Strategic human resource management strategic HRM, or SHRM may be regarded as an approach to the management of human resources that provides a strategic framework to support long-term business goals and outcomes. The approach is concerned with longer-term people issues and macro-concerns about structure, quality, culture, values, commitment and matching resources to future need.
Comparison with the Model:
Fiedler Contingency Model
Bath People and Performance Management
Leadership membership Relationship which is the most important variable in determining the situation favourable (Accept and respect by followers)
The development and successful implementation of high performance work practices, partially those concerned with job and work design, flexible work resourcing (recruitment, Selection and Talent Management), employee development (increasing skills and extending the skills base), reward and giving employees a voice;
The degree of task structure which is the second most important input into the favourableness of the situation(structured task)
The formulation and embedding of a clear vision and set of values (the big idea)
The leaders position power obtained through formal authority which is the third most important dimension of the situation.(Great deal of Authority and power are formally attributed to the leader position)
The provision of support and advice to line managers on their role in implementing HR policies and practice.
Reason for the importance of HRM in Organisation:
Human resources are important to organizations in 10 specific areas, ranging from strategic planning to company image. HR practitioners in a small business who have well-rounded expertise provide a number of services to employees. The areas in which HR maintains control can enhance employees’ perception of HR throughout the workforce when they believe HR considers employees to be its internal customers and renders services with that in mind. There have ten importance of Human Resource Management in the organization.
Strategy
Compensation
Benefits
Safety
Liability
Training and Development
Employee Satisfaction
Recruitment
Selection
Compliance
Strategy
HR improves the company’s bottom line with its knowledge of how human capital affects organizational success. Leaders with expertise in HR strategic management participate in corporate decision-making that underlies current staffing assessments and projections for future workforce needs based on business demand.
Compensation
HR compensation specialists develop realistic compensation structures that set company wages competitive with other businesses in the area, in the same industry or companies competing for employees with similar skills. They conduct extensive wage and salary surveys to maintain compensation costs in line with the organization’s current financial status and projected revenue.
Benefits
Benefits specialists can reduce the company’s costs associated with turnover, attrition and hiring replacement workers. They are important to the organization because they have the skills and expertise necessary to negotiate group benefit packages for employees, within the organization’s budget and consistent with economic conditions. They also are familiar with employee benefits most likely to attract and retain workers. This can reduce the company’s costs associated with turnover, attrition and hiring replacement workers.
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Safety
Employers have an obligation to provide safe working conditions. Workplace safety and risk management specialists from the HR area manage compliance with U.S. Occupational Safety and Health Administration regulations through maintaining accurate work logs and records, and developing programs that reduce the number of workplace injuries and fatalities. Workplace safety specialists also engage employees in promoting awareness and safe handling of dangerous equipment and hazardous chemicals.
Liability
HR employee relations specialists minimize the organization’s exposure and liability related to allegations of unfair employment practices. They identify, investigate and resolve workplace issues that, left unattended, could spiral out of control and embroil the organization in legal matters pertaining to federal and state anti-discrimination and harassment laws.
Training and Development
HR training and development specialists coordinate new employee orientation, an essential step in forging a strong employer-employee relationship. The training and development area of HR also provides training that supports the company’s fair employment practices and employee development to prepare aspiring leaders for supervisory and management roles.
Employee Satisfaction
Employee relations specialists in HR help the organization achieve high performance, morale and satisfaction levels throughout the workforce, by creating ways to strengthen the employer-employee relationship. They administer employee opinion surveys, conduct focus groups and seek employee input regarding job satisfaction and ways the employer can sustain good working relationships.
Recruitment
HR recruiters manage the employment process from screening resumes to scheduling interviews to processing new employees. Typically, they determine the most effective methods for recruiting applicants, including assessing which applicant tracking systems are best suited for the organization’s needs.
Selection
HR professionals work closely with hiring managers to effect good hiring decisions, according to the organization’s workforce needs. They provide guidance to managers who aren’t familiar with HR or standard hiring processes to ensure that the company extends offers to suitable candidates.
Compliance
HR workers ensure that the organization complies with federal state employment laws. They complete paperwork necessary for documenting that the company’s employees are eligible to work in the U.S. They also monitor compliance with applicable laws for organizations that receive federal or state government contracts, through maintaining applicant flow logs, written affirmative action plans and disparate impact analyses.
http://smallbusiness.chron.com/10-reasons-hr-important-organization-22424.html
Explanation and analysis of an HRM framework
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