Human Resource Management is to be considered as one of the strategic approaches toward the effective management of people in a company. In this regard, it can be said that in order to help the company to get competitive advantages, the human resource management of a company plays a vital role. This is useful as well for the development of organizational performance along with employee performance. Human resource management can be considered as the management of few people, who mainly prioritize the systems and policies. The following essay has been developed on the basis of the statement “Human Resource Management must be aligned carefully with Company Strategy”. In this regard, the essay will emphasize the different fundamentals of human resource management along with company strategy. This will show the benefits of human resource management on the company’s strategy. In addition, the essay will encompass in it different theories and models of Human resources. The last part of the essay, it will reveal the issue, which can be taken place to align the human resource management with company strategy.
Human Resource Management is also known as one of the planned approaches toward the effective management of people in a company. This has been found that the prime reason of the human resource management is to make sure that the company is capable to gain success. In this regard, it can be revealed that in order to help the company to get the competitive advantages, human resource management of a company plays a vital role. Based on the opinion of Noe et al. (2017), professional, who are involved in the human resource department of an organization is mainly prioritizes on the business operations along with the process of accomplishing the organizational goals. This is helpful as well for the development of organizational performance along with employee performance. Human resource management can also be told as the management of few people, who mainly prioritize the systems and policies. In addition, it has been told that HRM plays a vital role in order to recruit, train and developing employees. This is positively related to organizational profit and revenue (Cascio, 2015). Company strategy can be defined as the course of action or the set of decisions that helps the corporate leaders in order to achieve the business objectives. It can be considered as very much beneficial for the development of the organization and operate the business in a well-organized way.
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Benefits of HRM on company’s strategy
In the words of Obeidat (2016), Human Resource Management is the procedure related to the linking of several human resource functions to the organization’s strategic objectives for the purpose of the improvement of the latter’s performance. Based on the opinion of Jamali et al., (2015), adaption of an effective HR strategy in alignment with the goals and vision of the organization is associated with multiple benefits and advantages for the organization, which includes effective evaluation of the HR policies, improvement of team building, proficient monitoring of progress, maintenance of a legalized structure.
The foundation of strategic Human Resource Management is that the policies along with the procedures of the organization or company concerning employees are required to be aligned with its broader strategic plan. In accordance with the opinion of Obeidat (2016), development of these links between strategy and HR is associated with the discrete advantage related to assisting the organization in evaluating its prevailing HR policies. In addition, this enables the organization in replacing inefficient or outdated policies with effective ones, which will lead to the promotion of an effective workplace environment as well as employee relations.
With the evaluation of the HR policies, the organization can utilize the aims as well as objectives of the strategic plan for the evaluation of every HR procedures. The procedures, which will be evaluated to be less effective for the fulfilment of the strategic vision, can be re-devised or discarded for making way for the effective ones.
Improvement of Team Building
Strategic Human Resource Management as opined by Jamali et al., (2015) enables an organization in fostering a sense of camaraderie along with a team spirit. The strategic vision of an organization will ideally depend on the input provided from numerous stakeholders, which includes employee, managers and customers, along with investors. Creation of an HR strategy in alignment with the sense of openly communicating can benefit the organization by assisting the stakeholders in feeling important for its executives and owners by giving various valuable inputs. Concisely, it is pertinent to the significance of incorporation of the effective perspectives and ideas of the stakeholders, which in turn leads to proficient team building.
Assistance in Monitoring Progress
According to Meijerink et al., (2016) Human resources has the ability of assisting the organization in monitoring its progress in terms of the achievement of its stated goals along with objectives within the strategic plan. The strategic plan is viewed to rely on the support as well as cooperation of the employees along with individual department or functionalities within the company.
A key role is played by the HR in ensuring effective implementation of the components related to the strategic plan. The intricate connection between the strategy as well as the HR management leads the executives along with its HR functions to consistently monitor each other’s progress as well as tweaking processes for benefiting the organization along with its employees.
Maintenance of a legalized structure
One of the most effective functions of HRM in the words of Noe at al., (2017) is to ensure compliance of the organization with laws regarding employees, their salaries, insurances and so on.HRM plays a key role in ensuring a legalized structure of the strategic plan. Besides, it also makes sure that the strategic plan is amendable in terms of changing legal situations and time.
