Strategic HRM is an approach that defines how the organization’s goal would be achieved through people by means of HR strategies and integrated HR Policies and Practices. The central Premise of strategic human resource management theory is that successful organizational Performance depends on a close fit or alignment between business and human resource strategy.
Therefore strategic human resource management techniques can be defined as the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that fosters innovation, flexibility, and competitive advantage.
BASIS OF STRATEGIC HRM
Strategic HRM is based on three Proposition;
1. The human Resource or human capital of an organization Plays a strategic role in its success and is a major source of competitive advantage.
2. HR strategies should be integrated with its business Plan( Vertical integration). Allen and white (2007) stress that The central Premise of strategic human resource management theory is that successful organizational Performance depends on a close fit or alignment between business and human resource strategy. Box et al. (2007) also believe the major focus of strategic HRM should be aligning HR with firm strategies.
3. Individual HR strategies should be coherent by being linked to each other to provide mutual support (horizontal integration)
Strategic HRM can be underpinned by a certain concept rather than a set of techniques. It provides the foundation for strategic reviews in which analysis of the organizational context and existing HR Practices leads to choice on strategic plans for the development of overall or specific HR strategies.
But strategic HRM is not Just about strategic planning; it is also concerned with the implementation of strategy and the strategic behavior of HR specialists working with their line management colleagues on an everyday basis to ensure that the business goals of the organization are achieved, and its values are put in place.
PRINCIPLES OF STRATEGIC HRM
As a means of developing integrated HR strategies, strategic HRM is facilitated to the extent to cover the under listed Principles
1. There is an overall Purpose, and the human resource dimensions in that Purpose are evident.
2. A Process of developing strategy in the organization exists and is understood, and there is the explicit consideration of human resource dimensions.
3. Effective linkage exists on a continuing basis to ensure the integration of human resource consideration with the organization’s decision-making process.
4. The office of the chief executive officer Provides the challenge for integrating human resource consideration to meet the needs of the business.
5. The organization at all levels establishes a responsibility and accountability framework for human resource management.
AIMS OF STRATEGIC HRM
The fundamental aim of strategic HRM is to generate strategic capabilities by ensuring that the organization has the skilled, engaged, and well-motivated employees it needs to achieve and sustain competitive advantage. In accordance with the resource-based view as described earlier, the strategic goal will be to create firms that are more intelligent and flexible than their competitors by hiring and developing more talented staff and by extending their skills base.
Strategic human resource management is largely about integration and adaptation. Which deals with parameters such as
i) Human resources management is fully integrated with the strategic needs of the firm
ii) HR Policies being coherent with institutional Policies and or ganogram of the organization
iii) HR Practices Policies and Practices are being adopted and used by all line managers as part of their daily routine.
CONCEPT OF STRATEGIC HRM (RESOURCED-BASED VIEW)
This concept favors the view that it is the range of resources in an organization, including human resources, that produces its unique character and creates a competitive advantage. It Provides a durable basis for strategy and builds on and provides a unifying framework for the field of strategic human resource management.
Competitive advantages that arise first within an industry are heterogeneous with respect to the strategic resources they control and second when these resources are not Perfectly mobilized across firms, making its heterogeneity long-lasting. Creating a competitive advantage, therefore, depends on the unique resources and capabilities that a firm brings to competition in its environment.
These resources include all the experience, knowledge, judgment, risk-taking propensity, and wisdom of individuals associated with a firm. For a firm to have the Potential for creating sustained competitive advantage, it should have the following attributes
i) Valuable
ii) Rare
iii) Imperfectly imitable
iv) Non – substitutable.
To discover these resources and capabilities, managers must look inside the firm for valuable, rare, and costly to imitate resources and then deploy these resources for the organization.
STRATEGICALLY FIT VIEW
Strategic fit refers to the two dimensions that distinguish strategic – HRM.
First Vertical; entails the linking of human resources management Practices with the organization’s strategic management process.
Second; Horizontally, it emphasizes the coordination or congruence among the various human resource management Practices.
Author:
Phidelia Johnson is a global Human Resources Practitioner with eighteen years of leadership success. With a focus on streamlining Human Resources administration, she’s well-equipped to find the right solution to a myriad of concerns. Her experience as a commercial business leader gives her a unique ability to advocate for both the employer and the employee.
In her down time, Phidelia is a master of her kitchen, creating wonderful dishes filled with passion and flavor. If she’s not cooking delicious food, she’s stretched out with a good book. She hopes to use her experience to help others, guide company leaders to best practices, and help build better professionals and stronger organizations.