Strategic Thinking with Hrm

Topics: Human resource management, Management, Strategic planning Pages: 5 (1387 words) Published: February 3, 2013
Discuss why human resource management (HRM) is essential to strategic thinking, and identify several key aspects of strategic HRM.

“Corporations began viewing employees as assets rather than as cogs in machine. ‘Human resources management’, consequently, became the dominant term for the function—the ASPA even changing its name to SHRM in 1998. (SHRM)” The realisation from organisations that their most prised and valuable asset is their employees. This lead to development and integration of HRM and has become crucial to plan an organisation’s strategic approach “to generate a competitive advantage, the resources must be valuable, rare, imperfectly mobile inimitable. (Taylor, Beechler & Napier 1996)” To understand why HRM is essential to strategic thinking first we must understand what is HRM? why it essential to strategic thinking? What are the key points required for HRM strategy? How can Hambrick and Fredickson are the five major elements provide a framework for a good HRM strategy? These questions must be understood to be able to fully understand why HRM is essential to strategic thinking.

What is HRM
“Human resource management (HRM) is a strategic and coherent approach to the management of an organisation most valued assets – the people working there who individually and collectively contribute to the achievement of the objectives of the business... HRM means employing people, developing their capacities, utilizing, maintaining and compensating their services in tune with the job and organizational requirement. (Vang S 2012)” This is about attracting the right people with the right skill sets for the job; being able to train them up; monitor their performance and reward them for their performances. HRM is about creating positions required to take an organisation in a particular direction or to for fill business objectives. These positions can be filled through internal training, or if it the organisation has constructed new objectives with the lack of internal experience, HRM requires that the right person to fits the position but still fits the company culture. An organisation’s HR exists to align the personal with the business objectives. To help line managers do a better job of managing. “The resource-based view suggests that human resource system can contribute to sustained competitive advantage through facilitation the development of competencies that are firm specific, produce complex social relations, are embedded in a firm’s

history and culture, and generate tacit organisational knowledge. (Taylor, S. Beechler, S. & Napier 1996)”

HRM and Strategy
But HRM can only be effective if it is working in a partnership with the overall organisation’s strategy. It requires the right people in the right position so the company has the HR required to successfully carry out its objectives. “A strategy consists of an integrated set of choices, but it isn’t a catchall for every important choice an executive faces...portrays the company’s mission and objectives. (Hambrick & Fedrickson 2001)” HRM is essential to the strategic thinking of an organisation because it provides a strategic framework by planning by: Knowing and understanding the markets; working out how does an organisation compete in a market place? “Strategic management processes of the organisation and to emphasize coordination or congruence among the various human resource management practices (Taylor, Beechler& Napier 1996).” For areas within an organisation that is experiencing changes in the strategic direction, the HR profession is in transition and HRM effects performance: * HR is strategic help.

* That helps a company reach its strategic objectives.
* It helps sustain the competitive advantage over a longer time. * Achieves efficiency and drives the employees.
* Builds something that is unique and hard to imitate. (Vang 2012) This shows how HRM and the strategic direction of an...
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