Can Human Resource Management play a role of Strategic Partner for an Organization Stability.
Can Human Resource Management play a role of Strategic Partner for an Organization
Stability.
In the current competitive world, it’s important to
have a strategic approach for every organization to be in a direction of steady
and stable growth. Therefore, the entire management system in the organization
should focus and follow tactical development plans.
Strategic management explained by Johnson et. Al, ( 2005)
as the “process of understanding the strategic position of an organization,
making strategic choices for the future, and turning strategy in to action”
Strategic management is set of processes of Planning,
organizing, executing, and appraising the business approaches to achieve
organizational & objectives
therefore, organization should focus in below key areas to assure, that align with the business plan.
1. Stability
through Process excellence.
i. Connect
the internal service providers and receivers by understanding their input & output in the entire value chain.
ii. Standardize
each activity existing in the business environment.
iii. Set
discipline to follow the agreed standards and address for the deviation.
2. Stability
through Product or Service excellence.
i. Set
discipline to deliver high quality product or service at the agreed timeline.
ii. Delight
the customer beating their expectation with innovative solutions.
iii. Be
competitive with the cost and efficient.
3. Stability
through Human resource excellence.
i. Drive
objectives with a Self-motivated, Passionate, and talented driving force.
ii. Attract,
develop, and retain the talent pool.
iii. Practice
the HR functions in every level of management in the organization.
Talented and motivated human resource pool is the
driving force of an organization. Aligning and managing the Human resource pool
with strategical business approach would support to maintain the growth
momentum of the business. Therefore, from organization perspective Human
Resource Management (HRM) is obvious strategic partner.
To become a strategic partner for the business growth,
HRM should come out from their normal work frame and foresee on future business
reality. Also need to understand on the customer and the stakeholder’s
expectation. Further to that should concentrate the behaviour of the leading competitors.
In addition to that, HRM should recognize the impact come from organization
structure and the globalization strategies too.
To support on this strategic HRM approach, Ulrich shared a matrix for the role of framework for HR in 1993. By improving the focus on the people and strategies, HRM can play his role as a change agent.
Figure
01: Ulrich’s HR role of framework
Role of Strategic Human
Resource Management.
Scan
the environmental factor is the key approach on strategic formulation process.
In here, it's important to understand on
internal and external environments to recognize the threats and
opportunities. To get more clarity for the information, PESTEL analysis
would support to understand about the external environment. And using the
outcome from PESTEL analysis, as well as a proper brainstorming session, can be
concluded all the Strengths & Weaknesses in the internal environment while
opportunities and threats in external environment. This leads to a proper SWOT
analysis and that data supports on formulating and implementing the strategies on
HRM.
Reflection &
Conclusion.
HRM being as a strategic
partner for the organization stability, should take more responsibilities. By developing and executing the approaches more strategically and practically, value creation can be further improved. Also focus more on people and strategies as
per Ulrich’s HR role of framework, HRM can be an effective strategic partner
for a successful business growth.
References.
Armstrong, M. (2011). Armstrong's Handbook of strategic
Human Resource Management. New Delhi: Kogan Page Pvt Limited.
Domsch, M., & Hristozova, E. (2006). Human Resource
Management in Consulting firms. Hamburg: Springer Science & Business
Media.
https://www.business-to-you.com/. (2016, September 18). Retrieved from https://www.business-to-you.com/:
https://www.business-to-you.com/scanning-the-environment-pestel-analysis/
Kandula, S. R. (2006). Startegic Human Resource
Development. New Delhi: Prentice-Hall of India Pvt Ltd.
Regis, R. (2008). Strategic Human Resource Management
& Development. New Delhi: Excel Books.
An important topic. Thank you for sharing Duminda,
ReplyDeleteThe activities and responsibilities of the HR Department and HR Professionals are increasingly becoming broaden and vital for Strategic Human Resource Management which emphasizes the integration of HR practice and policies with Organizational goal. It not only helps deploy the right people but also help ensure the optimum utilization of human resources for greater chance of overall business success.
Thanks for the valuable insights brought on to the discussion Fayas. As you shared involvement in strategic planning from the HRM perspective, shows big potential to the growth of the business.
