Table of Contents
Different views about SHRM
SHRM and business strategy
Why does SHRM contribute to the success of an organisation?
8 The benefits of SHRM
The aim of strategic orientated HRM is the creation of competition advantages by integrated measures in the areas of selection, use, cooperation, remuneration systems, education and further education as well as the motivation of the executives and employees. Strategic orientated HRM comprise not only the selection and development of persons, also the arrangement of an organisation and the corporate culture in accordance with the corporate policy and the strategy from the corporation (Schumacher, 2009).
Very important for a good convert of a strategy is a good top management. Which can keep down the strategy to the line managers and normal employees. The strategic management process is typically broken down in five steps as you can see above. The first step in the model begins with senior managers evaluating their position in relation to the organisations current mission and goals. The mission describes the organisations values and aspirations. It indicates the direction senior management is going. A goal is a desired future state that the organisation attempts to realize. The second step the environmental analysis looks at the internal organisational strengths and weaknesses and the external environment for opportunities and threats. The factors which are most important to the organisations future are referred to as strategic factors and are summarized with the acronym SWOT (strength, weaknesses, opportunities and threats). The third step the strategic formulation involves senior managers evaluating the interaction of strategic factors and making strategic choices that guide the organisation to meet its goals. Some strategies are formulated at the corporate, business, and specific functional level such as marketing and Human Resource Management. The use of the term strategic choice raises the question of who makes decisions in work organizations and why they are made. It also draws attention to strategic management as a political process whereby strategic choices on issues such as resources are taken by a power-dominant group of senior managers within the organization. In a political model of strategic management, it is necessary to consider the distribution of power within the organization. They have to consider where power lies and how it comes to be there and how the outcome of competitive power plays and coalitions within senior management are linked to employees relations. The strategic choice also provides important insights into how the employment relationship is managed. The next step the strategy implementation is an area of activity that focuses on the techniques used by managers to implement their strategies. It refers to activities which deal with leadership style that is compatible to the strategies and the structure of the organisation, the information and control systems and the management of human resources. Leadership is the most important and difficult part of the strategic implementation process. The last step the strategy evaluation is an activity in the strategic management process that determines to what extent actual change and performance matches desired change and performance. The strategic management model depicts the five main activities undertaken by senior managers as a rational and linear process. It is important to note that it is a normative model, because it shows how strategic management should be done and hence influences managerial processes and practises, rather than describes what is actually done by senior managers. We have noted that Strategic decision making is a political process implies a potential gap between the theoretical model and reality (Bratton and Gold, 1999, p. 41-42)....
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