Question

Describe the emergence of strategic HRM and the influence of computer technology. What are some of the approaches used in HRM to facilitate the use of strategic HRM in a firm's business strategy?

Answer 1

Strategic Human resource management is the proactive management of people. It requires thinking ahead, and planning ways for a company to better meet the needs of its employees, and for the employees to better meet the needs of the company. This can affect the way things are done at a business site, improving everything from hiring practices and employee training programs to assessment techniques and discipline.

Thus SHRM is a connection between a company's human resources and its strategies, Goals and objectives. The aim of strategic human resource management is to: Create flexibility, innovation, develop competitive advantage.

In short, we can say that Strategic HRM refers to HR that is co-ordinated and consistent with the overall business objectives in order to improve business performance.

Emergence of Strategic HRM

HRM emerged as a defined concept when American Academics introduced two concepts namely matching model and Harvard framework in the mid-1980s.

Matching model of HRM is based on the belief that the problems of historical personal management can only be sold when the general manager develop a view point of how they wish to see employees involved in and develop by the enterprise, and of what HRM polices and practices may achieve those goals. Without either a central philosophy or a strategic vision which can be provided only by general managers, HRM is likely to remain a set of independent activities, each guided by its own practice tradition.

The Harvard model is composed of policies that promote mutuality, mutual goals, mutual influence, mutual respect, mutual rewards, mutual responsibility. The theory is that polices of mutuality will elicit commitment which in turn will yield both better economic performance with greater human development.

After this a number of academics have made major contribution to the concept of HRM and their work over a period of time such as strategic integration, high commitment etc.

Influence of computer technology in HRM

Technological advancement especially computer have a great impact on HR department of an organisation. This lead to greater efficiency and effectiveness of human resource. It changes the way HR department contact employees, store files and analyse employee performance.Some of the key influence of technologies in HRMs are;

1. Recruiting transformed by the internet: Before internet and email connecting with job seekers meant phone, letter etc.

2. Ease of communication: With the use email, text and messaging become easier for HR staff.

3. Data analysis of employee performance become easy and accurate.

4. Security practices: Securing employee records and PII information’s become more effective.

5. Not only recruitment but resignation process also become smooth.

6. Effective management of ex-employee related queries and concerns.

Approaches used in SHRM

Over a long period of time many experts have develop their concept of SHRM. These approaches are based on performance, commitment, resource, involvement and strategic match based strategies.

1. Performance based approach

This approach is a backward integration approach. The focus of this approach is on the output or performance of employees, machines or systems and organization as a whole. To get the better performance the performance affecting factors are to be studied backward. As strategies are prepared for other factors, the strategy is prepared for human resource also because human resource is an important factor that affects the performance. The approach of management to SHRM is on performance base. The strategies can be prepared for technology, materials, operating procedure, supply, maintenance, etc. The strategy is prepared for human resource also. So it is the performance based approach of the top management to SHRM. The performance of individual is kept in mind and calculation is done backward to design HR strategy to improve the performance of employees.

2. Commitment Based Approach:

Commitment based approach is more psychological in nature. It is related the psychological and internal feelings of the employees. For designing the strategies, the commitment level of employees to their work and organization is the focus point. The high level of commitment makes everything favorable for the organization.

3. Resource Based Strategy:

This approach is a forward integrated approach. The focus is on input resources to achieve the desired objectives. Resources are being utilized by every organization for achieving the pre-planned objectives. The resources are being utilized to avail the opportunities in the global markets. Under this approach, human resource is one of the resources and considered the most important resource.

4. Involvement Based Approach:

This approach is combination of psychological and physical aspects of the individual. In this approach of management, the involvement of the employees in their job is most important. In this first, the employees must be satisfied and motivated and they should involve physically in the job.

5. Strategic Match Approach:

This approach is broader in nature and can be called vertical integrated approach. The focus is on business environment. Keeping in view the rapidly changing business environment, the corporate and HR strategy are prepared to carry-out the business activities effectively and efficiently. The business environment changes drastically. The internal and external environmental factors are undergoing drastic changes.