Strategic Human Resource Management

Contents
Introduction................................................................................................................ 3
Task 1: Human resource management strategy.........................................................3
1.1 Importance of strategic human resource management in organizations..............3
1.2 The purpose of strategic human resource management activities in an
organization................................................................................................................ 4
1.3 The contribution of strategic human resource management to achieve
organizational objectives............................................................................................ 6
Task-2: Human Resource Planning..............................................................................7
2.1 Business factors that underpin human resource planning in an organization......7
2.2 Asses the human resource requirement in a given situation..............................9
2.3 Developing a human resource plan for an organization.......................................9
2.4 Critically evaluate how a human resources plan can contribute to meeting an
organizations objectives.......................................................................................... 11
3.1 Purpose of human resource management policies in organizations...................11
3.2 The impact of regulatory requirements on human resource policies in an
organization.............................................................................................................. 12
Task -3: Reviewing human resource management...................................................13
4.1 Analysis the impact of organizational structure on the management of human
resources.................................................................................................................. 13
4.2 Impact of the organizational culture on the management of human resources. 14
4.3 How the effectiveness of human resource management is monitored in an
organization.............................................................................................................. 15
4.4 Justified recommendations to improve the effectiveness of human resource
management in an organization...............................................................................15
Conclusion................................................................................................................ 16
References................................................................................................................ 16

Introduction
Human resource management involves the process of acquiring, training, appraising, and
compensating employees and meeting their job relation, health and safety concern of the
employee. Human resource management is all about managing human capital. This process
involves developing the new recruited employees and retaining the existing employees of the
organization. Maintaining equity and avoid discrimination is also an important task for a human
resource manager. This assignment is very much important for new HR manager as well as the
manager of a expanding business. To expand the operation of business outside the domestic
country manager should learn the environment of that place. Understanding the organizational
culture and structure is also important for the employee to easily cope up with the organization.
Designing HR practices firms overall cost strategy should be followed and cautious that it
enhanced shareholders wealth that means profitability of the organization.

Task 1: Human resource management strategy

1.1 Importance of strategic human resource management in
organizations
Strategic human resource management is the procedure of formulating and executing human
resource policies and practices that helps to enhanced employee competence and attitudes the
company eagerly wants to achieve in its organizational plan. In strategic human resource
management policy all the activities are targeted to organizational goals. From the beginning of
the activities of recruiting, hiring, assigning them in different department and other activities are
borne to achieve end results. If they success reward is given. As a new manager of HR we need
to understand the goals of the organization and do work according to it. To understand the goals
first of all we need to understand the hierarchy of the organization. The goal is dispersed among
the hierarchy. Top management set the goals of the organization. Then the lower level manager

set the strategy, work processes, labors to achieve the smaller part of the goals say for specific
targeted sales volume. So in strategic management it creates a chain of departmental goals from
upper level to lower ranked managers or even employees. Some of the benefits of understanding
strategic human resource management are

Helps to achieve goals and also for survival

Successful implementation of business strategy
Provide competitive advantage for the company
Increase company responsiveness to any difficult situations and encourage employees to

innovative and creative activities

It increases the chance of analyzing different feasible strategic option
Provide top management effectively disperse responsibility among subordinates
A strong communication and cooperation between line and HRM managers.

Strategic practices can boost firm achievements when they are internally organized with one
another to manage human resource in a way that provides the firm opportunity of competitive
advantage. This can create value for a firm when the individual practices are aligned to develop
critical resources or competencies (Forhad, 2007).

