STRATEGIC HUMAN RESOURCE MANAGEMENT

By Rudolf Kennedy Khyriem

Contemporary eople Mana!ement
M"# Khalida Mali$
Uni%er"ity of &e"tern Sydney
'()'*)+*',
1
Table of Content
Introdu-tion.............................../
Re-ommendation"...........................###(
Referen-e"..............................####0
2
Strate!i- Human Re"our-e Mana!ement
Introduction
The primary aim of "trate!i- human re"our-e mana!ement re%ol%e" around ali!nin! the
"trate!y of an or!ani1ation 2ith that of human re"our-e pra-ti-e"# A" "u-h3 the fo-u" of
"trate!i- human re"our-e mana!ement i" to di""e-t the relation"hip 4et2een the
4u"ine"" o45e-ti%e" and the human re"our-e "trate!y 4y en"urin! that the human
re"our-e "trate!y doe" not a--ord it"elf the honor of only 4ein! a mean" 4ut an end in
it"elf 2ith re"pe-t to an or!ani1ation6" 4u"ine"" "trate!y# The idea formin! the premi"e
of "trate!i- human re"our-e mana!ement i" that there mu"t 4e a ne7u" or -ommonality
of -orrelation 4et2een an or!ani1ation6" human re"our-e "trate!y and the o%erall
4u"ine"" or or!ani1ation" o45e-ti%e"# Thi" -ommonality of -orrelation i" meant to en"ure
that there i" an ali!nment 4et2een the "trate!i- o45e-ti%e" of an or!ani1ation and
human re"our-e pra-ti-e" a" opinionated 4y Arm"tron! 8+*''9#
Mi-hael orter 8+**/9 in hi" ar!ument" "urroundin! "trate!i- human re"our-e
mana!ement de"-ri4e" ho2 a -ompany "hould pur"ue -ompetiti%e ad%anta!e a-ro""
the -ho"en mar$et 4y introdu-in! three !eneri- "trate!ie" to the mana!ement arena#
orter 8+**/9 a""ert" that the dri%e 4ehind "trate!y of an or!ani1ation i" to tar!et
differentiation3 -o"t leader"hip or fo-u"# The need for an or!ani1ation or -ompany i" to
-hoo"e one of the"e "trate!ie"3 e"pe-ially 2hen the -ompany or the or!ani1ation aim"
at redu-in! or eliminatin! the 2a"ta!e of pre-iou" re"our-e" 8orter +**/9# A--ordin! to
orter 8+**/93 either of the"e "trate!ie" e7po"e" the relation 4et2een mar$et fo-u"
"trate!ie"3 differentiation "trate!ie"3 and -o"t minimi1ation "trate!ie"# &hat i" more
important in thi" idea i" that for a 4u"ine"" to a-hie%e a -ompetiti%e ad%anta!e3 it mu"t
3
-ope 2ith the mar$et for-e" 4etter than it" 4u"ine"" ri%al"# The -ompetiti%e ad%anta!e
in thi" "en"e i" -ate!ori1ed into lo2er -o"t and differentiation 8orter +**/9# &ithin thi"
-onte7t3 for a 4u"ine"" or an or!ani1ation to attain -ompetiti%e ad%anta!e o%er it" ri%al"3
the :uality of it" produ-t" or "er%i-e" mu"t 4e -omparati%ely hi!her than tho"e offered
4y it" ri%al"# The 4e"t 2ay to a-hie%e thi" i" 4y en"urin! that the human re"our-e
department that form" the 4a"e of it" la4or for-e operation i" -har!ed 2ith the
re"pon"i4ility of en"urin! that the or!ani1ation"6 produ-t" or "er%i-e" are 2ell mana!ed
to !uarantee moti%ation of the or!ani1ation"6 human -apital 8orter +**/9#
4
Recommendations
Employee retention and development
The retention and e%entual de%elopment of employee" form one of the 4a"i-
2ay" throu!h 2hi-h human re"our-e mana!ement -an ali!n it"elf 2ith the o%erall
o45e-ti%e" of an or!ani1ation# Indu"try e7pert" a-$no2led!e that the effe-t" of hi!h
employee turno%er -an 4e detrimental to an or!ani1ation6" o45e-ti%e"# The premi"e
4ehind thi" ar!ument i" that or!ani1ational operation" may 4e di"rupted a" a re"ult of
hi!h employee turno%er3 "in-e the "-ope of dutie" may not 4e 2ell defined in a "ituation
2here an or!ani1ation i" -onfronted 2ith hi!h employee turno%er 8Kramar3 Bartram3 ;
<e Cieri3 +*',9# The -on"e:uent effe-t" of "u-h hi!h employee turno%er may re"ult in a
