Strategic Human Resource Management Essay Example for Free

Strategic Human Resource Management Essay To simply define Human Resource Management (HRM), it is a management function that helps managers recruit, select, train and develop members for an organization. Obviously, HRM is concerned with the people’s dimension in organizations. When we say HRM of the organization, it is concerned with all the departments of it. In the marketing department, people consult products or services that lead to the sale. In the sales department, people sell products or give services to the customers. And also in finance, people manage and forecast the flow of money in the organization. All these functions cannot be accomplished without the help of the human resources and people are the ones that can make the organization achieve its objectives. And when the strategies come together with HRM, there comes Strategic Human Resource Management (strategic HRM or SHRM). It may be regarded as an approach to the management of human resources that provides a strategic framework to support long-term business goals and outcomes. The approach is concerned with longer-term people issues and macro-concerns about structure, quality, culture, values, commitment and matching resources to future need. First, according to Strategic Marketing Management by Wilson, Gilligan and Pearson, I would like to express the different levels within the organization that strategies must be developed. They are: * Corporate strategy, which deals with the allocation of resources among the various businesses or divisions of an organization. * Business strategy, which exists at the level of the individual business or division, dealing primarily with the question of competitive position. * Functional level strategy, that is limited to the actions of specific functions within specific businesses. The above strategies are set at the different levels to achieve a major or overall aim of the organization. The strategic approach addresses issues and needs relating to changes in structure and culture, organizational effectiveness and performance — matching human resources to future requirements, the development of distinctive capabilities and intellectual capital and the management of change. There are five functional areas identified by Bratton and Gold in forming the core of human resource management activities. Staffing: Obtaining people with appropriate skills, abilities, knowledge and experience to fill jobs in the work organization. This role encompasses human resource planning, job analysis, recruitment and selection. * Rewards: The design and administration of reward systems. This role includes job evaluation, performance appraisal and benefits. * Employee development: Analyzing training requirements to ensure that employees possess the knowledge and skills to perfo rm satisfactory in their jobs or to advance in the organization. Employee maintenance: The administration and monitoring of workplace safety, health and welfare policies to retain a competent workforce and comply with statutory standards and regulations. * Employee relations: Under this heading may be a range of employee involvement/ participation schemes in union or non-union workplaces. In a union environment, it also includes negotiations between management and union representatives over decisions affecting the employment contract. With the best HRM policies and practices, HRM strategy does more than drawing boundaries; it also recognizes and addresses peoples needs. The best HRM practices contribute the four outcomes as follow: * Competence: Employees are versatile in their skills and can take on new roles and jobs as needed and are better able to respond to changes in environmental demands. * Commitment: Enhance mutual trust and better communication between employees and managers. * Congruence: All stakeholders share a common purpose and collaborate in solving problems brought about by changes in environmental demands. * Cost effectiveness: HRM policies are cost-effective in terms of wages, benefits, turnover, absenteeism, strikes, and similar factors. Here is the example of â€Å"Starbucks† which is one of the best known and fastest growing companies in the world that invest a lot in human resources. Starbucks believed that the companys success and rapid growth could be attributed largely to its committed and motivated workforce. Consequently, the companys human resource policies reflected its commitment to its employees. Starbucks cared about its employees and was one of the few companies in the retail sector to provide generous benefits to both full time workers as well as part timers. This ensured that employees remained motivated, and Starbucks had a relatively low employee turnover. However, in the early 2000s, the company faced the challenge of finding and retaining the right number and kind of employees to man its future growth. Despite the fact that employees, especially those on the frontline, are critical to the success of retail businesses, most companies do not have a strong relationship with their employees, and consequently suffer from a high rate of employee turnover (In the early 2000s, employee turnover in the retail industry was around 200 percent). In this scenario, Starbucks stood out for its employee-friendly policies and supportive work culture. The company was especially noted for the extension of its benefits program to part-time workers something that not many other companies offered. They are offered health and dental coverage, vision care, life and disability insurance, paid time off, a retirement savings plan, stock options and a discounted stock purchase plan, adoption assistance, domestic partner benefits, emergency financial aid and a free pound of coffee every week. As a result, Starbucks employees were among the most productive in the industry and the company had a relatively low employee turnover. The above example proves that HRM is the crucial source of competitive advantage to be a successful organization in the business environment. Thus, as I have discussed so far, you may have some ideas about Human Resource Management and notice how much it is important for an organization. Reference 1. Aswathappa, K. Human Resource and Personnel Management (Fourth Edition ed. ), (pg. 5) 2. http://en. wikipedia. org/wiki/Starbucks. (2013, January 17 Thursday). Retrieved from en. wikipedia. org. 3. http://www. hrtutorials. com/cs-model-evaluating-human-resources/. (2013, January 17 Thursday). Retrieved from www. hrtutorials. com. 4. http://www. icmrindia. org/casestudies/catalogue/Human%20Resource%20and%20Organization%20Behavior/HROB068. htm. (2013, January 15 Tuesday). Retrieved from www. icmrindia. org. 5. http://www. mainstreet. com/article/career/employment/4-employers-great-part-time-benefits. (2013, January 17 Thursday). Retrieved from www. mainstreet. com. 6. Manual, ABE Study, Strategic Human Resource Management, (pg. 4,5)