1.2 The purpose of strategic human resource management activities in

an organization
Due to overall economic downward growth globally businesses face problems in managing
human resources. Now its time to put focus on this matter. It is very much important for firms to
reduce the number of unproductive human resources and makes the best uses of the remaining
and make them more skilled and knowledgeable. Firms need competitive advantage in domestic
and global market for growth and also for survival. More and more organizations are now
practicing strategic human resource management policy by seeing its potential benefits in the
organization. So there is a positive relationship between SHRM (strategic human resource
management) and firm performance. In financial measurement it might not be so important but
intrinsically it is HR practices can enhance firm performance when they are internally aligned
with one another to manage employees in a manner that leads to competitive advantage. HR
practices can create value for a firm when the individual practices are aligned to develop critical

resources or competencies necessary nowadays for firms growth and survival. The main
purposes are described
High quality employee: attracting high quality human resource and to developing them
strategic policy is too much important. Strategic operational needs of the organizations
are matches with the skilled human resource by putting them into right places. This
strategy helps to reduce employee turnover by motivating them and providing congenial
work environment etc, acquiring talented employee and developing them that provides
the firm a superior position in the market. Job satisfied employee can provide innovative
suggestion and high level of customer personal service and quickly adopt with the
organizational culture which is desired.
Managing talent: The purpose of this new HR policy to ensure that skilled talented
employees are recruited and positioned them into right position in the firm. Provide them
right facilities to retain and motivate this asset.
Working environment: this HR policy helps to create values among employees, provide
place for showing leadership quality, flexible working environment helps to manage work
life balance and also accomplish diversity of work.
Job and work design: Provides individuals with stimulating and interesting work and gives
them the autonomy and flexibility to perform their jobs well. Also helps to enhance job
satisfaction and flexibility, which encourages high performance and productivity.

Learning and development: helps to increase skills base and develop the level of
competence that is essential in the workforces. Emphasize on discretionary learning,
which takes place when individuals actively seek to acquire the knowledge and skills that
promote the organizations objectives. It also helps to create a climate of learning a
growth medium in which self-managed learning and coaching, mentoring and training
flourish.
Management knowledge and intellectual property: this process helps to learn new
things and provide an opportunity to disseminate own knowledge and experience
throughout the organization. It is the responsibility of the top management to respect the

innovation and protect his right that external uses of creativeness is protected and pay for
his or her innovation.
Motivation and commitment: it helps the employees of the firm to think about the
company and they believe it is their own property, the success and failure of the company
results their livelihood and promotion. So they will be committed and do more for the
achievement for the organizational goals effectively.
High performance management: helps to achieve productivity, quality, satisfied
customer services, organizational growth, and high profitability that ultimately increase
the shareholders value. Improvement of employee behavior that creates a positive
company image in the competitive market. That helps to attract clients.
Managing reward: Develops motivation, commitment, job engagement and positive
work attitude by valuing and rewarding people in the way of with their contribution in the
firm (Dessler, 2011).

1.3 The contribution of strategic human resource management to achieve

organizational objectives

Business strategy

HR strategy

Quality of goals and services

HR effectivenessHR outcomes:
Employee competence
Commitment
Organizational performanc
flexibility
HR practices
productivity

Figure : HR strategy effects

The above figure states that the business strategy is now directly related with the firms STHRM
and this is very much related with the HR effectiveness and practices that results employee
competence and their commitment to the organization and flexible working condition. Flexible
working environment provides employees to take decisions and work as their wish but not
violating company procedures and rules. This enhanced benefit helps the firm to achieve targeted
goals thus increase productivity and organizational performance.
Recruitment and Selection: A major concern of human resource management is the
recruitment and retention of valued employee. HR policy helps to run a campaign that benefits to
identify a number of applicants who can potentially meet the requirements of particular jobs or
roles. The hiring managers then select, among the candidates with the aid of a competency
profiles (knowledge, skills, abilities and other attributes) in this selection pool, those that would
add the highest value to the firm.
Training and Development: It helps to finding out the weakness area of the current human
resource policy and also employees where improvement is required. Also helps to select the
proper training method and developing them for making them skilled and knowledgeable.
Performance Appraisal: In case of evaluating employee performance strategic human resource
policy helps to appraise unbiased appraisal of an employee.
Compensation System: Firms can affect the motivation of employees in several ways. They can
use performance-based compensation to provide rewards to employees for achieving the specific
goals and objectives of the firm (Davenport, 2000).

