Strategic Human Resource Management: Roles, Significance, and Implementation
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This guide provides an overview of strategic human resource management, including its roles, significance, and implementation. It covers the SHRM framework, job responsibilities, and range of HR strategies for an enterprise. The guide also explores employee performance management, learning and development, and reward management.
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Running Head: MANAGEMENT0 STRATEGIC HUMAN RESOURCE MANAGEMENT
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MANAGEMENT1 Table of Contents Strategic Human Resource Management...................................................................................2 Analyse the process of strategic human resource......................................................................3 Significance of HR management in Enterprises........................................................................4 SHRM Framework.....................................................................................................................5 Roles in strategic human resource management........................................................................5 HR Manager Job Responsibilities..........................................................................................5 Job Responsibilities of Human Resource Assistant...............................................................6 Job Responsibilities of Human Resource Director................................................................6 Job Responsibilities of HR Business Partner.........................................................................7 Development and Implementation of human resource strategies..............................................8 Range of HR strategies for an Enterprise...................................................................................8 Employee Performance Management....................................................................................9 Learning and Development of Employee..............................................................................9 Employee Reward Management............................................................................................9 Output and Quality Enhancement........................................................................................10 Controversy within SHRM......................................................................................................10 Contemporary issues affecting strategic human resource management..................................11 References12
MANAGEMENT2 Strategic Human Resource Management In domain of management, strategic human resource management is considered to be an influential and significant practice in the business. It includes various approaches and structures that help government regulators and policymakers to reach upon various ideas related to promotion of superior performance in management of human capital within an enterprise.Consideringattainmentofcompetitiveground,managingemployeesinan idealistic way becomes the most essential aspects in scope of business corporations. There are various academics and some individual perceptions for defining SHRM so as to explore its meaning and significance in the dynamic business environment. Definition of strategic human resource management is not static, however, it is assumed that it the key to enhancing the level of business performance in relation with future plan they require to achieve. It consists many different and distinct phenomena accompanied from models, theories, and prescriptions. Comparison of Shrm Models High-Performance Management ModelHigh Commitment Management Model It includes extensive systems for recruitment, selection, coaching and flawless job design The growth of career ladders emphasis on commitment and trainability as highly valued characteristics of staffs at all levels in the enterprise Observing attitudes and performance appraisal Decline of hierarchies Greater level participation processes.Greater level of functional flexibility Scheme of compensation and promotionMutual interest
MANAGEMENT3 Analyse the process of strategic human resource With the help of Strategic human resource management, administration plan the components of an HRM system to be consistent with one another in aligning with organisation objectives and strategy. The aim of strategic HRM is the progress of an HRM system that enhance business quality, efficiency, innovation and responsiveness to consumers. There are four distinct stages involved in strategic human resource planning – Environmental/Situation scanning and analysis Anticipating demand for HR. Examining the supply of HR. Building of necessary plans to fill the gap amid HR demand and supply. In first level, the key consideration is related with HR planning which includes interaction of both themes i.e. strategic planning and HR. Environment assessment assist HR planners to recognise and predict sources of opportunities and threats and put necessary efforts towards progress of the enterprise strategic planning. It must ensure that strategic planning must adjust with environmental situations and HR planning is considered to be a prime mechanism that a business firm uses to attain this adaption process. The second level, anticipating demand, needs forecasting not only how many but also what sort of employees will be required in an enterprise. It must closely be linked to the strategic direction of the enterprise. It causes difficulty for the manager due to rapid changing environment. Some of forecasting technique contains estimation of individuals, projections trend, unit-demand forecasting and statistical modelling. The third level comprises examining the types and numbers of existing employees in relation to training and abilities important for the upcoming time. Moreover, it involves supply of qualified individuals in the external labour markets. To evaluate employees supply internally, skillsinventoryisamajortoolwhichconsistslistofindividualname,skillsand characteristics presently working for the firm. Considering external labour market, the entire nation may be relevant labour market for highly skilled jobs. On the other hand, the local community will be the significant labour market for unskilful employments.
