Organisations are increasingly taking a more strategic approach to the management of their human resources. Explain why this may be so and discuss some of the conflicts and tensions that arise when attempting to integrate corporate and HR strategy.
This paper reviews and explains why organisations are increasingly taking a more strategic approach to managing their human resources function and integrating this function with the corporate strategy development of the organisation. The paper is divided into three key parts: • Introduction and Context – This section presents the issues and provides a brief context into the situation highlighting the resulting variances in the approaches taken by management. • Current Situation,
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Knowledge transfer was identified by the research of Easterby-Smith, Lyles & Tsang as critical in bringing the level of impact of the human resources function to a strategic level. There is less of a conflict in building the learning capability of the organisation from other examples. Nevertheless, the challenge is ensuring that the senior management and staff overall remain committed to the knowledge learning and development that will take place in their organisation even if they know that this will lead to increased importance and strategic role for the human resources function. In a large number of firms, the learning that occurs in organisation plays a considerable part in the success of these organisations (Ryan, Gospel & Lewis, 2007). • Ensuring support from the work force. A critical part in the evolution of the human resources function into one with a strategic role is the support of the work force. As the human resources function becomes a more strategic function, this could impact the way the work force is managed, and may lead some to disagree or challenge the changing status quo. This can be particularly challenging for firms which currently have unions in place that are not able to see and
Human resource departments today have a more distinct, calculated position within organizations, and human resource strategy influences the bottom line. “One of the challenges for HR leaders is convincing executive leadership teams that human capital is one of the most important resources in which the company can invest” (Mayhew, 2014, p.). Subsequently, “this return on investment is an essential part of the argument for including HR as part of an overall business strategy” (Mayhew, 2014, p.). Human resource departments utilize the information given to them from company executives and leaders, coupled with their respective expertise on all things personnel, and they plan and implement staffing concerns for the betterment of the organization. From preparing job analysis, to comparing inventory and forecasting, it is the responsibility of human resources to consider the objectives of an organization and fulfill those goals while operating the specific planning relative to HR.
In my role as HR, I need to be prepared for the rapid changes in the business environment; organizations are increasingly looking at human resource as a unique asset that can help provide a sustained competitive advantage., I will ensure the HR strategy is in alignment with the business strategy of the company I am responsible for. Obviously, my ultimate goal is to provide a full-fledged effort to ensure the productive and fruitful integration between HR strategy and Business strategy.
By extension, intellectual assets and the organizational system that attract, develop and retain them are emerging as significant elements in the strategic decision making. This evolution in the role of human resources (HR) follows directly from the demand of rapidly changing product markets and the corresponding decline of command and control organizational structures. A skilled and motivated workforce providing the speed and flexibility required by new market imperatives has increased the strategic importance of human resources management (HRM) issues at a time when traditional sources of competitive advantage ( quality, technology, economics of scale etc. ) have become easier to imitate. In effect, while the markets for other sources of competitive advantage become more efficient, surrounding the development of a (High Performance Work) force. Remains a significant unrealized opportunity for many organizations.
The role of the Human Resource Manager is evolving with the change in competitive market environment and the realization that Human Resource Management must play a more strategic role in the success of an organization. Organizations that do not put their emphasis on attracting and retaining talents may find themselves in dire consequences, as their competitors may be outplaying them in the strategic employment of their human resources. With the increase in competition, locally or globally, organizations must become more adaptable, resilient, agile, and customer-focused to succeed. And within this change in environment, the HR professional has to evolve to become a strategic partner, an employee sponsor or advocate, and a change mentor within organization. As the area of human resource management becomes more strategic and more global it is becoming more important and critical to the organization. While not all companies are recognizing this yet, those that are most effective and most admired, seem to be the ones that are. As a consequence they are doing many things that make
The term Human Resource Strategy is well defined as - “Human Resource management (HRM) is a strategic approach to managing employment relations which emphasises that leverage people 's capabilities is critical to achieving sustainable competitive advantage, this being achieved through a distinctive set of integrated employment policies, programmes and practices.” [ Bratton and Gold,4e,p3]
“HR strategy, policy and practice can assist organisations to achieve competitive advantage. Critically analyse this statement using one or more theoretical perspectives that explain the link between strategic HRM and performance outcomes.”
