Strategic Management Theme Essay Example
Strategic Management Theme Essay Example

Strategic Management Theme Essay Example

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  • Published: April 23, 2018
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Explore how effective human resource management strategies can contribute to achieving organizational objectives.

The significance of strategic human resource management in organizations needs to be explained.

Strategic Human Resource Management: The Human Resource Management department plays a key role in effectively managing an organization. It works together with other departments to support the achievement of the organization's strategic goals and objectives.

According to Mello (2010), human resource management involves effectively managing employees in order to maximize their potential and contribute to the organization's performance.

Importance of Strategic Human Resource Management: The HRM department has a crucial role in fulfilling the organization's employee needs and promoting its goals. Some of the areas that the HRM department manages include recruitment, wages, training, retirements, benefits


, administration, safety procedures, vacations, and scheduling.

The primary objective of the HRM department is to improve the recruitment and selection process, ensuring that qualified individuals are hired for suitable roles. They employ effective methods to guarantee that candidates who meet organizational requirements are chosen. Furthermore, they utilize various assessment techniques to identify strengths and weaknesses. Neglecting to create a supportive work environment that addresses employee needs can negatively impact productivity.The HRM department has an important role in establishing a supportive environment for employees to efficiently utilize their skills, achieve organizational goals, and enhance employee retention rates. It also aids in reducing expenses related to hiring and training new staff. Furthermore, the HRM department is accountable for implementing a mentoring program that facilitates the smooth adaptation of new employees into ongoing projects.

Both small and large companies require strategic HRM, regardless of their size. In smaller companies, th

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manager may assume HRM responsibilities as it does not require a significant amount of time. Conversely, larger companies allocate entire departments to handle HRM activities (Mello, 2010).

The main goal of strategic human resource management activities in an organization is to assess the strategic importance of efficiently managing human resources, which is crucial for the overall functioning of any organization today.

During the 1980s, human resource departments (also known as Personnel departments) were mainly responsible for administrative duties such as managing payrolls and processing applications. However, in the following twenty years, these HRM departments experienced a significant transformation in their role and significance. They evolved into essential elements of organizations and played a crucial part in accomplishing organizational objectives.

Today, organisations place great importance on hiring human resource management experts and leaders, viewing the position as strategic. The purpose of strategic human resource management is to develop various strategic solutions while addressing employee-related matters that affect the achievement of organisational goals and objectives. Some key areas of focus for the Strategic HRM department in any organisation include workplace safety, employee benefits and compensation, recruitment and selection, employee relationships, and training and development (Purcell ; Boxall, 2011).

The human resource management department plays a crucial role in assisting organizations to achieve their objectives, as stated by 1.2. Employees, also known as human capital, have a significant impact on the goals and objectives of the organization.

The HR management department is responsible for maximizing the potential of current talents to achieve organizational objectives. The managers of different departments and HR personnel work together to implement various performance management strategies and HR practices

to motivate employees and enhance their performance. Strategic HR management contributes to achieving organizational objectives through staffing, employee development, managing benefits and pay, performance management, and employee motivation (Mulero, 2010) (Beaver & Steward, 2004). In order to develop human resource plans for an organization, it is important to analyze the business factors that form the basis of human resource planning. These factors determine the quantity and quality of manpower required by the organization to achieve its strategic objectives.

Various factors, such as: influence the planning process.

  • The competition in the labour market.
  • The current technology in use and the latest technological trends. Knowledge of the current technology may be added into the requirements when advertising vacancies. In some cases, it is also possible that the company train the existing employees if the company can’t afford the cost of additional employees.
  • The current growth of business; it determines the budget that the company may spend over the recruitment ; selection process ; towards the employees.
  • Business competition.
  • The current employment situation in the country.

The government may put more pressure on the company to hire more employees if the country's unemployment rate goes up. Moreover, changes within the organization can also impact human resource planning, such as diversifying the workforce or modifying departmental functions like opening or closing specific departments.

The human resource planning process is affected by demographic changes, such as shifts in workforce composition, age factors, and the arrival of new talent. These changes can result

in a deficit of skilled labor, leading to a negative impact on organizational performance.

