Analyzing Strategic Human Resource Management: Practices and Impact

This essay provides a comprehensive overview of strategic human resource management (HRM) practices, discussing their advantages, disadvantages, and essential elements. It emphasizes the importance of aligning HR strategies with business goals to enhance employee engagement, team building, and legal compliance. The essay also highlights the complexities and time-consuming nature of strategic HRM, along with the need for careful planning and implementation. Furthermore, it identifies key elements such as planning and assessment, team and individual development, career planning, and effective HR practices like employment security and information sharing. The document concludes by underscoring how effective HRM practices can significantly impact a company's revenue and profitability, directing overall actions according to company needs.

Human Resource
Management
Student’s Name:
Student’s Id:
Subject:

1
Answer 1
Strategic human resource practices is a practice of retaining, rewarding, developing as
well as attracting the employees for the benefit of both firm and employees (Albrecht, Bakker,
Gruman, Macey & Saks, 2015). It also utilizes the process of formulating strategies to achieve
business goals and several techniques of human resources to build a strong organization. It is a
planned practice to deal with the human resource department of a company for developing and
improving the output of the concern. One of the critical aspects of strategic human resources
practices is training.
Advantages of strategic human resource practices
Helps in evaluating policies of HR – This practice of strategic human resource involves
the procedures and policies of the business that should fit the organizational plan related to its
employees (Chadwick, Super & Kwon, 2015). By developing the link between strategy and HR,
it helps the firm to evaluate the HR policies which will enhance the relation of employees with
the organization.
Develops team building – A practice of strategic human resource helps to raise team
spirit within the firm. It also makes the shareholders feel that their opinions are valued by the
owner of the firm.
Helps in monitoring progress – This particular strategic human resources practice helps
an organization in monitoring the progress of the company to achieve business objectives or
goals through a strategic plan. The major advantage is that the executives, as well as HR of the
company, can continuously monitor the progress of one another.
Keeps the firm legal – A crucial advantage is that it keeps the business compliant with
laws related to salary, employees, and insurance. It maintains the strategic plan of the company
legal so that it can adapt to changing legal conditions.
The other benefits are that it helps in analyzing the threats as well as opportunities within
the external environment of the company (Stone & Deadrick, 2015). It also controls and assesses
the activities of the firm to ensure that the purposes of the business are achieved successfully.

2
Disadvantages of strategic human resource practices
A complex practice – Strategic human resources practice consist of valuations of various
elements like structure of business, internal and external environment, strategic control and long-
term as well as short-term objectives. These elements are linked with each other, so a change in
one element affects the other.
Time-consuming – Strategic human resource managers spend huge time in preparing or
communicating the strategic practices, and as a result, it has a negative impact on the company.
Difficulty in implementation – The implementation of the strategic practices needs
active participation as well as the full attention of all the members of a company (Barrick,
Thurgood, Smith & Courtright, 2015).
Requires proper planning – Strategic plans help to reduce ambiguity in meeting long-
term goals of a company. Hence, to avoid pitfalls, managers require to set a skillful planning for
strategic practices.
The other limitations are that it provides short-term orientation of the company which
may hinder human resource management. It also arises a feeling of risk among the managers of
HR in investing heavily on human resources. There is a lack of trust and teamwork in the various
departments of the organization.
Answer 2
Strategic human resource practices are used in the expansion, productivity as well as the
growth of the business. The main purpose of strategic human resource practices is to build the
capability of strategy among the members to sustain the competitive advantage of the
organization (Delery & Roumpi, 2017). It also provides a sense of direction to the employees to
fulfill the execution of human resource programs. There are a few essential elements of strategic
human resource practices that need to be considered.

3
Elements of strategic human resources
Planning and assessment: It means how a company sets objectives, evaluate the
performance of the team and individuals, plans the performance and provide ongoing coaching
(Inkinen, 2016).
Development of team and individual: It refers to how the business ascertains the
requirements for the development of employee skill, education or growth and how they fulfill
those necessities.
Planning for the career: It means how a firm attempts to help its employees to learn
their strengths as well as weaknesses and how they match their abilities with future work.
Hiring: This element refers to how a company express and fill the positions with skilled
people within as well as outside the company.
Career Pathing: It means how an organization defines the logical progression of
assignments for key roles in providing a pool of qualified employees.
Series of planning: How a business recognizes a vital position as well as roles to fill the
position in the future.
Job design: How a firm ascertains the best method for completing work. The two types
are the team and the individual job.
Classification: A systematic process of evaluating an appropriate range of salary for
various roles in a company.
Reimbursement: It means how a firm rewards its staffs through benefits, salary or
bonus.
Effective strategic Human Resource Practices (HRP)
Effective HRP, are the practices that help a company to achieve more profit and revenue
(Stone, Deadrick, Lukaszewski & Johnson, 2015). Development of leadership, management of
performance as well as talent are recognized in effective HR practices. One of the significance of
effective human resource practices is leading the executives of the company to add the value of

4
their employees into their balance sheet. Leaders in various firms are in search of other ways to
measure human resource practices as well as the value of their staff members.
Effective HR practices may impact the strategies of human resources in the business.
Effective HR practices are deployed by the leaders of several other companies through investing
money and time. Organizations that have an experience of effective HR practices can increase
the growth of revenue up to 3.5 times and the profit boundaries up to 2.1 times than other less
skilled organizations (Marvel, Davis & Sproul, 2016).
An effective strategic human resource practices helps to direct the actions of overall
members according to the needs of the company. A meaningful strategy or plan is allowed for all
work with human resources. It also defines the responsibilities and needs while recruiting the
employees. Effective HR practices involve practices of employment security, sharing of
information, extensive training, selective hiring, effective team in the organization, and
contingent pays.

5
References
Albrecht, S. L., Bakker, A. B., Gruman, J. A., Macey, W. H., & Saks, A. M. (2015). Employee
engagement, human resource management practices and competitive advantage: An
integrated approach. Journal of Organizational Effectiveness: People and
Performance, 2(1), 7-35.
Barrick, M. R., Thurgood, G. R., Smith, T. A., & Courtright, S. H. (2015). Collective
organizational engagement: Linking motivational antecedents, strategic implementation,
and firm performance. Academy of Management journal, 58(1), 111-135.
Chadwick, C., Super, J. F., & Kwon, K. (2015). Resource orchestration in practice: CEO
emphasis on SHRM, commitment‐based HR systems, and firm performance. Strategic
Management Journal, 36(3), 360-376.
Delery, J. E., & Roumpi, D. (2017). Strategic human resource management, human capital and
competitive advantage: is the field going in circles?. Human Resource Management
Journal, 27(1), 1-21.
Inkinen, H. (2016). Review of empirical research on knowledge management practices and firm
performance. Journal of knowledge management, 20(2), 230-257.
Marvel, M. R., Davis, J. L., & Sproul, C. R. (2016). Human capital and entrepreneurship
research: A critical review and future directions. Entrepreneurship Theory and
Practice, 40(3), 599-626.
Stone, D. L., & Deadrick, D. L. (2015). Challenges and opportunities affecting the future of
human resource management. Human Resource Management Review, 25(2), 139-145.
Stone, D. L., Deadrick, D. L., Lukaszewski, K. M., & Johnson, R. (2015). The influence of
technology on the future of human resource management. Human Resource Management
Review, 25(2), 216-231.