Hrm70006 Strategic Hrm In The Assessment Answers

Answer:

The essay presents a brief overview of the strategic human resource management. It explains the approaches and theories of the SHRM and it also describes the key issues of strategic human resource management. It explains that how strategic human resource management plays a significant role in every organization. The essay also explains the best fit and best practice of SHRM.

1: 

The strategic human resource management includes the human resource elements such as discipline, payroll, hiring and retention strategies. Strategic human resource management provides support to achieve the organizational goals and objectives. It is the process and practice of attracting, rewarding, developing retaining the workers to achieve the long term goals and objectives of the association (Swailes, 2013). Strategic human resource department utilizes and develops the opportunities and talents to make the other department more effective and stronger. The organization cannot survive its business activities without effective strategic human resource department. There are various approaches to strategic human resource management. These approaches include the resource based strategy, high-performance management strategy, high management involvement strategy, high commitment management strategy and achieving strategy (Martin et al, 2016). The approaches to strategic human resource management are discussed below.

The resource based approach developed by the Barney in 1991. The approach will address the methods and techniques of increasing firm strategic potential and capabilities by the development and growth of managers and other employees who can think and understand the key strategic concerns and issues.  This approach emphasizes the firm resources as the primary determinants of competitive performance and advantage. It provides the fundamental direction for a firm and this approach is the primary source of revenue and profit of the company. The resource based approach includes the resource mobility and resource diversity. Resource diversity refers to the different resources and competencies and the resource mobility means a resource which is complex to obtain and acquire by competitors because it is inelastic in cost and supply (Chipunza & Samuel, 2013).

High commitment management approach is the very important approach of SHRM and it plays a significant role in human resource management. It enhances and encourages the mutual commitment of people. This approach is based on the high level of trust and faith. It emphasizes the human responsibility, autonomy, sovereignty, and empowerment of employees. The approach focuses on the employees’ relationship and their commitments towards jobs. It focuses on the recruitment and selection of the right people with excellent skills and knowledge for doing the right job. The right and potential employees help to maintain the high level of trust in the entire organization (Thunnissen, Boselie & Fruytier, 2013).

High involvement management is another approach of the strategic human resource management. This approach provides opportunities to employees to take decisions about their jobs and business. In this approach, top management involves the employees to participate in the business activities of the organization. It improves and increases the efficiency and productivity of employees. Through the involvement in management, employees learn many things from managers and top management. Managers share knowledge and experience with employees through the high involvement management approach (Cascio, 2015).

After the various researches, it has been found that resource based approach is the best and effective approach to strategic human resource management. Therefore, this approach plays a significant role in an organization.  In this approach, the resources are sub categorized into tangible and intangible resources and both the resources are essential for the functioning and running of the organization. It is one of the best substantial approaches of strategic human resource management. The firm utilizes and develops the resources to increase the productivity and performance of employees. Through resource based theory, the company enables to produce the innovative products and services as per the needs and requirements of the consumers. It will help to increase and enhance the growth and profit of the organization. This approach evaluates and measures the potential resources to provide more benefits to the company (Chen & Wang, 2014). A comparative approach between ‘best practice’ and ‘best fit’ is discussed below.

Best practice: The best practice model helps the company in performing HR activities. This helps the company to reach to a higher level. This gives the various advantages to the company. The activities performed by best practice model in HR are done professionally. This increases the performance of the firm and gives better results. Best practice allows an individual to develop a connection with the company’s HR department and the company itself. The company requires worker with a higher commitment which is fulfilled by best practice model. Best practice models are presented in a professional way as it shows the performance of the organization (Bakker, 2017).

Implications:

This is mainly as a result of conflicting views about what constitutes an ideal set of HR best practices, whether or not they should be horizontally integrated into ‘bundles’ that fit the organizational context and the contribution that these sets of HR practices can make to organizational performance. It provides the fundamental direction for a firm and this approach is the primary source of revenue and profit of the company.

Practical implications;

The impact of best practice models results great. It enhances the performance of the organization. The work is such that it raises the attitude of the employees towards the firm. This model keeps employees interested in the work. This keeps them regular at work. Work generated by the employee is in a good amount which increases the productivity of the firm. The models have quality and they are efficient for the organization. The feature is mainly used in strategic human resource department. This is a key theme which is responsible for the development of the organization. The main aim of such approach is to check the availability of the practices performed by the firm. Using this practice one gets the chance to get close to the organization, which gives good outputs. The results are profitable. This makes the role of human resource important (Izvercian, Potra, & Ivascu, 2016)..