Task-2: Human Resource Planning

2.1 Business factors that underpin human resource planning in an
organization
The strength of the strategic HR is to placing the right person in right position. It helps the
management to develop management structure of the organization. If a company can apply this
strategic option in their HR policy it definitely will bring a new dimension in companys HR
practices. In recent economic downtown every organization is planning how to achieve

efficiency without compromising the quality, goodwill, maintaining higher profitability of the
company. Some business factors are common that can be analyzed in terms of organizational HR
planning.
Growth of the business: as our business is on expanding mode so in recession economic
condition it is very much important to work for increasing growth of the business by not
increasing cost related with the management of HR. The growth of the business would be
ensured if the strategic HR management properly ensured by the top managers, line managers
and lastly by employees and workers. It helps to expand its current facilities to different country
in the world. Skilled workforce is enough to manage diversified management that dispersed in
different location. Allocation of resources will be effective as a result of this.
Location of operation: if the current firm expands its business in different countries like many
other multinational companies strategic HR policies will help to manage workforce easily with a
minimum cost raising. Which ensure the productivity of managing human resource and increase
profitability of the company in the human resource planning that is helpful. Of course the
prerequisite is the skilled innovative manpower which sometimes known as human capital. A
country or an organization which have more this they are simply one step forward than
competitors.
Business change: of course new human resource policies always appreciate change in the
organization. New ways of doing things say for new technology for producing products,
disseminating messages, new desks for providing customer service, online advertisement, online
sales that reduces cost of the firm to set up sales stores etc. Use of internet helps the firm to bring
new things and introduce it with the firm employee. Nowadays employee outsourcing is quite
popular as a result of this company cost reduces and creates employment opportunity for
students, housewives etc. Firm get skilled workforce from different part of the world. Existing
employees will get flexible work environment due to change in the working environment (Robert
M Noe, 2005).

2.2 Asses the human resource requirement in a given situation

As a result of the human resource manager works in a expanding business organization suppose
we assume that the business expands its facilities in another country rather home country. The
number of human resource, process of acquiring them, compensation package, labor rules will be
followed in accordance with the foreign countries policies. The firms whether hire local labor or
home country labor depends on the strategic decision. Sometimes it is mandatory for foreign
firms to hire local manpower for a certain percentage. Generally firm appointed top management
form home country and department managers from foreign country to which the firm is going to
operate.
Government policy (laws): The human resource practice should be in accordance with the laws
and regulations of the country in which the firm is operating its business. Suppose a British firm
wants to expand its business in India. British firm must bound to obey the human resource
procedure of Indian law. They can just change not violating any laws of that country.
Government policy (education): To get more skilled knowledgeable workforce an organization
can establish its own human development institution. Online academy is now quite popular for
employees. Employees can easily learn in which their depth of knowledge is not that much
sufficient. But it should be kept in mind that to do it firms overall cost doesnt increase that affect
its profitability (www.reuters.com).

2.3 Developing a human resource plan for an organization

As the firm is already had its business so it has its own human resource plan. As a new human
resource manager a new proposed plan can be made for better performance. A new strategic HR
plan can be discussed into several segments.
Organizational objectives: for any planning a common phrase is used that is the use of
SMART techniques. SMART stands for (specific, measurable, achievable, realistic, and time

based). So the planned policy would be purpose oriented for which the task is carried for, the
cost related with the plan should be identifiable and measurable, any unachievable plan should
be avoided just because of incapability of the planning. Time is an important factor for any plan.
Every activity requires specific time to finish the job. If it consumes more time it has no
acceptability to the top management. So before planning for new HR policy above factors should
be considered.
Selection and recruitment: new policy should be design in a way that attracts most of the
potential candidates for the job. Job analysis, job description should be design in a proper way
that is eye catching to them. Written or verbal examination can be taken for the first shortlist;
selection is the first process of human resource management and then comes recruitment that
should be based on the departmental requirements to avoid extra manpower recruitment that is
unproductive and cost raising.
Employee development: after recruiting fresh employee it requires employee development
process. Training is given to them based on need. Proper feedback should be taken what they
learn from their training. And close supervision and monitoring is required to whether
fruitfulness implementation of training program and effectiveness. Based on this findings further
development such as visiting to another firm, outdoor campaign is taken for employees.
Retention: it one of the most important part of human resource manager task. To create a skilled
human worker firm expends lot of time, money. If the employee turnover of the firm is too high
firms HR policy would be spoilage. So performance appraisal is important and promotion is
given to the right person in right time. Other motivational technique can be applied to retain
existing employee. Competitor retention strategy should be kept in mind in case of decision
making (Holbeche, 2008).