domino effe-t on the "ide of employee produ-ti%ity a""o-iated 2ith the departure of
former -ollea!ue" and the introdu-tion of ne2 fa-e" to the -ompany# The departure of
employee"3 e"pe-ially tho"e -on"idered to 4e endo2ed 2ith e7-eptional talent"3 -an
ne!ati%ely affe-t the relation"hip 4et2een the -ompany and it" -lient" 2ho may feel
"hort-han!ed in term" of the :uality of "er%i-e or produ-t" offered 4y noti-in! a
differen-e -ompared to the former :uality offered 4y the or!ani1ation# Moreo%er3 the
additional -o"t" a""o-iated 2ith findin! a repla-ement for the departed employee" -an
in-rea"e the rate of the or!ani1ation"6 finan-ial re"our-e" not pre%iou"ly planned or
4ud!eted for "u-h unfore"een de%elopment" a" ar!ued 4y &ilton 8+*'/9# Additionally3
the "un$en -o"t" dire-ted at the indu-tion trainin! of ne2 employee" repla-in! the
departed one" -an lead to redu-tion and 2a"ta!e of the -ompany6" finan-ial 4a"e# In
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li!ht of the"e reali1ation"3 the human re"our-e mana!ement department mu"t ali!n
it"elf 2ith the -ompany6" "trate!i- mana!ement to en"ure that the -ompany6" finan-ial
4a"e i" not threatened or affe-ted 4y -ontinuou"ly retainin! the e7i"tin! 2or$for-e# Thi"
2ill "a%e the or!ani1ation6" re"our-e" and pre%ent finan-ial lo""e" in the 2orld %ie2 of
orter 8+**/9#
Recruitment and Hiring
In a re%elation emanatin! from re-ent "tudie" on employee re-ruitment and hirin!3
detail" ha%e "urfa-ed that a lar!e num4er of -ompanie" e7perien-e diffi-ultie" 2hen it
-ome" to re-ruitin! or hirin! ne2 employee"# The rea"on" attri4uta4le to thi"
de%elopment are that ma5ority of the potential employee" la-$ "uffi-ient e7perien-e3
te-hni-al "$ill"3 or trainin! 8orter +**/9# Moreo%er3 there i" a per-eption that the "$ill"
of people 2ho ha%e ta$en too lon! to 4e employed ha%e redu-ed or alto!ether 4een
era"ed for the fa-t that "u-h lon! time ma$e their "$ill" irrele%ant or outdated to -onform
2ith the -ontinuou"ly -han!in! en%ironment of updated "$ill" and $no2led!e# Su-h
realitie" pre"ent the human re"our-e mana!ement 2ith an opportunity to ali!n it"elf 2ith
the "trate!i- mana!ement in the "en"e that the in-lu"ion of ne2 employee" into the
or!ani1ation lie" ":uarely 2ithin it" do-$et# Therefore3 the ta"$ of en"urin! that only the
:ualified and rele%ant "$ill" are in-orporated into the -ompany6" 2or$for-e i" the
primary de-i"ion of the human re"our-e department# In thi" re"pe-t3 the "trate!i-
mana!ement team mu"t depend on human re"our-e mana!ement to reali1e the
attainment of the or!ani1ation6" !oal" and o45e-ti%e"= thi" -annot 4e attained 2ithout the
-ontri4ution of the rele%ant "$ill" of employee" 8Hol4e-he3 +*'+9# In addition3 the
"trate!i- mana!ement team -annot determine the future need" of a -ompany in term"
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of the 2or$for-e needed3 a" thi" a4ility lie" 2ith the human re"our-e mana!ement
"e-tion# In thi" re"pe-t3 the human re"our-e department mu"t al2ay" 4e -on"ulted to
en"ure that the operation" of the -ompany -ontinue runnin! "moothly3 a" Hol4e-he
8+*'+9 -ontinue" to ar!ue#
Compensation
Compen"ation form" one of an or!ani1ation6" lar!e"t 4a"e" of e7pen"e"# Thi" u"ually
in%ite" the attention of "enior mana!er" re"pon"i4le for redu-tion of the -o"t"
a""o-iated 2ith the runnin! a -ompany# Simply put3 the i""ue of -ompen"ation i" al2ay"
"u45e-ted to re!ular -he-$" 4y mana!ement to redu-e or eliminate -o"t" that are
deemed a" unne-e""ary# Thi" mea"ure of unne-e""ary -o"t" redu-tion or elimination
