Nowadays modern business management is more strategic which is more proactive in planning in setting the direction, approaches, policies, and procedures to achieve organization objectives. Strategic Human Resource Management (SHRM) is one part of business management that value individuals not merely one factor of goods and services production but as Human Resource, the most valuable resource of the organization. Strategic Human Resource Management (SHRM) is developed from Personnel Management which is more administrative work, not be concerned by company or value aspect, not flexible in working because need to work by order, simple system in collecting and manage data and consider human resource as a cost of companies or organizations. While SHRM’s concept is Human Resource is the most valuable resource of the organization. SHRM is about creating strategies align with organization’s goals to attract qualified people who fit with tasks, to build suitable working environment for employees, to develop employees skills and knowledge, and to retain employees so SHRM is reconciliation between company and personal expectation.
Strategic role of Human Resource Management consist of 3 elements; First, all managements must take responsibility as Human Resource Executive and do not let only the Human Manager take this duties. Every management needs to value Human Resource especially in development and management. Moreover, they have to know the human resource management tools include survey, career planning, performance appraisal, compensation, and etc. very well to encourage employees to work hard for organization.
Second, value employees as organization or company asset because labor is not similar to other production factors (building, land, or machine), they do not easy to imitated. In addition labors or employees are the factors which bring competitive advantage to the organization so the effective Human Resource Management will support organization to achieve the organizational objectives. Finally, Strategic Human Resource Management (SHRM) is matching process mean SHRM is integration strategic plan and organizational objectives with Human Resource Management processes.
Strategic planning can be divided to 3 levels. First, Organizational level or Company level, in this level we will look the organization in big picture. We
will define scope, direction, and progress of our organization in the business or industry. Second, Business level, strategy from this level is the approaches to achieve the direction of organization which is defined in organization level. For example, the organization may present itself with the unique characteristic of organization such as leader in Corporate Social Responsibility or leader in Technology of production. Third, Operation level, this level is about identify strategy in each department of organization such as strategy of Human Resource Management, strategy of Marketing, strategy of production, etc. Therefore Strategic Human Resource Management (SHRM) is one of strategy in operation level of the organization which is approaches to support and encourage the organization to have comparative advantage and to achieve the goal or mission of the organization.
The effective Human Resource Management strategic plan should including 4 factors as following;
1. Align with Organization’s strategic plan.
Creating Human Resources Management strategies need to focus on relationship between HRM strategies and organization’s objectives or vision and mission of organization. The suitable HRM Strategies need to encourage and support the success in organization’s goals with human resource process such as Organization structuring, Job designing, Reward designing, Performance management, and Training and Development programs.
2. Suitable with Organization environment
Before we determine HRM strategy, we have to analyze environment of organization or...