Posted at 11.01.2018
In compliance with the present day theory of individual resource management workers is one of the firm's resources, which have to be properly maintained, creating the conditions because of its development. In modern firm a developed HR insurance policy is focused generally on forming a strategy for HR management, which takes into account the complete strategy of the organization. To comprehend this it's important to consider the concept of SHRM.
Many scientists assume that the strategic human being tool management is a means of persistence of recruiting management with strategic aims of firm, that is, HR strategy is developed taking into account both the pursuits of the managers and the passions of the staff. But the key goal of proper HRM is to produce strategic opportunities by giving the business with qualified, devoted and well motivated employees, who are essential to achieve long-term competitive advantages.
Understanding of SHR management and its own basic concepts
Strategic human resource management can be discussed as management of any competitive labor potential of the organization, taking into account ongoing and upcoming changes in its external and inside environment, which allows organizations to endure, expand and achieve its aims in the long term. Another explanation that relates HR strategy with business needs was recommended by Miller: "The tactical human source of information management protects all the issues and activities that are related to the management staff at all levels of the business and give attention to creating and maintaining competitive advantage". (Armstrong 2000)
Thus, the HR strategy includes:
- Explanation of the aims of HR management, that is, decision-making in the field of HR management is highly recommended both financial aspects (the followed strategy of HR Management), and the needs and interests of employees (decent wages, reasonable working conditions, opportunities for the development and implementation skills of staff and m. etc. );
- Creation of the ideology and rules of HR management, it is the ideology of individual source of information management should be mirrored in record form and executed in the daily work of all heads of structural divisions of the organization, starting with the top of the business. This file should be a set of moral, non-infringement of the guidelines in working with personnel of the organization;
- Meaning of terms to ensure a balance between financial and social success of labor resources in the organization. Cost-effectiveness of HR management means the most effective use of staff to achieve the goals of business organizations (for example, upsurge in production) with the limited recruiting of the business. Public efficiency is made certain by the execution of measures aimed at addressing the socio-economic objectives, needs and pursuits of employees of the organization.
The main goal of proper HRM is to generate strategic opportunities by giving the organization with qualified, faithful and well motivated employees, who are essential to attain long-term competitive benefits. The main objective is to resolve the following tasks:
1) the use of planning;
2) a reasonable and consistent method of creating systems of HR management and management, based on employment insurance policy and strategy for the utilization of human resources;
3) coherence and reliability between your activities and regulations of HR management and certain well-defined business strategy;
4) Factor of employees of the organization as a strategic resource for achieving competitive advantages.
The main final result of many researchers (Becker B. , 1996; Pablos 2005; accomplishment of the organization of the proper and tactical goals can be assured if each of its employees at work has reached the goals placed before him.
Of course, the contribution of employees in reaching the goals of the organization differs and is determined by the responsibilities that they need to solve, and the power which were delegated to them. Nevertheless, for the effective working of the organization it's important an effective work of all staff. Therefore, the business must (either consistently or from time to time) evaluate the conformity of its personnel, based primarily on an analysis of the amount of success of the duties assigned to the organization.
The idea of tactical HRM means that HR strategy must be totally integrated with the commercial / business strategy in the sense that they are both associated with these strategies and ruled by them. It is essential to ask the question: From what scope HRM strategy considers the interests of all gatherings to the business, from employees and closing with managers and owners? A adaptable version of the tactical HRM from all the issues of HR management focuses generally on the aspects of human resources, emphasizing the continuous development, effective communication, staff participation and the quality of working life. Another version of the strategic HRM concentrates on making income from opportunities in human resources, that is for the benefit of the business enterprise.
The concept of strategic consistency, sometimes called a style of "fit", is central to the idea of strategic human learning resource management. Tactical consistency is necessary to help make the integrity of the combo of competitive strategy with the strategy of HR management, the latter should not only donate to the execution of the first, but to its first development. Tactical uniformity means that HR strategy must adhere to business strategy and promote its execution.
