Strategic Human Resource Management

A new and constantly evolving branch in the field of human resource management, Strategic Human Resource Management deals with utilizing human resources in a manner that enables a firm to reap long term benefits, in terms of profits, core competence and other goals. The definitions of the term 'Strategic Human Resource Management' as per Miles & Snow, 1984, is mentioned below.

"A human resource system that is tailored to the demands of the business strategy."

According to Wright & McMahan, 1992, Strategic Human Resource Management refers to:

"The pattern of planned human resource activities intended to enable an organization to achieve its goals."

Strategic Human Resource Management

In this management system, human resource is given due importance while planning goals and long term strategies. The skills that are necessary to meet the organizational goals are developed in employees. This point is considered during the planning phase and included in the policies devised for meeting goals.

Nowadays, the human resource department does much more than just recruiting employees for the company. Using the human resource effectively in order to give the company a competitive advantage and completing the set targets, are some of the priorities.

The mission statements reflect the strategies, goals and the overall approach of companies. The values inherited and the policies devised by firms are based on the mission statements; which are the driving force that motivate the employees to move ahead.

Advantages of Strategic Human Resource Management

There are many advantages and benefits that strategic human resource management offers.

• It helps analyze the opportunities and threats that are crucial, from the point of view of the company.
• It is possible to develop strategies and have a vision for the future.
• The need for competitive intelligence, which is of utmost importance in strategic planning, is fulfilled by means of implementing strategic human resource management.
• The attrition rate can be reduced, if strategic HRM is implemented properly. It also performs the important task of motivating employees.
• Development and maintenance of competency among employees, is the most important benefit offered by strategic HRM.
• It helps determine the weaknesses and strengths of the company, thereby enabling the management to take appropriate measures.
• It helps keep a check whether the expectations of employees are addressed properly.
• Business surplus is achieved by making the employees competent enough to deliver the goods.

Limitations of Strategic Human Resource Management

The process of strategic HRM is a complicated one and barriers in the growth of employees and in turn the company, are created if strategic HRM is not implemented properly. Following are some commonly observed problems.

• Resistance to change from the bottom line workers.
• Inability of the management in communicating the vision and mission of the company clearly to the employees.
• Interdepartmental conflict and lack of vision among the senior management in implementing the HR policies.
• The diversity of workforce that makes it difficult for the management to handle them accordingly.
• Conflict among the employees over the issue of authority and the related fear of victimization.
• The resistance from institutions such as the labor unions.
• Changes that take place in the organizational structure.
• The changing market scenario which in turn creates pressure on the effective implementation of strategic HRM.

If implemented efficiently, strategic human resource management helps in improving the productivity of employees and utilizes their expertise in meeting the company goals.