2.4 Critically evaluate how a human resources plan can contribute to

meeting an organizations objectives
Generally human resource plan is made for optimum use of human resources. Effective human
resource planning helps to find out right person for the right position at the right time. HR should
work to fulfill the management set objectives
Best uses of human resources: HR is liable for hiring right person for right position. Hiring
wrong person having no good characteristics is a worthless for the firm. A skilled employee is an
asset of the firm and he helps to achieve organizational objectives.
Number of the employee: it is very much important to ensure the number of employees in
proper amount. Over and under is costly for an organization. If the number old employees
increase management should hire new employee and trained them before the retirement of old
employees to avoid shortage of employees. On the other hand if the labor market is not congenial
existing employees should be kept by providing additional job duration. Sometimes to meet up
the seasonal demand outsourcing of employment can be done without raising extra cost of the
firm.
Improve performance: of course strategic HR helps to improve performance of the employee as
a result of proper distribution of responsibility in accordance with experience of the workforce.
Business cost: Extreme human resource policy helps to reduce cost of unwanted HR practices.
Succession planning: it is a important matter of consideration as a human resource manager. To
get experienced human resource immediately a firm must have succession planning. By
providing promotion this objective can be done in internal way(Gary Dessler, 2011).

3.1 Purpose of human resource management policies in organizations

The main purpose of maintaining a human resource policy is all about managing total human
related activities of the firm. It includes health and safety, equity and diversity, gender biased,

harassment to female workers, opportunity for physically challenged person etc. some of the
policies are discussed below.
Health and safety: a safe work environment can ensure the safety of the employees and
workers. Proper training in disaster moment like as fire, machine blasts etc. determining break of
working hour and proper dieting, medical facilities etc helps to fit employees and workers that
they feel safe in working with the firm.
Equity and diversity: it depends on organizations philosophy how it values its local cultures.
Many organizations strictly follow their own culture which might nor preferable. For example
Indian workers may prefer vegetarian food. Muslims avoid Haram food etc. in case of promotion
performance appraisal and experiences of the employee should be given priority.
Harassment to the employee: it is quite unexpected in twenty first century. Sexual harassment
is now quite seen in most of the organization which is unexpected. Only top management actions
can eliminate sexual, gender, mental, physical harassment from the organization.
Gender biasness: States laws are strictly maintained. In case promotion, remuneration and
transfer no gender biasness id tolerated nowadays. Male and female are treated equally
(www.HSBC.com).

3.2 The impact of regulatory requirements on human resource policies in

an organization
For the purpose of proper practices of human policies regulatory requirements on human
resource is important. Human policies should be designed in accordance with the legislation
described in the countrys constitution. Put emphasize on payment system or salary systems,
discrimination, EEO(equal employment opportunity), rights and responsibility etc. the impact of
regulatory requirements of an organization is discussed below.
Sex discrimination act: in every legal system in labor law it is completely prohibited to
discriminate a person on the basis of sexual identity or marital status. Same rule is abides by in
case of pregnancy or maternity period.

Division on the basis of race: no one should be treated on the basis of race, ethnicity,
nationality, color, religion etc. it is very harmful for the bonding of human resources. Conflict
should be eliminated. Anyone failed to comply these rules should face legal obstruction.
Employment act: in case of hiring employees and workers existing laws should be folloed.
Above mentioned discrimination that means in case recruiting no base would be on the basis of
race, color, nationality etc is seen. Merit would be the first criterion. Child labor should be
prohibited by the organization. In developing country child labor practice is seen among
household workers (Pearson, 1998).

