How Strategic Human Resource Management Applied in Practice

Topics: Human resource management, Management, Human resources Pages: 5 (1554 words) Published: April 29, 2014
Nowadays, with the ever increasing importance attached to human resource management in organisations around the globe, how to effectively conduct human resource management and meet business objectives has been heatedly debated over. In an attempt to have a further insight into human resource management, the concept of strategic human resource management is defined and introduced in this essay . Furthermore, in this essay, some “big issues” HR managers will need to consider, including improving leadership development, managing work-life balance, as well as delivering on recruiting and staffing, are discussed and supported by relevant examples that align with these issues.

Strategic human resource management (SHRM) represents a relatively new transformation in the field of human resource management. Different from traditional HRM, strategic HRM focuses on the linking of all HR activities with the organization’s strategic objectives. It is concerned with the role human resource management systems play in the firm performance, particularly concentrating on the alignment of human resources as a means of gaining competitive advantage (Esra, 2010 ). Organizations are becoming aware that successful human resource policies and practices may increase performance in different areas such a productivity, quality and financial performance. The way for a firm to remain scarce or hard for competitors to duplicate is to have enduring competitive advantage. Resources confer enduring competitive advantage to a firm and enable companies to pursue opportunities (Barney, 1991). The resource-based view posits that human and organizational resources, more than physical, technical or financial resources, can provide a firm with sustained competitive advantage because they are particularly difficult to emulate (Lado et al., 1992; Lado and Wilson, 1994; Wright and McMahon, 1992). Consequently, in a relatively ideal way, managers are ought to work in order to enhance the firm’s competitive position by creating superior human capital skills, experience and knowledge that contribute to firm economic value (Snell and Dean, 1992). How well the HRM function achieves these goals determines overall HRM effectiveness. Huselid et al. (1997) define HRM effectiveness as ‘the delivery of high-quality technical and strategic HRM activities’. During the implement, managers may confront many challenges. The first issue that should be considered by managers is improving leadership development. Leadership development regards the development of leadership as a process. It includes the interpersonal relationships, social influence process, and the team dynamics between the leader and his/her team at the dyad level, the contextual factors surrounding the team such as the perception of the organizational climate and the social network linkages between the team and other groups in the organization (David , 2000). In the past, leader development was often used to shape a leader, for example, the way he behaviors, talks and also his personality. What should be distinguished is that managers put more emphasis on developing leadership other than leader, which will help employees in the company to participate more effectively. A survey by Hay Group shows the best twenty companies in the term of leadership development. The top three are General Electric, P&G and Intel. Among 3,769 employees in 1,827 enterprises, 69.2% of the companies offer the opportunities to their staff to foster and train the leadership, regardless of the employees’ positions. Furthermore, for the top twenty companies, they also encourage the leaders in charge of subsidiaries to take part in the headquarter decision-making process. It can be concluded that an increasing number of companies have become aware of the importance of leadership development. Work-life balance is a crucial factor of employees’ job satisfaction, which managers need to consider. The former research...

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David V. Day (2000). Leadership development: A review in context. The Leadership Quarterly, 11, p.581-614.
Esra Nemli Çaliskan(2010). The Impact of Strategic Human Resource Management on Organization Performance. Journal of Naval Science and Engineering, 2010, Vol. 6 , No.2, p. 100-116
Huselid, M.A. (1995). The Impact of Human Resource Management on Turnover, Productivity, and Corporate Performance, Academy of Management Journal, 38, p. 635
Lado, A.A. and Wilson, M.C. (1994). Human Resource Systems and Sustained Competitive Advantage: A Competency-Based Perspective, Academy of Management Review, 19, p.699–727.
Lado, A.A., Boyd, N.G. and Wright, P. (1992). A Competency-Based Model of Sustained Competitive Advantage: Toward a Conceptual Integration, Journal of Management, 18, p.77–91.
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Wright, P.M. and McMahan, G.C. (1992). Theoretical Perspectives for Strategic Human Resource Management, Journal of Management, 18, p. 295–320.
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