The need for a multi-cultural workforce has been emphasized (McBey ; Belcourt, 2009)

To address employee concerns and problems, the organization's human resource department must undergo a significant transformation. Before creating a human resource plan, it is crucial to assess specific requirements. The following prerequisites are important for the human resources.

  1. Organisation needs replacement of the current management since the management is practicing discrimination and favouritism.
  2. There is a need to develop policies against discrimination and policies to support employee welfare.
  3. There is a strong need to motivate the employees so that they can perform up to their potential.
  4. Employees need work-life balance to efficiently carry out their work activities.
  5. The organisation lacks a leader and the current management lacks leadership skills.
  6. The organisation lacks competent people and even the management has no idea about the domain in which they work.
  7. The management in the organisation needs focus towards the strategic aims and objectives of the organisation rather than making money for themselves.
  8. The employees badly need encouragement, respect and security in terms of their job.
  9. The communication between the employees and the management/leaders is poor and needs to be improved.
  10. The employee turnover rate is higher so the organisation needs to make policies to retain the employees and get

the best out of their abilities. (Kishore, Murali ; Reddy, 2008)

Design the human resources plan for an organization.

The Human Resource Management plan is a crucial tool for company management to strategically plan and organize human resource activities. The following are some key steps of the plan, as observed in this assignment's case study:

  1. Development of the new HR policies keeping in view the legislations and the regulatory laws.
  2. Identification of the gaps in the skills required and the current skills of the employees as well as of the management.
  3. Identification of the current resource available and the current requirements for the HR in terms of missing skills set.
  4. Development of an employee motivation plan that should include performance appraisal schemes, reward systems, flexibility in work to offer work-life balance, scales and parameters to grant promotion without any discrimination.
  5. Identification of Leadership skills required and make necessary arrangements to recruit people who have leadership skills.
  6. Development of a new organisational cultural plan which is friendlier, transparent and ensures better communication.
  7. Development of a plan to align the objectives individual department with the aims and objectives of the organisation. -Development of employees’ training and development strategies. (Bandt ; Haines, 2002)

To achieve its goals, an organization needs a human resources plan as the HR department's effectiveness directly impacts goal attainment. The employees are the company's most valuable asset and their performance affects overall organizational performance. Thus,

HRM has the responsibility of ensuring a high-quality workforce and effectively managing them.

The human resource management plan is crucial for the organization's success as it aligns employee and department goals with overall objectives. It also provides a competitive advantage by having a proficient workforce. To accomplish these objectives, specific skills and knowledge are required. The HR plan identifies skill gaps and ensures the recruitment of suitable candidates for each role.

The high employee turnover rate signifies that the organization continuously loses valuable individuals. An HR plan can aid in retaining the organization's significant asset, thereby assisting in the achievement of its strategic objectives (Johnson, Thite & Kavanagh, 2011).

Learning Outcome

The following text states the need to comprehend the requirements of human resources policies in an organization.

Human resource management policies in organizations serve to emphasize the significance of HR management within an organization and its direct correlation with the overall performance of the organization.

The importance of the HRM department cannot be overstated as it has a significant impact on the quality of work produced by employees. When organizations implement best practices and enforce HRM policies, employees are more likely to produce higher quality work. Below are the various important purposes of these policies:

  1. One of the primary purposes of having human resource management policies is to ensure that the uman resource managers don’t abuse their powers and carry out the HR functions in the best possible manner.
  2. Human resource management policies helps in having an effective recruitment and selection process which is one of the most important HR

functions as it determines the quality of the man-power the organisation has.

  • Human Resource Management policies define the standards for employees’ health and safety hence ensuring a secure workplace which is essential in accordance with the labour laws.
  • The HRM policies determine the actions and the processes for maintaining equality and diversity at the work-place.
  • HRM policies also set various standards that the HRM department must follow in order to keep the employees motivated and get the best out of their abilities. This include policies for performance appraisals, rewards, training & development, discipline, work-life balance flexibilities etc.
  • To ensure that the organisation gets support from the employees rather than resistance during introducing any change, the HRM policies also define the change management processes which cover how the change will be communicated to the employees and how a consensus can be developed. Fazey, 2010)
  • Analyze how regulatory requirements affect human resource policies in an organization.