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MANAGEMENT4 After examination of both demand and supply for future employees under the HR planning system, the two predictions are matched to explore what if any, practices are required. Hence, if any gap is being identified, the management needs to select an appropriate course of action developed to reduce the gap. For instance, there will be numbers of alternatives available to the enterprise when employee demand is more than the supply of employees. The firm might choose to use overtime work with existing employees, raise promotion and training for present workers, or recruit new personnel. In loose labour markets, the qualified employees are present in greater quantity whereas, in tight labour markets, it is limited. Moreover, when supplier of workers exceed demands, alternative solutions are present include layoffs, demotions, attrition and terminations. Significance of HR management in Enterprises Human resources are referred to like people who make up the whole of organisation and considered most important than an enterprise can own. The identification of the basis of competitive advantage in an organisation is progressively getting importantance with the level of management of people. It also moves towards essential of HRM with considerations of more strategies. In align with the traditional elements of organisation success such as products, technology, estimated markets, economic scale and many more, human resources extend better in terms of sustainability as such. In synchrony with the understanding of important role of human resource in an enterprise, it also impacts the stages of functions by making them more in the hierarchy of enterprise. The key objective of HR management is to ensure that the enterprise sustains and derive skills comprising the requirements of motivated and committed workforce. To fulfil the needs of personnel’s working in an organisation, there is need for development of their intrinsic competenciesthatthey own in termsof contribution,potentialsand employabilityin provision with learning and continuous growth opportunities.
MANAGEMENT5 SHRM Framework Michael Porter established the theory of competitive advantage arose out of an organisation creating value for its consumers. He embraces the significance of differentiation which includes presenting a unique product or service and focuses on specific buyer market efficiently and effectively. Furthermore, a well-known framework is again developed by him relating to three generic strategies, differentiation and cost leadership focuses that firms can use to attain competitive advantage. As per Porter view, firm performance is affected by determinants of industry environment. On the other hand, Resource-based view states that bundle of valuable resources help the firm in attaining competitive advantage. Considering resource-based view, human resource systems can contribute to maintaining competitive advantage by facilitating the building of proficiencies that are organisation specific (Farnham, 2015). The preserved superior performance of any organisation has been credited to distinct abilities for human resource management to attain competitive advantage. In this 20thcentury, no other elements i.e. products, markets, building, or equipment’s are the critical differentiators of an organisation other than people. All the assets of a firm are considered to be passive resources that need human effort to generate value (Hall, 2012). Roles in strategic human resource management The introductionof thesubfieldof strategichuman resourcemanagementextendsto exploring the role of HR in supporting corporate strategy, presenting an opportunity for validating its value to the organisation. HR Manager Job Responsibilities TheHRmanagersaimtosustainandimprovehumanresourcepractices,planning, implementation and evaluation of the employees of an organisation. Some of the major responsibilities of HR manager includes –
MANAGEMENT6 Do timely updating of all job requirements and description considering work structure management with all different position in organisation. Do staff maintenance in organisation by establishing interview, recruitment and testing mechanism of the enterprise. Develop training and orientation programme for the assignment of employees. All the programmes directed towards benefit of employees are managed by these HR managers. Moreover, they also evaluate the needs of the developing trends in terms of employee benefit. Preparing, updating and recommending variouspracticesrelated to maintaining management regulations. All historical records of HR and employees are managed by them for the purpose of record keeping system. Directing and controlling the behaviour of employees towards the job by effective monitoring and planning. Job Responsibilities of Human Resource Assistant The main role of them is to assist the department of HR in terms of daily supervision under various functions and duties. There are various different functional aspects in relation to HR assistant responsibilities. These include employee relations, compensation, development of departments, training and development. Lado and Alonso (2017) identifies major responsibilities of this HR assistant such as – Development of logistics for recruiting and staffing. Monitoring the improvement in skills and supervising employee performance. Improving and progressing relation amid employees by offering huge assistance. Facilitate participation in the entire committee of enterprise. Control effective communication within the organisation. Support the routine operations of HR department for ensuring efficacy. Job Responsibilities of Human Resource Director
