Strategic human resource management is essentially a more targeted approach to people-oriented management. It is known as a proactive management model that takes the functions of Human Resource Management or HRM and refines them so that they are specific to the company in which they are implemented. This all works together to benefit the company by providing a system with which it can achieve its goals through streamlined processes relating to its human resources – the people behind the brand.
By making use of strategies in HRM, a company becomes empowered to effectively manage its people. Strategic human resource management or SHRM is centered around valuing people as the human resources of a company and thereby adding value to the company. Investments are made in these human resources to the point where they become assets on an individual level as well as a collective one.
Aspects Of Srategies in HRM
• Making the staff the focus of every strategy, policy and procedure but in keeping with company goals and objectives
• Designing performance incentives strategies as a form of motivation
• Providing individual needs analyses and career assessments to ensure proper training and skills development opportunities
• Focusing on employee development on a holistic and continuous basis
• Using well-planned strategies to align the requirements and goals of the company with the needs of the employees to create a mutually beneficial relationship between the two
• Providing employees with the skills and aptitudes they require to develop on a personal and professional level in ways that benefit themselves as well as the company
Advantages Of Implementing Strategic Human Resource Management
The biggest advantage of SHRM is that processes are streamlined to the point where systems run smoothly and every cog in the machine serves the greater purpose of commercial success for the company.
By targeting strategies specifically toward company goals and objectives, it allows for further improvements in areas like recruitment & selection, interview techniques, training programs, discipline, reward systems, performance management and the like.
The enhanced focus on employees results in improved motivation among staff and this in turn leads better productivity. The employees feel more valued and therefore cultivate a sense of loyalty and good work ethic.
The happier the staff is due to SHRM, the better the staff retention of the company is. By retaining skilled staff, companies save time as well as hundreds and thousands of rands that would have been spent on recruitment, selection, training and mentoring of new staff members.
Implementing strategic planning implies that situations can be anticipated and planned for appropriately. Succession planning would be an example of this. This happens when one or more employees are groomed for a specific position so that when it becomes available, no time will be wasted on training and mentoring, the person can step in and start working effectively.
It can therefore be seen how SHRM takes the basic functions of human resource management and refines it even further. Strategic human resource management is guaranteed success for any business wishing to develop a mutually beneficial relationship with its employees.