tran"-end" all the department" of the -ompany or the or!ani1ation# Human -apital
form" the 4a"e of an or!ani1ation6" operation"3 and thi" tran"late" to hu!e finan-e"
4ein! dire-ted to the human re"our-e department to meet the -ompen"ation of the
employee" for "er%i-e" rendered a" ar!ued 4y He$eth and >leet2ood 8+*'*9# Thi" -all"
for the ali!nment of the human re"our-e to "trate!i- mana!ement for the fa-t that the
human re"our-e mana!ement i" in"trumental in determinin! the -ompen"atin! rate" for
the employee" durin! their re-ruitment pro-e"" and their "er%i-e pro%i"ion to the
or!ani1ation# Moreo%er it i" al"o ta"$ed 2ith the role of ne!otiatin! payment rate" for
the employee" in the 4e"t intere"t" of the -ompany in the -our"e of their employment3
e"pe-ially durin! re2ard" or promotion"# Thi" important role3 2hi-h i" fundamental in
"treamin! the -ompany6" finan-e"3 mean" that human re"our-e mana!ement mu"t 4e
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naturally ali!ned to the "trate!i- mana!ement) thi" line of rea"onin! i" further flouted 4y
He$eth and >leet2ood 8+*'*9#
Technology
By u"in! human re"our-e mana!ement related te-hnolo!y "u-h a" HR mana!ement
"y"tem3 the -o"t" a""o-iated 2ith or tho"e that re-ur from e7-e""i%e time 4ein! "pent
on automatin! routine admini"tration -an 4e "i!nifi-antly redu-ed# Thi" 4enefit" the
or!ani1ation a" propo"ed 4y the orter6" "trate!ie"3 2hi-h propa!ate" the redu-tion of
an or!ani1ation6" re"our-e" 4y -al-ulatin! the -o"t" in%ol%ed in ea-h of the -ompany6"
operation" 8ra"ad3 +*'+9# Additionally3 the trainin! of the e7i"tin! and the ne2
employee" 4y the human re"our-e mana!ement u"in! te-hnolo!y !enerally redu-e"
-o"t" a""o-iated 2ith trainin!# By u"in! the human re"our-e mana!ement "y"tem"
8HRMS93 mana!er" and -ompany e7e-uti%e" -an 4e pro%ided 2ith the ne-e""ary
analyti-" rele%ant to -arryin! out their dutie" 4y e7aminin! the trend" e7i"tin! 2ithin the
mar$et" from their -ompetitor" to the -lient 4a"e# Thi" -an 4e helpful in ma$in! the
rele%ant 4u"ine"" de-i"ion" and fa-ilitate the plan" for future -han!e" in the
or!ani1ation 8ra"ad3 +*'+9#
In -on-lu"ion3 the role played 4y the human re"our-e mana!ement and the "trate!i-
mana!ement -annot 4e "eparated 4e-au"e there i" a ne7u" or "ym4ioti- relation"hip
that e7i"t" 4et2een the t2o a"pe-t# Ba"ed on the premi"e of thi" per"pe-ti%e3 none of
the %aria4le" -an operate on it" o2n indi%idual and independent lo!i-# A" a re"ult3 they
mu"t -ontinuou"ly en!a!e and -on"ult one another if the !oal" and o45e-ti%e" of the
or!ani1ation or -ompany are to 4e reali1ed#
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References
Armstrong, M. (2011). Armstrong's Handbook of Strategic Human Resource Management.
London: Kogan Page Publishers.
Heketh, A., !leet"ood, #. (2010). Explaining the Performance of Human Resource
Management. $ambridge: $ambridge %ni&ersit' Press.
Holbe(he, L. (2012). Aligning Human Resources and Business Strategy. )e" *ork, )*:
+outledge.
Kramar, +., ,artram, -., .e $ieri, H. (201/). Human resource management in Australia
strategy! people! performance, 0th 1d. #'dne': M(2ra"3Hill.
Porter, M. (2004). "he #ompetiti$e Strategy% "echni&ues for Analy'ing (ndustries and
#ompetitors) )e" *ork, )*: #imon and #(huster.
Prasad, K. (2012). Strategic Human Resource *e$elopment% #oncepts and Practices. London:
PH5 Learning P&t. Ltd.
6ilton, ). (2014). An (ntroduction to Human Resource Management. )e" *ork, )*: #A21.
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