Human Resource as a Key Area of Competitive Advantage - Essay Example

? Strategic Human Resource Management al Affiliation Strategic Human Resource Management Introduction In the rapidly changing business environment, human resource has become a key area to build competitive advantage. Effective planning and strategizing on human resource systems can yield to sustained business competitive advantage through facilitation of competencies, which are firm specific. Strategic Human Resource Management (SHRM) is what business organizations in the contemporary society require to establish their competitive advantage. Strategic human resource management requires the creation of linkage between strategic business objectives and human resources strategies as well as their implementation. SHRM is regarded as an approach to the management of human resources, which offer a strategic system in support of long-term business objectives, goals, and outcomes. SHRM entails long-term issues of the people within the organization which include structure, culture, quality, commitment, values, and matching resources with the future needs. Strategic human resource management is a complex endeavor that evolves over time (Nankervis et al., 2008). The opinions regarding the relationships of SHRM with business strategy and planning are varied from one scholar to another. This paper will explore the issue of SHRM as it relates to health services organization. Just like other organizations, health service organizations are under great pressure from customers to maintain quality as well as pressure from other organizations. This changing business environment through competition calls for advanced strategic approaches. In the case of John Hopkins hospital, which falls under health service organizations, the issue of SHRM has been adequately considered. The organization has been steadfast in addressing employee issues through training and development, motivation, leadership, and rewards system. The organization is much aware on the importance of SHRM through prioritization of employee needs (Schulz & Johnson, 2003). In aligning the organizations to SHRM, several strategies have been put in place. The main issue of concern is that SHRM entails the prioritization of the needs of human resources in the organization. Some of the factors put into consideration in positioning the organization include investment in the people. Since human resources play a fundamental role in the organization, training and development is a key issue. Introduction and encouragement of learning and development to the employees is a strategic move of increasing employee efficiency. Strategic human resource management by educating employees is essential for increasing capability. Learning process helps in aligning employees with skills to address the organizational needs. Training and development of employees is a strategic move in HRM, which positions the employees for dealing with all production requirements of the organization (Brand & Bax, 2002). Health service organizations seeking to strategize their human resources need to align their human resource capacity with the organization’s vision and mission. Development of intellectual capital of the employees is essential in SHRM. By educating employees and increasing their intellectual capital, an organization is able to benefit from realization of its goals. This is mainly on the aspect of customer service and quality, whereby the employees are empowered with skills and knowledge of dealing with day to day organizational operations (Fegley, 2006). Another aspect of strategic human resource management is the definition of required behaviors and alignment with the organizational culture. It is essential to note that that establishment of a good organizational culture helps in enhancing human capital and performance. Managers should be steadfast in setting organizational standards, which match the vision and mission of the organization. This includes the setting of values and norms which every member of the organization should embrace. Mentoring opportunities should also be offered to the employees to ensure they adopt the required behaviors. The provision of rewards and good leadership is a vital element of SHRM, which ensures human resources adopt and embrace the required behaviors (Paul & Anantharaman, 2003). The concept of leadership plays a fundamental role in strategic human resource management. This is on the aspect of encouraging employees and inspiring them to work for the common good of the organization. Leadership is essential in ensuring the employees adopt an admirable behavior, work relations, and practices which foster the organization’s success. Some of the leadership aspects which human resource managers are expected to embrace include mentorship, communication, role model, inspiration, team, and problem solving. By engaging in these undertakings, the human resource managers are able to strategize their human resources for success. From another perspective, organizations seeking to attain SHRM should gain the commitment of the people. Managers are obligated to communicate the organization’s mission and values to the employees. This plays a key role in positioning the organization for success, by ensuring all members work as a team to realize a common goal (Caliskan, 2010). Strategic human resource management promotes effectiveness and productivity in an organization. Adoption of effective human resource strategies like formal training systems, internal career ladders, results-oriented performance appraisal, employee participation, employment security, performance-based compensation, and broadly defined jobs play a key role in promoting efficiency and productivity. SHRM enhances employee productivity as well as capacity to attain set mission and objectives. Managers are obligated to use personnel practices and strategic planning processes so as to enable the organization better realize its goals and objectives. The modern knowledge-based organizations are ideal settings that promote the tenets of SHRM practices. In as much as competitive advantage of an organization is attributed to the peoples’ techniques, they are directly related to an organization’s success. Business managers should focus on progressive personnel practices so as to enhance competency and efficiency of the organization (Storey, 2004). The ultimate success of an organization is greatly influenced by the human resource practices adopted in an organization. The resource-based theory articulates that competitive advantage as well as the implementation of strategies is dependent on the organizations basic inputs such as human capital. Strategic human resource management is essential in the motivation of employees by offering incentives to work. Various human resource management strategies like result-oriented performance appraisal, internal career ladders, and performance-based compensation