Strategic Human Resource Management
Human resource management can occur in two distinct approaches. HRM can purely assume administrative function where they enhance paperwork involved for jobs like hiring new employees and managing employee’s compensation insurance. On the other hand, human resource can be strategic enhancers to the firm’s success. Transforming the HR responsibility into a strategic contributor is beneficial since it can take an organization’s workforce plans to the next phase, thus increasing the worth of their human capital to accrue diverse competitive advantages. There is need for HR management to transform from being basic administrative and operation to being strategic for the success of the organization. They persuade the management group to reflect on worker needs and the strategic use of HR operations.
History reveals that many organizations concentrated basically on building physical and capital assets like machinery and property to show their competitive advantage. In the modern world, competitive advantage implies hiring workers, improving them as assets and allocating them to roles while accruing the store of knowledge in the organization. An organization can enrich themselves in human assets and knowledge by pursuing recommendations from HR to provide new performance rewards and incentives to workers. In addition to competitive advantage other advantages of HR management transformation to being strategic include legal compliance, labor-cost efficiency, execute succession, talent management, organizational structure, staffing levels among others.
Organization also transforms to a significant strategic enabler of the long run strategic goals within organizations and companies. HR ought to position the firm by hiring the key employees that aspire to attain these goals, as well as those liable to execute the activities within the sphere of the company vision. HR ought to cope with constant change in the work-life and workplace trends (Mello, 2014). They should devise appropriate change via constant organization development instead of following the existing trend. Additionally, it is of immense significance that the recruitment, strategic objectives, HR policies and systems, training and development are all aligned. The transformation is called for since the principles are not applicable to the HR but as well as other departments within the firm like finance, facilities management, IT and procurement among others. As strategic partners, all of them have a crucial effect on the effective implementation and roll-out of plan and necessity to be the directors of change in their areas of work and not basically followers. Success of any company is affected by their major business and support service members, policies and systems thus HR management should be strategic to realize the company vision.
Why HR Strategic Management Is Important and How to Make HR More Strategic
The modern businesses calls for more than just HR. Companies that focus more on their employees reveal higher performance compared to those which do not focus on culture and employees. In order for organizations to atta