The Strategic Role of Hrm
1. The Strategic Role of HRM
(i) Strategic HRM covers eight HR practices- organisation design and work system; human resource planning ; recruitment; selection; training and development; compensation; performance management; employment relations. Each one of these HR practices reflects organization performance. Now HR is involved in long term company strategy. The HR managers sit down on the table with the company when the strategy is designed and advice the company how it can be done from HR prospective.
When a company makes a long term strategy it has to look at ’big picture’. Where the company goes?
(ii) HR function during economic recession is very important. In this occasion HR managers must have a strong voice of the top of organization. Because even on time of recession, organization still has to be attractive place to work.
Company has to have policy for redundancy. What kind of selection they are going to use- first in/ first out or selection depends on the performance? What redundancy package organization will offer? What cut cost has to make? What types of skills organization needs from workforce? Work force planning is very important for organizations that make long term strategy. Can organization hire new staff in time of recession? Can company hire new graduate because they have new skills and new ideas?
All these decisions have been made from HR prospective.
When recruiting resources are cut back, it’s even more important than ever to focus on limited resources on the jobs that have the most impact on corporate revenue. This means that HR manager must focus whatever resources it has on high-impact individuals (recruiting innovators, top performers) and filling high-impact positions (mission-critical, revenue generating, and revenue-impact positions).
During tough economic times, it’s important to be able to rapidly cut costs by reducing labor costs. This often means “releasing” employees and as a result, it’s important to increase the
(i) Strategic HRM covers eight HR practices- organisation design and work system; human resource planning ; recruitment; selection; training and development; compensation; performance management; employment relations. Each one of these HR practices reflects organization performance. Now HR is involved in long term company strategy. The HR managers sit down on the table with the company when the strategy is designed and advice the company how it can be done from HR prospective.
When a company makes a long term strategy it has to look at ’big picture’. Where the company goes?
(ii) HR function during economic recession is very important. In this occasion HR managers must have a strong voice of the top of organization. Because even on time of recession, organization still has to be attractive place to work.
Company has to have policy for redundancy. What kind of selection they are going to use- first in/ first out or selection depends on the performance? What redundancy package organization will offer? What cut cost has to make? What types of skills organization needs from workforce? Work force planning is very important for organizations that make long term strategy. Can organization hire new staff in time of recession? Can company hire new graduate because they have new skills and new ideas?
All these decisions have been made from HR prospective.
When recruiting resources are cut back, it’s even more important than ever to focus on limited resources on the jobs that have the most impact on corporate revenue. This means that HR manager must focus whatever resources it has on high-impact individuals (recruiting innovators, top performers) and filling high-impact positions (mission-critical, revenue generating, and revenue-impact positions).
During tough economic times, it’s important to be able to rapidly cut costs by reducing labor costs. This often means “releasing” employees and as a result, it’s important to increase the