Essay Role of Strategic HRM

Question: Write about theEssayfor Role of Strategic HRM. Answer: Introduction Among various functions in an organization, such as marketing, finance, production, etc., the human resource job has constantly experienced a struggle to justify its position in the organizations (Drucker 1954). During the growth periods and in times of abundance of cash, the companies splurged on training, recruitment, rewarding, and employee engagement programs without hesitations. But, when the organizations face difficulties in business, HR (Human Resources) functions and initiatives are discouraged, and fund allocation to HR activities are mercilessly cut (Stewart 1996). It requires every now and then reminding the executives in the organizations about the contributions of the HR. Businesses in the field of software development, research organizations, design centers, etc., have realized the vitality of the human resources for their progress. Now, the human resources have become the critical resource for the sustenance and growth of many business organizations, especially in the knowledge working enterprises. Also, many companies consider employees as their most valuable assets. In this scenario, HR has taken a central part in the organization, and automatically the Human Resource Management (HRM) function has critical role to play there. Instead of comparing the traditional function of HR and the emerging new role, this essay intends to highlight the contributions of HR as such in realistic terms. While keeping the traditionally successful role and incorporating the demands of the 21st century organizations, the essay enlists the functions of HR in a positive way. It is observed that HR is constantly under the pressure to shift from transactional role of admi nistration and record keeping to more dynamic value adding function that can positively impact the enterprise and its organization. The Scope and Functions of HR Broadly, the HR function can be classified into five domains i.e. Human capital management, people management practices, Employee relationship and behavior management, Organizational Capability management and Administrative function (Devanna et al. 1984). The human capital management involves talent acquisition and retention function; people management includes, training, work design, rewards and recognition, and performance evaluation; Employee behavioral management occupies issues relating to psychological contract, job satisfaction, job involvement, organizational citizenship, etc. ; organizational capability function demands leadership development, career advancement, strategic alignment, human resource planning, etc. and finally the administrative function includes, compliances, audits, etc. While acknowledging the above functions, this essay is intended to highlight only the selective critical functions of the HR. Emerging Role of HR Some of the recent emerging stand points about HR function states that it is not merely a promoter of feel-good factors among employees, but about involving in people related problems and resolving them successfully. While discharging its function, HR is now expected to deliver results in alignment with business goals. With the arrival of the informational technology tools, HR is equipped with huge data processing facilities which can be put to use for analyzing employee data and forecasting the trends in HR management. Many top management squad now, include HR managers in their meetings and teams and expects them to participate in the strategy execution. Previously the HR was least concerned about the customers of the company; however, now customers are the prime focus of HR functions. The people mangers are poised to help both, the internal and external customers. The HR managers have stakes in the business results of company and are required to provide leadership in business decis ions such as strategy, investments, product development, etc. With the changed perspective, HR professionals are now offering distinctive information, ideas, insights, and suggestions to the top executives in developing competitive advantage. Some of the prominent contributions of the HR function to the organization are provided below. Engaging in Talent Acquisition Though this function looks relatively easier, the challenge of filling a key position in the organization with right candidate is significant to the HR manager. Because of the demographic movements and the changing business scenarios, the HR manager has to scout in unfamiliar employment markets with innovative ways of recruitment. As we have discussed earlier, human resources are becoming the strategic assets of organization, the contribution of HR manager in identifying and placing a talented employee is critical to the success of the origination. Fetching right people into the business, inducting and managing them with strategic alignment is vital to the organizational success (Allen and Ulrich 2013). Managing People and their Performance As per Gardner et al (2011) the major role of HR in adding value to the organization is by encouraging employees to perform better through developing leadership skills in the line managers. The HR managers persuade the executives to take up leadership roles to train their colleagues and reward them with appreciation, promotion, etc. Ulrich (1998) suggested a formula for people management i.e. Talent = Competence Commitment Contribution. All the three dimensions of the formula are related to the role of the HR management, and all of them must be integrated for an effective organizational performance. First dimension of the formula, competence signifies the presence of knowledge, skills, and values required for performance of the job. The HR responsibilities are to help the job incumbents to master the competences required for current and future jobs (Lorenzet