Strategic human resource management
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Introduction At present, human resources in a large number of organisations are viewed as a source of competitive advantage. There is greater acceptance that distinctive competencies are obtained through highly developed employee skills, distinctive organisational cultures, management processes and systems. Increasingly it is being recognized that competitive advantage can be obtained with a high quality workforce that enables organisations to compete on the basis of market responsiveness, product and service quality, differentiated products and technological innovation. Strategic human resource management has been defined as ' the linking of human resources with strategic goals and objectives in order to improve business performance and develop organisational culture that foster innovation and flexibility' (Siddharth Chaturvedi). Strategic HR means accepting the HR function as a strategic partner in the formulation of the company's strategies as well as in the implementation of those strategies through HR activities such as recruiting, selecting, training and rewarding personnel. Whereas strategic HR recognizes HR's partnership role in the strategizing process, the term HR Strategies refers to specific HR courses of action the company plans to pursue to achieve it's aims. Appendix 1 presents a model of Strategic HRM that accounts for both the fit and flexibility goals. The top half of the model depicts the fit component to the model, i.e., the means through which the firm seeks to fit HR practices, employee skills and employee behaviours to the immediate competitive needs of the firm as dictated by the strategy. The lower half of the model illustrates the flexibility component, which focuses on developing the organisational capability to respond to a variety of competitive needs other than those dictated by the current strategy (Patrick M. Wright; Scott A. Snell). Literature Review: A wide reading of research articles in strategic human resource management have been done in order to get a clear picture on its role being played in an organisation. The company which I have undertaken for this specific assignment is General motors.
Each GM plant had its own HR department, and these departments operated independently. GM wanted to tear down the walls and build a strong global network of HR professionals within itself. It developed a new HR Strategy called the 3Ts. The first "T" in "3Ts," or technology, is what GM focused on for the first part of this reorganisation. This emphasis on technology has helped HR to develop and retain talent, which is the second "T." The last part focuses on the transformation--or the third "T"--within GM. For the first time, the HR department had a consistent platform and set of goals with which to work. And many HR professionals within GM are seeing the effects of making their jobs more strategic and globally focused. Technology GM's use of technology to completely revamp its HR processes has become a model that other organisations of all sizes are now following. GM has focused its efforts on creating an effective and totally accessible corporate intranet. The company placed most of its HR-related activities online and transformed its four-year-old intranet site into an HR portal. The portal is helping GM to achieve its goals of developing a web-savvy workforce, of improving its ability to communicate and collaborate with one another. The employee service center does this by cutting out HR as the middleman and allowing employees to directly modify their HR-related information. It really is freeing up their time to do more substantive work and really get involved with the planning and strategic aspects of their business. Strategic Objectives of eHR at General Motors > Improve productivityfor all GM employees while increasing service and quality to HR customers. > Improve transaction accuracy, saving the company money (less re-work) > Give more control to employees across all demographics (salaried, hourly, retirees) and provide a tool for employee/retiree relationship management. > Do it fast ("GO FAST") Challenges Facing eHR at GM > Multiple of vendors delivering services to GM's employees.
Strategic HR is a technical role played to rescue and set a right a disfunctioning or malfunctioning part of the organisation by taking up a strategic leadership role. I find to my personal thinking, organisational behavior module have a close relationship as this involves people, their responsibilities in organisation linked with change. In large multinational companies, which are following their own pattern, structure, and hierarchy; in time will face a very similar problem and as strategic HRM is being implemented, I feel their importance is relevant to keep an organisation steady in an ever-changing environment. More studies have to be carried out in order to facilitate the strategic HRM in all Organisations and universities, as it is more of a necessity than just a future requirement. Every organisation has to prepare to have its own SHRM with expert handling capabilities. As a student studying SHRM, one must be able to analyse where it can be implemented by having a thorough understanding of the organisation with respect to its culture and its structure. Thereby I would like to conclude that SHRM will play an important role in the near future, be it in a multinational company or even running a government. Appendix 1 A Modal of SHRM Appendix 2 HR Business and Technology Strategies at General Motors Appendix 3 Appendix 4 BCG MATRIX Appendix 5 PEST Analysis of General Motors Political > Could lead to a threat from the government to break-up > Globalisation > EU legislation > Sustainability legislation > Impact of transport policy > Removal of block exemptions Economic > Labour rates in Asia compared to US > Dollar strength vs. falling rate of Yen > Change in economy from manufacturing to service and from 'old' to 'new' > Tendency towards global growth > Global firm Social > Population changes (older, more single) > Social responsibilities > Reduction in number of low cost centres due to improvement in global living standards Technological 1. Growth of communication technology making 24/7 possible (3Ts) 2. Growth of internet 3. Recycled materials 4.
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