Against:

Best practice approach does not stand on its name. The work creates confusion among the employees. This results in lack of decision making in strategic human resource department.

Best fit practice: The best-fit approach shows the relationship between human resource management and strategic human resource management. It talks about the kind of work and nature of work needed by the company. The HR practices are maintained. The approach is taken keeping in mind the company’s requirements. Best fit practice follows the theme of serving the needs of strategic human resource department. Best practice fit approach is beneficial and is better than best practice approach. It is a dynamic approach for the accomplishment of organizational goals and objectives

Implications:

It results in a close relationship with the firm. The strategies planned are advanced and respected by the organization. The impact of the approach is shown when the company is rewarded. It works on what company wants for the growth. The approach has to meet the organizational goals to get accomplishment. This approach is based on the high level of trust and faith. It emphasizes the human responsibility, autonomy, sovereignty, and empowerment of employees. The approach focuses on the employees’ relationship and their commitments towards jobs.

Practical implications:

Best fit deals with the organizational activities. It follows the organizational rules and procedures. The implications are set keeping in mind the requirements of strategic human resource development. It focuses on those areas of the organization which generates profit. This approach is seen in finance. Therefore, it will increase the quality, productivity, profits, growth, and level of consumer service and shareholder value. The best-fit approach has a motivator which motivates the employees. It helps them in developing the confidence to work. It works as per the expectancy of people. It is believed that people will work better if they are rewarded better. SHRM believes the same. If they reward the employees better they will work better (Lengnick-Hall, Lengnick-Hall & Rigsbee, 2013).

Against:

Best fit approach limits the strategy. They work for multiple companies. It becomes difficult to manage the work for each company. It becomes difficult to manage the new challenges that are seen in strategic human resource department. It becomes difficult to show their links and interconnections with each company (Beugelsdijk, 2008).

The main objective of ‘best fit’ and ‘best practice’ is to achieve high performance in the association. Both the theories are essential in order to achieve organizational goals and objectives. The ‘best practice’ is based on the universal and collective approach while ‘best fit’ is based on the contingency approach. Both the approaches play a significant role in strategic human resource management (Hamid, 2013).

2: 

SHRM requires the full attention of the authority. It is the main issue as every task requires permission of the higher authority to access. SHRM is affecting the major part of the organization. The strategies planned to meet good results, so the strategies are planned by SHRM which take very much time to implement. Since strategic human resource management manages all the requirements of the business hence it uses plenty amount of resources of the company (Adil, 2015). The strategic human resource has a lower cost of production for training and development of employees. Therefore, it is the major issue of SHRM. The training is done to make them capable of handling the work effectively and efficiently. The reduction is done in expenditure when there is a rapid growth in the number of employees. SHRM promotes the employees the employees for their work and performance. Recruiting new staff is the major problem for strategic human resource management staff. The selection of the best candidate is quite tough for the HR employees as they have to go through each and every field of the employees. They have to make sure whether the employees are familiar with the environment or not. They look for those employees who are not only expert with technologies but also are social friendly. They have to stand on the company’s expectations, which becomes challenging for the management. One of the major challenges that SHRM has to face is retention. They have to keep hold of the employees who are recruited. The working of employees includes part-time, temporary working and work from home. Managing such staff in the company is a challenge as they are not much involved in the functioning of the company. This makes the responsibility of SHRM tougher as they have to make such employees aware about the company for long term business (Gerhart & Fang, 2014).

The SHRM is also responsible for the training and development programs. They hire the employees and train them for smooth functioning and face number of difficulties as a result. They have to choose the kind of training that is needed to conduct, what objective needs to be followed for the better results. Skilled workers are the key to the smooth functioning of the organization. Therefore, HRM should manage on-site (within the workplace) as well as off-site (outside the workplace) job training and development for the employees. The strategic human resource management is also responsible for managing the profits and funding of the organization. Therefore, many difficulties are faced by the SHRM for maintaining profits and funding(Dimba & Obonyo, 2015). The unsatisfactory results can be dangerous for company’s future growth. Health and safety are the other major concern of SHRM department. Management has to look after each individual’s safety and health. They maintain a proper record of the employees. Lack of proper information about the employees is an another issue of SHRM as result the company has to bear great loss and complications. It also raises legal and long-term issues. Discipline is the other important issue of SHRM. It is also responsible for keeping the company within the disciplinarian actions. Lack of such actions affects the productivity of the company. It also affects the growth and reputation of the firm (Paillé et al, 2014).

