Strategic Human Resource Management and its Importance in Today's Work Environment

This article discusses the importance of strategic human resource management in today's work environment. It covers topics such as the growing trend of human resource, effective employee assessment methods, compensation types, and performance appraisal systems. The article also highlights the challenges faced by employees and the need for investing in employee education.

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STRATEGIC HUMAN RESOURCE MANAGEMENT
Student Name
Name of the Course
Professor Name
Name of the School
City or State located
Date

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Question 1
Due to the current change in the work environment, advancement in technology and
increase in the global expectations, it is evident that human resource is the actually the next big
thing (Price, 2007, pg. 68). According to Mathew and Daisy (2008), the human resource function
has revolutionized from dealing with basic controls to handling more complex levers such as
increasing the value worth of human capital. For instance, the human resource professional will
not only be involved in the selection and employment process but also in strategic management.
This ensures efficiency and effectiveness in execution of work. In today’s competitive
environment, lack of productivity of an organization can lead to possible extinction in the
market. As a result, the human resource department is responsible in curbing the problem (Price,
2007, pg. 71).
As baby boomers are leaving their offices, a new set of skills is being brought in by the
new generation hence increasing the expectation in the work place. In the near future, where
there is increased global competition, the success of a business is highly depended on the HR
department. Consequently, human resource experts will be such a great asset in transforming
economies. The chart below represents the growing trend of human resource. It is evident that
there has been subsequent growth in the last six years and is expected to grow by 12% in the next
year due to growth in various sectors of the economy.
Trend in HR
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
0.5 Global trends in HR
2012 2013 2014 2015 2016 2017 2018

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Question 2
An application form is a document that provides accurate and verifiable information
about a candidate for the purpose employment. It mainly contains personal information of the
applicant, education history, employment or work-related information and any other experience
that is relevant to the job. The form may also include sections where the applicant is required to
fill in competency questions and the reasons for application. The skills and interests of the
applicant are also required in the application form as they explain more about the individual.
Organizations can intrude into the personal lives of employees by asking for information
that is not work related (Lukaszewski et al, 2016, pg. 54). For example, asking for detailed health
related information is a breach of privacy because the applicant may not want to share such
information. As long as the employee is able to work effectively and match up to the
organizational standards, such information is considered to be confidential. Information related
to family is also sensitive to the employee. Unless an organization wants to insure the family of
the employee, soliciting such information is intruding employee privacy.
Question 3
In regards to the assessment methods, the cognitive ability test is more effective. The test
helps in identifying an individual’s ability to understand new information effectively unlike
academic skills assessments which test the ability to retain information. A clear understanding of
an individual’s cognitive tests is very important in the employment process of a senior manager
due to the duties and responsibilities involved. These tests enable the employer to ascertain if the
candidate is effective in decision making, has quality problem solving abilities and measure the
general intelligence quotient of the applicant (Geisinger, 2016, pg. 246). Cognitive ability tests
also aid in ensuring that the individual is an analytical thinker and has effective communication
skills.
It is also vital to note that cognitive tests are simple, cost effective and easy to administer.
Logic and reasoning are very critical skills especially for managers in ensuring a smooth running
of operations in the company. (Gatewood, Feild, & Barrick, 2015, pg. 130). In conclusion, it is
evident that cognitive ability tests help to accurately measure the potential performance of a
candidate in a given role as compared to other assessment methods.

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Employee Assessment tools
Cognitive ability Job Knowledge Personality Biographical data
Integrity Structured Interviews Physical fitness Situational Judgment
Work Samples Assessemnt centers Physical ability
From the above chart, it is evident that Cognitive ability tests are more accurate in
measuring the abilities and skills of an individual and are therefore the best assessment tool in
the employment process.
Question 4
Performance appraisals systems in organizations need to be very effective in order to
improve, sustain and manage the performance of employees (Mone & London, 2018, pg. 8). It is
evident that the most critical factor in ensuring appraisal systems are effective is acceptance by
the users. This can be achieved by ensuring that the organization sets smart goals for the
employees. These goals must be specific, measurable, actionable, time bound and relevant. This
will help the employees not to dread such appraisal since they are easily achievable. Educating
the employees and the managers on the importance of the appraisal systems and how to ensure
minimum bias in the measurement systems also increases acceptance (Mone & London, 2018,
pg. 67).
It is evident that most performance appraisal systems do not have positive impact because
they is lack of focus. However, ensuring that such systems create a platform for the success of
everyone is the organization can increase confidence and increase efficiency. In order to reduce
bias and incorporate new ideas, the management should allow appraisal processes to be

