Introduction
Strategic human resource management is an attempt to integrate different functions of human resources in order to achieve a common goal. All human resources functions should be geared towards achieving the goals of an organization.
Strategic human resource management has various advantages which include improving business performance, developing a company’s organizational culture, enhancing creativity and innovation in the business, and puts an organization at a competitive advantage (Boxall, 1992).
Strategic human resource management process involves incorporation of various human resource functions in the development and implementation of a company’s strategic goals and objectives. The various human resource functions that can be incorporated in the formulation of strategic goals include rewarding personnel, recruiting, staffing and training (Fombrun et al, 1984).
This essay is going to evaluate the various major factors a human resource manager should consider while undertaking strategic human resource management.
Discusion
Background information
There are various pertinent and important issues that arise during the entire process of strategic human resource management. Such issues, if well handled, can be of great importance to a business. On the contrary, if such issues are not well handled, the business is likely to face a threat of collapse due to waste of resources and low competitive advantage status (Truss & Gratton, 1994).
Some of the major issues that a Human resource manager should consider in strategic human resource management include shape and organizational structure, development and training of employees, job evaluation, remuneration strategy, and managing individual performance (Billsberry et al, 2005).
Shape and organizational structure
The shape and structure of an organization is very vital in nurturing the channels of communication across all departments in an organization. Also, organizational structure defines how power flows in an organization. It is important for a human resource manager to consider the organization structure before conducting the process of strategic human resource management (Armstrong, 2008).
Understanding the organizational structure will enhance easier decision making as well as easy implementation of the strategic policies being adopted. For example, if a company introduces a new salary pension scheme for employees, the human resource manager should delegate the process to the finance manager.
This will enhance easier decision making because of the centralized roles. Also, it will enhance easier implementation because the finance department is the department concerned with the payroll of employees (Analoui, 2007).
Also, understanding the structure of an organization is important since it will help the human resource manager to allocate duties to the relevant functional areas (Billsberry et al, 2005). For example, matters concerning information and technology will be solely delegated to the IT department. This will reduce the duplication of roles as well as enhance creativity and innovation.
Development and training of employees
Another aspect that should be considered by the human resource manager is the aspect of staff development and training. Since roles and responsibilities for employees keep on changing in nature, it is important that organization develop and train their employees to keep pace with the changes.
This is an important ingredient in the strategic human resource management because it will dictate how internal resources are going to be utilized effectively (Analoui, 2007).
Research has shown that most companies that train their employees are better placed than those companies which do not train their employees. This is attributed to the fact that training employees leads to creativity and innovation within an organization (Armstrong, 2008).
In order for a company to achieve its strategic goals, then employees should be trained in their relevant areas of expertise. This will increase productivity, creativity, and innovation within an organization.
The human resource manager should, therefore, develop some strategies that will foster employee development. Also, the strategies should enhance the training of employees in their relevant areas of expertise (Billsberry et al, 2005).
For example, a company that deals with software development should train employees in developing systems based on new programming languages such as java, python, and visual basic.net. This will ensure that the employees are able to effectively handle new emerging challenges with ease. It will also ensure that employee skills are not rendered obsolete (Billsberry et al, 2005).
Job evaluation
Job evaluation can be described as the process of analyzing and determining the value of a job in relation to other available jobs in an organization. Job evaluation is important because it will describe the roles and duties associated with a particular job (Billsberry et al, 2005).
Also, job evaluation will determine the salary an individual is earning. A human resource manager should conduct a job evaluation in order to determine the available job positions and the corresponding salary scales.
This will increase motivation among employees because their salary will be commensurate with their job descriptions, qualifications and duties (Fombrun et al, 1994). According to Truss and Gratton (1994), motivated employees will work towards achieving excellence in an organization.
Such a motivated group will always work towards adopting strategic goals that will give the organization a better competitive advantage.
Also, job evaluation is important because it will reduce organizational expenses in paying some “ghost workers”. Job evaluation will ensure that there is a clear job distinction in an organization hence reducing the chances of having some “ghost workers” in an organization (Billsberry et al, 2005).
Job evaluation also ensures that each employee has a unique role that is dissimilar from that of others. This will eventually lead to easier implementation of organization strategic goals because most of the employees are not overloaded with duplicated roles.
