Strategic Roles of Human Resource Management

Strategic Roles of Human Resource Management

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.

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.
• Give encouragement to forward thinking.
• Provides a co-operative, integrated and enthusiastic approach to tackling problems and opportunities.
• Encourages a favorable attitude towards change.
• Gives a degree of discipline and formality to the management of a business.

Strategic Role Played by 

Strategies are the long-term plan of every organization. Each and every business firm is moved with strategies to achieve their goals. Strategic human resource management is concerned with the development and implementations of people strategies which are integrated are integrated with organizational strategies to attain long-term goals. Generally, business manager have three strategic decisions

• Corporate strategy
• Business strategy
• Functional strategy

Strategy helps in balancing two sets of forces i.e. internal environment and external environment. However following factors are considered to be strategic role of HRM.

1. Development of quality management: It can be developed by assisting with the introduction of total quality management approaches through education and training processes and involving people in quality improvement programmes. 
2. Development of Reward policies: Using the reward management system to define performance expectations to reward people according to their contribution.
3. Development of Employee relation policies: Developing a cooperative climate of employee relations, which allows direct communication to employees but, where appropriate, recognized the role union play in a pluralist organization.
4. Development of cultural management policies: Influencing behavior and thereby, attitudes through researching, performance management, development and reward strategies, and helping to get the mission and values of the organization designed understood, accepted and acted upon.
5. Performance management strategy: Introducing system, which clarify objectives at all levels in the organization and measure performance against those objectives, in order to agree improvement and development plan.