Several factors in the business environment (increasedcompetition, corporate downsizing and rapid technologicaladvances)In the social environment (changing values regardingwork/non ±work life balance and changing workforcedemographics) have brought about a new employmentrelationshipThe transformation of the economy from primarilymanufacturing economy to a primarily service economy hasincreased the importance of knowledge in job performanceA new class of highly skilled knowledge workers has emergedHigh demand for knowledge workers has created war for talent among organizationsOrganizations have to develop new strategies to attract, retain, motivate and develop employees Environmental Trends affecting HRM
* Trends in Business Environment
* Mergers acquisition
* Changing nature of work
* Industry &occupational shifts
* Technological advancements
* Flexible workforce
* Changing nature of Employment Relationship
* Demographic Societal and work force trends
* Workforce diversity
* Ageing population & ageing workforce
* Educated and knowledge workforce/women workforce/ Changing family structures/global workforce/contingent workforce & work force flexibility
Strategic Human Resource Management
Strategic human resource management is designed to help companies best meet the needs of their employees while promoting company goals. Human resource management deals with any aspects of a business that affects employees, such as hiring and firing, pay, benefits, training, and administration. Human resources may also provide work incentives, safety procedure information, and sick or vacation days. Strategic human resource management is the proactive management of people. It requires thinking ahead, and planning ways for a company to better meet the needs of its employees, and for the employees to better meet the needs of the company. This can affect the way things are done at a business site, improving everything from hiring practices and employee training programs to assessment techniques and discipline. Companies who work hard to meet the needs of their employees can cultivate a work atmosphere conducive to productivity. Human resource management is the best way to achieve this. Being able to plan for the needs of employees by thinking ahead can help to improve the rate of skilled employees who chose to remain working for a company. Improving the employee retention rate can reduce the money companies spend on finding and training new employees.
When creating a human resources plan, it is important to consider employees may want or need and what the company can reasonably supply. A larger company can usually afford training and benefit programs that smaller companies cannot afford to offer. This does not mean that a smaller company should not engage in strategic human resource management. Providing specialized on-site training, even if provided by senior members of the company, and offering one-on-one assessment and coaching sessions, can help employees reach peak performance rates. An important aspect of strategic human resource management is employee development. This process begins when a company is recruiting and interviewing prospective employees. Improved interviewing techniques can help to weed out applicants that may not be a good match for the company. After being hired on, a strong training and mentoring program can help a new member of the staff get up to speed on company policies and any current or ongoing projects they will be working on. To help employees perform at their best, a company can follow up with continual training programs, coaching, and regular assessment. Investing in the development of its employees can allow a company to turn out more consistent products. Strategic human resource management is essential in both large and small companies. In...