Strategic management of human resources represents a transformation that is relatively new in the field of human resource management. An important role of strategic human resource management is about focusing the management in employees as a tool to gain competitive advantage. Now, organizations are made aware that successful human resources policies and practices of appropriate can increase performance in various areas such as productivity, quality and financial performance.
Performance management is a planned process in which key elements are different measurement, feedback, positive reinforcement and ongoing dialogue between managers and employees. It has to do with measurement results in the form of performance achieved in comparison with the expectations expressed as objectives. Also, it has to do with the inputs and values. Inputs are the knowledge, skills and behaviors necessary to produce the expected results. Needs are identified by defining these requirements and evaluate the degree to which the expected levels of performance are achieved through effective use of knowledge and skills, appropriate behavior.
Performance management strategy has to do with all the business and not just the managers. So managers are not only responsible for delivering the required performance. Managers should have the confidence to distribute authority and responsibility throughout the organization. In a sense, managers need to collaborate and consider as part of their own people in order to report on achieving the required performance. Managers and their teams are jointly responsible for the results and are both involved in agreeing what they should do and how they should do it. Performance management processes are part of sweeping across the organization. Managers and other employees of the organization should work together to jointly commit to achieving the performance.
Performance management strategy should focus on the development to a continuous and flexible process involving managers and all the organization that operate as a single team. This should determine how they can best work together to achieve the required results. This makes it possible to focus on the planning of future performance and performance improvements existing. HRM Strategy provides the basis for regular dialogue and frequent between managers and other employees about performance needs and further development of the organization. Strategic human resource management may bring a number of benefits to the organization :
- Contributing to the goal accomplishment and the survival of the company,
- Supporting and successfully implementing business strategies of the company,
- Creating and maintaining a competitive advantage for the company,
- Improving the responsiveness and innovation potential of the company,
- Increasing the number of feasible strategic options available to the company,
- Participating in strategic planning and influencing the strategic direction of the company as an equally entitled member of top management
- Improving cooperation between the HRM department and line managers.
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FAQs
By aligning HR programs and policies with the company's business strategy, SHRM can help businesses improve employee performance, develop the workforce and create a positive work environment. SHRM can also help businesses save money by reducing turnover and improving productivity.
How can HR strategically impact an organization? ›
HR professionals can influence their organization's strategy by:
- Promoting strategy development at the organizational, division and department levels. ...
- Providing strategy development training and resources to the organization.
Strategic human resource management helps you align the needs of an organisation with talent management, company culture and consumer needs or desires. This may improve the efficiency and day-to-day operations of an HR department, contributing to the overall workplace culture and success of the organisation.
How does SHRM affect organizational performance? ›
Strategic human resources management practices enhance employee productivity and the ability of agencies to achieve their mission. Integrating the use of personnel practices into the strategic planning process enables an organization to better achieve its goals and objectives.
What is the impact of human resource management system? ›
Key Functionalities of HRMS
HRMS offers a comprehensive suite of functionalities that empower HR professionals and enhance organizational efficiency: Recruitment and Onboarding: HRMS streamlines the recruitment process by automating job postings, applicant tracking, and interview scheduling.
How does strategic human resource management impact performance? ›
The purpose of strategic human resource management is to improve business performance through people management. The organizations need to manage their human resources effectively and efficiently to achieve the desired goals and objectives. The achievement the goals and objectives translate also in better performance.
What is strategic HR and why is it important? ›
Strategic HRM, or 'people strategy', is about creating a coherent framework for employees to be hired, managed and developed to support an organisation's long-term goals. It helps ensure that the various aspects of people management work together to drive the behaviour and climate to meet performance targets.
What is the main aim of strategic human resource management? ›
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.
What is the purpose of SHRM? ›
The Society for Human Resources Management, or SHRM, is a 501(c) nonprofit professional membership organization devoted to promoting, educating, and connecting human resources professionals in the workplace.
How can SHRM help in organizational growth? ›
By aligning HR programs and policies with the company's business strategy, SHRM can help businesses improve employee performance, develop the workforce and create a positive work environment. SHRM can also help businesses save money by reducing turnover and improving productivity.
SHRM ensures that day-to-day practices align with business objectives, leading to strengthened recruitment, improved employee performance, and increased employee engagement and satisfaction.
What is the impact of HRM on organizational growth? ›
There are several important HRM practices that should support the organization‟s business strategy: analyzing work and designing jobs, determining how many employees with specific knowledge and skills are needed (human resource planning), attracting potential employees (recruiting), choosing employees (selection), ...
What is the impact of human resource management in an organisation? ›
HRM practices are able to increase organisational effectiveness by ensuring profitable experiences for employees. For example, when employees get in the organisation well-applied orientation programmes help them to learn about the organisation and its values to increase organisational performance.
What are the positive effects of human resource management? ›
The biggest benefit of a human resource management system is that it works with HR strengths and weaknesses, giving them the tools to harness people data and learn how their workforce operates and simplifying everyday tasks so they can focus on strategic work.
Why is HRM important to an organization? ›
Human resources management is a very important function in every organization. Without human resources management, companies would not be able to effectively recruit and retain employees, improve and enhance the organization, and they wouldn't be able to maintain a healthy, accepting workplace culture and environment.
How can HR make an impact on organizational performance? ›
It accomplishes this by providing a conducive and safe work environment, organising benefits, and facilitating compensation through the payroll system, amongst many other functions. As long as employee needs are met by the organisation through its HR function, the organisation will continue to survive and thrive.
How can HR play a strategic role? ›
Strategic HRM, or 'people strategy', is about creating a coherent framework for employees to be hired, managed and developed to support an organisation's long-term goals. It helps ensure that the various aspects of people management work together to drive the behaviour and climate to meet performance targets.
How do HR functions contribute to the strategic alignment of a company? ›
Examples of HR strategic goals can include the following:
Refine and implement a standardized new employee onboarding process. Support employee learning and development. Identify and develop future leaders from within the existing talent pool. Ensure the business offers competitive hiring and benefits packages.
How strategic human resource management can improve your organization? ›
Benefits of SHRM for organisations
The benefits of Strategic Human Resource Management (SHRM) are plentiful. SHRM ensures that day-to-day practices align with business objectives, leading to strengthened recruitment, improved employee performance, and increased employee engagement and satisfaction.