    To address concerns about mismanagement or abuse of power, organizations are now making sure to comply with government or standard body regulations. This helps establish trust among employees and stakeholders. These legislations and regulatory requirements greatly influence HR policies in organizations, including the establishment of minimum wages for employees.

    In order to comply with regulatory laws, the HR management department must ensure adherence to all necessary regulations. Failure to do so could result in lawsuits against the organization, damaging its reputation and leading to financial losses from penalties. Western countries have strict laws regarding discrimination based on

    religion, race, and gender. Therefore, HR management should establish policies that eliminate any form of discrimination. Additionally, regulatory requirements also impact how the organization develops its equal opportunity policies.

    The HR management department has the responsibility of promoting diversity and a mixed culture in an organization. They are also tasked with creating policies that comply with the data protection act to prevent misuse of employees' data. Furthermore, they must devise policies that align with various acts including but not limited to the Employment Act, Equal Pay Act, Race Relations Act, Sex Discrimination Act, Employment Rights Act, National Minimum Wage Act, Work and Families Act (Barbeito, 2006).

    Learning Outcome

    The management of human resources in an organization is affected by the organizational structure. Examining how this structure impacts human resource management shows that effectively managing the organization's most valuable asset can be difficult, particularly when different organizational structures are involved. This becomes even more challenging when organizations expand internationally and implement a geographical organizational structure.

    When an organisation grows, it hires more employees. In this case, the organisation needs to consider its structure and management of human resources. The company organizes itself into different departments as it expands. It is essential to have the right individuals in each department for the department's success and overall company success. Additionally, companies often identify international business opportunities, leading to the expansion of the business and a change in the organizational structure with a geographic spread.

    The organization faces the challenge of making complex decisions regarding human resources management in various departments and locations. This includes making wise decisions about hiring at international branches. Regardless of

    the organization's structure (geographical, centralized, decentralized), it must effectively manage its human resources to ensure smooth daily business operations (Brown, 1998).

    Analyze the effect of organizational culture on human resource management.

    Organisational Culture:

    Culture encompasses various aspects, including beliefs, attitudes, mindset, knowledge, and customs that exist in daily life. This notion also pertains to Organisational Culture, which involves shared values and beliefs translated into practices and policies within the organization. Additionally, Organisational culture encompasses the anticipated conduct of its members.

    Maintaining a healthy culture within an organization can be difficult, especially when there are people from diverse backgrounds and cultures.

    Impact of Organisational Culture on Human Resources: The impact of organisational culture on human resources is significant. One can assess the organisational culture by asking several questions, such as employees' perception of the organisation, the level of friendliness between management and employees, the customer-friendliness of the organisation, and its prioritization of employee well-being. Additionally, the extent to which employees are empowered and given authority affects their motivation levels. HR is influenced by key cultural factors like formality or informality within the culture and whether decision-making is conducted by individuals or committees.

    1. The physical appearance of the work-place.
    2. The style of leadership practiced.
    3. Intellectual levels of the people working in the organisation.
    4. Dress codes.
    5. Change management and the attitude of the people toward the change. viii. Management efforts and concerns towards training and development.
    6. Management efforts towards employee motivation.

    style="text-align: justify;">
    Team working practices.

  • The extent to which people are allowed to bring their innovative thinking to work and the extent to which they are supported/encouraged.
  • Employee empowerment or the level of freedom towards taking responsibility and decisions.
  • Level and openness of the communication within the organisation. Singh, 2012)
  • To assess the effectiveness of Human Resource Management in an organization, it is crucial to monitor its performance and outcomes. This department greatly influences the overall performance of the organization. Despite being a challenging task, continuous measurement and evaluation are essential for achieving desired outcomes through proper processes and the participation of suitable individuals.

    Measuring Dimensions:

    The effectiveness of the HR management department can be evaluated by considering several common and essential measuring dimensions. These dimensions depend on the organization and other factors such as culture and structure. However, the following are briefly explained as some of the common measuring dimensions: One crucial dimension is strategic alignment where managers and supervisors in an organization must establish goals and objectives for their respective sections/departments.

    The HR management is accountable for aligning departmental goals with organizational objectives and providing incentives to individuals for attaining them.

    Tracking HR-based decisions is another crucial measure.

