STRATEGIC HUMAN RESOURCE MANAGEMENT

 

Strategic Human Resource Management

Figure 1: strategic human resource management

Strategic Human Resource Management (HRM), also known as 'people strategy,' is the process of creating a comprehensive framework for hiring, managing, and developing employees to support the long-term goals of an organization. It ensures that various aspects of people management align to drive behavior and foster a climate conducive to meeting performance targets. This approach focuses on addressing longer-term people issues, such as matching resources to future needs, structuring, maintaining quality, shaping culture, promoting values, and fostering commitment. Moreover, it adapts to the evolving nature of work.

Key Elements of Strategic Human Resource Management

                         Figure 2: HR Strategy key components

• Strategic Workforce Planning

 SHRM starts with identifying the future human resource needs of the organization and aligning them with the strategic objectives. It involves assessing current talent, forecasting future requirements, and implementing strategies to bridge the gap.

•  Talent Acquisition and Retention

Effective recruitment and retention strategies are crucial for acquiring and retaining top talent. SHRM emphasizes attracting individuals who possess the required skills, knowledge, and cultural fit. Additionally, it emphasizes creating an engaging work environment that encourages employee loyalty and reduces turnover.

• Learning and Development

SHRM recognizes the importance of continuous learning and development to enhance employee skills and competencies. It involves providing training opportunities, mentoring programs, and career development plans that align with organizational goals and individual aspirations.

•  Performance Management

SHRM promotes a performance-driven culture by establishing clear performance expectations, providing regular feedback, and aligning individual goals with organizational objectives. It emphasizes fair and transparent performance appraisal systems that link performance outcomes to rewards and recognition.

•  Compensation and Benefits

SHRM ensures that the compensation and benefits structure is aligned with the organization's strategic objectives. It involves designing competitive salary structures, variable pay plans, and benefits packages that motivate employees and reinforce desired behaviors.

• Employee Engagement and Well-being

SHRM recognizes the significance of employee engagement and well-being in driving organizational success. It involves fostering a positive work environment, promoting work-life balance, and implementing initiatives that enhance employee satisfaction, morale, and productivity.

   Benefits of Strategic Human Resource Management

               Figure 3: Benefits of HR Analytics

• Competitive Advantage

By aligning HR practices with the overall strategy, SHRM enables organizations to differentiate themselves from competitors. It helps in attracting and retaining top talent, enhancing employee performance, and fostering innovation.

• Improved Organizational Performance

SHRM ensures that the workforce is equipped with the necessary skills and competencies to achieve strategic goals. It improves productivity, reduces costs, and enhances overall organizational performance.

• Enhanced Employee Satisfaction and Engagement

SHRM focuses on creating a work environment where employees feel valued, engaged, and empowered. This leads to higher levels of job satisfaction, increased employee commitment, and improved retention rates.

• Adaptability to Change

SHRM enables organizations to respond effectively to internal and external changes. It facilitates agility and flexibility in workforce planning, talent acquisition, and skills development to address evolving business needs.

• Sustainable Growth

By aligning HR practices with long-term strategic goals, SHRM contributes to the sustainable growth and success of the organization. It creates a strong employer brand, enhances organizational reputation, and attracts high-quality talent.

Examples of strategic HRM

                                    Figure 4: Example of SHRM

Example 1: An employee taking sick leave

An employee notifies their manager that they will be taking sick leave to take care of a family member for six weeks starting next month. With strategic HR in place, this organizational change is brought to HR immediately.

HR assesses the situation and asks questions to determine what’s needed. They then provide a recommendation as to whether or not the employee needs a temporary replacement, if the current team can cover work over that six-week time frame, or if personnel need to be temporarily moved from one team to another to cover the absence.

Once a direction forward is decided on, those involved begin implementing a strategy to ensure a smooth transition. Without strategic HR, these decisions may be left to someone who doesn’t have a complete picture of the situation. Even worse, a decision may never be reached — leaving team members in the lurch once their colleague leaves.

Conclusion

Strategic human resources management is an essential element of every successful business. The HR team’s goals and resources must be aligned with the overall goals of the organization to ensure optimal business performance through effective employee recruitment.

References

Nottrodt, J., 2024. What is strategic human resource management?[Online]
Available at: https://www.hrmorning.com/articles/strategic-human-resource-management/#:~:text=The%20HR%20strategy%20must%20encompass,this%20strategy%20will%20most%20affect.
[Accessed 16 Mar 2024].

Katie., 2024. 7 steps to strategic human resource management[Online]
Available at: https://www.deputy.com/blog/7-steps-to-strategic-human-resource-management
[Accessed 16 Mar 2024].

The chartered institute of personnel and development, 2024.  strategic human resource management[Online]Available at: https://www.cipd.org/en/knowledge/factsheets/strategic-hrm-factsheet/#what[Accessed 16 Mar 2024].

Key elements of SHRM, 2024.  strategic human resource management[Online]Available at:https://kissflow.com/hr/strategic-human-resource-management/[Accessed 16 Mar 2024].

Figure 1: strategic human resource management

Figure 2: HR Strategy key components

 Figure 3: Benefits of HR Analytics

  Figure 4: Example of SHRM