Managing of the various aspects of human resources is very important in any business concern. Every company has got a dedicated department that works towards managing the human resources of the organization. Managing human resources effectively using the correct strategies can be very beneficial for the business as well as the employees.
But before we go ahead with this topic, it is very important that you have a clear concept about human resources, strategy, human resource management, and strategic human resource management. If these terms are not clear in your mind, then you will find it very difficult to understand the basics of Strategic human resource management.
What is meant by Human Resources?
‘Human Resource’ is used to denote the people or employees who form the total workforce of any business organization. The Human Resource department in any organization is dedicated to the welfare of the human resources or employees of that particular concern. They have to take care that the business organization is abiding by all rules and regulations meant for those employees.
These human resource managers are also responsible for recruiting new employees. They carry out the negotiation process with every interviewer and select the one who fits in perfectly. They have to look after employee benefits keeping in mind their company’s profit.
What does the term ‘strategy’ actually mean?
Strategy can be defined as a plan of top quality that is designed to achieve a particular goal. A well-designed strategy gives direction that will help an individual to reach his objectives.
In the corporate world, strategies are some set of plans that are designed keeping the top management officials in loop. They have to be made very carefully keeping in mind all the uncertainty that comes along with them. These set of plans are meant to be applied to some individual or a group to get some work done in the best possible way.
Strategies can be divided into two parts, the first is the designing of the strategy and the next is the successful implementation of it. At first, any strategy needs to be drafted nicely keeping in mind all the pros and cons. After drafting is successful it needs to be implemented. It is very important to implement the strategy in a correct way to get effective results. If you still don’t get it means, you can click here to understand it with different way.
Human Resource Management
Human resource management is a proper planned method to achieve effective management of every individual within a business concern. If effective management is possible then the organization can gain in every aspect and make good profits. Proper management of human resources will enhance every employee’s performance and will motivate him to work even better.
The HR department in any concern is responsible for looking after each employee’s benefits, hiring new employees, training them, motivate them to perform better, and also provide them with performance bonus on their exceptional output.
Any company is entirely dependent on its employees. If the employees perform well then the company will surely earn a profit, but if they do not then the company will surely suffer huge losses. Therefore, managing the workforce effectively is very important for any business. That is why they hire expert human resource officials who can look after all of these. If the employees work unanimously towards achieving their goal then success will surely show up.
Strategic Human Resource Management
After going through all the above points you can finally come to this term ‘strategic human resource management’. As the name suggests, strategic human resource management is basically connecting strategy with human resource management.
When a well-designed strategy is linked with human resource management then surely it yields a better result. Managing every employee or human resources within an organization with a perfect strategic plan can work wonders. This will surely improve the business many fold times. Each individual’s performance will get better and they will grow perfectly which will, in turn, bring prosperity to the business.
If the HR department designs a great strategy and is successful in implementing it as desired, then the company will reach towards its goal faster. It will also help the HR department to carry out their respective tasks better and faster. They can select potential candidates for interviews, hire capable ones, train them, and reward their excellent performances and that too in an effective way.
Therefore for any company to prosper, they should not only have an efficient HR team but also should know to apply correct strategies that can bring them prosperity.
Difference between Strategic Human Resource Management (SHRM) and Human Resource Management (HRM)
Today’s corporate world is witnessing a remarkable change in the various human resource activities. Initially, the scene was not the same. Human resource usually meant some simple flexible rules which could be modified according to the convenience of every individual working in a concern.
But today it is totally the opposite. Human resources rules are rigid and employees will have to abide by them. More and more complexities are included in these HR functions so that an effective result is achieved. Each and every company is hiring high-end strategists who will design a perfect strategy that can be implemented on the human resources of that company. These strategies are meant to be well organized so that they can give each employee a valuable direction in which he can work.
Basic human resource management (HRM) is a simple set of HR functions that are meant to look after the benefits of each and every employee. But when strategy gets added to it then it goes to a higher level. Effective strategies can help the company to manage its employees much better which in turn will affect the company in a better way.
The company will be able to focus on long term goals. SHRM helps the company to take on bigger goals that are meant for the long term. In this way, they can get success much faster.
