Essay Strategic Human Resource Management

This essay focuses on the role of strategic human resource management in enhancing organizational performance and how frameworks like balanced scorecard can be utilized. It discusses the components of SHRM, its role in organizational management, and how it aids transformational business strategies. The essay also highlights the importance of training, communication, and compliance in SHRM.

Strategic Human
Resource Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Strategic human resource management is the link between human resources of a business
and its strategies, objectives and goals. The main aim of strategic human resource management is
to enhance the overall performance of a business and maintain an organizational culture which
promotes conception and assists in gaining competitive advantage. The following report will
focus on understand the role of strategic human resource management and how frameworks such
as balanced scorecard can be utilized by businesses to improve its overall HRM. Moreover, how
SHRM can widen organizational management to improve their organizational capabilities and
performance.
MAIN BODY
Strategic human resource management is the process that assist employees of an
organization to enhance their personal and professional skills and improve their overall
organizational knowledge. It focuses on providing support to employees through training, career
development courses and performance management (Aazami and Akbari ., 2018). Its main
objective is to evolve a progressive manpower that will help a business to accomplish their aim
and objectives. The process of strategic human resource management can be performed either
formally or informally. For a formal approach, business can use planned organizational change,
offer training to employees to enhance their abilities. Moreover, a business can informally
develop their employees through managers as they can coach employees on particular issues that
they may be facing in order to ensure employees performance is not impacted in the
organization.
The role of SHRM is a well through structure related to how the human resources within
an organization will be managed and can be both strategic and technical in nature. The strategic
aspect of the human resource management lies on the core function of an organizational
management which consist of developing and utilizing organizational policies (Aggarwal .,
2018). These are static in nature and are directed towards the human resources for accomplishing
aims and goals of an organization. SHRM is strategic as its into account the inner framework of a
business and nature related to organizational human capital. It also has a technical element as
HRM consists of fundamental roles such as recruiting, selection and training employees for an
organization. SHRM combine all the basics roles into a organizational strategy to attain an
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effective and efficient work force. Moreover, it provides a business with flexibility in managing
human resources. Along with utilizing them in an effective manner to achieve organizational
goals and objectives and gain competitive positioning. It is crucial for a business to establish that
their overall strategy is aligned with their goals and objectives (Bagader and Adelhadi ., 2021).
In order to increases their chances of success and build the capacity to counter dynamic external
changes in market. Moreover, well-equipped human resources who are aligned with the
organizational strategy combined with effective knowledge about their skill set help in achieving
goals and objectives through behavioural effectiveness.
It is crucial for strategic human resource management ho have various components such as close
cooperation, continuous monitoring, planning, training and implementation. The close
cooperation states an enhanced corporation between human capital resource and the higher
management of an organization while developing organizational strategies. It is vital for both the
management and human resources of the organization to implement the strategy effectively in
order to keep their level of performance high which will aid in accomplishing goals and
objectives. Furthermore, continuous monitoring plays a critical role as it helps in the
determination of the hindrances in the operations and fields that may need to be inspected by the
top management of an organization. It also assist in receiving feedback regarding the direction
opted by the activities in order to calculate its rate of success
Strategic planning assists an organization to determine its current position and identify the
direction it wants to pursuit along with ways to achieve that direction. The process of strategic
planning can vary depending on organization as some prefer to starting with higher authorities,
managerial supervisors of assorted departments and the organization collaborators. On the
contrary, some state that strategic planning should only be performed by the senior management
of an organization (Chawla and et. al., 2021). Moreover, it is crucial for the higher management
to develop a clear-cut idea of organizations vision as it will determine the position of the
business in the distant future. The organization must focus on establishing a leader who is able to
lead and direct the full-length of the process. Strategic training plays a important role as it
focuses on enhancing the abilities and knowledge of employees in the organization. The
management must consider variables such as how the training will be conducted along with
designing a program that will be effective in delivering crucial important information to
employees and finally proper evaluation of the training process. For the management proper
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assessment of the training helps in identifying the needs of the employees and determining if
they aligned with aims and objectives of the organization as training assist the employees to
better understand the matter regarding the organizational objectives. Moreover, the structure of
training allows management to include topics that will help the employees get familiarised with
the objectives and goals set by the organization (Cooper and et. al., 2019). After successful
completion of training, it is vital for management to measure it in order to determine its
prosperity. This ensures that the invested efforts in the training will be paid back by employees
through their increased performance.
