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What is Strategic Human Resource Management?

Strong training and mentoring programs can help new staff members get up to speed on company policies and any current or ongoing projects they will be working on.
The hiring and firing of employees are two of the many aspects of human resource management.
Human resource divisions in larger companies may provide training or workshops for their company's employees.
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  • Written By: Margo Upson
  • Edited By: Bronwyn Harris
  • Last Modified Date: 15 August 2014
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Strategic human resource management is designed to help companies best meet the needs of their employees while promoting company goals. Human resource management deals with any aspects of a business that affects employees, such as hiring and firing, pay, benefits, training, and administration. Human resources may also provide work incentives, safety procedure information, and sick or vacation days.

Strategic human resource management is the proactive management of people. It requires thinking ahead, and planning ways for a company to better meet the needs of its employees, and for the employees to better meet the needs of the company. This can affect the way things are done at a business site, improving everything from hiring practices and employee training programs to assessment techniques and discipline.

Companies who work hard to meet the needs of their employees can cultivate a work atmosphere conducive to productivity. Human resource management is the best way to achieve this. Being able to plan for the needs of employees by thinking ahead can help to improve the rate of skilled employees who chose to remain working for a company. Improving the employee retention rate can reduce the money companies spend on finding and training new employees.

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When creating a human resources plan, it is important to consider employees may want or need and what the company can reasonably supply. A larger company can usually afford training and benefit programs that smaller companies cannot afford to offer. This does not mean that a smaller company should not engage in strategic human resource management. Providing specialized on-site training, even if provided by senior members of the company, and offering one-on-one assessment and coaching sessions, can help employees reach peak performance rates.

An important aspect of strategic human resource management is employee development. This process begins when a company is recruiting and interviewing prospective employees. Improved interviewing techniques can help to weed out applicants that may not be a good match for the company.

After being hired on, a strong training and mentoring program can help a new member of the staff get up to speed on company policies and any current or ongoing projects they will be working on. To help employees perform at their best, a company can follow up with continual training programs, coaching, and regular assessment. Investing in the development of its employees can allow a company to turn out more consistent products.

Strategic human resource management is essential in both large and small companies. In small companies, this may be as simple as the owner or manager taking a little time every day to observe, assist, and assess employees, and provide regular reviews. Larger companies may have a whole department in charge of human resources and development. By meeting the needs of the employees in a way that also benefits the company, it is possible to improve the quality of staff members. Taking the effort to provide employees with the tools they need to thrive is worth the investment.

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Discuss this Article

anon960208
Post 38

Good material, I agree. Organizational strategies are all linked to achieving its long term objectives - long term survival. Important to consider are the organizations' core competencies. That's where its Human Capital comes into play. The more effective its people are, the better it is positioned to achieve the strategic goals in relation to its internal and external environments, of course.

anon343210
Post 37

This is a hotly contested and debatable topic, hence comments are generally a function of the perspective of the individual.

In my opinion, SHRM, is more about strategically aligning an organization's human capital to the business objectives and financial goals of the organization.

This covers a wide range of activities from organizational positioning (reputation) as an organization of choice for prospective employees in its reward systems, recruitment, training and development of employees an objective not only targeted toward better customer service, but also for the retention of the firm's best performers.

anon336701
Post 35

Strategic HR is about the business' objectives and financial goals of the firm. One aligns an "HR strategy" to achieve these. "Strategy" is about maximizing the firm's ability to make money (business model). The key to this is knowing what are our labor costs? What is the quality of our customer service versus that of our competitors? What is our quality versus the industry norm? There are many more questions, but it's about the business model, not about employees.

I didn't see any of that mentioned above. Most of the stuff above was about employees and thus, "tactical HR".

anon329130
Post 34

I want to know what is the link between SHRM and the recruitment model such as the STAR.

anon300897
Post 32

What is the process use by an organization to plan its physical resource requirements?

anon282743
Post 29

How do we integrate Strategic Human Resource Management into the organization's strategy while striving for the accomplishment of the organizational goals?

anon273390
Post 27

What are the implications of strategic human resources management?

anon269016
Post 26

What are the most important strategic aspects of human resources management as applied to purchasing?

anon267354
Post 25

Do you think that it is easier to tie human resources to the strategic management process in a larger or smaller organization? Why?

anon186410
Post 24

Please can anyone explain a comprehensive model of Strategic Human Resource Management?

anon185695
Post 23

I've been searching the web and this resource is useful and straight to the point. keep it up.

anon138474
Post 19

Human resource planning is an activity that an organisation must go into when it has shaped its business strategy. for example, it may want to increase production by 10 percent by the end of a year. Managers should then plan for the right quantity and quality of human resources that will enable the organisation to realise its objective.

Depending on circumstances and factors prevailing in the organisation, that may lead to expansion or reduction of workforce, redeployment or enrichment of certain jobs. Human resource planning does not always translate into hiring of new employees.

anon138468
Post 18

A very useful article for people interested in human resource management. I just want to add a few comments that may broaden our understanding or trigger debate.

Strategic human resource management is obviously directed at achieving organisational objectives. Whilst it is directed by organisational strategy (which may change depending on whether the organisation is expanding activities, developing a new product or reorganising its activities), strategic human resource management must be an ongoing activity.

Management must continuously scan the human resource environment in order to identify developments that can either enhance or threaten its survival. Managers must be proactive and cannot wait for things to happen first. Strategic human resource managers, for example, study workers' habits, needs, tastes and so on in order to predict their (workers) possible actions and movements and the impact these will have on the organisation.

anon123368
Post 17

i just wanted to know what are the alternatives of strategic HRM?

anon97526
Post 14

discuss the intergrating hr issues with business strategy.

anon90241
Post 13

thank you for the nice definition of SHRM.

anon88983
Post 12

This is very essential information to human resource personnel and very vital to the growth of an organization.

anon80887
Post 11

Excellent and to the point. Very helpful and interesting.

anon80361
Post 10

very useful. thank you very much!

anon79611
Post 9

I was looking for the need of SHRM and after searching heaps, finally got the article which is really helpful. Thank you very much.

anon75614
Post 8

how much money would a company loss if they fire someone?

anon75373
Post 7

thank you very much. it was very helpful in knowing the exact definition of SHRM.

anon67747
Post 6

this is really useful info. However, I've been trying to find some info on the founding fathers of HRM.

anon66538
Post 5

to anon40931: H.R. Planning is the process by which management determines how an organization should move from its current manpower position to its desired manpower position.

One of H.R.P objectives is to connect the H.R.P with organization planning which means the organization strives to have the right kind of people at the right places at the right time doing things which results in a benefit to the organization through the help of the Human Resource department.

i believe the organization strategy is a result of HR planning because an organization strategy is an organization's long term plan of how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage, etc.

anon56602
Post 3

good material for students.

anon40931
Post 2

How does human resources planning link to the organization strategy?

anon36144
Post 1

Excellent and very useful. Thank you very very much

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