Effects of Strategic Human Resource Management on Organizational Success
Strategy, which is defined as the direction and scope of organization over the long-term within a challenging environment, is being attached with organizational functions that purport to turn strategies into action as a key to achieve cost and competitive advantages. These advantages in turn translate to organizational success with strategic human resource management (SHRM) as the most notable.
SHRM is regarded as the reconciliation of HR practices and its determinants from a strategic context. SHRM does not limit itself on putting human resource at the heart of the business. SHRM, rather, is a holistic approach that builds on the human asset and the relationship between them and among them as value-adding factors. As SHRM aims for continued subsistence of any organisation, it is only plausible to investigate and analyse how internal human problems could affect such the survivability of that organisation (McCourt and Eldridge, 2003).
SHRM is a valuable element of organizational success since it aids in achieving the competitive edge in terms of quality, cost and flexibility. There is the need therefore for SHRM to embrace the people whom the organization does business with. It is through this people that sustainability can be achieved whereby the values are created that direct and indirect rivals could not implement (Smale, 2008).
From a resource-based perspective, the various categories that SHRM can build upon include physical, organizational, financial and technological as well as human resources. As assets, the mere existence of human within the organization is inadequate. However, the relationship among them should be controlled towards achieving long-term organizational success. Sustainable competitive advantage potential of the human resources is central to the idea that human resources are valuable, rare, inimitable and non-substitutable (Thite, 2004).
Nevertheless, such a valuable resource, human resources are heterogeneous because of the fact that organizations require different jobs that require different skills and capabilities. The value of the differences among the people could be realized on the contribution of individuals to the organization which means to provide value at diverse degrees. The rarity of high quality and ability workers is because of their skills and competency levels. Included in here is the supposedly normal distribution of skills, competencies, expertise and capabilities (Maxwell and Farquharson, 2008).
For the human asset to imitated, further, there is the need for competitors to identify the exact source of such and duplicate exactly the elements of the human capital. Suffice to say, this is a difficult endeavour since the dynamics of human capital is also considered as organizational intelligences. On the other hand, human resources should not be imperfectly mobile so that they cannot be traded. Human resources should not be also substitutable (Pritchard, 2007).
Organizational success is also based on the collective practices internal to the organization but is intended for the outside environment. Some of these areas are employment security, recruitment selectivity, employee ownership, information sharing, participation and empowerment, self-managed teams, training and skills development and succession provision. There should be an emphasis on envisioning individual workers as sources of organizational success (Sims, 2002).
Organizational success could be also realized when the organization through SHRM is continuously invest on its reputation or image, stressing the need for sound human resource policies and practices and aligning such with the business strategies and its external context. Cost and quality is the focus whereby there are definite processes, systems and procedures that consolidates competencies, continuous education, proficient performance at individual and departmental levels and balanced monetary and non-monetary reward systems (Morris, 2004).
In sum, SHRM is not just a strategy that puts the human aspect of the organization at its core. SHRM is a holistic approach that builds on the human asset and the relationship among them as value-creating factors. These are realized on inclusion and diversity as well as the process of building on organisational reputation or image through internal-to-external policies, systems and procedures.
References
Maxwell, G & Farquharson, L 2008, ‘Senior managers’ perceptions of the practice of human resource management,’ Employee Relations Journal, vol. 30, no. 3, pp. 304-322.
McCourt, W & Eldridge, D 2003, Global human resource management: managing people in developing and transitional countries, Edward Elgar Publishing.
Morris, D 2004, Strategic Reward Systems: Understanding the Difference between ‘Best Fit’ and ‘Best Practice, National University of Ireland Publication.
Pritchard, N 2007, ‘The destructive forces of human resources – turning people management and development initiatives into positive impactors,’ Industrial and Commercial Training Journal, vol. 39, no. 2, pp. 104-107.
Sims, R 2002, Organizational Success through Effective Human Resources Management, Quorum Books.
Smale, A 2008, ‘HRM integration: a knowledge transfer perspective,’ Personnel Review, vol. 37, no. 2, pp. 145-164.
Thite, M 2004, ‘Strategic positioning of HRM in knowledge-based organizations,’ The Learning Organization Journal, vol. 11, no. 1, pp. 28-44.
0 comments:
Post a Comment