Assignment on Strategic Human Resource Management - (SHRM)

Strategic Human Resource
Management
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Table of Contents
Project 1 3
Lo 1 Role of strategic human resource management and how a balance scorecard can be used 3
Analysis of HRM strategies relate to wider management strategies and organizational capabilities and
performance 6
CONCLUSION 7
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INTRODUCTION
Human Resource management is the strategic and the planned approach of an
organization that helps the business in gaining the great success and also helps the company to
exist in a competitive scenario. It is designed to maximize the performance and the productivity
of the employees as well as of the organization. This file includes the role of strategic human
resource management and the importance of Balance score card in knowing the performance of
the employees and at last, it describes about how the Human Resource Management strategies
helps the bigger organization in gaining the success and increases the capabilities and
performance.
Project 1
Lo 1 Role of strategic human resource management and how a balance scorecard can be used
Human resource management is important for every organization and also helpful in
maintaining the productivity and integrity of an organization. HRM focuses on several functions
such as recruiting, gives or provides the benefits, compensation and the suitable trainings to the
employees so that employees can give their contribution and also helpful in completing the goals
as well and gives the success to the organization. Strategic human management links the human
resource with the strategic goals and plans that is helpful for employees as well as for the
company (Delery and Roumpi., 2017). The motive of the strategic human management is to
advance and improve the flexibility and develop the strong strategies to achieve the long term
success and also improves the performance of the business. HR connected with all the
departments to understand their issues and give the proper solution to them but this is impossible
without the better planning because every company needs a healthy and creative environment to
exists their and also it gives the metal relaxation to the employees and if the employees are
mentally healthy, then it is helpful for the company to achieve the long term success. There are
several benefits of the Strategic Human management such as: Increase the job satisfaction,
improves the work culture, better customer services, efficient and skilled resource management
and boost up the productivity of an organization. To grow the business in the right direction, it is
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required to build up the powerful strategies and there are seven steps to create the strategic HR
planning process – 1. Develop the understanding of the company’s objective. 2. Evaluate the HR
capability. 3. Analyze the current HR capacity (Taylor, Doherty and McGraw., 2015). 4.
Estimate the company’s future and the requirements. 5. Determine the tools required for the
employees to complete the job. 6. Implement the human resource management strategies. 7.
Evaluation and the corrective actions for the betterment of the business.
There are mainly 5 functions of strategic human resource management which need to be
followed organizations in order to accomplish their pre determined goals. Workforce planning,
rewards, risk management, employees relationship and training and development. All these
functions are key factors of the success of an organization. It helps them out in strategies
formulations, employee engagement, HR effectiveness, improved productivity and increase
sales. When an organization provides rewards and training to employees then employees feel
satisfied and motivated. Rewards is the best way of motivating employees towards
accomplishing company’s goals. When they feel that company is focusing on their needs then
they put extra efforts and perform all those activities which is beneficial for company. They
provide excellent customers services for satisfying them and attracting them. All these functions
of strategic human resource management decrease labor turnover and retain skilled employees as
well as customers within an organization for the long run.
Importance of Balance Score Card in analysing the employee’s performance
Balance Score Card is like a mark sheet of an employee as well as of the company that is
used for the strategic management. It tracks and improves the internal and external environment
of an organization. The balance scorecard is the best tool to monitor the performance of the
employees and also it is useful during the employee’s appraisals. Sometimes, companies rate the
employees according to their performance and if the employee is little bit down in the
performance, then company analyze the weak point of an employee and gives the training
according to it. It also helps in detecting the employees who are not working as per the
companies requirements and decreasing the productivity of the business. Balance scorecard is
also helpful in aligning the business activities and also covers the following areas of an
organization such as finance, customers, internal process and the learning and growth. The
balance score card was developed by Kaplan and Norton to evaluate the effectiveness and
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performance of an organization as well as of the employees (Hollenbeck and Jamieson., 2015).
Balanced scorecard is applied to the HR department because Human Resource department is the
only one that manages and improves the performance and also makes the strategies for the
organization to get the success and this needs the proper planning and this can be only possible
by the Balance score card which firstly analyze the strengths and weakness of the company and
according to the obtained results, HR takes the suitable actions for the betterment of an
organization and if the strategies of the HR is strong then it also creates the positive impression
on the employees because every employee wants the better workplace and environment to exists.
The main purpose of organizations of using balance score card is to improve various
internal business function by measuring actual performance of employees. It removes biasness
within an organization which helps them in improving a strong relationship with employees. It
provides all type of information’s to company via feedback by which they can take an effective
decision. Some importance and measurement which can be analyzed with the help of balance
score card includes: learning and growth, business processes, customer perspectives, financial
data etc. It can also be said that an effective measurement is an integral part of management
which can be possible by balance score card. By evaluating business process with this tool, an
organization can evaluate and oversee that how well products are manufactured and can also
analyze the gap. After identifying that gap it can modify its pricing and other strategies and
filling up that gap and attracting customers.
LO 2 Analysis of HRM strategies relate to wider management strategies and organizational
capabilities and performance
Analysis of HRM strategies relate to wider management strategies and organizational
capabilities and performance.
