Introduction
The last few decades have witnessed the evolution of debates linking Human Resource Management (HRM) to organizational strategy. Decisions made by Human Resource Managers have notable influences on the performance of organizations. It is important to define the link between HRM and the wider organizational strategy.
This study tries to determine how organizations deal with HRM and relevant issues to the organizations’ approach to HRM. The study also seeks to examine possible links between HRM and wider organizational strategy, their rise and effects to the organization. For the research to meet its goals, the roles of HRM management in organizations and the organizations approaches to HRM issues will be discussed. The study will use St. James hospital a study case.
Roles of Human Resource Management
Human Resource Management (HRM) is an important discipline in all establishments. HRM concerns itself with the control of human resources to support organizational objectives. St. James hospital has a HRM department that is responsible for managing its human resources. The HRM department deals with:
Recruitment of new employees
The HRM department conducts interviews for prospective candidates and hires them to promote the best interest of the society. This section determines the functioning of the entire organization in terms of human labor and intelligence advice in decision-making. The department also deals with appraising and rewarding employees for their work.
Employee Development and Training
Matters concerned with employee training and development activities are handled by the HR department. HRM facilitates workshops and seminars that empower employees with more knowledge and skills to move the organization to its full capacity.
Employee Relations and Conduct
The department has a responsibility of dealing with problems that affect employees and hinder them from performing efficiently. Therefore, this department makes sure employees maintain discipline in their profession. This makes sure that all policies governing the organization are observed and enforced.
Creating and Implementing Policies
The HR department has a duty to review company policies, amend changes and proposes the adoption of new policies that cater for the demands and growth of an organization. These policies make sure that organizational goals are achieved, and promote the interests of the company and safeguard interests of employees.
Organizational Approaches to Human Resource Management
All issues discussed above are relevant to the organization as regards to the functions of the HR department. The HR department acts as a strategic partner towards the implementation of the organizations goals and objectives. The organization employs the use of strategic HRM to meet its goals. The concerns of the organization are competitiveness, flexibility, efficiency and integration.
To do this, the HR department will, provide the organization with a competitive, responsive, flexible and efficient personnel environment. Application of an effective strategy in HRM enables the organization improve its competition and efficiency. In that case, HRM is concerned with factors that affect the organization internally.
Strategic Human Resource Management
Human resource management strategies are important sources of competition among organizations (Pfeffer 1994). The strengths of strategic HRM are on the actions implemented by organizations to single themselves out from their competitors (Purcell 1999).
It involves complementing HRM policies into organizational strategies to achieve a common goal. Strategic HRM concerns itself with issues relating to changes in organizations structures and culture to improve performance. Strategic HRM deals with human resources, their development and abilities to be efficient and effective.
Deb (2006, p. 54) notes that strategic HRM builds ‘high performance human resource management functions’. Human resource functions add value to organization’s core business ideas.
Strategic HRM also makes sure that business strategies and human resources support implementation of the organizations’ goals towards achievement of better results. In strategic management, HRM acts as a strategic partner towards the achievement of organizational goals and objectives.
One of the major functions of HRM in strategic human resource management is establishing high performance practices. To accomplish this, the HR department makes sure that there is quality and qualified human resource powers to enable an organization achieve desired goals. Strategic HRM emphasizes on maintenance of mutual commitment between all parties involved (Walton 1985).
Strategic HRM is geared towards the provision of results and is associated with high productivity rates and notable financial outcomes (Ichiniowski 1990). High productivity is achieved when organizational strategies are met. Therefore, this entails the application of strategic HRM techniques that involve the introduction of a qualified working human resource force to complete set tasks.
Linking Human Resource Management and Organizational Strategy
Deb (2006, p. 55) identifies a ‘positive link between sets of human resource management practices and business performance.’ He employs universalistic, contingency and configuration approaches to organizational performance. His analysis yields positive organizational outcomes characterized by quality, service and productivity (Deb 2006). HRM can be linked to organizational strategy through the following ways.
Regenerating an Organization
HRM re-generates the performance of an organization through the employment of various HR techniques and practices that harmonize work ethics and organizational cultures. Techniques used include the setting of human hierarchy, introducing information technology, re-generating policies and centralizing decision making processes.
Creating a positive learning environment
Strategic HRM creates formal and informal learning environments in the workplace. Deb (2006, p. 56) notes that strategic HRM ‘develops action plans for transferring learning to the organization.’
Strategic HRM brings together intelligence and cultivates ways having its input to the system. To accomplish this, organizations nurture human talent leading to the creation of a learning environment that breeds innovation hence enhances competition.
Creating high-performance management
Strategic HRM creates a high performance management by applying the use of HR management practices. To accomplish this, the HR department employs recruitment and selection processes and offer periodical relevant training. The HR department also strives to make sure the handling of human resource is managed professionally. High performance management is also the self-regulation of individual behaviors in relations to the organization (Wood 1996).
Creating high-involvement management
The link between HRM and organizational strategies pops out when the overall management partners with its human labor. Therefore, management is achieved creation of a dialogue environment between the management and human labor.
Examples
Case 1: Employment of business leaders in Martin Company
Martin Company needs marketers to market its new products. They have targets to meet by the end of the year. They seek the services of a HRM agency to hire business leaders on their behalf. In business leadership, consensus highly depends on the HR leadership. Strategic HRM identifies key human resource services to offer to the business. This includes material and personnel support.
The HR department designs strategic services and policies to meet strategic objectives laid down by the business. Strategic HRM is positioned to meet business needs due to its experience in the economic system. Business leadership in this sense requires HRM services. In cases that there is no application of HRM, the recruitment of personnel qualified to carry specified tasks may not be attained. This would lead to partial or lack of positive outcomes in business objectives.
Case 2: Employment of Nurses at King James Hospital
Two years ago, King James Hospital lacked personnel. The management decided to carry out direct interviews and employ the missing personnel. After one month, patients started complaining of poor services. In that case, the hospital management did not seek HRM services to recruit personnel. As a result, unqualified personnel were recruited, and services were poor.
In service provision, the use of HRM technique to achieve strategic objectives is important. Service provision requires experienced personnel to handle client’s needs. A qualified and productive workforce would achieve the specified strategic objectives. This would employ the use of HRM services for recruiting. When HRM is not utilized, then the service provision is below average, and poor outcomes are recorded
Conclusion
Business challenges in this vigorous economy are forcing organizations to reposition functions of the HR department. Business leadership is becoming more depended on strategic leadership acquitted from HR. The driving force behind notable business achievements is through support from human resources.
A strong link exists between HRM and Organizational Strategy. The link should be build up for the achievement of better results in organizational management. So far, this paper has analyzed the roles of HRM, strategic HRM and has established a link between HRM and organizational strategy.
List of References
Deb, T 2006, Strategic approach to Human Resource Management, Atlantic Publishers, India, New Delhi.
Ichniowski, C 1990, Manufacturing businesses. NBER working paper, National Bureau of Economic Research, Cambridge.
Pfeffer, J 1994, Competitive advantage through people. Harvard Business School Press, Boston.
Purcell, J 2006, ‘Best practice and best fit: cimera or cul-de-sac?’, Human Resource Management Journal, Vol. 9, no. 3, pp. 26–41.
Walton, R 1985, ‘From control to commitment in the workplace’, Harvard Business Review, Vol. 63 no. 2, pp. 76- 84
Wood, S 1996, ‘High commitment management and payment systems’, Journal of Management Studies, Vol. 33, no.1, pp. 53–77.