, and change: An introduction to strategic human resource development. Cambridge, Mass: Perseus Pub. Rothwell, W. J., Prescott, R. K., & Taylor, M. W. (2008). Human resource transformation: Demonstrating strategic leadership in the face of future trends. Mountain View, Calif: Davies-Black Pub. Salaman, G., Storey, J., & Billsberry, J. (2005). Strategic human resource management: Theory and practice. London: SAGE in association with The Open University. Schuler, R. S., & Jackson, S. E. (2000). Strategic human resource management. Oxford: Blackwell. Read More