Strategic human resource management is the connection between a company?s human resources and its strategies, objectives, and goals. The aim of strategic human resource management is to:
- Advance flexibility innovation, and competitive advantage.
- Develop a fit for purpose organizational culture.
- Improve business performance.
In order for strategic human resource management to be effective, human resources (HR) must play a vital role as a strategic partner when company policies are created and implemented. Strategic HR can be demonstrated throughout different activities, such as hiring, training and rewarding employees.
Strategic HR involves looking at ways that human resources can make a direct impact on a company?s growth. HR personnel need to adopt a strategic approach to developing and retaining employees to meet the needs of the company?s long-term plans.
HR issues can be a difficult hurdle to cross for many companies, there are all kinds of different components that can confuse business owners and cause them to make ineffective decisions that slow down the operations for their employees as well as their business. HR departments that practice strategic human resource management do not work independently within a silo; they interact with other departments within an organization in order to understand their goals and then create strategies that align with those objectives, as well as those of the organization. As a result, the goals of a human resource department reflect and support the goals of the rest of the organization. Strategic HRM is seen as a partner in organizational success, as opposed to a necessity for legal compliance or compensation. Strategic HRM utilizes the talent and opportunity within the human resources department to make other departments stronger and more effective.
Why is strategic human resource management important?
Companies are more likely to be successful when all teams are working towards the same objectives. Strategic HR carries out analysis of employees and determines the actions required to increase their value to the company. Strategic human resource management also uses the results of this analysis to develop HR techniques to address employee weaknesses.
The following are benefits of strategic human resource management:
- Increased job satisfaction.
- Better work culture.
- Improved rates of customer satisfaction.
- Efficient resource management.
- Proactive approach to managing employees.
- Boost productivity.
Seven steps to strategic human resource management
Strategic human resource management is key for the retention and development of quality staff. It?s likely that employees will feel valued and want to stay with a company that places a premium on employee retention and engagement. Before implementing strategic human resource management, you will need to create a strategic HR planning process using the steps below:
- Develop a thorough understanding of company?s objectives
- Evaluate HR capability
- Analyze current HR capacity in light of your goals
- Estimate company?s future HR requirements
- Determine the tools required for employees to complete the job
- Implement the human resource management strategy
- Evaluation and corrective action
Strategic human resource management is important for every company. Company doesn?t need to employ a specific number of employees before start to consider implementing strategic human resource management principles. In fact, if we have a plan to grow business, we should be thinking about linking this growth to strategic human resource management. Some companies outsource this part of their business because they don?t have an in-house HR function. Strategic human resource services provide full-service HR functions including developing a human resource management strategy. Strategic HR services help to take away the burden of both operational and strategic management to facilitate the growth of your business.
Seven Consultancy is a result of the motivation of young entrepreneurship under the guidance of experienced professional from industry. Young entrepreneurs know the recent trends of market. Flexibility of the services has helped Seven Consultancy to secure a brand name in the market. We have access to an overall Human Resource Solution (HR Consultancy). Seven Consultancy believes in shaping the way of success for its clients.
Our Consultancy are specialized in Recruitment, Placement, Manpower & Job Consultancy. We are one of the Top HR Consultant in Mumbai, Navi Mumbai & Thane. We have well defined customized HR solution for different segments. We have received awards as Best HR Consultancy in Mumbai.