The Importance Of Strategy For Hr Commerce Essay Example

that human resource management plays a critical role in meeting an organization's personnel needs and responsibilities. Since employees are considered a business's greatest asset, organizations invest significant time and effort in evaluating their human resource management systems to optimize performance and achieve corporate objectives.

2.1 Functions of Human Resource Management

Human resource management combines traditional and administrative functions to promote the well-being of all employees in an organization. These functions encourage critical thinking, facilitate discussion, shape the organizational environment, and establish a strategy for effectively managing human resources.Below are the seven distinguished hallmark maps of human resource direction which are interconnected and dependent on each other.One of these is Human Resource Planning where planning the resources of an organization is a vital responsibility for every senior manager.

The most crucial resource for an organization is its people. They are essential for success and provide flexibility. To achieve organizational goals, it is important to place individuals with the right expertise, skills, and experience in suitable positions. Personnel Specialists or Human Resources Managers play a significant role in planning an organization's human resources requirements. Human Resources Planning involves systematically acquiring, utilizing, and deploying individuals within an organization. As Mathis and Jackson (2003) state, it entails analyzing the organization's needs and evaluating the availability of human resources required to meet its corporate objectives.

The process of Human Resource Planning involves assessing the supply and demand of human resources within an organization, and finding ways to bridge any gaps that may exist. It determines the number of employees that need to be hired or let go, and is closely connected to an organization's strategic planning. Factors influencing human resource planning and

its stages are illustrated through the following examples (Ivancevich, 1998, p.145).

The process of workforce planning involves assessing an organization's current and future demands in relation to its resources. It is crucial to plan steps that can ensure a balance between workforce supply and demand. Various critical factors, including recruitment and employee selection, determine the future human resource planning requirements of an organization.

2.1.2 Recruitment and Employee Selection

Prior to filling job vacancies, organizations must analyze and identify individuals who are not only qualified for the position but also seeking employment. Recruitment has always been important, but the need for highly qualified personnel has made effective recruitment practices a significant competitive advantage. According to Linda (2001, p.151), recruitment is defined as the process of finding individuals to fulfill organizational tasks.

Enlisting, according to Fisher, Schoenfeldt, and Shaw (1997, p.223), refers to the act of organizations finding and attracting individuals to occupy job openings. It is a continuous necessity for organizations to recruit fresh employees in order to fill positions that are vacant due to departures or promotions. Recruitment and human resources planning are closely intertwined with the selection process where candidates' suitability for various roles is assessed by organizations. If adequate planning is not carried out, an organization may make the mistake of hiring an improper number or type of staff.

According to Fisher, Schoenfeldt, and Shaw (1997, p. 223), organizations have various ways of generating internal candidates for promotions and/or transfers, including vacancy announcements, campus recruitment, unasked applicants, field trips, professional organizations, and executive search firms. However, it is important to consider the advantages and disadvantages of both internal and external recruitment methods. Ivancevich (1998, p. 227) defines the

selection process as the organization's method of choosing suitable candidates based on their ability to meet the selection criteria in current environmental conditions. Fisher et al. (1997, p. 269) define selection as the process of evaluation, decision-making, and assessment with the objective of bringing individuals into an organization who will perform well in their roles to achieve individual and organizational objectives in a human resource selection system.

The choice procedure can be merely shown as follows.

2.1.3 Employee Motivation

To keep a quality staff and promote them to give their best at work requires attending to the fiscal and psychological and even physiological wagess offered by the organisation as a uninterrupted exercising. In simple footings, the motive of employees can be defined as an interior force that drives people to accomplish personal and organisational aims. In order to last in concern in the universe of concern, organisations must do certain that its employees are motivated to convey out their optimal degree of public presentation. Hence alteration is the lone thing that remains changeless, without no uncertainty motivated employees are critically needed in the organisation which adopts alteration.

Motivating employees is essential for the success of organizations, as it leads to increased productivity and efficiency. In order to accomplish this, directors need to comprehend the factors that drive their employees in their work tasks. As a result, motivating employees becomes the most difficult aspect of a director's role due to the ever-changing factors that influence employee motivation.

2.1.4 Performance Evaluation

Performance evaluation is deemed an important function within the process of Human Resource Management.

A competent presentation system not only helps align individual objectives with departmental goals, but also enables and facilitates the

achievement of both individual and departmental goals. In addition, employee performance evaluation serves as an evaluative and communicative mechanism used to assess employee performance. The process of evaluating performance is carried out diligently and comprehensively, helping employees understand how their work and contributions fit into the organization's larger framework. These performance evaluation processes are successful in achieving these goals and providing additional benefits. Documented performance ratings serve as communication tools, ensuring that supervisors and staff have a clear understanding of expectations for each employee.