The practise of Human Resources is moving from the traditional forms of managing people to a more strategic form whereby the Human Resources function is closely linked with organisational performance and success. This strategic form of human resources has increased the need for the Human Resource professional to understand the linkages between Corporate Strategy, Human Resource Strategy and Employee Integration.
Human resource management faces many challenges and operates in a constant environment of change. Two of the most important challenges to the role of human resource management in the future is the ability to move to a strategic human resource model and the capacity
The role of the Human Resource Professional is evolving with the change in competitive market environment and the realization that Human Resource Management must play a more strategic role in the success of an organization. Organizations that do not put their emphasis on attracting and retaining talents may find themselves in dire consequences, as their competitors may be outplaying them in the strategic employment of their human resources.
To address my research question on why there is a need for the presence of a relationship between strategic management and strategic human resource management, and how we can make this relationship come about. Firstly, I started off by defining the two concepts of human resource management as well as strategic management. Secondly, I discussed the organisational history and the role of HR in the past, and where it (HR) is going. Thirdly, I discussed the existence, importance and implication of this relationship. Lastly, I discussed the means of making this relationship come
Within this essay an in depth analysis will be conducted on the difference between Human Resource Management and Strategic Human Resource Management using contemporary perspectives. Human Resource Management (HRM) is the process of managing human resources in a systematic way. It is a practice devised to maximise the performance of employees and is concerned with the application of management principles to manage organisational personnel while paying attention to the policies and systems of the entity (Delaney & Huselid, 1996). Strategic Human Resource Management (SHRM) is a function of management which entails development of policies, programmes and practices related to human resources, which are aligned with business strategy so as to achieve the strategic objectives of the organisation (Patrick M. Wright, 1992). Its primary purpose is to improve the performance of the business and maintain a culture that encourages innovation and works continuously to gain competitive advantage. In this essay the Resource-Based View, High Performance Management and High Commitment Management perspectives of Strategic Human Resource Management and Traditional and Collaborative
Theme to consider: What is strategically managing human resources? How do we distinguish it from ‘plain HR’?
Aim: This research will help us understand the role played by Strategic Human Resources Management in Organizational success, what role a HR manager plays in improving organizational efficiency and how it differs from traditional Human Resources Management.
Generally, when one thinks of the role of Human Resources, many people will think first of the role that HR plays in important functions such as staffing, training, retention, and the development of workplace policies. While these are all important functions for Human Resource Management, the evolution of HRM is such that it is important to think of these functions in terms of the impact they have on the overall strategic vision for the company. Key HRM functions can be split up into two different categories. These include those functions that relate directly to the employee such as staffing, retention, training and development, but also those functions that relate more to company policies and government regulations. Examples include compensation and benefits strategies, the development of basic workplace policies, and adherence to regulations that are enforced by government. Each of these functions play important roles in the implementation of an overall strategic vision for the company, and ensuring that HRM understands the role that it plays is important for making sure that HRM policies are in line with the company 's long-term strategy. One excellent example of the way in which the role of Human Resources plays out in the context of a long-term strategy is that of Walmart 's HR practices and the way they fit into the overall business strategy of the organization. With that said, in order to understand the HRM of
Emerging into a Strategic partnership has many Human Resource departments, managers, and trainees on its side. Many corporations and business are currently taking part in various dramatic changes with multiple implications for the different manage changes of human resources at this time. Of course, there are many changes, but the most important one is the serious deployment of different information technology and the growing amount of organizations have created by different training and development programs. Another important change in the Human Resource world is the business environment. As time goes on, like any good thing becomes updated. Through these next few years the increasing complexity and knowledge is going to be in affect.