Benefits of strategic HRM and the rising interest of HRM

Benefits of strategic HRM and the rising interest of HRM

Strategic human resource management is to ensure that human resource management is fully integrated into strategic planning, that HRM policies cohere both across policy areas and cross hierarchies and that HRM policies are accepted and used by line managers as part of their every day work. Strategic management is that set of managerial decisions and actions that determine the long-term performance of a corporation. It includes environmental scanning, strategy formulation, strategy implementation and evaluation and control.

Benefits of Strategic HRM
Fred R. David has listed the following benefits that strategic HRM brings for an organization.

• Allows identification, prioritization and exploitation of opportunities.
• Provides an objective view of management problems.
• Represents a framework for improved coordination and control of activities.
• Minimizes the effects of adverse conditions and change.
• Allows major decisions to better support established objectives.
• Allows more effective allocation of time and resources of time and resources to identified opportunities.
• Allows fewer resources and lesser time to be devoted to correcting erroneous or adhoc decisions.
• Creates a framework for internal communication among personnel.
• Helps to integrate the behaviors of individuals into a total effort.
• Provides a basis for the classification of individual responsibilities.
• Gives encouragement to forward thinking.
• Provides a co-operative, integrated and enthusiastic approach to tackling problems an opportunity.
• Encourages a favorable attitude towards change.
• Gives a degree of discipline and formality to the management of a business.