Strategic Management

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Learning Outcome 1
“Understand how the strategic management of human resources contributes to the achievement of organisational objectives”.

1.1 Explain the importance of strategic human resource management in organisations.

1.1.1 Strategic Human Resource Management:
Many departments work together to efficiently run an organisation. Amongst those departments, one key department is the Human Resource Management department. It has a strategic value for the organisation and helps organisation in achieving its strategic aims and objectives. Human resource management is all about managing people who work in the organisation and get the best of their abilities to help organisation in improving its performance. (Mello, 2010)

1.1.2 Importance of Strategic Human Resource Management:
The primary responsibility of HRM department is to help the organisation/company in meeting its need for the employees and to promote the organisational aims and objectives. The HRM department deals with anything that has a connection with the employees like recruitment, wages, training, retirements, benefits, administration, safety procedures at work place, vacations, scheduling etc. The HRM department focuses towards improving the recruitment and selection process to ensure that the best people are hired for the right work for them. An efficient recruitment and selection process by the HR ensures that those people are hired who matches the needs of the organisation. Moreover, they introduce various assessment techniques for the purpose of identifying areas of strengths and weaknesses. If an organisation fails to make an atmosphere where the needs of the employees are met, then the productivity can be negatively affected. That is one of the reasons why the HRM department is so important because it helps in building an atmosphere for the employees where they are allowed to use their skills in the right way towards achieving the organisational objectives. The HRM department also helps in improving the employees’ retention rate and help saving organisation’s money towards finding and training new employees. Once employees are hired, the HRM department plays an important role in having a mentoring program that can help new employees in quickly picking up the pace and getting themselves aligned with the current projects going on. Regardless of the size of the company, strategic HRM is essential in any case. In smaller companies, the HRM responsibilities may be taken by the manager as it may not require too much of his/her time. However, larger companies may have a complete department assigned for HRM activities. (Mello, 2010)

1.2 Assess the purpose of strategic human resource management activities in an organisation.

The strategic human resource management is a purposeful entity in any organisation today. Previously in the 1980s, human resource departments, also known at that time as Personnel departments, were only responsible for certain tasks like processing payrolls, handling applications etc. In short, it was mainly an administrative department. Then the responsibilities and the purpose of HRM department started changing and during the next two decades, the HRM department became an integral part of any organisation and its purpose involved contributing towards achieving the organisational goals as well. Organisations today particularly hire human resource management experts and leaders as they consider this position as a strategic position. Strategic human resource management today has a purpose of developing various strategic solutions along with handling employee related matters that have an impact over the achievement of organisational aims and objectives. Following are some of the major strategic activities of Strategic HRM department in any organisation today.

i.Safety at the Workplace
ii.Employees Benefit and Compensation
iii.Recruitment & Selection
iv.Employee Relationship
v.Training & Development...
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