The main work of the HR theories is to achieve two main targets and that are-1) to increase the effectiveness of the job performance of the workers 2) to increase the motivation and the commitment of the workers. HR management wants to serve some purposes. They serve us to understand clearly the key practices of HR and they try to explain the nature of these key practices also.
Harvard Analytical Framework is introduced first by the Harvard School in 1980 and first in that place history of HRM theory is originated. When several workers do their work to operate a machine then some supervisory and controlling procedures needed to maintain a schedule for the duties of the workers and to maintain the relationship between the workers . The division of the job, the communication between the workers and the company have also done by these procedures. From the theory of the scientific management this trend was influenced. From this trend, the authorities started to draft rules and regulations and organize the pay structure for the employees. Although the above scientific management theory is not classified as the proper HRM theory but it influences to advance the actual HRM theories. There are mainly 5 models are observed in this human resource management. They are- the standard easygoing model of HRM, 8 box model by Paul Boselie, HR worth chain, HR worth chain progressed and Harvard structure for HRM.
1) The standard casual model of HRM – This model is known as the best model of the HR management. Mainly this model derived from the models published in the time zone of 1990 to 2000. This model shows how the internal processes and the financial outcomes of the business have been impacted on HR. This model also shows that the formula of the HR strategy to improve a business.
2) The 8 box model by Paul Boselie-This model shows how the viability of crafted by HR is impacted by the outside and the interior elements. The outer variables incorporate the outside general market setting; the outside populace advertise setting, the outside general institutional setting, the all inclusive community institutional setting. Every one of these elements help to impact the work procedure of HR.
3) The HR value chain- This is known as one of the best models of HR management. In this model, the work process mainly divided into 2 categories. The categories are 1) HRM activities and 2) HRM outcomes.
4) The HR value chain advanced- The HR model is similar as the HR value chain model but it has 2 main differences from the previous one.
5) The Harvard framework for HR- Mainly 5 elements are included in this model of HR. these 6 primary elements are HRM policies, HRM outcomes, stakeholder interest, situational factors and long term consequences.
All the HR models have some differences and some similarities but these HR models help us to understand the human resource management more clearly. This is the significant test distinguished and ought to be the top most need. No affiliation will have the alternative to investigate the stormy seas of the present business condition without a significantly qualified gathering of chairmen on deck. In my view, the operational organization quality in numerous relationships in made countries is starting at now high.
The zone where I see the most surprising necessity for continued with progression is the development of activity quality, and particularly the further improvement of key organization aptitudes. It may not stun you that I consider imperative thinking and fundamental initiative as key aptitudes for pioneers which ought to be honed constantly. Unexpectedly, the necessity for extended nature of power and the board in like manner fuses.
Affiliations can basically remain effective in a smart changing business condition, on the off chance that they have a workforce that is according to market needs and which has the correct mentalities and capacities with regards to deft acclimation to changing business conditions (Noe et al. (2017). The test for HR is to get the correct limit in a wild challenge for the most amazing cerebrums and to tirelessly build up the extent of limits and commitment of workers to such a degree that advances the improvement of the individual and the progression of the affiliation all the while. The commitment and danger of people ought to be appreciated and it must be understood that the organization giving affiliation's reputation is in their grip. Essentially the best and trustworthy people should be consigned for the endeavour and the doled out individual should review that there is a colossal commitment lying in him. In order to keep the power of the work procedure the human resource the officials may need to take a couple of decisions that are pitiless just as bring a couple of adversaries also. It should be seen that the commitment of the HR office is to serve the association and it should focus basically on the benefits of the relationship of the organization.
Human Resource Management bases on sorting out the essentials part of the business with its necessities and movement of workers. Inside each pro has a critical task to do so. The accentuation is to help people to team up. Workforce engineering is a touch of the basic technique, which would look on entire arrangements and needs of the association. Care plans to connect each of the persons to end up both expertly in all, actuality inside of the business which would additionally help and make an evident and basic high ground through picking and by winding up particularly lively and skilled staff that can also perform at different stages. Human resource is the hugest bits of the present proficient work environment. It is fundamental to get presumably the best man in the fragment to have better kind of organization from them.
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