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MANAGEMENT7 All general provision relating to policies, programmes and services are maintained and monitoredbyHRdirectorconsideringtheentireorganisation.Someofthemajor responsibilities that HR director performs includes – Organisation and space planning. Monitoring recruiting and staffing. Improving the performance of employees. Ensure the development of enterprise. Ensure that all necessary compliances are fulfilled and followed. Help in policies development and their documentation. To achieve the role of administering benefit and compensation of personnel. Take charge of other responsibilities includes counselling in provision of employee service. HR director is also responsible for developing various objectives and practices which help HR department to make organise employees with adoption of high performing culture. The director also manages the way how policies, programmes and services are executed through the staff of HR. The report is directly submitted to CEO by HR director and hence work with top executives while assisting managers of enterprise. Job Responsibilities of HR Business Partner A very special kind of role is played by HR business partner which improves HR activities and maintain positive employee relations that help in ensuring that legislation is practised and recognised in most effective ways for both the employee and organisation. Some of their major tasks include – They take the role of updating and assisting the HR department on all sorts of matters related to employee. DocontributiontotheHRactivitiesandimprovestheperformanceofentire organisation. To offer advice and support to managers and staffs on various broad issues relating to HR and operational area. Proactively provide advice to managers and HR with problems of administration of employment.
MANAGEMENT8 If any case or claims arise in tribunals, they are responsible for taking the charge of same. Do work in all areas of enterprise to proffer alterations and are made at planned level entirely in the enterprise. Development and Implementation of human resource strategies Strategic human resource is built and based on acknowledgement that an enterprise can perform more efficiently where HR is administered with certain practices and policies of human resource. It also help in providing right number of individuals having positive behaviour and competencies. In another term, it is the “development of association or assimilation amid human resource strategy and overall strategic objectives. Broadly, the people and processes within the organisation are managed in such a way that helps the organisation in fulfilling business objectives in align with main human resources functions such as recruitment, reward and training, so that they can support one another. The practices of SHRM ensures well firm effectiveness with help of building of internally constant packages of HR strategies which are effectively connected to corporate strategies. Many enterprises face difficulties in this dynamic business environment and in order to attain competitive advantage, it is very important to enhance the performance of business. Moreover, business firms are identifying the capabilities of their human resource as a source tocontinuedcompetitiveadvantage.Alongwiththis,thenumberoforganisationsis increasing who seeks for evaluation approaches like personnel scorecards that help them in attaining insights about the way HR adds value in their business firm. Range of HR strategies for an Enterprise Considering the example of British Airways, below are some of the possible strategies in relation to Human Resource such as – Performance Management
MANAGEMENT9 ï‚·Development and Learning ï‚·Reward management ï‚·Improvement of qualities and output Employee Performance Management The effectiveness of organisation can be enhanced with application of management in relationwithemployeeperformance.Withthehelpofperformancemanagement, management and workers of Human resource exchange information and provide their acceptance to work collectively for attaining the set strategic goals of business. However, the managers need to be informed about their roles in terms of objectives and goals of the entire organisation. The HRM of enterprise is required to manage, monitor and assess the employee performance of an enterprise to check whether they are in coordination of attainment of business firm goals. British Airways may choose to initiate an appraisal mechanism for the employees as it will enhance the connectivity of performance and rewards of personnel. Learning and Development of Employee It is necessary that development of employee should be in principal strategy for organisations with coordination of respective objectives and cooperate mission they extend to attain in setting up of supreme services to customers. To establishing greater competence within the personnel, BA HR department may extremely focusontheiremployeesinextentwithindividuallearningasitwillhelptoface unanticipated organisation circumstance that might arise in nearby future. For instance, they can acquire the approach of top flight and system learning offering sort of desired outcome in an enterprise. Moreover, open learning will also improve the confidence of employees with confronting of complex situation. Employee Reward Management
