Strategic Human Resource Management
1. BACKGROUND/SCENARIO
1.1 INTRODUCTION ON STRATEGIC HUMAN RESOURCE MANAGEMENT
Human Resource Management refers to the policies, practices and systems that influence employees’ behavior, attitudes and performance (Noe, Hollenbeck, Gerhart & Wright, 2012). People are considered as the most valuable resources of a firm or organization. In order for a firm to succeed and survive in the market, the firm needs the right personnel, at right place and time. The new generations of workers are seen as the ones with lesser loyalty to their companies and have more expectations for autonomy, self-development and greater involvement in company decision making. The importance of human capital had been accelerated by the increasing emphasis on knowledge-based competitiveness in the current turbulent environment. Careful management of the workers who has been considered as valuable resource calls for a strategic focus on human resource management (HRM) in the firm. In today’s competitive market, we hear and see that many organizations are engaging into strategic planning to survive and prosper. Besides that in human resource and management circles, we can hear a lot about Strategic Human Resource Management. But what exactly is Strategic Human Resource Management (SHRM), what are its key features and what is the difference between Strategic Human Resource Management and traditional human resource management? Strategic Human Resource Management can be thought of as “the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals” (Noe, Hollenbeck, Gerhart & Wright, 2012). In other words, SHRM can also be said as the linking of human resources with strategic goals and objectives which improves business performance and develop organizational culture that foster innovation, flexibility and competitive advantage. Through SHRM, an organization accepts and involves the human resource functions in the formulation and
1.1 INTRODUCTION ON STRATEGIC HUMAN RESOURCE MANAGEMENT
Human Resource Management refers to the policies, practices and systems that influence employees’ behavior, attitudes and performance (Noe, Hollenbeck, Gerhart & Wright, 2012). People are considered as the most valuable resources of a firm or organization. In order for a firm to succeed and survive in the market, the firm needs the right personnel, at right place and time. The new generations of workers are seen as the ones with lesser loyalty to their companies and have more expectations for autonomy, self-development and greater involvement in company decision making. The importance of human capital had been accelerated by the increasing emphasis on knowledge-based competitiveness in the current turbulent environment. Careful management of the workers who has been considered as valuable resource calls for a strategic focus on human resource management (HRM) in the firm. In today’s competitive market, we hear and see that many organizations are engaging into strategic planning to survive and prosper. Besides that in human resource and management circles, we can hear a lot about Strategic Human Resource Management. But what exactly is Strategic Human Resource Management (SHRM), what are its key features and what is the difference between Strategic Human Resource Management and traditional human resource management? Strategic Human Resource Management can be thought of as “the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals” (Noe, Hollenbeck, Gerhart & Wright, 2012). In other words, SHRM can also be said as the linking of human resources with strategic goals and objectives which improves business performance and develop organizational culture that foster innovation, flexibility and competitive advantage. Through SHRM, an organization accepts and involves the human resource functions in the formulation and
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