Measuring employee performance not only communicates desired results for each employee and how they will be measured, but also serves three critical purposes for an organization. Firstly, it improves organizational effectiveness by optimizing individual contributors. Secondly, it identifies potential talent and fills senior vacancies or transfers them to roles where their skills are better utilized. Lastly, it provides a fair method of linking payment to performance when numerical criteria are absent. Thus, employee performance evaluation provides legal, ethical, and visible evidence that employees actively understand their job duties, responsibilities, and outcomes.

2.1.5 Employee acquisition and development

Employee learning involves acquiring knowledge and skills determined by the employer for ongoing work, while development refers to activities that enhance individual organizational performance.

The main focus in strategic human resource management is on learning and development within the context of organizational growth. In today's knowledge-based economy, attracting, retaining, and developing talent is crucial for achieving business goals and gaining a competitive advantage. Learning and development are now seen as lifelong activities rather than just acquiring qualifications. The ultimate goal of the learning and development process is to create a learning organization that continually reviews and adapts its activities

based on its mistakes and successes.

Based on the above discussion, learning and development have several important benefits:

• It helps management deal with various environmental pressures.
• Learning and development typically result in increased production volume and quantity.
• It leads to job satisfaction and boosts employee morale.
• Skilled workers require less supervision.
• It allows employees to grow and advance within the organization, increasing their earning potential.
• Well-trained staff make better use of materials and equipment, resulting in reduced waste.

2.1.5 Industrial Relations

Industrial relations have become increasingly complex in today's industrial society. The collaboration and harmonious relationships between workers and employers are vital for industrial development, making it crucial for all parties involved to establish and maintain strong connections. In the field of human resource management, industrial relations pertain to the relationships between employees and employers as governed by organizational regulations. These relations involve analyzing the interactions between management and workers, particularly groups of workers represented by unions.

Industrial dealingss encompass the relationships between employers, workers, authorities, and the institutions that facilitate these interactions. Labour relations, from a business perspective, include all aspects of the employment relationship, such as human resource management, employee relations, and labour and management relations. Establishing good industrial relations is a recognized and legitimate objective for any organization. However, it is challenging to define precisely due to the complex dynamics between various parties involved: employees and their formal and informal groups, unions, organizations and their representatives, employers and their leaders, and official bodies like professional associations, as well as the government and regulatory agencies including independent bodies like

Advisory, Conciliation, and Arbitration.

Strategy - A Human Resource Perspective

The human resource strategy outlines the policies that companies use to assess the company's needs and recruit or hire new employees.

If a company has multiple sections and a wide variety of maps in their concern operations, the completion of this procedure may take longer. When formulating a human resources scheme, companies should aim to hire both skilled and unskilled workers. The significance of human resources in the contemporary world is apparent as most organizations fail within a few years due to improper management of human resources. Human resources management is crucial as it enables a company to optimize its employees while maximizing profits.

For this reason, it is important for an organization to have a clear understanding of how to optimize employee productivity through the implementation of a human resource strategy. This strategy, which is carried out by the human resources manager, ensures that both short-term and long-term objectives are achieved. The human resource strategy is applicable throughout the entire organization and supports a comprehensive approach to strategically managing its workforce. By addressing long-term concerns, macro issues, quality standards, culture and values, commitment levels, and future resource needs; this approach aims to cultivate effective leadership at all levels within the organization. The evaluation of the HR strategy's effectiveness can be measured in relation to the accomplishment of the strategic plan.

It is evident that having a Human Resources Manager's plan not only allows an organization to see the bigger picture but also ensures that integration policies align with long-term organizational needs. Therefore, the human resources strategy can overcome employees' daily tasks to have the greatest

impact on society as a whole and how it functions. Additionally, it is worth mentioning that human resources strategies are in line with long-term resources and effectively communicate what is happening and how it fits into society's future politics.

4.0 Strategic Human Resource Management

In simple terms, strategic human resource management refers to the strategic approach to managing human resources within an organization. The process of strategically managing human resources aims to meet the employees' needs while promoting corporate objectives. Strategic human resource management encompasses all aspects of a business that may affect employees, including hiring and firing, compensation, benefits, training, and administration...etc.

According to Wei (2006), strategic human resource management entails designing and executing a cohesive set of policies and practices that ensure the human capital of a company contributes to the achievement of its corporate goals. Organizations are making efforts to meet the needs of their employees in order to cultivate a more productive work environment. Strategic human resource management is the most effective way to achieve this objective. The ability to anticipate and address the needs of workers can help increase the number of skilled employees who choose to remain employed by the organization.

