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Descriptions of Strategic Human Resource Management

April 18, 2022

Article by Ricky Caesar Sam

Strategic Human Resource Management, also known as strategic HRM, is the practice of attracting, developing, rewarding, and retaining employees for both employees’ benefits as individuals and the organization’s benefits as a whole. 

It is the process of using HR techniques, including training, recruitment, compensation, and employee relations to make a stronger organization, which is also considered the organizational success partner. 

Descriptions of Strategic Human Resource Management

This strategic HRM is used by human resources professionals to meet both the long-term and short-term goals of the organization. These HR department management professionals typically work with other management officers in their companies in creating human resources management strategies. They then rely on other HR professionals to implement these strategies. 

HR professionals often use these methods when recruiting new hires, organizing training programs, and implementing workplace policies. 

Why is Strategic HRM Important?

Strategic human resource management often helps companies to run more efficiently and improve their day-to-day operations and employee satisfaction. It brings the culture and management of the company in line with the needs and preferences of customers and employees, which is very important for the company’s well-being. 

Company goals achievement, organizational success, conflict resolution, effective employee training, leadership tools, improved focus and understanding of company goals, company’s goals and values promotion, and employee productivity and satisfaction are some examples of effective strategic HRM practices results. 

Also read: The Definition and Importance of Company Culture

Strategic HRM Benefits

strategic human resource management

Below are some benefits that can be provided by strategic HRM.

HR-related Benefits

There are a lot of benefits you can achieve from having employees understand clearly what your company’s strategies and objectives are. Some of them are: 

  • Higher staff retention
  • Increased productivity
  • Reduced absence
  • Increased job satisfaction
  • More motivation or willingness to contribute to the wider organizational strategy 

Organizational Outcomes

An organization can move towards its goals quickly and clearly through synchronized and united efforts. From being synchronized, the lesser time will be spent discussing decisions or assigning employees to appropriate positions, as this is planned in advance as part of the HR strategy. 

With the implementation of strategic human resource management, you can predict the demand for resources at a particular period and more efficient time usage. This will then lead to better financial performance and a healthier amount of waste. 

Financial Effects

As we have mentioned above, some of the benefits of strategic HRM implementation are a more motivated workforce, increased employee retention, a large number of organizational benefits, and a streamlined HR approach. These benefits will then affect the financial results, including: 

  • Higher revenues and sales
  • Lesser waste
  • Higher productivity
  • Return on Investment

Overall and Market Benefits

The combination of the above advantages has a subsequent impact on the market share, share price, and growth of the company. A better financial position of the organization can be achieved by a better growth of the business reputation. This can be achieved with a better human resource strategy and a company working in synchronization toward common goals and objectives. 

Streamlined Processes

HR strategies can be streamlined by a strategic HR that allows HR departments to play a larger role in the overall direction of the business. They can also be outsourced in some cases. This allows the department to be flexible, which then can increase the entire company’s satisfaction. 

Agile management can provide a quick and efficient response to problems, as well as to market changes or competitor actions. Streamlined processes also allow you to spend resources with purpose by placing the right people at the right place, at the right time. This may help you save money and time by avoiding estimations and predictions which may lead to the company’s loss. 

Step-by-Step Process of Using Strategic HRM

Step-by-Step Process of Using Strategic HRM

HR professionals should carefully implement the best strategies that reflect the company’s goals. Here are the steps you can follow in order to use strategic human resource management effectively.

1. Evaluate Your Company’s Goals and Objectives

You will need a better understanding of your company’s goals and values to decide and establish the best strategies to use. By understanding your goals and objectives, you will start to think better about how to accomplish them.

2. Assess The Human Resources Department Performance

Consider the skills and limitations of the human resources department. You conduct an evaluation of their abilities by taking surveys, monitoring the production process, and asking the management professionals for their opinions regarding the HR department. 

With the proper tools and skills, an effective strategy should match the HR department’s abilities. This can help companies to meet their goal more effectively by considering what they may need first. 

3. Compare the HR Department’s Performance and Your Company Goals

Next, compare the HR department’s abilities and performances to the company’s goals. Explore your HR department and discover what kind of strategy will be best for them to implement. 

Let us give you an example. If some of your employees within the HR department can handle more responsibilities, you can consider implementing more employee review sessions led by the HR department. 

4. Pinpoint The Tools Needed by the HR Department

In the next step, think about the tools your HR department might need to implement the plan after understanding what you want to achieve. The tools you might require may include new technology, special office supplies, and time for corporate meetings. 

It is critical for you to achieve your plan by ensuring the HR professionals have all the resources they need to execute the company strategy. 

5. Strategy Planning and Implementation

Consider what tools you need and the professionals responsible for implementing the changes you want, then finalize your plan. If your plan has the potential to change within the day-to-day operations of the company, consider implementing the plan gradually or in stages. 

A presentation or a meeting with all the people who may be affected by the management strategy will be helpful to discuss the changes that happened or might happen. 

6. Asses Performance and Develop Corrective Action

Lastly, you can record the data regarding the strategic HRM plan implementation and success. These recordings will help you in tracking the success of the plan you have executed. This may include the gathering of opinions and pieces of information from employees, addressing productivity levels, and evaluating how close has the company gotten to its original goal. Establishing a set time period for reviews can be helpful, like conducting a review on the strategy once a month. 

Corrective action might be needed if the assessment of the strategy’s performance shows that it does not meet your expectations or does not meet the company’s goal effectively. Consider what kind of action will help, aid, or improve the strategy.

Also read: How to Create the Perfect Business Development Strategy

Modern Technology for Strategic HRM

So in conclusion, strategic human resources management is very important in business. Nowadays, strategic HRM processes are streamlined by technology. Tools and software are created in order to help companies in human resources management. One of the best applications for HR operations is Appsensi. 

Appsensi is a technology organization that focuses on HR solutions. Our main solution for companies is the mobile-based online attendance system. Not only providing the online attendance system for companies, but Appsensi also provides many other helpful features, such as a payroll system, smart CCTV integration, e-kinerja, etc. 

Here in Appsensi, we also help give companies solutions and aid in HR operations by using modern technology. Appsensi makes it easy for you to perform data integration with HR software that is already used by the company so there is no need to replace all systems. 

Some of the integrations that can be done with Appsensi are including Employee Master Data, Report Customization, Approval, and so on. 

Learn more about Appsensi by reaching us from this link.

Ricky Caesar Sam

Head of Sales and Marketing Appsensi

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