Introduction to HRM:
Human Resource Management ("HRM") is a way of management that links people-related activities to the strategy of a business or organization. HRM is often referred to as "strategic HRM". It has several goals:
- To meet the needs of the business and management (rather than just serve the interests of employees);
- To link human resource strategies / policies to the business goals and objectives;
- To find ways for human resources to "add value" to a business;
- To help a business gain the commitment of employees to its values, goals and objectives
Human resources management –It’s a main concern of management, using people in the organization. The ...view middle of the document...
* Under a staff discount scheme, employees receive a 10% reduction on products bought from the company.
* Long service awards are given to staff with 15, 25 or 40 years' service.
* Also, the company operates performance-related pay and bonus schemes for middle and senior managers.
The importance of strategic HRM in Organizations:
Strategic HRM is a move toward making decisions on the intentions and strategy of the organization regarding the employment relationship and its recruitment, training, growth, performance management, reward and employee relations strategies, policies and practices. The main characteristic of strategic HRM is that it is incorporated. HRM strategies are normally incorporated upright with the business strategy and parallel with one another. The HRM strategies developed by a strategic HRM approach are necessary components of the organization's business tactic. Strategic HRM is apprehensive with the relationship between human resource management and strategic management in the firm. Strategic HRM refers to the overall direction of the organization wishes to pursue in order to achieve its goals through people. It is argued that, because intellectual capital is a major source of competitive advantage, and in the last analysis it is people who implement the strategic plan, top management must take these key considerations fully into account in developing its corporate strategies. Strategic HRM is an integral part of those strategies. Strategic HRM addresses broad organizational issues relating to organizational effectiveness and performance, changes in structure and culture, matching resources to future requirements, the development of distinctive capabilities, knowledge management and the management of change. It is concerned with both meeting human capital requirements and the development of process capabilities, that is, the ability to get things done effectively. Overall, it will consider any major people issues that affect or are affected by the strategic plan of the organization. The critical concerns of HRM such as choice of executive leadership and formation of positive patterns of labour relations are strategic in any firm. Ref: www.citehr.com/2678-strategic-hrm.html
The purpose of strategic HRM activities in organisations:
The primary purpose of strategic HRM is to produce strategic ability by ensuring that the organization has the trained, faithful and well motivated employees it needs to achieve persistent competitive advantage. Its main purpose is to supply a sense of trend in often unstable surroundings, so that the trading needs of the organization, and the individual and combined needs of its employees, can be met by the development and operation of consistent and sensible HR policy and programme. Strategic HRM should provide unifying frameworks which are at once broad, possibility based and integrative.
The contribution of strategic HRM to the achievement of an organisation’s objectives: