ঢাকা শনিবার, ডিসেম্বর ৭, ২০১৯



Strategic Human Resource Management (SHRM)

Md. Uzzwal Hayder

Manager Human Resource Development
Crystal Martin Apparel Bangladesh Limited.
A Subsidiary of Crystal International Group Ltd, UK.


Introduction:

People are the most valued assets of any organization because they individually and collectively contribute to achieving objectives. But in a time of rapid change, how do you plan and make strategic human resources choices that will boost your organization toward its goals?

Strategic human resource management is an approach to the practice of human resources that addresses business challenges and makes a direct contribution to long-term objectives. The primary principle of strategic human resource management is to improve business performance and uphold a culture that inspires innovation and works constantly to gain a competitive advantage. It’s a step above traditional human resources management and has a wider influence throughout the organization.

In this article, I have tried to define and discuss the roles and significance of strategic human resource management.

Definition:

SHRM is the Proactive management of the employees of a company or organization. Strategic human resource management includes typical human resource components such as hiring, discipline, payroll, and involves working with employees in a collaborative manner to boost retention, improve the quality of the work experience, and maximize the mutual benefit of employment for both the employee and the employer.

  • Strategic human resource management is linking of human resources with objectives and strategic goal in order to develop business culture and performance with flexibly, innovative.
  • In an organization SHRM means involving the HR function and implementing company’s strategies through recruiting, selecting, training and rewarding personnel.

Strategic human resource management is the connection between a company’s human resources and its strategies, objectives, and goals. The aim of strategic human resource management is to:

  • Advance flexibility, innovation, and competitive advantage.
  • Develop a fit for purpose organizational culture.
  • Improve business performance.

In order for strategic human resource management to be effective, human resources (HR) must play a vital role as a strategic partner when company policies are created and implemented. Strategic HR can be demonstrated throughout different activities, such as hiring, training, and rewarding employees.

Strategic human resource management involves looking at ways that human resources can make a direct impact on a company’s growth. HR personnel need to adopt a strategic approach to developing and retaining employees to meet the needs of the company’s long-term plans.

Why is Strategic Human Resource Management Important?

Companies are more likely to be successful when all teams are working towards the same objectives. Strategic HR carries out analysis of employees and determines the actions required to increase their value to the company. Strategic human resource management also uses the results of this analysis to develop HR techniques to address employee weaknesses.

The following are benefits of strategic human resource management:

  • Increased job satisfaction.
  • Better work culture.
  • Improved rates of customer satisfaction.
  • Efficient resource management.
  • Low absenteeism
  • Low employee turnover
  • High efficiency
  • Boost productivity.
  • High profitability
  • Team work mentality
  • Motivated workforces
  • A proactive approach to managing employees.
  • Increased organization’s reputation
  • Increased revenue
  • High Loyalty
  • Employee engagement
  • Employee Development
  • High employee retention
  • Adoption to change
  • Optimum employee feedback
  • Managing Payroll Costs
  • Dropping Labor-Related Costs
  • Business growth
  • Business change
  • Re-skilling
  • Up-skilling
  • Succession planning

HR Requirements for Implementing The SHRM

The required experience and other qualifications of the employees for making plan, organize, design, as well as implementation of SHRM  are as below:

  • Honesty, integrity and morality.
  • Adaptability, Flexibility.
  • Dedication and hard working.
  • Dependability/Reliability/Responsibility.
  • Loyalty.
  • Positive Attitude/Motivation/Energy/Passion.
  • Professionalism.
  • Self-Confidence.
  • Self-Motivated/Ability to Work with Little or No Supervision.
  • Willingness to Learn.

The Seven Steps To Strategic Human Resource Management:

Strategic human resource management is key for the retention and development of quality staff. It’s likely that employees will feel valued and want to stay with a company that places a premium on employee retention and engagement. Before you implement strategic human resource management, you will need to create a strategic HR planning process using the steps below:

  1. Develop a thorough understanding of your company’s objectives:

Since the success of strategic HR is dependent on how well it links to your company’s goals, you need to have a thorough understanding of your aims, objectives, and mission. You’ll need to be able to articulate both your short and long-term plans for growth to the relevant HR personnel. Ensuring clear communication of your company’s goals will make it easier for HR personnel to formulate an effective resource management strategy.

  1. Evaluate your HR capability:

Evaluating your current HR capabilities will enable you to understand the employees you have and how they contribute to fulfilling your goals and objectives. Additionally, you should also undertake a skills inventory for every employee. Skills inventories help you to discover which employees are experts in particular areas. It also helps you to identify the employees who have an interest in being trained in a particular aspect of your company. A great time to assess skills is during a performance review. However, the traditional performance review is dying. Check out how to conduct an efficient and results driven performance review while obtaining the skills inventory you need from your employees.

