1.1 Key concepts
”Strategic human resource management is the connection between a company’s human resources and its strategies, objectives, and goals. The aim of strategic human resource management is to:
- Advance flexibility, innovation, and competitive advantage.
- Develop a fit for purpose organizational culture.
- Improve business performance.” (Sawyer 2019)
”Companies are more likely to be successful when all teams are working towards the same objectives. Strategic HR carries out analysis of employees and determines the actions required to increase their value to the company. Strategic human resource management also uses the results of this analysis to develop HR techniques to address employee weaknesses. The following are benefits of strategic human resource management:
- Increased job satisfaction.
- Better work culture.
- Improved rates of customer satisfaction.
- Efficient resource management.
- A proactive approach to managing employees.
- Boost productivity.” (Sawyer 2019)
”Organizations must take several steps to implement strategic planning successfully. The strategic planning process begins with the organization’s strategic planning team asking four critical questions, answers to which form the basis of the strategic planning process:
- Where are we now? (Assess the current situation.)
- Where do we want to be? (Envision and articulate a desired future.)
- How do we get there? (Formulate and implement a strategy and strategic objectives.)
- How will we know if we are on track toward our intended destination? (Establish a mechanism to evaluate progress.)” (SHRM 2015)
“The major HR challenges facing managers today can be divided into three categories: environmental challenges, organizational challenges, and individual challenges. The environmental challenges are rapid change, the rise of Internet, workforce diversity, economic globalization, legislation, evolving work and family roles, skill shortages and the rise of the service sector, and catastrophic events as a result of natural disasters and terrorism. The organizational challenges are choosing a competitive position, decentralization, downsizing, organizational restructuring, the rise of self-managed work teams, the increased number of small businesses, organizational culture, advances in technology, and the rise of outsourcing. The individual challenges involve maching people with the organization, treating employees ethically and engaging in socially responsible behaviour, increasing individual productivity, deciding whether to empower employees, taking steps to avoid brain drain, and dealing with issues of job insecurity.” (Gomez-Mejia, Balkin & Cardy 2016)
In a summary, strategic HR planning requires that several things are being thought carefully. It is essential to check where your company’s HR plan stands now, where you want to aim, how to develop it and how to audit it constantly. There are several challenges, around the subject, which makes it diverse. HR people need to be able to hold the rein. Once company’s strategic planning has been done well, it will nourish the whole company – inside and out.
1.2 Case
As in the case about ‘Child refugees in Turkey making clothes for UK shops’ (BBC 2016), it is a very challenging topic. Companies should constantly audit their manufacturer and everyone involved in the supply chain. News about child labor will always spread with rapid speed and can make a very bad impact on company’s sales and reputation. It is not acceptable nowadays anymore to say that the company wasn’t aware of bad work conditions. They should know better, and if they don’t – they should invest more for auditing. Companies should also be aware how are the legislations and minimum wages in each country where they operate. Once you know the laws and audit constantly, there won’t be any surprise behind the corner. This is how you succeed in the evolving business world.
1.3 References
BBC. 2016. Child refugees in Turkey making clothes for UK shops. URL: https://www.bbc.com/news/business-37716463. Accessed; 19 April 2020
Gomez-Mejia, L.R., Balkin, D.B. and Cardy, R.L. 2016. Managing Human Resources. Global Edition 8/E. Pearson. London.
Sawyer, K. 2019. 7 steps to strategic human resource management. URL: https://www.deputy.com/blog/7-steps-to-strategic-human-resource-management. Accessed: 19 April 2020
SHRM. 2015. Engaging in strategic planning. URL: https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/engaginginstrategicplanning.aspx. Accessed: 19 April 2020
Basics of Human Resource Management 