What is strategic human resource management?
Strategic HR management is the interconnection between the company’s human resources and its objectives, goals and strategies. The action of strategic HRM is directed towards:
- Advancing innovation, flexibility and competitive advantage
- Developing employees to shape organisational culture
- Improve business performance
Scope of Strategic HRM
Human resources (HR) play a vital role as a strategic partner when the company’s policies are created and implemented. Strategic HR can be effectively demonstrated through different actions such as hiring, training and rewarding employees.
Strategic HR involves efforts to empower HR to make a direct impact on the company’s growth. HR personnel enrol in Human Resource Executive Online courses to adopt a strategic approach towards developing and retaining employees to accomplish the company’s long-term plans.
Strategic HR lays a road map to cross the hurdles in the business environment. The main objective is to help management in making sound decisions and ensure business continuity.
Strategic HR practices give independence to individual departments to hire and build the best teams. Companies are using human resource management strategies to strengthen their market position.
Importance of Strategic HRM
Enterprises are more likely to be successful when the efforts of all organisational teams are synergised. Strategic HR conducts employee performance analysis and determines the set of actions required to enhance their value to the company. These results are then integrated into HR techniques to address employee weaknesses.
Also Read: How to Find Human Resources Job Opportunities?
The following are a few benefits of adopting a strategic plan in HR processes.
- Enhanced job satisfaction
- Better work culture
- Increased rates of customer satisfaction
- Efficient resource management
- A dynamic approach to managing employees
- Increased productivity
Steps in Strategic HR Management Process
Strategic HRM is essential for the retention and development of skilled employees. It’s more likely that employees will feel more valued and want to continue with an organisation that focuses on employee retention and engagement. Before implementing a strategic HR plan, the HR planning process should be created using the steps below:
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Developing a profound understanding of the company’s objectives
The extent of success of strategic HR is dependent on its linkages with the company’s goals. XLRI HR management courses help management professionals to articulate both short and long term plans for the employees to the top management. Strategic HR places emphasis on clear communication of the organisation’s goals across all levels to make the resource management strategy more effective.
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Evaluate your HR capability
Evaluating the current HR capabilities will enable the top management to quantify the role of HR professionals in contributing to the overall goals and objectives of the company. Additionally, organisations should conduct a skill inventory for every HR employee. Skill inventories help identify employees with expertise in particular areas.
HR evaluation helps in identifying employees who are interested in skill enhancement in specific functions of the company. The right time to assess skills is during a performance review. Human Resource Executive Online courses can help HR professionals to conduct efficient performance reviews and determine the ideal skills inventory from the employees.
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Assess your current HR capacity in alignment with the company’s objectives
An assessment of the company’s HR capacity can help to identify barriers and implement a course of action to capitalise on opportunities and deal efficiently with threats. Strategic HR professionals will analyse the number of employees and their quantum of skills and share the information with top management. This will help identify multiple ways to better equip employees in serving the requirements of the company.
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Estimate the organisation’s future HR requirements
Forecasting HR needs is the next step which relates to the following:
Demand– Predictions need to be made regarding the number of employees with the required skills to meet the future needs of the company.
Supply– Evaluating the employees and their skillsets who are currently available to help the organisation achieve its strategic goals.
- Forecasting the organisation’s future HR requirements also identifies the following:
- New job roles required to secure the future of the enterprise
- Skills required by present employees to fulfill the responsibilities of new jobs and roles
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Determine the tools that employees need to complete the job
HR personnel need to liaise with different departments to find out how tools and techniques influence the abilities of employees in performing their roles. For example, an audit of the software and hardware can be undertaken collectively with the IT department to recognise gaps in HR tools that help the workforce to be organised. XLRI HR management courses enable employees to concentrate on growing the company. Human Resource Executive Online courses equip HR professionals with the functionality to easily manage their employee’s hours and workflows.
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Implementing the HR management strategy
After the forecast and analysis of the company’s HR requirements, the next step is starting the process of broadening the workforce. The strategy aims to shape the skillsets of employees that are aligned with the future growth of the organisation. HR executives can learn about the essential components of HRM strategy by enrolling in Human Resource Executive Online courses.
- Starting with the recruitment stage- At this point, HR personnel will begin searching for candidates with the necessary skills that were pre-identified during the HR strategic planning process.
- Organising a selection process to assess the suitability of the candidate for the role
- Begin to hire applicants by making job offers after all the necessary checks have been completed
- Design onboarding and training strategies to increase employee retention
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Evaluation and corrective action
HR professionals should choose on a timeline to conduct a strategic HR management review. Human Resource Executive Online courses empower management professionals in identifying the areas of improvement in the employee’s performance. Corrective action should be initiated if there is a lag in meeting the objectives of strategic HRM.
Conclusion
Strategic HRM is essential for every company. XLRI HR management courses enable companies to provide learning to their employees in strategic HRM. Adopting the right strategies in human resources will reduce the burden on operational and risk management and facilitates the growth of the business.
More Information:
Guidelines For Formulating A Career In HR
Is Human Resource Management a Good Career Option?
Why Should I Choose a Career in Human Resource Management?
Scope and Opportunity in Human Resource Management in India
How to grow your career in Human Resource Management in 2022?
