Strategic Human Resource Management (Document Bundle)

Strategic Human Resource Management

Strategic human resource management is a process that helps the human resources department maximize the potential of its workforce through strategic planning, talent management, leadership development, organizational design, and performance management.

In the past, strategic HR management was an administrative function. Today, HR managers play a critical role in ensuring that the organization has the right people that help improve business performance and ensure that it delivers on its mission.

Strategic human resource management involves developing and implementing strategies for attracting, retaining, motivating, and managing talented individuals who contribute to the organization's success. HRM also includes policies and practices designed to ensure fairness in employment relations.

Strategic human resource management aims to achieve a competitive advantage by creating value for customers, shareholders, employees, and other stakeholders. The term "strategy" refers to the organization's overall plan of action to create value. It is not just one thing; it is a combination of many things, including:

a. Actions are taken by the organization to meet customer needs
b. Policies and procedures used to manage the organization
c. Processes used to produce goods or services
d. Marketing activities used to sell products and services
e. Financial decisions made to fund operations
f. Organizational structure
g. The technology used to support business processes
h. People-related issues such as recruitment, selection, training, compensation, benefits, and performance management
i. Legal requirements and regulations affecting the organization

Businesses benefit from strategic human resources management because it allows human resource departments to make better decisions. For example, companies can develop plans to improve productivity, reduce costs, increase profits, and enhance employee satisfaction. The sales and HR departments play a role in determining whether the company should expand into new markets, acquire another company, or merge with another business.

Strategic HR involves careful consideration and analysis. Due to that, here are specific benefits of human resource strategic planning for businesses:

a. Identify areas of weakness and strengths
b. Develop strategies to address these weaknesses and strengths
c. Establish sub-goals and objectives to measure progress toward the end goal
d. Make sure there is alignment between business strategy and human resources strategy
f. Ensure that all aspects of the organization revolve around the same set of goals and objectives
g. Create a culture of continuous improvement
h. Evaluate the effectiveness of programs and policies
i. Increased job satisfaction
j. Employee retention

Best regards,

UJ Consulting