If the employees are not in the discipline they neglect the responsibilities. Therefore, they are not being able to perform good work. This might results in the downfall of the company also. Lack of discipline may result in misbehaving with other employees of the organization. This may also lead to conflicts within the firm. It is also expected to meet the market demands. SHRM has the major issue of expanding itself with the trend. They have to cope up with the advance technologies that will help the company for its business (Paauwe, 2009). The influence of new technologies creates either the company’s growth or its decrease in production. The proper planning of technology is done keeping in mind the company requirements. It should make the overall company profitable. The expanding of business by involving such technological trends makes it difficult for strategic human resource management to perform (Kaufman, 2015).

3: 

Strategic Human Resource Management is one of the important parts of the company. SHRM plays a significant role in all the types of firms have both large and small enterprises. It also manages the behavior of the employees. It shows how they are treated, their security and employment (Kooij & Van de Voorde, 2015).

Strategic human resource management can be understood on the grounds of political, social and economic movements. It shows the relation between the difference in opinion of managers and workers working in the company. SHRM attempts to optimise the management of Human resources for the organization in the current time perspective (Kim & Wright, 2011). The SHRM includes all the aspects such as recruitment, selection, training, placement, compensation management (Milhem, Abushamsieh & Pérez Aróstegui,2014). On the other hand, the purpose of SHRM is to achieve goals and objectives of the organization with requirements of human resources for the future perspectives. Hence, an organization is using SHRM criteria is likely to nurture Human Resources for the likely changes in technology based on the technology forecast (Fernando,  2016).

The theory of strategic human resource management includes the process of recruitment and retention. The theories that are applied to strategic human resource management allow the firm to achieve the goal of recruitment and retention. Such theories are necessary and are made in relation to SHRM (Cheng-Fei Tsai & Shih, 2013). It is mainly managed by HR managers. The application of such theories makes recruiter and professionals of Human Resource Management understand the human behavior. The strategies planned by the SHRM department are systematic in behavior. This not only fulfills the theory of SHRM but also make the position of the company in the market. SHRM follows the theory of recruitment and retention. This mainly needed by the company to function. The strategies of the organization are most of the time successful as the employees who plan it are highly trained and professionals (Duy et al, 2015).

Strategic human resource management is an important part in organization’s success. It plays a major role in the success and performance of the organization. The employees are the essential bodies of the organization. The SHRM practices are linked with the practices of the organization. SHRM practices and firm performance are similar in the functioning. They both seek for the production and financial stability. The human resource department also checks the employee turnover. SHRM performs practices like staffing, training, inducements, welfares, participation, and performance appraisal. These practices are completely linked with the organizational performance measurements such as productivity, invention, and feedback from customers (Singh & Rao, 2015). The functioning of strategic human resource management is one of the activities that impact most critically on the performance of an organization. Poor decisions affect the growth of the firm. Hence, SHRM allows proper decision making to achieve the set goals (Kontoghiorghes, 2016). Therefore SHRM allows a clear indication to employees to work in the areas of selection and recruitment. Strategic recruitment and selection also play an important role in ensuring the worker performance and positive organizational outcomes (Sekiguchi, 2013). The theories developed by the SHRM are very powerful and these theories fulfill the need of the organization. SHRM is responsible for the overall development of the firm. The theories of SHRM make easier for the organization to attain heights mainly through recruitment and retention. These are the two important areas where Strategic Human Resource Management imparts its theories (Cascio, 2015).

Now it is concluded that strategic human resource management plays a significant role in every organization. Therefore, the company should use excellent SHRM policies and approaches. If the company wants to achieve organizational goals and objectives then it should focus on strategic human resource management. An organization cannot survive its business without strong strategic human resource management (Kuvaas, B., 2008).

References

Adil, M.S., 2015. Strategic human resource management practices and competitive priorities of the manufacturing performance in Karachi. Global Journal of Flexible Systems Management, 16(1), pp.37-61.

Bakker, A.B., 2017. Strategic and proactive approaches to work engagement. Organizational Dynamics, 46(2), pp.67-75.

Beugelsdijk, S., 2008. Strategic human resource practices and product innovation. Organization Studies, 29(6), pp.821-847.

Cascio, W.F., 2015. Strategic HRM: Too important for an insular approach. Human Resource Management, 54(3), pp.423-426.

Cascio, W.F., 2015. Strategic HRM: Too important for an insular approach. Human Resource Management, 54(3), pp.423-426.