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conducted by external parties (Mone & London, 2018, pg. 96). This increases the confidence
among employees and also contribute to the success of the organization because external parties
are able to point out details that internal management may overlook.
Question 5
Investing in educating the employees is a challenge to many organizations due to the
costs involved (José & Sobral, 2011, pg. 162). However, it is evident that success and
productivity is directly connected to organizations investing in their employees. Educating the
employees should be seen as an investment and not a cost because it ensures that the employees
are skilled and qualified thus bringing out their best talents which in turn has a positive impact
on the organization. It is also evident that it acts as an incentive to motivate and retain the
employees thus reducing the rate of turn-over. Trained staff can execute their duties properly and
the acquired skills enable them to contribute more to the organization (José & Sobral, 2011, pg.
171).
Other organizations view such educational workshops as a cost due to the financial input
required. It is also evident that the return on such an investment cannot be seen immediately. If
companies expect quick results they may be discouraged because such results can only be seen in
the long term
Question 6
Direct and indirect compensation are the two ways in which employers compensate their
employees. Direct compensation involves payment in terms of monetary value that is given
periodically or in intervals (Bogardus, 2004, pg. 93). Examples of direct pay include basic salary,
allowances and bonuses, medical covers among others. Indirect compensation refers to payment
given to employees in form of benefits and services. Examples of indirect payment includes,
medical insurance, retirement benefits, education opportunities, provision for vacations and
holidays among others (Bogardus, 2004, pg. 95). Both compensation types have an impact on
employees and determine their effectiveness and commitment to the organization.
It is evident that most organizations value the indirect pay more than the direct pay
because it assists in attracting and retaining highly competitive employees. It is evident that such
provisions increase the motivation of employees thus improving performance (Bogardus, 2004,

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pg. 96). However, direct pay is also vital for the employees since it aids in promoting savings. In
addition, employees are able to afford a particular standard of living. Research states that a high
percentage of employees’ compensation should be indirect for long term purposes hence
preventing wastage while only a small percentage should cater for the direct package.
Question 7
It is vital to note that both the employee and the employer depend on one another in order
to accomplish the set business goals and therefore they are mutually depended (Singh. 2011, pg.
125). However, research done by Staples Business Advantage states that approximately 91% of
all employees are overworked beyond the standard time which is 40 hours a week. As a result,
employees end up giving more than their employers. This can be measured by the time taken by
employees in the work environments and the input exerted to ensure that work is done
accordingly. However, employers do not keep their end of the bargain. There is increased job
insecurity, poor working environments and low compensation for such workers as compared to
the level of productivity in the organizations.
Despite the challenges that employees face, they still ensure that they work effectively in
order to maintain their positions in the work place and also for them to sustain themselves with
the pay they receive (Singh. 2011, pg. 127). Lack of knowledge of their rights as employees is a
factor that causes the employers to take advantage of them.

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References
Bogardus, A. M. (2004). Human resources jumpstart. San Francisco, pp. 91-96.
Gatewood, R., Feild, H.S. and Barrick, M., 2015. Human resource selection. Nelson Education,
pp. 129-131.
Geisinger, KF 2016, '21st Century Skills: What Are They and How Do We Assess
Them?', Applied Measurement in Education, vol. 29, no. 4, pp. 245-249.
José Chambel, M. and Sobral, F., 2011. Training is an investment with return in temporary
workers: A social exchange perspective. Career Development International, 16(2), pp.161-177.
Lukaszewski, K.M., Stone, D.L. and Johnson, R.D., 2016. Impact of human resource information
system policies on privacy. AIS Transactions on Human-Computer Interaction, 8(2), pp.58-73.
Mone, E.M. and London, M., 2018. Employee engagement through effective performance
management: A practical guide for managers. Routledge, pp. 14-104
Price, A. (2007). Human resource management in a business context. London, Thomson, pp. 68-
69.
Singh, P. N. (2011). EMPLOYEE RELATIONS MANAGEMENT. [S.l.], PEARSON
EDUCATION INDIA pp. 125-127.