  1. 3. Analyze your current HR capacity in light of your goals:

An assessment of your HR capacity will help you to recognize barriers and implement a plan of action to capitalize on opportunities and effectively deal with threats. Strategic HR personnel will analyze the number of employees as well as their skills and will work with senior leadership to identify ways to better equip employees to serve the needs of your company.

  1. Estimate your company’s future HR requirements:

After an analysis of your company’s employees and skills has been done in relation to your objectives, it’s time to forecast your HR needs. The forecast should be done in relation to:

  • Demand – A prediction needs to be made in relation to the number of employees with the associated skills that will be required in order for your company’s future needs to be met.
  • Supply – Looks at the employees and skills that are currently available to help your company achieve its strategic goals.

Forecasting your company’s future HR requirements also determines the following:

  • New jobs and roles required to secure the future of the company.
  • Skills required by current employees to undertake the responsibilities of new jobs and roles.
  • Whether your employees’ expertise is being sufficiently utilized.
  • Whether current HR personnel and practices can accommodate the company’s growth.
  1. Determine the tools required for employees to complete the job:

HR personnel need to liaise with the appropriate departments to find out how the tools used by employees impact on their ability to perform their roles. For example, an audit of hardware and software can be undertaken jointly with the I.T department to identify gaps in tools that will facilitate a more organized workforce. For example, where a company employs hourly staff, it’s crucial to utilize workforce management software. This software manages important HR functions such as scheduling, holiday entitlement, and sick leave.

  1. Implement the human resource management strategy:

After the analysis and forecast of your company’s HR requirements have been completed, it’s time to start the process of expanding your workforce and developing current workers to equip your company for future growth.

You can achieve the implementation of your human resource management strategy by doing the following:

  • Start with the recruitment stage – At this point, HR professionals begin searching for candidates who possess skills that have been identified during the HR strategic planning process.
  • Organize a selection process – Interviews and other selection criteria take place at this time. Interview questions such as “what are your salary requirements?” and relevant tests will be used to assess whether the candidate is suitable to carry out the role.
  • Begin hiring applicants – Your company will make the candidate a job offer after all appropriate checks have been carried out.
  • Design onboarding and training – Onboarding is a key determining factor as to whether an employee remains with a company. A comprehensive onboarding and training package must be put in place to increase employee retention. Once you have onboarded your employees well, another important step to retaining them is to keep them engaged.
  1. Evaluation and corrective action:

HR personnel should decide on a timeline to carry out a strategic HR management review. This review will track the progress made and also identify areas for improvement. The review should be measured against whether changes are helping your company to achieve their goals. Corrective action must be taken if strategic human resource management is failing to meet its objectives.

Globalization and Its Impact On SHRM:

 The last decade has witnessed a lot of changes due to the impact of globalization, fewer trade barriers, and the rapid spread of the cyber revolution, All these changes and fluctuations have changed the world of work. in response to these changes, organizations and institutions are increasingly realizing the importance of human competitiveness as essential to organizational survival and success, which has created a new paradigm shift as to the ways in which people should be managed, that has pushed the expansion of Strategic HRM.

The essence of Strategic HRM is that people are regarded as competitive assets to be led, motivated, and deployed, in ways that contribute directly to the attainment of the organization’s strategic objectives. Strategic HRM is to ensure that the organization is able to achieve success through people. Modern day organizations are in quest of gaining competitive advantage over their competitors and the belief is emerging that human resources are those strategic assets that can lend an organization added value over their competitors.

 In a research paper “{The Impact of Globalization on Human Resource Management in Zambia: Gaining Competitive Advantage through Effective Management of Human Resources” a consensus has emerged among scholars and practitioners alike that the business environment has become more competitive than in the past because of globalization. In order to survive in this new era, businesses have to focus even harder on their competitive strengths so as to develop appropriate long-term strategies. Old practices and systems that have changed over time are no longer appropriate.

Since globalization has an influence on the HRM practices of the organizations, so it is essential to standardize the strategies and processes of the organizations. In this concern, the practice of SHRM is beneficial for the organizations to take proactive measures for improving the efficiency of the employees and encouraging the feeling of collaboration among them.

Globalization represents the structural making of the world categorized by the free flow of technology and human resources across national boundaries as well as the spread of Information Technology (IT) and mass media presenting an ever-changing and competitive business environment. The coming of the 21st century globalization poses distinctive HRM challenges to businesses especially those operating across national boundaries as multinational or global enterprises.

