Strategic Goals Of Human Resource Management

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Strategic Goals Of Human Resource Management – Previously, human resources management (HRM) was called the Human Resources department. Previously, HR departments recruited people and handled recruitment paperwork and processes. The first personnel department is believed to have been established in 1901 by the National Cash Register Company (NCR). The company faced a massive strike, but eventually defeated the union following the lockout. (We discuss unions in Chapter 12, “Working with Unions.”) After this difficult struggle, the company president organizes a human resources department to handle grievances, layoffs, safety issues, and other employee problems to improve working conditions. does. The department also tracked new laws around those affecting the organization. Many other companies have recognized the same fact that departments are necessary to increase employee satisfaction and increase productivity. In 1913, Henry Ford saw employee turnover of 380% and tried to lower turnover by raising wages from $2.50 to $5.00. Of course, this approach didn’t work for long, and these large companies are beginning to understand that meeting customer demand will require them to do more than just hire and fire employees.

Recently, however, the Human Resources Department has been separated into Human Resources Management and Human Resources Development, and these functions have evolved over 100 years. HRM is not only critical to an organization’s success, it should be part of a company’s overall strategic plan. Because many companies today depend on people to make money. Strategic planning plays an important role in an organization’s productivity.

Strategic Goals Of Human Resource Management

Most people agree that the following tasks generally fall under HRM: Each of these aspects plays a unique role within an organization’s overall strategic plan.

Steps To Strategic Human Resources Planning Example

In smaller organizations, managers or owners are more likely to perform HRM functions (de Kok & Uhlaner, 2001). They hire people, train them and decide salaries. Larger companies ultimately do the same work, but because they have more employees, they can afford to hire specialists or HR managers to handle these areas of the business. As a result, you are more likely to work in HRM as a manager or entrepreneur, so it makes sense to understand the strategic components of HRM.

The Human Resources Strategy is an elaborate and structured action plan developed by the Human Resources Department. This definition informs that the HR strategy includes an HRM strategic plan and a detailed path to implement the HR plan. Think of the strategic HRM plan as the main goals the organization wants to achieve, and the HR plan as the specific activities carried out to achieve the strategic plan. This means that a strategic plan can contain long-term goals, while an HR plan can contain short-term goals linked to the overall strategic plan. As mentioned at the beginning of this chapter, Human Resources was previously referred to as Human Resources. The term implies that the department provided “support” to the rest of the organisation. Companies now understand that the people side of a business is the most important asset of any business (especially in this global economy), and therefore HR is even more important than it was 20 years ago. While human resource management primarily includes activities related to the hiring process and compliance with laws, human resources includes much more, including strategic planning, which is the focus of this chapter. A common way of looking at HRM strategic planning, the Ulrich HR model provides an overall view of HRM’s role in an organization. His model is said to have started a movement that changed the perspective of HR. No longer just a functional area, HR has become a partner in the organization. His model has changed over the years, but the current model looks at the alignment of HR activities with an overall global business strategy to form strategic partnerships (Ulrich & Brockbank, 2005). His recently revised model looks at five key areas of HR.

According to Ulrich (Ulrich, 2011), implementation of this model should go hand in hand with an understanding of overall company goals, problems, challenges and opportunities. For example, HR professionals must understand the dynamic nature of the HRM environment, such as changes in the labor market, corporate culture and values, customers, shareholders, and finances. When this happens, HR can determine how best to meet the needs of the organization within these five key areas.

Because HR managers know the business, they know the needs of the business and can develop a plan to meet those needs. They also keep abreast of the latest events to know what is happening globally that may affect strategic planning. For example, if we learn that a recession is approaching, we will adjust our strategic plan. In other words, your strategic plan should be a living document that changes as your business and the world change.

What Is Strategic Management?

As mentioned in Section 2.1.2, “Steps for Creating a Strategic Plan,” an HRM strategic plan must have several components to be successful. A distinction must be made here. HRM strategic planning is different from HR planning. An HRM strategic plan is conceived as the main goals that an organization wants to achieve, and an HR plan consists of detailed plans to achieve the strategic plan. Often a strategic plan is considered just another report that needs to be written. It’s best to carefully consider your plan rather than just jumping in and writing it without thinking.

The goal of Section 2, “Conducting a Strategic Analysis,” is to provide some basic elements to consider and examine before creating an HRM plan.

In this step, HRM experts analyze the issues addressed in the first step. For example, a department may find that it is not strategically aligned with the company’s mission and values, and may choose to change the department’s mission and values ​​as a result of this information.

Many organizations and departments use strategic planning tools that identify strengths, weaknesses, opportunities and threats (SWOT analysis) to determine some of the challenges they face. When this analysis is carried out at the business, HR can understand the business strategy and adapt it to the needs of the business. Table 2.3 “Sample HR Department SWOT Analysis at Techno, Inc.” An example of how to use the company’s SWOT analysis to develop a SWOT analysis for the HR department.

Strategic Management For Competitive Advantage

Once the alignment of the company’s SWOT is complete, HR can develop its own SWOT analysis to determine the differences between HR’s strategic plan and the company’s strategic plan. For example, when HR managers see that a department’s strength lies in its many training programs, the organization must continue to do so. If a weakness is the lack of consistent compensation across all positions in the organization, it provides an opportunity to review and revise the compensation policy. In other words, a company’s SWOT analysis provides a basis for solving some problems in the organisation, but can be reduced to solving problems also within departments.

Based on the data collected in the last step, the HRM manager should prioritize goals and then put together an action plan to address these challenges. For example, if your organization determines that a comprehensive training program is lacking, you should develop a plan to address this need. (The need for training is discussed in Chapter 8, “Training and development.”) An important aspect of this phase is the involvement of leaders and managers in the organization. If you have a list of issues that need to be addressed, discuss them with management and leadership. They may see other issues or priorities differently than you do. For HRM to be effective, it must work with organizations and help them achieve their goals. This should be considered in all aspects of the HRM plan.

When the HRM manager meets with management and leadership to agree on priorities, a plan is ready to be developed. The detailed development of these plans will be discussed in Section 2.2 “Creating an HRM Plan”. Sometimes a company has a great strategic plan, but when the details evolve it can be difficult to align the strategic plan with more detailed plans. HRM managers should always consult the overall strategic plan before developing the strategic HRM plan and the HR plan.

Even if a company does not have an HR department, the HRM strategy plan and the HR plan should be developed by management. By developing and monitoring these plans, organizations can ensure that the right processes are implemented to meet the ever-changing needs of organizations. A strategic plan looks at the whole organisation, an HRM strategic plan looks at the department as a whole, and an HR plan deals with specific issues in the HR department.

Characteristics Of Hrm That Makes All The Difference

De Kok, J. and Lorraine M. Uhlaner, “Organizational Context and Human Resource Management in Small Businesses” (Tinbergen Institute Talk Paper 01-038/3,

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