Reduction of expenses being paid to workers will ensure that an organization saves a substantial amount of money that could have otherwise been paid to “ghost workers”. This money can be used in investing in other relevant strategic activities like training of staff, and adopting new technologies among others (Boxall, 1992)
Remuneration strategies
Employees offer their skills to the organization in exchange for a wage or salary. They should be remunerated based on their skills and experience. The firms need to devise some strategies that will be used in compensating employees for the services they offer. Remuneration strategies are those strategies that affect the remuneration being paid to employees.
It is important for a human resource manager to consider the remuneration strategies before adopting a strategic human resource management plan (Armstrong, 2008). Research has shown that most employees will always work because they will be compensated for the work they are doing.
Remuneration also enhances motivation among employees because; employees feel that their hard work has been compensated. Hence; a human resource manager should develop strategies that will ensure employees are fairly compensated for their hard work (Boxall, 1992).
The strategies adopted should not demean and undermine the hard work an employee is offering to an organization. For instance, when developing a training scheme for employees, the employees should not be charged for being trained by the company. For example, if a university requires a java programming lecturer, then the university should train one of its staffs in java free of charge.
The employee salary should not be deducted to cover for the java skills the company has given them. Such training should be viewed as an investment which will be beneficial to the company in the long run (Truss & Gratton, 1994). It will benefit the organization in the sense that more students are going to enroll for java classes hence increasing the institutions revenues that would have otherwise been lost.
Managing individual performance
As employees continue executing their duties in an organization, there is need to evaluate their performance after a given period of time. This will help assess their capabilities and efficiency in doing their duties. Measuring performance in an organization is of paramount importance in the since it gives an individual a blue print of the actual performance of an organization.
The process of measuring performance can be a daunting process fraught with disappointments. As a result, lot of time, patience, and diligence are required when measuring employee performance (Billsberry et al, 2005).
Employee performance can be measured against some benchmarked procedures. Individual performance is an important aspect that should be considered by human resource managers in the process of strategic human resource management because of its motivational role on employees (Boxall, 1992).
The human resource manager should develop some benchmarks that can be used to measure individual performance. Individual performance can be used to enhance employee motivation by rewarding the best performing employees. Such employees will be motivated and will work towards achieving the company’s goals and objectives (Boxall, 1992).
Measuring employee performance will also help the human resource manager in identifying lazy employees, and take the relevant punitive measures against them.
For instance, if a company has a strategic objective of increasing its sales value by 15% for the next one year, then, the Human resource manager can develop some benchmarks targets for the company’s salespeople.
For example, a salesman whose accumulative sales are above $ 120,000 per year should be given a 10% bonus. Such a reward and benchmarking scheme will motivate the sales person to work hard towards achieving the organization strategic goals and objectives (Boxall, 1992).
Conclusion
In conclusion, the field of strategic human resource management is an emerging aspect, and over the years, it has proved to be an efficient strategy. Companies cannot fair well without having a well equipped human resource management. The department is responsible for ensuring that the company has the right skills to undertake its activities.
Hiring the right workforce requires the organizations to have a strong human resources management team. Evaluation and monitoring of employees is also important and it is the responsibility of human resources management. New and existing staffs need to be trained so that they have updated skills in the market. Training gives them confidence in undertaking their roles.
Before implementing strategic human resource management in an organization, it is important for the human resource manager to consider several aspects of an organization. Some of the major issues that should be considered include job evaluation, remuneration strategy, managing individual performance, development and training, and organizational structure.
The human resource manager should develop strategies that do not undermine the employee. This will de-motivate the employee which might put the organization on the brink of collapse. Employees, for instance, need to be remunerated well and in keeping with their roles and skills. If this is not done, the employees will seek revenge and also will not be effective since they have no incentive to work hard.
Reference List
Analoui, F. (2007). Strategic human resource management. London: Thomson.
Armstrong, M. (2008). Strategic human resource management: A guide to action. London: Kogan Page.
Billsberry, J & Salaman, G & Storey, J. (2005). Strategic human resource management: Theory and practice. London: SAGE.
Boxall, P. (1992). ‘Strategic Human Resource Management: Beginnings of a New Theoretical Sophistication?’ Human Resource Management Journal, Vol.2 (3) Spring.
Fombrun, C.J & Tichy, N, M & Devanna, M.A. (1984). Strategic Human Resource Management. New York: Wiley
Truss, C & Gratton, L. (1994). ‘Strategic Human Resource Management: A Conceptual Approach’. International Journal of Human Resource Management, Vol.5 (3).