The Human resource Management is essential for every organization to manage the
internal and external activities and also responsible for recruiting the right candidate that is
responsible for the development of business (Sánchez, Marín and Morales., 2015). There are
several functions of HRM such as strategic management, workforce planning, training and
development for the employees, policy formulation and the risk management and this functions
are applicable to all type of organizations i.e., micro, small and large. The larger organizations
need the complex network dependencies and here the HRM encourages these organizations to
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adopt the strategies which encourage both cost effectiveness and also employee commitment.
The strategic planning of the HRM contributes in completing the goals and also makes the
stronger existence of the company. Sometimes, the company face many challenges due to the
competitive environment so, HRM with the good strategic planning boost up and improves the
business performance. Although, the Human Resource Management rarely having the direct
impact on an organization but behind every success is the human resource itself. There are
several practice areas of Human Resource Management such as managing knowledge and
intellectual capital and it impacts on both organizations as well as on the employees and
increases the motivation and help the employees in identifying themselves and also contribute to
the achievement of an organizational goal. HRM drives the present and future performance
culture that motivates the high performance in the several areas such as productivity, quality,
level of customer service, growth, profits and delivers the increased shareholder value. HRM
also enables the employees to show the outstanding behavior that is most closely related with
high business performance such as risk taking, innovation, showing the knowledge and
establish the long term relation between managers and the colleagues. Organization also
encourages the employees by the reward management which develops the motivation,
commitment, job engagement. When the involvement of HR is at the right direction, then
competitive advantage can easily be achieved and also the success of the organization becomes
crystal clear (Cristiani and Peiró., 2015).
In addition, it can also be said that in the context of human resource strategies and
workforce planning that it is an important function of HRM that makes able to them to get
qualitative work from them. It can be defined as a continuous process that is being used by the
company in order to align needs of an organization with its skilled workforce. An effective plan
of workforce help HR to maintain a balance between demand and supply of workforce. It also
helps them with the problem of shortage of staff and labor turnover. If there is an effective
workforce planning and a balance then company can increase its overall productivity.
Other strategic human resource strategies like training and development also plays a vital
role in the wider context and the success of an organization. The main responsibility of HR is to
recruit and select employees within an organization. But after selecting them it is also important
for the company to provide them an effective training Every employee has some types of
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weaknesses which they want to improve for performing activities in an effective manner. With
the help of this strategic HRM strategy and training, employees can feel more respected. It
icreases their self esteem and morale. When they perform any type of work in an effective
manner then they are more likely to leave within an organization. It does not only increase
productivity of the company but also improve their brand image and attract wider range of
customers. So, it can be said that HRM strategies related to organizational performance and
capabilities as well.
CONCLUSION
From the above study it has been summarized that HRM strategies played a vital role as it
helped an organization in accomplishing their goals and improve performance. Training and
development, workforce planning, strategic management are some SHRM that has proved an
effective for businesses. Further, it has also shown importance of balance card tool that also
supported the company to evaluate and analyze performance of employees and appraisal them. It
increased employee’s morale and also made them feel respected. Lastly, this study discussed
some importance and role of strategic human resource management for being in a competition
and achieving goals.
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REFERENCES
Books and journals
Delery, J.E. and Roumpi, D., 2017. Strategic human resource management, human capital and
competitive advantage: is the field going in circles?. Human Resource Management
Journal. 27(1). pp.1-21.
Taylor, T., Doherty, A. and McGraw, P., 2015. Managing people in sport organizations: A
strategic human resource management perspective. Routledge.
Hollenbeck, J.R. and Jamieson, B.B., 2015. Human capital, social capital, and social network
analysis: Implications for strategic human resource management. Academy of Management
Perspectives. 29(3). pp.370-385.
Sánchez, A.A., Marín, G.S. and Morales, A.M., 2015. The mediating effect of strategic human
resource practices on knowledge management and firm performance. Revista Europea de
Dirección y Economía de la Empresa. 24(3). pp.138-148.
Cristiani, A. and Peiró, J.M., 2015. Human resource function strategic role and trade unions:
exploring their impact on human resource management practices in Uruguayan firms. The
International Journal of Human Resource Management. 26(3). pp.381-400.
Stewart, G.L. and Brown, K.G., 2019. Human resource management. Wiley.
Jiang, K. and Messersmith, J., 2018. On the shoulders of giants: a meta-review of strategic
human resource management. The International Journal of Human Resource
Management. 29(1). pp.6-33.
Kasemsap, K., 2019. Promoting strategic human resource management, organizational learning,
and knowledge management in modern organizations. In Advanced Methodologies and
Technologies in Business Operations and Management (pp. 879-891). IGI Global.
Analoui, F., 2017. The changing patterns of human resource management. Routledge.
Min, M., Bambacas, M. and Zhu, Y., 2017. Strategic Human Resource Management in China: A
Multiple Perspective. Routledge.
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Chang, Y.Y., 2015. Strategic human resource management, transformational leadership
organizational ambidexterity: evidence from Taiwan. Asia Pacific Business Review. 21(4).
pp.517-533.
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