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MANAGEMENT10 In this contemporary world, the use of the reward is one of the prime implemented methods as system of payment. A reward can be perceived in both monetary and non-monetary form but it just should signify that there is something special is being given for their achievement and hard work. Some of the common reward payment systems include remuneration and compensation.HRdepartmentshouldalwaysberesponsibletowardsdevelopmentof effective reward and payment system for all the personnel as it will add value to the strategic plan of firm in line with development of goals that have been established. Output and Quality Enhancement The quality and output play a significant role in terms of organisational behaviour. Various business enterprises are presently incorporating general management of the quality of their strategies which recognises that all staff should take the responsibility of quality in terms of their offering of products and services. BA should always embrace aggregated quality management that will enhance the products and services they offer. Controversy within SHRM There is an interconnected relationship between employer and employee relations while driving organisation achievement. The drive of BA for achievement of competence on the persistent outsourcing and cost-cutting in which the organisation had to confront certain disagreement with its employees that impact the enterprise image. BA had to face lot of strikes but majorly of the motives and cost-cutting is linked with the modification of contract of employment that led several issues with the society as passengers have to always confront the strike when there is need for utmost travelling such as period of New Year celebration and Christmas. This segment is concerned with HR planning, staffing and selection that play another significant role that BA have to go through as an outcome of the many changes that they have to go through including strategic turnaround and privatisation occurred in 1997 and 1987 respectively. Later on, BA also merges with IBERIA which shows that staff management goes global like it used to be in old ways.
MANAGEMENT11 Some other issues faced by BA is the execution of performance management scheme considering existing resources. BA want to set their image as international airline, not as national haulier. Moreover, at a gathering of employees of there in New York, none of the 75 people in audience could state a single line company mission statement. Contemporary issues affecting strategic human resource management British Airways HR planning is one of the important aspects of the enterprise in anticipating the requirement of HR. A system is developed by BA whereby behaviour, competence and the knowledge in employing resources that are experienced and fresh to work with the enterprise to attain its goals. Resource Based Model is being used by the management for the achievement of more than level of average of profit with building of the Value, Rare, Inimitable and Non-substitutable resources. When the enterprise initiated they retained the VIRN and contract out planned actions which help the groups in attaining majority of the outsourcing objectives comprising superior service quality, cost reduction, and focuses on core characteristics of business in direction that meet the goals set by enterprise. Hence, it is significant to meet with the employee's retention to ensure that talent remains within the enterprise. Due to this only, the top executives left out and there are other numbers of people available to increase the scope of skills to make organisation run further effectively. However, BA is operating in dynamic environment and hence they need to move from this model to jeopardy in the procedure of planning for the enterprise. There are various scopes of tests held in BA such as psychometric tests, group exercises, fact- finding exercises and interviews as per annual report of BA. The challenge of performance management by BA is another issue but some specific metrics are used to develop help in tracking of progress against the business plan and some of them are executed for setting of targets depending on remuneration. To attain this, BA also develops an association between
MANAGEMENT12 individual targets and mission statement with communication of shared vision, agreeing responsibilitiesand inspiring all. Considering performance appraisal, BA also did not mention about 360-degree type of feedback however, a one-to-one type of appraisal with the manager. Moreover, to be a competitive airline, BA also adopts new culture which includes variouschangessuch asshiftingof attitude,measuredwith the helpof performance management, to attain new objectives.
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MANAGEMENT13 References Farnham,D.,2015.HumanResourceManagementinContext:Insights,Strategyand Solutions. London: Kogan Page Publishers. Hall, D., 2012. Managing performance and absence. InHuman Resource Management(pp. 223-248). London: Oxford University Press. Lado, M. and Alonso, P., 2017. The Five-Factor model and job performance in low complexity jobs: A quantitative synthesis.Revista de PsicologÃa del Trabajo y de las Organizaciones,33(3), pp.175-182.