Strategic human resource management is the connection between a company’s human resources and its strategies, objectives, and goals. In order for strategic human resource management to be effective, human resources must play a vital role as a strategic partner when company policies are created and implemented. (Eneh et.al,2016) Strategic HR can be demonstrated throughout different activities, such as hiring, training, and rewarding employees. It further involves looking at ways that human resources can make a direct impact on a company’s growth. HR personnel need to adopt a strategic approach to developing and retaining employees to meet the needs of the company’s long-term plans. In this article we are going to discuss the role of strategic human resource management towards organizational growth and methods of achieving it.
Importance Of Strategic Human Resource Management
The aim of strategic human resource management is to advance flexibility, innovation, and competitive advantage, develop a fit for purpose organizational culture, and improve business performance. HR issues can be a difficult hurdle to cross for many companies, there are all kinds of different components that can confuse business owners and cause them to make ineffective decisions that slow down the operations for their employees as well as their business. Companies are more likely to be successful when all teams are working towards the same objectives. Strategic HR carries out analysis of employees and determines the actions required to increase their value to the company. Strategic human resource management also uses the results of this analysis to develop HR techniques to address employee weaknesses. It has several advantages some of them have been listed below. Firstly it increases job satisfaction; secondly, companies that take up strategic human resource management system are bound to have a better work culture. Thirdly, they have succeeded in improving the rate of customer satisfaction. Fourthly, they help in efficient resource management. Fourthly, They help manage employees in an proactive environment and not to forget it helps in boosting productivity.
Steps To Implement Strategic Human Resources Management
Strategic human resource management is the key for the retention and development of quality staff. It’s likely that employees will feel valued and want to stay with a company that places a premium on employee retention and engagement. Before you implement strategic human resource management, you will need to create a strategic HR planning process using the steps below:
- Develop A Thorough Understanding Of Your Company’s Objectives
Since the success of strategic HR is dependent on how well it links to your company’s goals, you need to have a thorough understanding of your aims, objectives, and mission. You’ll need to be able to articulate both your short and long-term plans for growth to the relevant HR personnel. Ensuring clear communication of your company’s goals will make it easier for HR personnel to formulate an effective resource management strategy. For a thorough understanding on how well a company operates implementing the human resource strategies students can avail online assignment help from OmanEssay experts.
- Evaluate Your HR Capability
Evaluating your current HR capabilities will enable you to understand the employees you have and how they contribute to fulfilling your goals and objectives. Additionally, you should also undertake a skills inventory for every employee. Skills inventories help you to discover which employees are experts in particular areas. It also helps you to identify the employees who have an interest in being trained in a particular aspect of your company. A great time to asses skills is during a performance review.
- Analyze Your Current HR Capacity In Light Of Your Goals
An assessment of your HR capacity will help you to recognize barriers and implement a plan of action to capitalize on opportunities and effectively deal with threats. Strategic HR personnel will analyze the number of employees as well as their skills and will work with senior leadership to identify ways to better equip employees to serve the needs of your company.
- Estimate Your Company’s Future HR Requirements
After an analysis of your company’s employees and skills has been done in relation to your objectives, it’s time to forecast your HR needs. The forecast should be done in relation to:
- Demand – A prediction needs to be made in relation to the number of employees with the associated skills that will be required in order for your company’s future needs to be met. (Stavrou,2005)
- Supply – Looks at the employees and skills that are currently available to help your company achieve its strategic goals.
Forecasting your company’s future HR requirements also determines the following:
- New jobs and roles required to secure the future of the company.
- Skills required by current employees to undertake the responsibilities of new jobs and roles.
- Whether your employees’ expertise are being sufficiently utilized.
- Whether current HR personnel and practices can accommodate the company’s growth.
- Determine The Tools Required For Employees To Complete The Job
HR personnel need to liaise with the appropriate departments to find out how the tools used by employees impact on their ability to perform their roles. For example, an audit of hardware and software can be undertaken jointly with the I.T department to identify gaps in tools that will facilitate a more organized workforce.
- Implement The Human Resource Management Strategy
After the analysis and forecast of your company’s HR requirements have been completed, it’s time to start the process of expanding your workforce and developing current workers to equip your company for future growth. You can achieve the implementation of your human resource management strategy by doing the following:
- Start With The Recruitment Stage – At this point, HR professionals begin searching for candidates who possess skills that have been identified during the HR strategic planning process. (Boxall,et.al,2016)
- Organize a selection process – Interviews and other selection criteria take place at this time. Interview questions such as “what are your salary requirements?” and relevant tests will be used to assess whether the candidate is suitable to carry out the role.
- Begin Hiring Applicants – Your Company will make the candidate a job offer after all appropriate checks have been carried out.
- Design On Boarding And Training –Employee On boarding is a key determining factor as to whether an employee remains with a company. A comprehensive on boarding and training package must be put in place to increase employee retention. Once you have onboard your employees well, another important step to retaining them is to keep them engaged!
- Evaluation And Corrective Action
HR personnel should decide on a timeline to carry out a strategic HR management review. This review will track the progress made and also identify areas for improvement. The review should be measured against whether changes are helping your company to achieve their goals. Corrective action must be taken if strategic human resource management is failing to meet its objectives.
After considering each aspects of strategic human resource management it can be concluded that its main aim to is to advance flexibility, innovation, and competitive advantage, develop a fit for purpose organizational culture, and improve business performance. There are seven key steps that help to implement strategic human resource management in the organizational structure. These are to develop a thorough understanding of your company’s objectives, evaluating the employee’s HR capabilities, analyzing the current HR capacities in the light of the goals, estimating the company’s future HR requirements, determining the tools required by the employees to complete the task, implementing human resource management strategy, overall evaluation and taking all necessary corrective actions. Students can now avail Human Resource Management Assignment help from OmanEssay to understand the concepts of human resource management in details.
Eneh, S. I., & Awara, N. F. (2016). Strategic human resource management practices and organizational growth: A theoretical perspective. Global Journal of Social Sciences, 15(1), 27-37.
Boxall, P., & Purcell, J. (2000). Strategic human resource management: where have we come from and where should we be going?. International journal of management reviews, 2(2), 183-203.
Stavrou‐Costea, E. (2005). The challenges of human resource management towards organizational effectiveness. Journal of European industrial training.
Gurbuz, S., & Mert, I. S. (2011). Impact of the strategic human resource management on organizational performance: Evidence from Turkey. The International Journal of Human Resource Management, 22(8), 1803-1822.