Chen, D. and Wang, Z., 2014. The effects of human resource attributions on employee outcomes during organizational change. Social Behavior and Personality: an international journal, 42(9), pp.1431-1443.

Cheng-Fei Tsai, P. and Shih, C.T., 2013. Responsible downsizing strategy as a panacea to firm performance: the role of dynamic capabilities. International Journal of Manpower, 34(8), pp.1015-1028.

Chipunza, C. and Samuel, M.O., 2013. Effect of role clarity and work overload on perceptions of justice and job insecurity after downsizing. Journal of Social Science, 32(3), pp.243-253.

Dimba, B. and Obonyo, P.K., 2015. Influence of culture on strategic human resource management (SHRM) practices in multinational companies (MNC) in Kenya: A critical literature review.

Duy, N.K., Thanh, P.T., Oanh, N.T.H., Tam, N.D. and Vu, T.T., 2015. Impact Evaluation of Training on Firms’ Performance: The Case of the Small and Medium Enterprises in Vietnam. Mediterranean Journal of Social Sciences, 6(2), p.399.

Fernando, M.S.D., 2016. Employee Personal Financial Literacy as Strategic Human Resource Management Initiative: With Special Reference to ABC Bank PLC.

Gerhart, B. and Fang, M., 2014. Pay for (individual) performance: Issues, claims, evidence and the role of sorting effects. Human Resource Management Review, 24(1), pp.41-52.

Hamid, J., 2013. Strategic human resource management and performance: the universalistic approach-case of Tunisia. Journal of Business Studies Quarterly, 5(2), p.184.

Izvercian, M., Potra, S. and Ivascu, L., 2016. Job Satisfaction Variables: A Grounded Theory Approach. Procedia-Social and Behavioral Sciences, 221, pp.86-94.

Kaufman, B.E., 2015. Evolution of strategic HRM as seen through two founding books: a 30th anniversary perspective on development of the field. Human Resource Management, 54(3), pp.389-407.

Kim, S. and Wright, P.M., 2011. Putting strategic human resource management in context: A contextualized model of high commitment work systems and its implications in China. Management and Organization Review, 7(1), pp.153-174.

Kontoghiorghes, C., 2016. Linking high performance organizational culture and talent management: satisfaction/motivation and organizational commitment as mediators. The International Journal of Human Resource Management, 27(16), pp.1833-1853.

Kooij, D.T. and Van de Voorde, K., 2015. Strategic HRM for older workers. In Aging workers and the employee-employer relationship (pp. 57-72). Springer International Publishing.

Kuvaas, B., 2008. An exploration of how the employee–organization relationship affects the linkage between perception of developmental human resource practices and employee outcomes. Journal of Management Studies, 45(1), pp.1-25.

Lengnick-Hall, M.L., Lengnick-Hall, C.A. and Rigsbee, C.M., 2013. Strategic human resource management and supply chain orientation. Human Resource Management Review, 23(4), pp.366-377.

Martin, G., Farndale, E., Paauwe, J. and Stiles, P.G., 2016. Corporate governance and strategic human resource management: Four archetypes and proposals for a new approach to corporate sustainability. European Management Journal, 34(1), pp.22-35.

Milhem, W., Abushamsieh, K. and Pérez Aróstegui, M.N., 2014. Training Strategies, Theories and Types. Journal of Accounting, Business & Management, 21(1).

Paauwe, J., 2009. HRM and performance: Achievements, methodological issues and prospects. Journal of Management studies, 46(1), pp.129-142.

Paillé, P., Chen, Y., Boiral, O. and Jin, J., 2014. The impact of human resource management on environmental performance: An employee-level study. Journal of Business Ethics, 121(3), pp.451-466.

Sekiguchi, T., 2013. Theoretical implications from the case of performance-based human resource management practices in Japan: management fashion, institutionalization and strategic human resource management perspectives. The International Journal of Human Resource Management, 24(3), pp.471-486.

Singh, B. and Rao, M.K., 2015. Exploring the Linkages Between Human Resource Configuration and Knowledge Management Process: A Strategic Human Resource Management Perspective. In Managing in Recovering Markets (pp. 295-302). Springer, New Delhi.

Swailes, S., 2013. Troubling some assumptions: A response to “The role of perceived organizational justice in shaping the outcomes of talent management: A research agenda”. Human Resource Management Review, 23(4), pp.354-356.

Thunnissen, M., Boselie, P. and Fruytier, B., 2013. Talent management and the relevance of context: Towards a pluralistic approach. Human Resource Management Review, 23(4), pp.326-336.