Strategic human resource management (SHRM) is a tactical method for the management of an organisation’s human resource function in line with organisational goals and objectives. SHRM enhances these functions by linking the traditional human resource practices to business strategy and the realization of organisational goals in order to enable the organisation to achieve a competitive advantage.
Importance of SHRM in Organisations
According to Wei (2006), properly designed and executed SHRM can facilitate the achievement of organisational goals. Clearly set goals of an organisation require the dedication of all the organisation’s employees. It is the duty of the human resource department of the organisation to identify the business sectors that require human resource expertise. SHRM, therefore, help organisations to achieve their long-term and short-term objectives. It contributes by reinforcing and overseeing the successful implementation of the organisation’s business strategies.
Due to the increasingly competitive nature of the globalized business environment, organisations need to integrate their human resource functions with their business strategies to acquire a sustainable competitive advantage in the market. Strategic human resource management helps in the realization of organisational goals through its application of performance measurement approaches to assess the contribution of each employee to the organisation. In addition, SHRM helps by improving the relationship between the human resources function and line managers.
SHRM also helps in the attraction and retention of the most qualified workforce who can enable the organisation to achieve its goals (Becker & Huselid 2006). Moreover, strategic human resource function facilitates the organisation’s growth by ensuring the retention and proper management of the acquired talent. A motivated workforce is significant to organisational development.
SHRM also assists in the creation of organisation’s vision and interlinked values which essentially create a good working environment for the attainment of the organisation’s objectives (Fitz-enz 2000). SHRM provides employees with authority in their responsibilities and affords them the flexibility that can motivate innovation. Such flexibility and responsibility can improve an organisation’s productivity.
Strategic human resource management expands the skill base of the organisation’s employees to enable them to acquire the necessary skills which are useful in the organisation’s strategic growth (Armstrong 2008). Constant learning and skill development is important due to the changing nature of business environments and information technology.
The Contribution of SHRM to the Achievement of an Organisation’s Objectives
At Merton Campaign Society, the organisation seeks to create an environment where people are safe by encouraging active participation in community affairs. The strategic human resource function of Merton...