help in realization of an organization’s vision and mission. Strategic HRM entails the focus on organizational and individual needs. Satisfaction of these needs leads to increased productivity. Strategic planning in HRM focuses on the future by attending to the needs of the people in the organization. Strategic HRM does not only enhance teamwork and employee motivation but also helps in concentrating individual efforts for the organizational success. It can assist in advancing objective-based performance as well as ensuring total quality management (Branham, 2000). Strategic HRM is highly relevant in all business organizations. In order for organizations to realize success, they have an obligation to determine priorities in allocation of limited resources. Good management of human resources by attending to their needs and ensuring motivation help in increasing organizational efficiency. SHRM is the best resolution to the administration of human capital and policy issues in an organization. Strategic HRM infers how personnel interrelates functions in the business context, commitment of personnel, recognition of importance, and devotion of managers, supervisors, and employees. The primary stakeholders are the senior management who have the role of putting the precedence of the organization as its strategy. Both operational and junior managers should enforce daily and weekly decisions by engaging all team leaders so as to attain set goals. It is the role of the senior management to address all training needs, motivational needs, and work related challenges among employees. Managers should remain strategic by addressing all human resource issues in strategic and systematic manner (Rowden, 2002). The people who make up an organization’s human resource are the most important resource in contemporary firms. The manner in which human resources are managed influences the success or the failure of an organization. Based on the changing basis for competitive advantage, SHRM has remained the sole avenue for success. Business managers should understand the importance of human resources in their organization. Human resource managers should ensure employees retain their skills, commitment and motivation in all their works. In order to attain this, human resource managers should take some time and assess the needs of the employees and satisfy them so as to advance and develop inherent capacities. A key strategic move in HRM is the training of employees. Strategic human resource managers will ensure their employees are offered diverse learning and development opportunities. This does not only serve the employees present needs but also ensure they are fit to address different tasks in the future. Recruitment and selection procedures are also strategic issues in HRM. In this case, managers can attain competitive advantage by selecting and recruiting the best personnel. After recruitment, continued training and development should be administered to ensure the employees are capable of discharging their duties consistent with the organization’s vision and mission (Stavrou & Brewster, 2005). SHRM represents a powerful transforming force in the business sector. SHRM entails the roles of human resource management systems in ensuring high firm performances, particularly the issue of aligning human resources as a procedure of attaining competitive advantage. Organizations are aware of the input of successful human resource practices and policies on performances in the different areas of quality, productivity, and financial performance. According to the resource-based theory, human resource systems contribute to business competitive advantage so as to facilitate a business competency. Proper management of human resources can yield to sustained superior performances. Without proper management of human resources, the existing competencies among human resources are left vulnerable and their competitive advantage destroyed. The main issue of concern is to recognize the value of human resources in an organization and how success can be sustained. The success which emanates from management of people is not usually transparent or visible. Nevertheless, the culture and the manner in which people are managed determine the effects on behavior and skills (Youndt & Snell, 2004). The implementation of strategic human resource management is a complex task which may face different barriers. The transformation programs in adopting strategic human resource management may encounter barriers, which inhibit the success of the process. Some of the barriers may include insufficient skills and competencies of HRM as well as insufficient management support. Lack of adequate transparency and harmonization of the process may hinder adoption of SHRM. The problem of poor governance, poor service, and contract level agreements as well as insufficient language coverage may hinder implementation of SHRM. Other possible barriers include interdepartmental conflicts, employee resistance, limited resources, and fear of incompetency. Despite of these barriers, proper planning and strategizing in the implementation of SHRM is fundamental (Sharma, 2009). Conclusion The changes in business organizations ought to be addressed in the most strategic way possible. In the case of health services organizations, strategic human resources plays a very crucial role. The high demand of quality services as well as the ever growing competition can only be attained through strategic human resource management. SHRM through employee training, development, competitive recruitment, leadership, and motivation helps in realization of organizational goals and objectives. SHRM ensures that all employees are competent and capable of addressing the needs of the organization. SHRM is a source of organizational competitive advantage since it focuses on the areas of production, performance, quality, and efficiency. As observed in the study, strategic human resource management leads to enhanced efficiency, production, and customer satisfaction which is essential in realization of set goals and objectives. The main issue to consider in SHRM is the fulfillment of employee needs so as to enhance their motivation and efficiency. References Brand, M., & Bax, E. (2002). Strategic HRM for SME’s: Implications for firms and policy. Education and Training, 44 (1), 8-9. Branham, J. (2000). Human Resource Planning. New York: McGraw Hill. Caliskan, E. (2010). The Impact of Strategic Human Resource Management on Organizational Performance. Journal of Naval Science and Engineering. 6 (2), 100-116. Fegley, S. (2006). SHRM 2006 succession planning survey report. Alexandra, VA: Society for Human Resource Management. Nankervis, A. et al. (2008). Chapter 1: Evolution of human resources management. Human Resource management: Strategies and Processes (6th ed.). South Melbourne: Thomson. Paul, A. and Anantharaman, R. 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