Improving employee retention can reduce the amount of money companies spend on finding and training new employees. The process of strategic human resource management encompasses a wide range of terms and models. These terms include employment practices such as recruitment, selection, performance assessment, training and development, and the administration of compensation and benefits. Meanwhile, the best practice perspective, the best fit perspective, and the resource-based approach are considered popular models in the process of strategic human resource management. Strategic human resource management

involves linking human resource management with strategic goals and objectives in order to improve business performance and cultivate organizational cultures that promote innovation and flexibility. These activities of human resource planning and implementation enable an organization to achieve their organizational goals.

Therefore, it is apparent that organizations need to focus on identifying, analyzing, and balancing two different types of forces separately: the internal strengths and weaknesses on one hand, and the external opportunities and threats of the organization on the other hand.

5.0 Developing a Human Resource Management Strategy

To develop the human resources strategy, an organization must address two crucial questions regarding the type of people that the organization needs to manage and direct the efforts to achieve strategic business objectives. Additionally, plans for individuals and initiatives should be designed and implemented in order to attract, develop, and retain staff to compete effectively. To answer these questions, organizations are required to address the following four key dimensions:

1. Culture: including beliefs, values, norms, and managerial style of the organization
2. Organizational structure, job roles, and reporting relationships of the company
3. People: encompassing organization skills, abilities, leadership skills
4. 4Human resources systems: involving aspects like employee selection, communication, training, rewards, career development, etc.

5.1 Steps in developing a Human Resource Strategy

There are seven critical steps involved in developing a human resources strategy, and it is important to actively involve senior managers throughout the process.The following are the seven critical steps:

• Step 1: Understanding the business scheme.
• Step 2: Developing a Mission Statement
• Step 3: Conducting a SWOT analysis of the organization
• Step 4: Conducting a detailed human resources analysis
• Step
  

5: Identifying critical people issues

6.0 Importance of a Human Resource Strategy

The strategy for human resource management is developed based on the overall business strategy, and it closely aligns with the major initiatives in the business strategy. The human resource management team should focus on designing and clearly defining the strategy for managing human resources.

The strategy of human resource management has two main goals: to help the organization understand priorities and develop the human resource plan, and to assist employees in prioritizing the organization's human resource functions. According to Wei (2006), Strategic Human Resource Management combines the HRM function with business strategy, allowing for a more adaptable use of human resources to achieve organizational goals and gain a competitive advantage. The significance of human resource strategy should not be underestimated, as it not only guides HR policies but also addresses employment issues, including hiring, layoffs, and promotions, considering market conditions, industry trends, and the organization's own strengths and weaknesses. The purpose of human resource strategy is to achieve desired outcomes.

Furthermore, it provides specific guidelines for employee perceptions. The unique human resources strategies are expected to last approximately five years and should be reassessed annually to ensure that the strategies align with the organization's mission statement and market conditions. Additionally, it is crucial for the human resources strategies to be linked with the global enterprise's business plan. Once integrated within the organization, these strategies play a critical and significant role in addressing and resolving human resource issues.

As stated previously, it would be difficult to imagine any organization achieving its corporate goals and maintaining effectiveness without

the effective human resource management curriculum and functions. Nowadays, due to the recognition of the crucial significance of individuals, Human Resource Management has become a vital aspect of strategic planning and thinking. The human resource strategy cannot exist without effective communication with the management levels of the organization, as the line management needs to understand the objectives and strategy of the HR function to support them appropriately. The employees of the organizational human resource function are also a target group for the human resource strategy, as they need to understand how to develop their own objectives and visions for their individual role in the human resource management function.

Therefore, it is crucial for the human resource function to be accessible to all target groups, and they must know how to handle the information in the human resource system. The system for managing human resources can be provided as a whole or divided into groups with different available information. In conclusion, the significance of strategy in human resource management can be seen as it not only sets clear goals but also serves as a guide for helping employees understand their importance in an organization and their relationship with overall organizational goals.

7.0 Conclusion

I would like to summarize this report, which aims to critically examine the importance of strategy in the context of human resource management. It is evident that this report has successfully examined the significance of the concept of human resource management, followed by an in-depth analysis that explores the various functions of human resource management to provide a clear understanding of its critical functions. Additionally, an analysis of strategy in the context of human

resource management has been conducted to gain a clear understanding of the role strategy plays in the function of human resource management.

To support the statements regarding the subject of this study, the examination of strategic human resource management procedure has also been conducted. This is followed by a thorough focus on the significance of strategy in the context of human resource management and identifying the crucial steps in developing a human resource strategy. In conclusion, with utmost certainty, I would like to mention here that I strongly believe that the reader would understand the importance of Strategy in the context of Human Resource Management after reading this study, which is prepared after gaining a significant understanding from various reliable sources. Lastly, I want to express my sincere gratitude to my lecturer, my parents, my colleagues, and all other well-wishers who greatly supported me throughout my studies to successfully complete this study.