Strategic human resources management what is human. Human resource management deals with any aspects of a business that affects employees, such as hiring and firing, pay, benefits, training, and administration. Human resources planning is a proactive process used to identify the best way to allocate resources and adapt to employment changes. Advantages of hrm hrm helps in hiring and training the workforce hrm takes care of the performance management system hrm helps in building culture and values in the organization conflict management is also an important responsibility of hr. Human resource management is quite extensive and covers a very wide range of factors. What are the advantages and disadvantages of human. The best way to understand strategic human resources management is by comparing it to human resource management. In manufacturing firms, quality processes depend on stable hr systems. Strategic human resource management enlightened the firm. The role of strategic human resource management in.
The objective of strategic human resource management is to make sure the companys human resources are set up and available when needed in order to secure a competitive advantage. Strategic management is a way to transform the existing static plan in a proper systematic process. Before we try to explain the meaning of strategic hrm, let us first define the terms strategy and strategic management. Our expert pdf written by andy blacknell is just what you need. So much is written about strategic human resource management, so many. The human resource management system in any organization, given the constantly changing and dynamic environment, cannot be a static and fixed phenomenon. The following mentioned are few pointers that help you identify the relevance of strategic management and its benefits. A version of this article appeared in the july 1980 issue of harvard. Pdf how strategic human resource management contributes. Linking hrm practices to the companys business objectives, i. The practice enables firms to bring their overall objectives into better alignment with the actions of their employees. Strategic human resource management shrm is concerned with the relationship between hrm and strategic management in an organization.
How strategic human resource management contributes to achieve the competitive advantages of fedex. Chapter 1 human resource management and competitive advantage 5 chapter objectives upon completion of this chapter, you will be able to. Thus, strategic human resource management is not a new idea, but, rather, as this article explains, it is a domain that has evolved to provide an important and useful perspective on the role of hr. There are several benefits of human resource planning that led its scope to expand across the different business organizations. Pdf the impact of strategic human resource management. A final advantage of the human resource management strategy is in keeping the organization compliant with laws relating to employees, salary, insurance and the like. The advantages and disadvantages of strategic management. Swot analysis definition, advantages and limitations. The role of strategic human resource management in creation of.
In general, the purpose is to align employment needs and recruitment to. Through spesific examples from academic research regarding the impact of strategic human resource management practices on organizational performance. One of the major criticisms of strategic management is that it requires the organization to anticipate the future environment in order to develop plans, and as we all. Karatina university, kenya abstractthe purpose of this article was to outline the benefits of integrating human resource development with organization strategies. Strategic human resource ivianagement focuses on the overall hr strategies adopted by business units and companies, according to john bratton, 2009 it is a thought that integrates traditional human resource management activities within a firms overall strategic planning and implementation, thus called strategic human resource management. Human resource management hrm focuses on recruiting and hiring the best employees and providing them with the compensation, benefits, training, and development they need to be successful within an organization. The premise of strategic hrm is that the companys policies and procedures related to employees should fit into the organizations. Integrating human resource management with organizational.
An investment perspective of human resource management the strategic view of human resources employees are human assets that increase in value to the organization and the marketplace when investments of appropriate policies and programs are applied. You might want to refer to the powerpoint slides for more detail on pcns and hcns. The positive work environment ensures the favorable benefits in organizational aspects. Policy makers at government level have drawn upon the idea in order to promote high performance.
What are the advantages of strategic human resource. The current management is not possible without strategic. The benefits of strategic human resource management poppulo. Definition and components given the increasingly significant role of human resources in an organization, hrm has become strategic in nature. For organizational practitioners who are looking for ways to gain a competitive advantage, the implication of hr strategic choices. The drive for organizations to act more strategically enhances the focus upon strategic human resource management, which is the core emphasis of all the content presented in this textbook. Strategic hr management society for human resource. Strategic management, linking the rigor of formal planning to vigorous operational execution, may prove to be the answer. The greatest benefit of strategic human resource management is also its purpose.
Different than frontline positions such as sales, human resource hr positions are typically responsible for strategic planning and employee development. The term strategy is widely used in and presupposes importance. In the words of the oxford concise dictionary, strategy means generalship. Employees are a valuable source of sustainable competitive advantage.
Finally, theoretical and management implications were suggested. Hr planning includes recruiting plans, employee training programs, and organizational development. The advantages of human resource planning include building employee skills and increasing retention. Strategic human resource management is an approach that relates to decisions about the nature of employment relationship, recruitment, training, development, performance management, reward, and employee relations. Its key purpose is to identify the strategies that will create a firm specific business model that will best align an organizations resources and capabilities to the requirements of the environment in which. Thus, certain hr strategies were approved to have a key role in creating competitive advantages. In this study, we examined the influence of the strategic human resources management hrm practices. Strategic human resource management could serve the organizations in acquiring the competitive advantages. If a global company is to function successfully, strategies at different levels need to interrelate. Understand the nature of a fi rms human resource management practices. But definitions too often fogged in a hurdle of multisyllable corporatespeak. Human resources may also provide work incentives, safety procedure information, and sick or vacation days.
The objective of human resource planning is to make the organization reach the desired manpower position from the current manpower position, by forecasting the demand for and supply of human resources in the near future. Strategic management can have some immediate changes in the organization. Present the advantages of the approach your group was allocated to the class. Understand the roles played by line managers and human resource professionals in the human resource management process.
Strategic management advantages and disadvantages wisestep. What are the disadvantages of strategic human resource. Strategic human resource management john bratton chapter two strategic human resource management is the process of linking the human resource function with the strategic objectives of the organization in order to improve performance. Usually without really explaining it or its importance and actual impact on an organization do some basic research and you will come across definitions like. The disadvantages of human resource planning include diverting resources from business activities more likely to bring in revenue in the short term and developing a. Human resource management and competitive advantage 1. Strategic human resource management strategic human resource management shrm has been, and remains, one of the most powerful and influential ideas to have emerged in the field of business and management during the past twentyfive years. Strategic human resource management, encourage positive work environment within the organization. Human resource management is a growing field of expertise that is constantly widening its approach and scope in terms of striking that balance between an organizations goals and individual personnel goals. Human resource systems can contribute to sustained competitive advantage through facilitating the development of competencies that are firm specific. Strategic human resource management is certainly a competitive advantage. Strategic human resource management is the practice of attracting, developing, rewarding, and retaining employees for the benefit of both the employees as individuals and the organization as a.
So much is written about strategic human resource management, so many attempts are made to define it. There are several key advantages of strategic human resource management, including selective hiring, encouraging optimal employee performance, and promoting a constructive work environment. Strategic human resource management is the proactive management of people. There are many benefits to having strong hr planning tools in place.