Every company has its strategies. It makes plans and objectives that are suitable. Employees need to know about those strategies. Strategic human resource management connects the HR and the strategies of a company.
Strategic HRM improves flexibility. It opens the door for innovation. Strategic HRM also develops the company culture. This advances the business performance.
Human resource plays a vital role to make strategic HRM effective. Strategic HR is the partner when company policies are made and implemented. Strategic HR needs to make approachable methods for employees. They should have a long-term vision.
Likewise, employee’s issues are there in every company. Strategic HR has to resolve the issues. They should create a healthy work environment. Also, strategic HR should be able to clear the confusion.
EXAMPLES OF STRATEGIC HUMAN RESOURCE MANAGEMENT
Strategic HRM is used by many big companies. Walmart is a company with more than two million employees. Even with a huge number of employees, the company is doing well. Walmart gives enough attention to strategic HRM. The company has been emphasizing to its employees since the beginning.
Walmart has seven main strategies. They are price, operations, culture, key item/products, expenses, talent, and service. Using strategic HRM, Walmart connects these strategies with its HR.
Similarly, there are many other examples. Human Resource MBA listed 30 famous companies. The companies used strategic HRM. Using strategic HRM helped the companies grow.
FedEx Corporation is an American multinational company. It is headquartered in Memphis, Tennessee. It is a delivery services company. FedEx believes in ‘People-Service-Profit’. It means if the company takes care of the employees, then the employees will take care of the customers. FedEx takes surveys and feedbacks from employees every year. Employees share their opinions and problems. Then the company takes action in the favor of employees. In this way, FedEx is using strategic HRM.
Nissan is another example. Nissan is a Japanese multinational company. It is an automobile manufacturing company. Nissan uses a philosophy called ‘kaizen’. It helps employees to make improvements in their work. Another strategic HRM of Nissan is giving freedom to the leaders. Leaders are allowed to hire independently. They can build their team.
Similarly, Alliance Boots GmbH also uses strategic HRM. The company considers employees as a part of a family. The company maintains a stress-free work environment. It encourages managers to be supportive.
IMPORTANCE OF STRATEGIC HUMAN RESOURCE MANAGEMENT
The use of strategic HRM is growing. Almost every top companies use strategic HRM. It is because strategic HRM has many perks. It is very important for an organization. Some importance of strategic HRM is:
- Strategic HRM increases job satisfaction. Employees are valued. Their problems are solves. This makes the employees happy. It encourages employees to give more effort and improve their work.
- Strategic HRM promotes a work culture. It creates a stress-free work environment.
- Strategic HRM treats employees well. When employees get care, they tend to provide better services to customers. This increases customer satisfaction.
- Strategic HRM connects HR with strategies. HR becomes well aware of the work and resources. They can make the optimum utilization of resources. It increases efficiency. This also reduces costs.
- Strategic HRM controls chaos. It addresses the problems of employees. It resolves the issues and conflicts. This helps to manage the employees.
- Strategic HRM increases productivity. It plays a vital role to make an organization successful.
STEPS OF STRATEGIC HUMAN RESOURCE MANAGEMENT
The process of strategic HRM is important to know. The steps of strategic HRM are:
- Make the company’s objectives clear
Strategic HRM is about connecting the HR with the company’s objectives. For this, the HR should understand the objectives properly. So it is important to make the objectives clear. Only after understanding the objectives properly, HR can work properly. For this, communication is the key.
- Evaluate the HR capabilities
Evaluation of the skills and capabilities of the HR is important. This helps to understand the employees. From evaluation, you can also know the talent of your employees. Not everyone is good at everything. They are best in a particular field. Evaluation helps to know about that.
- Analyze the HR capacity
After the evaluation, you can find out the errors. Then, you should analyze it. Find out the methods to resolve the issues.
- Estimate future HR’s requirements
Estimating the future needs of employees is an important step. You can plan based on demand and supply. Also, some new positions might be required.
- Know the tools that are essential for the employees
HR personnel should know about the tools being used. They should check if the tools are properly utilized or not. Also, it is important to know if the tools are helpful or not. Changes and improvements should be made accordingly.
- Implement the HRM strategy
After the analysis, implement the human resource management strategy. Search for candidates. Candidates should have the required skills and qualifications. Then conduct a selection process. It can be taking examinations and interviews. Select the candidate best suited for the company. Also, organize trainings programs.
- Take corrective actions
Take frequent feedback and suggestions. Also, keep track of the work and activities. This way, you can know the problems. Then come up with the solutions.
Every aspect has pros and cons. Likewise, problems are there in strategic HRM. One should be able to follow the process properly. Then the company can be on the list with the top ones.