M. Armstrong discovered that the HR strategy must adhere to:
a) competitive strategy;
b) the phases of the life span cycle of the organization;
c) the dynamics of organizational change;
d) organizational characteristics of the business. (Armstrong, 2000)
An procedure of the "best fit" is dependant on the fact that the "best fit" is more important than the "best sensible solution. "
Strategic fit (integration) of HR management is an instrument to focus on the management of personnel at the proper goals of the business. The strategy should adhere to the strategy of the organization (vertical integration), but better still if it is a fundamental element of business strategy, and makes its contribution to the procedure of business planning and execution of the plan. Vertical integration is necessary in order to ensure regularity of organization strategy and HRM strategies, so the first must support the execution of the second and help to establish it. In addition, there is a dependence on horizontal integration between different aspects of the strategy, so the various elements fit one another. The ultimate goal of the is locating a consistent method of HR management, where various practical solutions correspond with each other. That's the reason HR strategy as part of competitive strategy should be in keeping with and be based upon both specific features, and the complete competitive strategy of organization. (Pablos Patricia 2005)
One of the first formalized principles of SHRM was proposed by the Michigan university. They have got advised that HR and management of organizational framework must adhere to organizational strategy (the "model of conformity"). Further, the creators said that the pattern of recruiting management includes four types of procedures, or functions, performed by any group, namely:
1. Selection - seek out the optimal human tool for various varieties of work.
2. Analysis - performance management.
3. Compensation: incentive system is minimal effective and well-used management tools from those that are used to improve the potency of the company. Remuneration should be predicated on both short-and long-term results of work, given the actual fact that company must work in today's to achieve success in the future. "
4. Development of high-performance personnel. (Armstrong, 2000, p. 10)
It should be known that the proper human resource management is a holistic process: it recognizes the organization as a whole and identifies the approaches that should be taken throughout the organization, so that it was possible to attain corporate tactical goals. Strategic human learning resource management excludes the utilization of isolated programs and methods or the narrowly targeted programs for staff management. So, the feature of strategies of HRM is that they are closely linked with all other strategies in the company. Handling people is not defined as another function, which is the way to achieve all business aims. Planning the HR should be a part of the procedure of formulating the others strategies of the company, and where it occurs in isolation, arises the need to harmonize both functions.
Guest identified five types of fit:
1. Fit as a tactical interaction: interconnection of the conditions of HRM practices with external environment.
2. Fit as a situational factor - approaches, ensuring compliance of internal methods with specific exterior factors, such, for example, situation on the market.
3. Fit as an ideal set of practical approaches, that means a couple of "best practice solutions" that any business can profitably implement.
4. Fit as a complete structure - an approach that underscores the importance of locating the optimal combo of practical actions.
5. Fit as a "bundles" - search for the distinctive configurations, or "bundles" of practices, united on the concept of supplements, to be able to look for the most effective of these. (Armstrong, 2000, p. 46)
Three of the kinds of conformity: compliance as an excellent set of routines ("best functional approaches"), compliance with the circumstances of the organization (the approach of "best fit") and conformity as a "bunch" ("configuration" way) may be employed to tactical HR.
One recommendation of Visitor (Guest, 19896) for HR is usually that the strategic integration, among other things, deals with the ability of organizations to increase the coherence of the many aspects of HRM. One of the views on the idea of HRM shows that the likelihood to achieve adequate concentrate on is improved if the organization has a strategic imperative of the prominent or driving make, such as quality, efficiency or the need to develop skills and competencies, and when initiated techniques and policies are developed and implemented "in package" to attain a certain end result. For instance, if the travelling force is directed at improving the efficiency of labor, it is appropriate to make use of the approach of profiling competence to refine the recruitment expectations, identify needs in training and development, and also to indicate the required standards of carry out or efficiency of work of the personnel. (Armstrong, 2000)
The starting place of the procedure of applying the procedure of the "best fit" is to analyze the business enterprise needs of organizations in the context of its environment (culture, composition, technology, techniques). This may specify precisely what should be achieved. After this it is useful to accumulate and mix the various elements of the "best practical alternatives and choose a certain methodology, which will use the sensible steps that match the determined needs of the business.
Relationship of HR strategy with the competitive strategy of the corporation is proved by scientists at two levels:
- theoretical: depending on the tool approach, the laws and regulations of the firm to analyze the substance of competition (for example, by Becker (1996), Patricia de Pablos (2005), Tyson (1997), etc. )
- Empirical: Founded on studies of the romantic relationship and examination of existing practice (for example, by Delaney (1996), Huselid M. , (1995).
At today's level of economic development a competitive edge have those organizations that effectively manage their resources, both materials and intangible. HR management is of particular importance for organization, as one of the essential and "rich" intangible sources of any business. Resource-based procedure to HR implies that this is possible to develop a strategy to achieve competitiveness, based on consistency and efficiency of work of recruiting. Course, targets and key points of HRM are shown in the HR strategy, and competitiveness of the company is dependent on its ability to develop and put into action HR strategy which complies with overall strategy. (Wright, et al. , 1994)