The company’s overall performance is considerably determined by the approach and management of the employees. As such, strategic approach in human resource management is very important for a successful company.
Ranging from maintenance of performing employees to right staffing, Human Resource (HR) management is very critical in developing the employees and the entire organization in general. While monitoring the company’s long-term goals, mission and vision, improvement of performance standards is necessary to discover potential problems, performance of staff and observance to standards and tasks.
HR management should possess the right skills in leading, planning, establishing standards and organizing. Since HR managers are part of the team that is entrusted with development of the company as opposed to the technical and operation aspects, a better understanding of this role is critical. More so, this plays a significant role when competition is factored in ( Noe et al., 2007).
Mismanagement is one of the major reasons why companies fail. Problems emanating from human resources should be timely detected to avoiding future difficulties and potential harms to the clients which can be a threat to the whole company. Success and growth of most companies can also be attributed to their culture.
For instance, effective communication amongst the employees helps to ensure that organizational goals are achieved. For a company to consistently grow, it must stick to its culture of best practices while adjusting to changes accordingly (Legge, 1994).
HR professionals together with the management can team up to undertake such responsibilities. Similarly, HR professionals can act as the bridge in implementing what the management wants especially in regard to employees’ affairs so as to achieve common and long-term goals of the company (Jing and Huang, 2005).
Literature review
Literature concerning human resource management has had a number of contributions within the last two decades. Significant attention to this field has especially resulted from the different approach in management in the recent past (Guest, 1997).
Surprisingly, even though many researchers have studied HRM on a wider scope, much of the studies have centered on a limited range of issues and has been condemn of being ‘micro analytic’(Delery and Doty, 1996).
In the recent pasts, however, many studies have managed to clearly show the relation between HRM and organizational performance, and it is precisely from this ground that strategic human resource management has been developed (Cappelli and Crocker-Hefter, 1996).
Globalization, rapid environmental change, changing investor and customer demands and innovations to present competitive products and services have become the standard setting for organizations with successful and development motive (Bird and Beecher, 1995).
To maintain a competitive edge, firms must relentlessly improve the quality of their products and services; improve their performance by cutting costs, and differentiating their products and services. To maintain a competitive edge and improve organizational performance, new set of priorities should the center of attention for HR professionals (Guest, 1997).
These new set of priorities focuses more on business and strategy and pays little attention on conventional HR functions such as training, staffing, compensation and appraisal. Strategic priorities comprises of job designs base on teams, quality improvement practices, flexible workforces, incentive compensation and employee empowerment (Jing and Huang 2005).
Strategic human resource management design tries to identify strategic requirements of organizations and planned talent progression which is essential for a competitive strategy implementation and achievement of operational goals (Huselid et al., 1997).
Reference
Bird, A. & Beecher, S., 1995. Links between Business Strategy and Human Resource
Management Strategy in US-based Japanese Subsidiaries: an empirical investigation. Journal of International Business Studies (First Quarter), pp. 23- 46.
Guest, D.E., 1997. Human Resource Management and Performance: A Review and Research Agenda, International Journal of Human Resource Management, Vol. 8, no. 3, pp. 263-276.
Huselid, M.A. Jackson, S.E. & Schuler, R.S., 1997. Technical and Strategic Human Resource Management Effectiveness as Determinants of Firm Performance, Academy of Management Journal, Vol. 40, pp. 171-88.
Cappelli, P., & Crocker-Hefter, A., 1996. Distinctive Human Resources are Firms Core Competencies. Organizational Dynamic. 24(3), pp. 5-25
Delery. J.E. & Doty. H.D., 1996.’Modes of Theorizing in Strategic Human Resource Management: Tests of Universalistic, Contingency, and Configurational Performance predictions’. Academy of Management Journal. 39(4), 802-35.
Jing, W., & Huang, T., 2005. Relationship between Strategic Human Resources Management and Firm Performance, International Journal of Manpower, pp. 434-449.
Legge K., 1994. Managing Culture: Fact or Fiction: Sisson, K, editor. Personnel Management: A Comprehensive Guide to Theory and Practice in Britain. Oxford: Blackwell, pp. 397-433.
Noe, J. Hollenbeck, Gerhart, B., & Wright, P., 2007. Human Resources Management: Gaining A Competitive Advantage, 5th.Ed. New York: Mc- Graw-Hill Co
Kochan, T.A.,& Dyer, L., 1993. Managing Transformational Change: the role of human resource professionals. International Journal of Human Resource Management, 4, pp. 569 – 90.