Task -3: Reviewing human resource management

4.1 Analysis the impact of organizational structure on the management

of human resources
Organizational structure provides a framework of activities of an organization and specifies the
role of each person to achieve goals and objectives of the organization. For strategic human
resource management a good structure is so important that make or break the organization. So it
should be designed in a way that everybody can easily understand their assigned job and
responsibility and perform according to that that ultimately helps to achieve organizational
objectives.
According to the theory of mintzberg (mintzberg, 1998) there are two basic approaches of
formation organizational structure. One is contingency approach and the other one is
configuration approach. Contingency approach is based on the nature of the business, size,
strategy, geographical location of activities, age of the business, nature and history and also
environment of the business. He argues that business structure should be based on configuration
approach rather contingency approach. Businesses structure whether centralized or decentralized
control are the matter of discussion of configuration approach. It divides the management

activities and everybody is responsible to his superior level manager. Geographical,

centralization or decentralizing impacts the human resource planning.
Geographical impact: human resource plan should be made to take in mind geographical
factors. For example an airways company should plan its human resource requirement based
on business of the activities. It should reduce the number of employees where it gets less
customers and provide high skilled manpower in busy airport.
Centralization impact: centralization of activities or management decisions can easily
disseminate information and task among groups. But sometimes it is too much lengthy or time
consuming to take decisions from top management on small matter. If the management structure
is decentralized local decisions are made promptly. Sometimes top management in centralized
systems doesnt aware of the environment of the foreign operation (www.businesslink.gov.uk).

4.2 Impact of the organizational culture on the management of human

resources
For management to make the employee the culture of the organization understandable and for the
employee promptly learning organizational culture is very much essential to achieve
organizational objectives. It helps one to understand his job well and perform according to that.
Organizational culture can be defined as the pattern of shared values, beliefs and assumptions
considering appropriate way of thinking and acting within an organization.
For management practices organizational culture is the key element. It represents the company
thats why stakeholder of the organization can easily understand about the company. Employees
can easily understand the work environment in which they have to expend most of their working
hour. Organizational culture is the form of cognition, ideas and value of the organizations
internal behavior.
Relationship between culture and HRM: it is the internal function of an organization. HRM
practices are designed according to the established culture. In every aspects of management
decision making implementation of culture is ensured so that it gives the firm an unique identity

in the competitive market as well as employees would be satisfied by thinking that they work in
a unique atmosphere ( The Economist, 2014).

4.3 How the effectiveness of human resource management is monitored

in an organization
Of course to achieve organizational goals effectiveness of HR practices should be monitored
with established criteria. It helps to put right person to the right position so that with a minimum
time job are getting done from employees. An effective HR policy helps to reduce costs and
increase profitability thus increase shareholders wealth. It creates positive image among clients
so sales growth will be increased. Workers will be motivated to attach with the organization and
turnover rate will be reduced which is another objective of HR manager.
Human resources efficiency: strategic human resource policy increases accountability among
employees; as result of this activity they perform their duty with integrity. It also provides
employees independence in decision making to do the job in his/ her way in a given time. So he
takes the job not as burdensome and feels comfortable to that.
Performance appraisal: it is the process of identifying the contribution of an employee to the firm
and measuring it with the established standard. Motivational technique is used to get high
performance from the employee. To monitor the performance of the employee survey report can
be measured and track and make decisions (Gary Dessler, 2012).

4.4 Justified recommendations to improve the effectiveness of human

resource management in an organization
To get maximum results from strategic management everybody should work by following the
organizational structure and culture of the organization. Everybody should accountable to his
performance to the immediate boss. Corrective actions should be taken promptly. Dissemination
of information can be made in the proper channels. To retain employee training, outdoor

campaign, recreational benefit, motivational technique should be applied. Competitor human

resource plan should be studied continuously so that if necessary any change can be brought
easily. At last but not least to get something more positive to give more to the employees in order
to achieve organizational objectives or goals whichever is called (Pearson, 2011).

Conclusion
From the above discussion it has been clear that in modern world managing human resource is a
challenging task for a human resource manager. Understand the departmental need and recruit
skilled manpower, assigning them into right position and employee developments are the main
functions of HR. Succession planning is important aspect of HR. In last line human resource plan
should be cost effective and helps the firm to increase its profitability.

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