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Strategic Human Resource Management Essay Example

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Strategic Human Resource Management Essay Example
Strategic Human Resource Management

1. Introduction

In the late decade of 1980, the organisations realized the significance of their employees as a capital asset or human resources; and by adopting and implementing a set of HRM practices (such as recruiting, training and developing people etc.) aimed to succeed a sustainable competitive advantage based on a business strategic view by making the employees’ involvement the main key point of the new human resource management into the business process; and by establishing the organizational culture that they are part of the organization (Kaufman 2001: 506). During this period, the HRM is transformed into a Strategic HRM approach in order to sustain in these modern business challenges. Although, the new concept of HRM, as a strategic approach may not differ significantly than the traditional personnel management (Legge 1995), Storey (1989) identifies that strategic HRM is a dimension of the model of personnel management which focuses on organization as a whole, which emphasized on strategic integration, employee commitment and flexibility. The responsibility for human resource is often decentralized to line management. As proposed by Wright (1998), the fundamental of human resource is that employees are regarded as valuable resources and strategic HRM aims to manage these human resources through a set of HR policies or practices to support the overall strategic plan of the organization.

Nowadays, as the economy has moved more to an outsourcing shared service and information economy, the competition for people with high qualifications and knowledge into the organizations has become more intense (Ha 2006). Although, the recruitment and the retention may be one of the most pressing challenges which organizations face today, successful companies are these which are able to engage and retain employees with high professional skills. In order for that to happen, companies must be able to combine completely what the

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