Through the past few decades, particularly with the advent of digitization, HR was on the verge of becoming a function outside the strategic ambit of organizations involved in producing tangible products. Furthermore, the dynamism engaged in performing operations with continually evolving work conventions has forced HR leaders to take charge of a central role in improving workplace productivity to enable organizations to achieve competitive advantage. This is where the concept of what is known as Strategic Human Resource Management comes into play. The new way of managing human resources varies from standard practices in organizations. 

What is Strategic Human Resource Management? 

It defines human resources management within an organization that connects employees with business strategies, directions, and objectives. 

• Guaranteeing flexibility promoting practices and providing strategy advantages to the organization 

• Developing organizational culture that fits the organization 

• Guaranteeing efficient business operation 

There are specific ways in which Strategic Human Resource Management is aligned within an organization, with key functional activities encompassing hiring and training the workforce and rewarding them based on their performance. The Strategic Human Resource Management approach ensures there are roles that the HR personnel can engage to offer a positive and direct contribution to the firm.  

Objectives of Strategic Human Resource Management 

Strategic Human Resource Management primarily addresses organizational culture issues, authority structure, efficiency of business processes, allocation of roles and responsibilities to resources, and performance issues. Ideally, the primary objectives of Strategic Human Resource Management approach: 

1. Resource-based Strategy 

It emphasizes the improvement of the competitive advantage of the firm.  

2. High Commitment Management  

It makes higher commitment between managers and their subordinates.  

3. Achieving Strategic Fit 

The high ROI-oriented operation characterizes the combination of workforce and material assets through efficient organizational design. 

4. High Involvement Management 

The development of organization engagement and business management through respecting potential stakeholders. 

5. High-Performance Management 

Improve company performance by enhancing workforce productivity, growth, and profitability rate. 

Best Practices of the Strategic Human Resource Management

Below are some of the main principles of Strategic Human Resource Management that define a successful HR manager.  

• Improving Staff Expertise 

These employees who take the Strategic Human Resource Management course can use business association tools and information to benchmark the employees’ performance. It prepares HR specialists to enable their company to look for firm performance deficiencies by analyzing competitor operation models. This creates plans and implements training programs to support the staff. For example, managers may find that some workers must be competent to perform project management tasks.  

• Result Oriented Approach  

Strategic human resources management involves professionals who work with senior executives to establish the organization’s operation metrics. HR professionals help the top management recruit and develop risk mitigation strategies for any havoc in hiring or resource deployment by closely monitoring performance markers like well-settled gross sales and customer satisfaction.  

• Strategic Operations 

HR departments significantly addressed functional concerns like wages, incentives, and staffing. These tasks are the responsibility of the HR department. Still, influential executives understand that it is critical to involve the HR managers in corporate planning and other HR activities, like staff development, to produce results that support achieving the firm’s strategic objectives. The Strategic Human Resource Management lessons can help professionals acquire the strategic skills necessary to influence the company positively. 

Approaches in Strategic Human Resources Management 

The various Strategic Human Resource Management approaches through which any organization can embed and pursue sound HR management strategies.  

1. Management of High-Performance Work Systems Approach 

It underlines the management concept by creating an organizational climate that fosters employee growth, participation, and delegation. This work system integrates training and development, performance management, and reward systems to produce excellent workplace performance.  

2. Strategic Fit Approach 

This focuses on the integration between the organizational and the HR strategies. It entails determining what type of HR practices is relevant in the organization to achieve the laid down strategic framework and relate these practices to its overall strategic plan.  

3. Contingency Approach 

This approach appreciates that applying a standard approach to managing human resources across organizations is impossible. It underlines the importance of establishing separate HR management strategies for every organization.  

4. Best Practice Approach 

This approach focuses on its ability to support the implementation of best practices, which refers to promoting HR practices to increase organizational effectiveness. This entails comparing oneself with others and emulating what is similar to the organization from other organizations. 

5. Resource-Based Approach  

This approach assumes that human capital is an organization’s most valuable resource and competitive advantage. It is concerned with building and deploying the human assets’ unique skills and resources to generate organizational value.  

Conclusion 

Strategic Human Resource Management is a process that enables organizations to attain their goals through effective management of people. Through the Strategic Human Resource Management plan, organizations can follow the right human resources to accomplish organizational goals. Despite the time that might be spent to prepare the Strategic Human Resource Management plan, the gains on the other side are worth the effort. An effectively implemented Strategic Human Resource Management plan will not only facilitate the achievement of your business objectives but also assist in attracting and maintaining talented human capital in the organization.