et al 2006). It is a well-known fact that committed employees deliver superior customer service and bring profits to the investors. HR mangers promote commitment among the employees through various innovative techniques of employee engagements such as best performance awards; monetary incentives, etc. With respect to the enhancement of the contributions by the employees, the emotions of the workers play a major role in this aspect. Getting emotional engagement from the employees is not an easy task, the HR mangers have to identify the meaning associated with each job and, organizational missions, and encourage the employees to acknowledge and accept the purposes of the enterprise (Panagiotakopoulos 2011). By establishing a connection between the employees emotions and the purposes of the organizations the people managers gain commitment to add value to the product or service. Only by peoples work a business can achieve growth, and HR mangers contribute intangibly to the competitive advantage of the organization. Enhancing Organizational Capability The HR manager not only should promote individual talent within the organization, but also promote collective capacity to compete in the market (Michaels et al 2001). The principle is, the performance of the organization should be greater than the individual actions. It has been known for a long time that teams outperform individuals. Integrating employees and departments towards a common goal of the organization is a function of HRM. HR professionals must develop and design systems that integrate the efforts of the individuals and departments, promote a suitable organizational culture and build team to achieve wins in the market (Allen Ulrich 2013). Developing Leadership Pipeline It has been an accepted norm that the presence of leaders in an organization has positive effects on its performance. It is the leaders who bring together diverse resources to create value to the customers and market. By providing inspiration, driving innovations, and integrating the works of individuals and teams, the leaders take the organization to a different level. The HR managers are critical in developing leadership pipeline and career advancement within an organization. The outcomes of effective leadership are varied; it not only promotes employee commitment, organizational effectiveness, and business growth, but also enhances shareholder and stakeholder confidence. People invest in a company with trust and faith on the leaders who run the company. Following Compliances and Legal Shielding Though, many of the new generation managers give emphasis to strategic aspect of the HR, the HR mangers provide an invaluable service to the organization by protecting its operations from unnecessary legal entangles. By educating the executives about the compliances and employment laws, the HR managers have been instrumental in the development of various policies that are in line with the employment laws (Jackson et al 1989). By practicing the ethics and working within legal frameworks an organization is protected from stray litigations. Often the job designs, work place communications, employment contracts, etc. are scrutinized by the HR managers with awareness of the regulations, and illegal aspects in the workplace activities are removed sooner. As the organization opens up for diversity, this contribution of HR manager becomes more relevant. Human Resource Planning The demands of the current business environment and the employment scenarios force an HR professional to abandon the reactive habits and embrace the proactive strategies. They are required to play stronger and assertive in planning for human resources in alignment with emerging business strategies. Now, many senior HR mangers serve on the organizations top management teams and take part in strategic processes. In analyzing the strengths and weaknesses, and opportunities and threats, an HR director can guide the strategy based on the capacity of the human resources within the organization. Conclusion The HR managers have realized that the real focus must be on the deliverables i.e. creating value to the business and not merely getting the HR jobs done (Colbert 2004).. The HR professionals must not only create value in revenue generation of the company, but also assert their contributions. A system to assess the effectiveness of the HR function in relation to business competitiveness and employee satisfaction must be established. The HR mangers must help the organizations to become learning organizations so that the organization is not just a provider of a product or service but capable of adjust with the changing business situation. Bibliography Allen J and D Ulrich (2013) Talent accelerator: Secrets for driving business growth in Asia, South Asian Journal of Human Resources Management, 1(1) 123. Asian countries have gained economic success in the recent past, and one of the factors that led to this growth is due to the appropriate management of the most important resource of an organization i.e. human talent. Investments in managing talents have found to have positive effect on business performance and retention of the employees. This article intends to encourage the HR mangers to expedite the utilization of talent to boost business results. References Allen J and D Ulrich (2013) Talent accelerator: Secrets for driving business growth in Asia, South Asian Journal of Human Resources Management, 1(1) 123. Colbert, B.(2004).The complex resource-based view: implications for theory and practice in strategic human resource management.Academy of Management Review,29, pp.341358. Devanna, M. A., Fombrun, C. J., Tichy, N. M. (1984) A Framework for Strategic Human Resource Management, Strategic Human Resource Management, Chapter 3: (pp. 33-51). New York: Wiley. Drucker, P. 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