DeleteThe role of HR as a strategic partner is to develop and direct an HR agenda that supports and drives the overarching goals of the organization. In other words, a strategic HR partner bridges the gap between the work of the HR team on the ground and the mission of the institution. To become a true strategic partner, the relationship between HR and business leaders must be high trust, and we need to have the ability to raise that level of trust quickly.
ReplyDeleteThanks for the insight Oshadha. Ultimate HRM target should be aligned with the business strategies, in order to play role as a strategic partner for the business growth.
DeleteA strategic business partner is a consultant whose opinions and ideas are valued. strategic business partner that can offer recommendations, make decisions, and carry out goals. Strategic partner is very important part to a development and success of the business. Great article Duminda
ReplyDeleteThanks for sharing your valuable thoughts and ideas about the topic Tharindu.
DeleteGood topic Duminda,A strategic HR partner bridges the gap between the work of the HR team on the ground and the mission of the C-suite. To do this, strategic HR partners make sure that the HR policy, procedures, and governance align with the big picture.
ReplyDeleteThanks for sharing your insights Bashitha. As you correctly said there should be a mechanism to align the policies and rest of key factors with the business strategies.
DeleteHR as a strategic partner can make a difference in both HR efforts and overall business success. Especially a HR Strategic partners can help drive individual, team, and organizational operations by: Linking HR efforts to business objectives, Collaborate with leadership to communicate company and strategies, and Creating HR programs and policies strategically. Thankyou for sharing this important article Duminda.
ReplyDeleteThe general objective behind HR is to guarantee that the association can make progress through people. HR experts deal with the human resources of an association and concentrate on executing strategies. As the Strategic partner, HR helps to deal with the compelling and effective administration of individuals in an organization to such an extent that they help their business acquire competitive advantage.
ReplyDeleteThe best way to understand strategic HRM is to compare it to HRM.HRM focuses on recruiting and hiring the best employees and providing them with the compensation, benefits, training, and development they need to succeed in an organization. However, strategic human resource management takes these responsibilities a step further by aligning them with other departments' and the organization's goals. Strategic HR departments also ensure that all of their goals and objectives align with the organization's mission, vision, values, and goals.
ReplyDeleteHi Duminda. Agreed with you. HRM supports for organizational stability. Through the people professionals who work within it, the HR function helps an organization deliver its corporate strategy and objectives by effectively recruiting and developing people and managing their performance. HR objectives are delivered differently in different types of organizations.
ReplyDeleteHR is holding the major subject of the company such as employee engagement and corporate culture. Therefore the role of HR as a strategic partner is develop and direct human resource of the company to achieve goals of it. As you mentioned Duminda by scanning internal and external environment factors HR can put their own comments over strategic decision of the company.
ReplyDeleteThe link between a company's human resources and its plans, objectives, and goals is known as strategic human resource management. Strategic HR's goal is to increase flexibility, innovation, and competitive advantage. Create a culture that is appropriate for the organization's goals. Boost your company's performance. When it comes to creating and implementing company policies, human resources (HR) must play a critical role as a strategic partner. HR can be seen in the hiring, training, and remunerating of personnel.
ReplyDeleteHR is essential to an organization's capacity to handle and grow its employees. People are the most valuable assets in any company, because they contribute to the achievement of corporate goals both individually and collectively. But, in this era of fast change, how can you plan and make strategic human resource decisions that will help your company achieve its objectives? You summarized relevant facts and helped the reader have a better understanding of the subject.
ReplyDeleteDuminda, great topic and well-written post; best of luck with your next blog articles.
The way of explanation is much appreciated. In order for strategic human resource management to be effective, human resources (HR) must play a vital role as a strategic partner when company policies are created and implemented. Strategic HR can be demonstrated throughout different activities, such as hiring, training, and rewarding employees.
ReplyDeleteHuman Resource Management as an organizational strategy, must be involved in overcoming an organization's issues. Human Resource Management contributes with the formulation and alignment of management strategy by equipping employees with the skills they need to carry out the strategy.
ReplyDelete