 In today’s aggressive global market, it has become necessary for organization to expand internationally to gain competitive advantage. Globalization has forced organization and their human resources functions to redefine their strategies. It is necessary for the management to invest considerable time and amount, to lead the changing scenario of the Human Resource Department in the 21st century. In order to survive the competition and be in the race, HR Department should continuously update itself with the transformation in HR suitable HR Policies that would lead to the Achievement of the organization as well as the individual’s goals should be formulated.

When it comes to business, the world is indeed becoming a smaller place. More and more companies are operating across geographic and cultural boundaries. While most have adapted to the global reality in their operations, many are lagging behind in developing the human resource policies, structures, and services that support globalization.

The human resource function faces many challenges during the globalization process, including creating a global mind-set within the HR group, creating practices that will be consistently applied in different locations/offices while also maintaining the various local cultures and practices, and communicating a consistent corporate culture across the entire organization. To meet these challenges, organizations need to consider the HR function not as just an administrative service but as a strategic business partner. Companies should involve the human resources department in developing and implementing both business and people strategies. This type of partnership is necessary if an organization wants to change potentially in accurate perceptions of HR and reiterate the HR function’s purpose and importance throughout its global environment. Organizations will also discover that HR can be invaluable in facilitating the development of a unifying corporate culture and finding and cultivating much needed leadership talent around the world.

The process of globalizing resources is challenging for any company. Organizations should realize that their global HR function can help them utilize their existing human talent from across multiple geographic and cultural boundaries. International organizations need to assist and integrate their HR function to meet the challenges they face if they want to create a truly global workforce.

The Impacts Of SHRM On the Performance of Organization:

Many organizations face a volatile market situation. In order to create and sustain competitive advantage in this type of environment, organizations must continually improve their business performance. Increasingly, organizations are recognizing the potential of their human resources as a source of sustained competitive advantage. Linked to this, more and more organizations are relying on measurement approaches, such as workforce scorecards, in order to gain insight into how the human resources in their organization add value.

 The assumption behind the practice of HRM is that people are the organization’s key resource and organizational performance largely depends on them. If an appropriate range of HR policies and processes is developed and implemented effectively, then HR will make a substantial impact on organization’s performance.

Although there are various stakeholders in an organization, the chief strategic goal of any business is higher financial performance or maximization of wealth for the shareholders.

Examples of Strategic Human Resource Management:

With more than two million employees, Walmart is the world’s largest employer. This retail giant places a premium on the role of HR to drive and grow its business. The emphasis on the value of employees has been evident from the start when Walmart’s founder, Sam Walton, named the HR department the ‘People Division.’

HR Magazine uses Walmart as an example of how strategic human resource management can be used to establish a profitable company. The article provides details about how Walmart aligns its seven overriding strategies (price, operations, culture, key item/products, expenses, talent, and service) with human resource strategic management, for example:

  • Operational success is achieved because Walmart invests in continuous training and learning for its employees. Walmart also seeks to empower its employees to take ownership of their work for more successful teamwork.
  • Company culture is emphasized because Walmart managers attend cultural training at the Walton Institute. The Walmart culture is defined by managers having an entrepreneurial mindset that encourages a problem-solving approach. For tips on creating an amazing culture, download our guide on creating a healthy multi-gen workforce.

Walmart’s HR strategy is to train managers to make decisions in relation to customers in their store as quickly as possible.

In addition to Walmart, Human Resources MBA compiled a list of 30 of the world’s most innovative HR departments. This list contains examples of companies that use human resources strategically to grow and strengthen their market position. These companies include:

  • FedEx has a ‘People-Service-Profit’ philosophy that demonstrates its belief that. if employees are taken care of, they’ll take care of customers in return. As part of fulfilling this slogan, FedEx undertakes a yearly survey and feedback program where employees provide their opinions on different aspects of the organization. The results are analyzed and, where possible, action is taken to improve employee conditions.
  • Nissan uses a philosophy called kaizen to help its employees to always keep striving to make improvements to how they work. This approach starts during the recruitment stage and new hires are encouraged to keep improving so that they can stand out. Other strategic human resource management practices at Nissan include leaders being given the independence to hire and build their team.
  • Alliance Boots GmbH is founded on the philosophy that Boots employees are part of a family. Boots encourages a stress-free work environment and assists managers in being supportive of their teams. Boots values vocational education and was one of the first companies to provide formal accreditation for its employees.

Conclusion:

The SHRM looks after an effective human resource planning wherein the human capital is properly managed along with the development of efficient process capabilities. The HR manager makes sure that the HR strategies are well integrated with the business strategies as a whole.

The aim of SHRM is to have a balance between the interest of stakeholders, the employees in general, owners and management of the organization. Thus, an HR manager should plan the HR strategies keeping people in mind and considering the aspirations or desires of all the members, who are directly or indirectly related to the organization.


E-mail: uzzwal81@gmail.com



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