In SHRM, the company focuses on solving the problems that will affect the company in the long run. Here the focus shifts from internal HR issues to bigger objectives that can cause hindrance to the company. Therefore SHRM primarily focuses on increasing and boosting the performance of each and every employee by taking care of the various problems in the business that are not included in HR functions.
As a Strategic Human Resource Manager, your job will be to find out every important area where correct strategies can be applied. You will have to take care that these strategies bear fruit in the long term and can motivate each and every employee to perform much better than what he did. This will surely increase his productivity which will improve the productivity of the business as a whole.
Your strategies should be properly discussed with the top level management of the company. It is them who will give you final nod regarding the application of any strategy designed by you. If they find it beneficial and effective then only you will be given the authority to go ahead with it, else you will have to formulate a new strategy.
Earlier all these rigidity and visualization was missing. A simple and basic HRM will do no good to the business except for the small benefits that every employee would receive. But a well-planned SHRM can make a huge difference for any company. It can grow and develop many fold times. As SHRM is meant to focus on long term objectives, therefore it will ensure that the company is having better productivity and each and every employee will surely benefit from this.
Advantages of Strategic Human Resource Management
SHRM has got a series of advantages. It helps to recognize and evaluate the possible external risks that may be drawn towards the business concern. It helps to identify and make the proper use of every opportunity that is lying outside the company which can prove beneficial for its business. All these opportunities and risks can be very crucial for the company as it can determine its success or failure.
SHRM gives a clear view of the future objectives and strategies related to the business. It helps to understand management issues if any. SHRM provides alternative solutions that may be helpful while making strategies for the business.
SHRM help in recruiting the best people who are potentially perfect for any role. It helps to retain all those who are necessary for the company. SHRM can be very beneficial in motivating each and every employee which can increase their productivity. Through SHRM, employees receive better training and they get to develop in an all-round way. Their competence is increased and therefore they work much better.
The SHRM department is very much responsible to look after every problem faced by an employee within a concern. All of their problems are solved systematically following the company’s protocol. Every employee must receive a performance bonus for their exceptional performances and the SHRM department must make sure that this process is initiated.
The SHRM department has to scrutinize each and every strength and weakness within the organization and work towards improving them for the best. This department has to look after whether the customers’ expectations are met or not and work towards it effectively.
SHRM provides a better working platform for every employee within a concern and helps them to coordinate better. It is easy to control the activities with an organization with the help of a strong SHRM team.
The bigger decisions can be taken easily and well supported by the entire organization if they are designed properly by the SHRM team. The company can dedicate its time and resources in a better way to every area that can have a good scope of success. SHRM prevents the company from taking wrong decisions that can affect it adversely in the future.
An efficient SHRM department can improve the communication within an organization which can help each and every employee to improve their behavior and follow professional ethics.
A good SHRM team can help the employees to move forward in life and think ahead of time. This will surely boost their performance and create wonders for the company in turn.
Hardships SHRM has to face while performing
There are times when the lower group of employees does not tend to co-operate with their SHRM department. This happens when they are not convinced of a particular strategy designed by the SHRM department. This can be a huge challenge for the SHRM team and can lead to conflicts between departments.
There are times when senior managers do not like the strategies designed by SHRM department. They might not agree to combine internal resources and external opportunities. It can be really hard for the team to convince them about their strategies.
If there are limited resources and time then the strategists may find it really hard to implement their plans. There are times when the SHRM team backs off from their idea and strategies just in the fear that they might not be accepted well in the top management level.
Every company has diversified groups of employees who are different from each other in every respect. They have their own competence level. There are times when a single strategy does not go down well with one group and another one accepts it wholeheartedly. There a problem can arise. Their competitive spirit can go against the favor of the SHRM team.
Therefore like any other department, SHRM is also a dedicated group of people who are working towards the betterment of the company. They have clear visions and can design better strategies which will surely help the company to prosper in the long run, unlike the basin HRM team.
The author, Velma Webstere, is an MBA degree holder from the University of Chicago and is currently working in a Managerial post at a well-known Company in the US. She is an online tutor who has helped her students in various Management assignments related to the subjects of Accountancy, Finance, Management, and Marketing. She is always available with her valuable assistance and you can contact her for any study-related issue whenever you want.