Strategic Role of HRM

By | April 15, 2020

The role of Human Resource Management has evolved in the last two decades. In the current context, HR managers are focussing on recruiting and managing the workforce in order to meet the strategic goals of the organisation. It has a key role in fulfilling the visions and mission of the company. Companies work and reach goals through their workforce. Hence, HRM has a relevant role as it provides the most competent employees to the organisation, which further the objective of the company. Thus, there is an emerging trend that combines the theories of HRM with strategic management. This is known as Strategic Human Resource Management (SHRM).

It consists of decisions and actions that result in the formulation and implementation of strategies especially designed to achieve the goals of the organisation. The strategy is defined as a unified, comprehensive and integrated plan designed to ensure that the basic objective of the enterprise is achieved.

Strategies can be formulated at the top level, which is known as a corporate-level strategy. Strategies made for attaining specific goals are called business-level strategies. When the business-level strategies are furthered to functional departments like HR, marketing and R&D, they are known as functional strategies.

Corporate strategy for human resource management facilitates the creation of competitive advantage for the firm over its competitors. This is done by building employee competence. SHRM, thus means applying strategies to human resource practices.

Scope of SHRM:

  • SHRM is the link between the goals, objectives, strategies of the organisation and its human resource. It aims at improving business performance by developing a good organisational culture. It also furthers competitive advantage, innovation and flexibility in the organisation.
  • It aims at focussing at the ways how the human resource of the organisation can directly impact the growth of the company. HR managers adopt strategies to develop and retain hos workforce in order to meet the objectives of the organisation.
  • Organisation frames a strategic plan and quantifiable strategic aims or goals. These plans and aims suggest certain staff requirements. These are in terms of worker skills and behaviours required to attain the company’s strategic goals.

Process of SHRM:

Develop an understanding of the Goals of the Organisation: The HR strategies are dependent on how well the company goals and achievements are envisioned. Both the long-term and short-term goals must be understood clearly in order to build effective strategies of HRM.

Evaluate the Capability of HR: This assists the manager in learning what kind of employees are present in the organisation and how they are contributing to the organisational goals. This step also considers developing skill inventories and learning about the expertise of the employee in a particular area. The skills of the employees are tested and employees who have a keen interest in being trained are identified

Analysing Current Capacity: This will help the manager in recognising barriers and implementing plans to capitalise the opportunities and combat threats effectively. The HR manager will learn about the skills of the current workforce and assists them in building their competencies in order to fulfil the strategies goals of the company.

Estimating Future Human Resource Requirements of the Company: The manager must forecast on the basis of supply and demand aspects of HRP. This comprises of estimating the number of employees required with particular skills and matches it with the current workforce or supply of the organisation.

Identifying the Tools Required: The manager must collaborate with other departments to ascertain how certain software’s tools and techniques are used by the employees. He studies how the usage of these tools affects the productivity of the workforce. There is an audit of Softwares, tool kits or hardware that are the prerequisite for more organised and timely completion of work.

Implementing Strategies: The HR manager expands the workforce based on forecasting. He also equips his current workforce with tools and resources to achieve the goals.