The effectiveness of training can be measured from the feedback acquired form employees and
assessment of behavioural changes. This consist of evaluation the overall consequence of the
training program and its impact on the behavioural aspect of employees after they have acquired
new knowledge and qualities. The behavioural changes can be determined by management when
individuals perform their roles and apply their abilities. Effect of a positive training-program
should impact entire business in factors such as increase in overall productivity and gross
revenue, improved level of profits and customer satisfaction.
The organizations use various strategic tools such as balanced scorecard in order to help
measure and improve the strategic role of the human resource department. The balanced
scorecard assists in measuring leading indicators that help in predicting future business growth
(Gomes and Romão ., 2018). The human resource balanced scorecard consist of various
deliverables as they are metrics that linked to the business strategy. The view of balanced
scorecard aims to cover aspect of a businesses as a whole. In consists of the financial aspects, the
point of view in relation to customers, internally followed process and the understanding as well
as development a business expects . In financial perspective the balanced scorecard helps to
establish a balance between the finances and the human resources of an organization. It assists in
understanding the aspects of indulging in employees relations, inefficiency due to staff vacancies
and how to enhance the abilities of employees. The balanced scorecard helps a business to
understand customers perspective by separating it into 2 groups that are business units and
employees of the company. The business units focus on the operations of a human resource
department such as identifying capable talent, effective hiring of individuals and resolving
human resource related business issues.
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On the other hand employees of the company topically look in providing support to employees
by understand company's perceptiveness, emphasising employees satisfaction, providing training
and making sure all employees are fairly compensation. These groups combined enable a
business to provide better support to the needs and wants across the company by listening to
concerns and feedback from both the groups.
The internal perspective of balanced scorecard follow various themes that help a business to
efficiently manage their human resources. These themes include hiring which requires recruiting
, developing and retaining talent for an organization (Lu and Wang ., 2019). Moreover, it
involves creating culture which focuses on high-performance and community engagement. It
also includes communication and compliance elements that play a major aspect in
communicating vital matters related to strategy, recompense and overall business performance to
employees. Furthermore, it helps employees to understand and follow governmental and
intracompany policies of an organization. It also includes the aspect of quality service that help
the human resource department to clear up the goals of all various departments and introduce
methods to help in achieving their objectives. It provides training element to the human resource
department which enable them to fix gapes within the enterprise and provide opportunity of
training to provide assistance to each department that has the resources to operate on its
priorities. It isn't necessary that all the themes or elements are utilized by the human resource
department as some elements can be used to improve lacking areas of an organization.
The learning and growth perspective provide an organization the ability to access the skills,
talent and knowledge acquired by their employees and help in staff engagement, employee
alignment and how team work can be improved (MurÐ ., 2018). The balanced score card provide
an organisation with various advantage such as integrating various forms of business programs
and connecting the higher level management with the subordinate managers to understand the
plan of actions that has to be taken in order to enhance organizational efficiency. On the
contrary, the balanced scorecard has its disadvantages as well such as it need for regular
modification to make it applicable for a given point of action and although employees put in
effective efforts towards the internal process, the higher authorities will still focus on outcome
related to enhanced financial performance.
Strategic human resource management plays a crucial role in various strategic
management of an organization. It helps in the process of developing business strategy by
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recruiting, developing and retaining the best talent in the market to give an organization a
competitive advantage. It also aims to develop and maintain on organizations culture progressive
and conducive to the organizational needs. Moreover, it helps in operational strategy as human
resources are used to implement a cohesive and actionable plan of an organization. It assist in
identifying which capabilities are required by employees or can be enhanced to help a business
accomplish its goals and objectives. Furthermore, strategic human resource management aids
transformational business strategies in any shift or fundamental change in business operations
by making employees proactive to various changes that can have a negative impact on the
organization. It enables a business to be prepared for any changes in the business scenario.