    These decisions may involve various actions such as hiring employees, conducting performance appraisals, providing employee training, implementing new systems to assist employees, documenting the history of goals and accomplishments by individuals, and more.

    Monitoring different processes is essential to ensure adherence to the best HR practices. These processes, which include

    recruitment and selection, techniques for motivating employees, performance appraisal, employee training and development, among others, have a significant impact on the overall performance of the HR department.

    The HR department's effectiveness is frequently evaluated and ranked by assessing how employee empowerment and development influence the efficiency of both the department and the entire company.

    To evaluate this aspect, it is necessary to consider several factors. This involves identifying and considering if each employee has a personalized development plan that matches their specific needs and recommendations from their managers. Additionally, assessing the effectiveness of performance appraisal systems in motivating employees and enhancing their overall performance. Moreover, monitoring the level of employee counseling and ensuring compliance with HR regulations and state laws within the organization.

    Phillips (1995) emphasizes the importance of establishing a culture that promotes the recognition and admiration of employees' positive actions and strengths. This can serve as motivation for employees to improve their performance, benefiting their department.

    Offer recommendations for improving the effectiveness of human resource management in a company.

    The flaws and incompetent practices of the organization are the main focus of the assignment, as they have a negative impact on employee performance and, consequently, on the overall performance of the organization.

    The major recommendations based on the case study about the organization and HR department issues are as follows:

    • The manager of each department should work with the employees in regards to their professional growth. Moreover, the human resource department should re-consider their plans in regards to the employees’ training and development programs.
    • It is a basic

    concept in Human Resource Management that maintaining work-life balance is essential for the employees to work efficiently; however, this is not been practiced in the organisation under study.

    The HR management should provide employees with flexibility to effectively manage both their professional and personal lives, ultimately enhancing their performance.

    Higher management should monitor the performance of the HR department and hold HR management accountable for decisions that violate the organization's policies.

    Employees are dissatisfied with the existence of favoritism in the company, prompting the HR department to implement transparent procedures for promotions, recruitment, and selection.

    The organization should recruit innovative leaders who can empower employees and give them the freedom to be creative. In addition, HR management must align employee objectives with those of the organization to achieve its goals.

    Employees should receive improved training and development opportunities. Additionally, there should be a clear process for performance appraisals and motivating employees, as this significantly affects their performance. The management should also foster a team-oriented culture. In light of the high turnover rate, the management should implement various incentive policies and strive to create a more friendly organizational culture. (Davison & Fitz-enz, 2001)


    1. Bandt. A & Haines. S. (2002). Successful Strategic Human Resource Planning. Systems Thinking Press. ·Barbeito. C. (2006).
    2. Human Resource Policies & Procedures for Non-Profit Organisations. 1st Edition. Wiley ·Beaver, G & Stewart, J. (2004).
    3. Human Resource Development in Small Organisations. st Edition. Routledge. ·Brown. A. (1998).
    4. Organisational Culture. 2nd Edition. Financial Times Management. ·Davison. B

    & Fitz-enz. J. (2001).

  • How to measure Human Resource Management. 3rd Edition. McGraw-Hill ·Fazey. M. (2010).
  • Human Resource Policy. Concepts, Processes & Applications. Tilde University Press. ·Johnson. R, Thite. M & Kavanagh. M. (2011).
  • Human Resource Information Systems. Basics, Applications and Future Directions. 2nd Edition. Sage Publications. ·Kishore. L, Murali. K & Reddy. M. (2008).
  • Human Resource Planning. ·McBey, K & Belcourt, M. 2009).
  • Strategic Human Resource Planning. 4th Edition. Nelson Publishing. ·Mello, J. (2010).
  • Strategic Human Resource Management. 3rd Edition. ·Mulero, W. (2010).
  • Strategic Human Resource Management and Organizational Performance. Lambert Publishing ·Phillips. J. (1995).
  • Accountability in Human Resource Management. 1st Edition. Gulf Professional Publishing. ·Purcell, J & Boxall, P. (2011).
  • Strategy and Human Resource Management (Management, Work & Organisation. 3rd Edition. Palgrave MacMillan. ·Singh. K. (2012).
  • Organisation Change and Development.
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