UNIVERSITY OF NICOSIA
ORGANIZATIONS & HUMAN RESOURCE MANAGEMENT
MODULE CODE: MBAN-609DE
PERFECT MAWUNYA DEKU
A REPORT ON WHY STRATEGIC HUMAN RESOURCE MANAGEMENT IS
IMPERATIVE TO THE LONG TERM SUCCESS OF THE COMPANY
Over the years, successful Human Resource management has proved to maximize services, profit margins and the entire work profile of various consortiums, companies and multi-national firms. I believe HRM is simply the process of hiring and developing employees to ensure they become valuable to the organization. Another school of thought explains HRM more explicitly as an organizational function that aims to maximize employee performance in relation to the employer’s strategic objectives. Human resource management aims to ensure the organization’s ability to achieve success through people. The world is rapidly changing where human resource is organized and prepared to deal with the change of work, which involves recruiting and training the right people for the appropriate position. I believe the role and function of the human resource management with continuous improvement in programs will strengthen its quality and build a better foundation to serve its customers. It will involve the company’s wide initiative to improve quality and productivity. Also, to prepare employees for change, which will require a clear and broad communication for this need, possible expectations and the effect it will have on employees.
THE ROLE OF STRATEGIC HUMAN RESOURCE MANAGEMENT
Strategic HRM focuses on actions that differentiate the firm from its competitors (Purcell, 1999). Strategic HRM has four meanings suggested by Hendry and Pettigrew (1986) as follows:
The use of planning
A coherent approach to the design and management of personnel systems based on an employment policy and workforce strategy and often underpinned by a ‘philosophy’ Matching HRM activities and policies to some explicit business strategy Seeing the people of the organization as a ‘strategic resource’ for the achievement of ‘competitive advantage’. A common difficulty faced by organizations during strategic planning for a firm is to ensure their vision becoming a reality. It takes more than great strategy and implementation to transform an organization. Aligning a business in the organization with the strategy is key to success. Strategy is developed at the executive level of a business or organization. Basically there are two types Human Resource strategies:
The Differentiation strategies
The Cost Strategies.
Differentiation strategy is a strategy employed by the organization to increase the targeted value of the product brand. This is to entice buyers to choose their products over similar brands offered by our competitors. This strategy can be achieved through competitive pricing, distribution timing, brand reputation, product customization and enhancing customer support.
Cost strategy is defined as a pricing strategy whereby the company offers a relatively low price to motivate demand and gain market share.
In a nutshell, a cost strategy seeks to produce goods and services economically whereas differentiation strategy aims to produce goods and services that are superior to what is being offered by competitors. These two strategies have the potential to result in their strategic target; however these two may not be equally suitable for an organization. This is because they differ in regard to dimensions, and stand for different requirements. For example, in terms of incentive, skills and organizational arrangements. For cost strategy to align with competitive business strategies, it has to create value for a firm by reducing threats of buyers, substitutes, entry, rivalry and suppliers. Furthermore, for cost strategy to create a sustainable business strategy, it requires preventive measures that curb imitation of the...
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