Importance of Strategic Human Resource Management

Human resource management is becoming an important part of organization as it works with the management of human in an organization. It is getting more popularity day by day. But, without developing proper strategies, all efforts remain ineffective. The HR strategies are developed by human resource department of an organization.

What is Human Resource Strategy?

The HR strategy is the tactics or set of actions that help the organization to achieve its strategic goals on short term and long term basis. It helps better sustainability by utilizing human resource efficiently.  The strategy helps to utilize the strengths of the human power and overcome the weaknesses as well.

In a broad sense, the organizational strategies are divided into three parts. First one is corporate strategy, second one is competitive strategy, and the third one is functional level strategy. HR strategies are also divided into these three parts. Those strategies are actually aligned with the organization strategies.

In one sentence, strategic HRM aligns all its strategies with organization’s goals.

Importance of Strategic Human Resource Management

Communication of Goals and Objectives

The goals and objective are very important for an organization. These goals are not communicated without the help of strategic human resource. If the goals are not properly translated and communicated, then the people who are employed for those will not be able to perform well in the business operation. As a result, the goals may not be achieved in the given time. In this place, strategic HR plays an important role.

Setting Efficient People to Achieve Specific Goals

The human resource department is responsible for the recruitment of the employees for an organization. They always hire people for different departments of the organization. As a result, they become very knowledgeable about the people they are hiring. So, they also know the capabilities of the people. Specific goals are given to the capable employees with the help of strategic human resource.

Forecasting Future Human Needs

In accordance with corporate, competitive, and functional needs, strategic human resources forecast the organization’s future human resource needs, such as time off management software. By this, strategic HRM reduces manages the chance of shortage of future human supply. It helps the organization to be consistent in the way of their operation.

Selecting and Utilizing Motivational Tools

A person in an organization may not be motivated by the tool used to motivate others. That means, different type persons required different types of motivational tools. Some people may be motivated by permanent salary increment and some are motivated by a small incentive periodically. For some people, money are not motivating factors anymore. They perhaps need promotion and social recognition to become more motivated. Strategic HR finds out what person needs what to remain motivated that helps organization achieve its goals.

Measuring Performance by the help of HRM

HRM is responsible to measure the performance of employees. The employees are given rewards according to the result of output an employee has given. Strategic human resource selects the right methods of performance measurement. The performance is compared with the expected performance. If any further training or education needed, HR executes that. Without efficient strategic HR, the selection of training or the measurement cannot be determined.

Charting Your Company’s Diversity Progress

In today’s business world, investors, leaders, and potential collaborators are giving more consideration to a business’s values and culture as markers of long-term stability. They are doing so by evaluating a company’s strengths using the DEI (diversity, equity and inclusion) parameter. That is also why HR managers need to pay attention to attracting the best employees, securing important contracts and gain industry recognition. Companies should monitor their global workforce using an HR analytics suite. This will ensure they are recruiting fairly, compensating equitably, and being socially responsible.

Strategic Planning in Human Resource Management

Organizations make plans. Plan is actually a set of actions that will take place in the future. It helps to reduce organizational risks. HR strategy will help to create future plans of human resources of the organization. This will be done to achieve long term organizational goals.

Why an organization needs HR Strategies?

Corporate goals are aligned with strategic HRM. To achieve organizational goal, the organization needs to hire efficient people who will be able to achieve those goals. So, HR determines what type of skilled people will need to be hired in the top level. The top level people basically make main decisions of the organization. 

One of the top strategies of HR is to set viable goals that are actually reachable and measurable.  Because, when goals are measurable and reachable, they are easy to achieve. So, strategic HR sets reachable goals for individuals.

Strategic people of human resource explain and elaborate the target goals to the employees. By that, the employees who execute the operations get a clear understanding of the goals. When goals are clears and the strategies are understandable, those are easy to accomplish.

Strategic HR makes an organization by hiring competitive people. It also measures the skills of the employees in the organization. If it is found that the employees are not competitive, they are trained further to be more competitive. By that, strategic HR makes the organization more competitive.

Strategic HRM is actually the set of tactics that drives the people of the organization toward the paths that helps organizational operations to run accurately. In every organization, strategic HR plays an important role. It is actually the heart of human resource management. These sets of strategies are developed beforehand. So that, the strategic team knows what are needed to be done next. By this, the risks are minimized and the efficiency of human resource is ensured in an organization.

In Conclusion

In the Importance of SHRM, we have tried to explain the points from different perspectives. Without strategic human resource management, an organization will not be able to cope up with the competition in the business field. Strategic HRM aligns corporate strategy with the corporate human management. In the competitive level, HR strategies help to become more competitive. And in the functional level, strategic HR works as communicator to interpret target goals and how to achieve them. For these reasons, HR Strategies are very much important in an organization.