The Importance Of Strategic Human Resource Management

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Strategic Human Resource Management Business objectives are accomplished when human resources practices, procedures and systems are developed and implemented based on organizational needs that are when a strategic perspective to human resource management is adopted. The conceptual basis of strategic HRM is the interface between HRM and strategic management. What is resource based view of strategic HRM and its importance? It is the range of resources in an organization, including its human resources, that produces its unique character and creates competitive advantage. The strategic goal will be to create firms which are more intelligent and flexible than their competitors. The significance is, it highlights the importance of a human capital…show more content…
Environmental adaptation – Able to adapt to any sort of change that has occurred in the environment. It should be very flexible to changes. 5. Efficiency development – The strategy develops the skills, knowledge and ability of employees and makes them competitive. This will make employees can be mobilized within the organization for a longer period of time. ‘Best practice’ and ‘best fit’. What are they? Why are they needed? Best practice: a set of HRM practices which are universal and they are best in any situation. Sometimes, it neglects local context when applying. What may be the best practice for Western companies may not fit Asian companies. Best fit: The HR strategies should be aligned with the organization context and circumstances. Can be perceived in terms of vertical alignment or horizontal alignment. Vertical – link human resource management practices with the strategic management process of the organization. Horizontal – emphasize on coordination among the HRM practices. Best fit is more important than Best practices. Bundling: What and Why ‘Bundling’ is the development and implementation of several HR practices together so that they are inter-related and therefore complement and reinforce each…show more content…
Harvard Business Review: Be Strategic with your workforce by Dick Beatty, Professor of Human Resource Management at Rutgers University. Strategy is all about differentiation. Firms will try to be different in ways that it adds value to customers. Then they will try to differentiate internally with all the resources that are required to make that happen. They differentiate with financial resources, material resources, and information. Workforce in many firms is being seen as commodity and not assets. Organization needs to know where, who and how wealth is created, how customer value is created first. Strategy is all about knowing and understanding. How are you going to grow this business, where you going to be in the market, to win and be different. First understand your business strategy, second, what you work for. Different strategies require different cultures. E.g. you as an organization, trying to win by driving all cost out of the business, so that you can pass it on to your customers then you want a workforce that really can live in a very rigid kind of environment. But if the organization is trying to be really innovative and creative and come up with new products and new offerings, it is a very different

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