The strategic human resource management enables a business to identify, prioritising and
exploiting opportunist by efficiently utilizing human resources and increasing the success rate of
organizational goals being met (Novikova, Davletkireeva and Romanova ., 2020). Moreover, it
aid a business to gain an objective view of management problems by introducing feedback from
employees which help in enhancing the culture within the business. Furthermore, it allows the
management to effectively allocate time and resources of a business by hiring capable
individuals and ensure to minimize the effects of adverse conditions and changes. It helps a
business to create a framework for internal communication among personal which results in
effective communication of roles and guidelines provided to employees to perform their task
(Rankin and Sherer ., 2019). The effectiveness of a strategic human resource management
encourage a favourable attitude towards change in the organization and reduces the changes of
increase in turnover rate. It also helps to promote a co-operative, integrated and enthusiastic
approach to tackle problem and opportunities among employees which enable them to solve
complex tasks and issues.
CONCLUSION
From the above essay it is concluded, that strategic human resource management plays a
crucial role within a business for it to function in an effective and efficient manner. It enables a
business to ensure its performance levels stay high by hiring talented individuals who are focuses
in accomplishing organizational goals and objectives. Moreover, how frameworks such a
balanced scorecards can be used in order to help a business effectively utilize their human
resources and help their employees to gain valuable knowledge and skills along with improved
personal and professional abilities to help organization meet its objectives. Strategic human
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resource management allows complex and major decisions of an organization to be taken in an
effective manner by involving human resources in business decision making process.
Furthermore, how an effective strategic human resource management can assist other
management strategies of an organisation and provide support in their overall operations.
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REFERENCES
Books & Journals:
Aazami, M. and Akbari, P., 2018. Analysis of the Impact of Social Interactions and Human
Resources Strategy on Organizational Consequences. Journal of Strategic
Management Studies, 8(32). pp.57-74.
Aggarwal, D., 2018. Strategies to deal with Organizational stress. NOLEGEIN-Journal of
Leadership & Strategic Management, pp.39-41.
Bagader, A. and Adelhadi, A., 2021. THE NEED TO IMPLEMENT GREEN HUMAN
RESOURCE MANAGEMENT POLICIES AND PRACTICE IN CONSTRUCTION
INDUSTRIES. Academy of Strategic Management Journal, 20. pp.1-7.
Chawla and et. al., 2021. The effect of knowledge management capacity on firm performance
through sequential mediations of strategic HRM, administrative and technical
innovations. Journal of Asia Business Studies.
Cooper and et. al., 2019. Well‐being‐oriented human resource management practices and
employee performance in the Chinese banking sector: The role of social climate and
resilience. Human Resource Management, 58(1). pp.85-97.
Gomes, J. and Romão, M., 2018. Gaining Sustainable Competitive Advantage: Balanced
Scorecard Approach. International Journal of Computers in Clinical Practice
(IJCCP), 3(1). pp.13-26.
Lu, D. and Wang, C., 2019, July. Application research of balanced scorecard in performance
assessment of public hospitals. In Proceedings of the 2019 10th International
Conference on E-business, Management and Economics (pp. 90-94).
MurÐ, I. V., 2018. Ensuring the sustainable development of industrial enterprises on the basis of
a balanced scorecard. Russian Journal of Industrial Economics.
Novikova, T. B., Davletkireeva, L. Z. and Romanova, E. V., 2020, October. Balanced Scorecard
Modeling: an Effective Management Tool. In 2020 International Multi-Conference on
Industrial Engineering and Modern Technologies (FarEastCon) (pp. 1-6). IEEE.
Rankin, S. and Sherer, P. D., 2019, July. Is Strategic HRM Losing Its Way-and Possibly Its
Identity? A Social Network Perspective. In Academy of Management
Proceedings (Vol. 2019, No. 1, p. 15157). Briarcliff Manor, NY 10510: Academy of
Management.
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