Role of Strategic Human Resource Management in Organizations

 

 

Organizations are more likely to sustain and excel in the corporate world only when their goals and objectives are well aligned with overall decisions taken by every department. People are a great asset to any organization and this is why Human Resource Management (HRM) plays a key role in business decision making. Not only capital but also right people on the right job decides whether a company will perish or sustain and win in the long run. This is where Strategic Human Resource Management (SHRM) comes in to action to manage people and drive organizations towards their pinnacle. Thus SHRM can be defined as “the connection between a company’s’ human resources and its strategies, objectives and goals” (Sawyer, 2019).

 For SHRM to be a successful indicator of organizational success, HR act as an essential element and a strategic partner when organizational policies and procedures are created and executed. According to Keller and Meaney (2017), “talent matters, because its’ high vale and scarce and is difficult to replace, it creates a huge opportunity when companies get things right”. SHRM is helpful in many facets of organizational HR procedures initiating from recruitment, selection, hiring, training and development, performance appraisal, rewarding and compensation, promotion and towards the exit of an employee from an organization.

Implementation of SHRM requires a carefully examined and formulated strategic HR planning process that goes through a series of seven progressive steps as follows.

Table 1: Steps of Strategic HR Planning Process (Theintactone.com, 2019).

Benefits of SHRM

 It is an innovative approach to management that allows flexibility. It creates a good fit between the purpose of an organization with its unique culture inherited through years in the corporate world. It is a proactive approach to managing people that ensures increased job satisfaction and work morale. Employees that are happy will ultimately create improved customer satisfaction. This boosts productivity and positively impact on the work ethics. Good SHRM practices are the key to efficient resource management. It assures that capital of an organization is spent for the right purpose of achieving long term business goals. These benefits finally result in improved business performance creating a competitive edge over competitors and garner attraction in the marketplace. 

In conclusion SHRM drives successful organizational performance through recruiting, developing and retaining the best pool of talent in the marketplace. Such organizations are bound to harness an organizational culture that is both progressive and conducive in light of changing marketplace needs and unforeseeable changes. Hence they are farfetched and are guaranteed to achieve its organizational vision amidst of high competitions.

 

References

Keller, S., Meaney, M. (2017). Attracting and Retaining the Right Talent. [online]. McKinsey & Company. Available at: https://www.mckinsey.com/business-functions/organization/our-insights/attracting=and-retaining-the-right-talent# [Accessed 25 March 2021]. 

Sawyer, K., 2019. 7 Key Steps: Strategic Human Resource Management - Deputy. [online] Deputy. Available at: https://www.deputy.com/blog/7-steps-to-strategic-human-resource-management> [Accessed 25 March 2021].

Theintactons. (2019). Strategic HRM, Steps of Strategic HRM. [online] Available at https://theintactone.com/2019/02/18/hrm-u1-topic-8-strategic-hrm-steps-of-strategic-hrm [Accessed 25 March 2021].