Strategic human resource management (SHRM) is a process that helps organisations acquire and manage their employees according to their needs. It helps ensure that the organisation’s human resources are used to support its goals. It can be said as a bridge connecting human resources and the objective of the company. SHRM enables businesses to manage their employees’ performance and development, and create programs and policies that support their goals. In this blog, we will understand what strategic HRM is and why it is so important.
Strategic human resource management is the link between an organisation's employees and its plans, goals and ambitions. It should achieve the following objectives:
For human resource management to be successful, HR managers must be a significant strategic partner in developing and executing corporate policies.
Strategic HR is part of examining how human resources might directly affect a team's development. Recruiters must adopt a strategic approach to employee development and retention to meet long-term goals.
Dealing with dilemmas could be difficult for some organisations. Numerous HR-related issues can severely confuse organisations and may force error from them, causing operational delays and chaos.
Strategic human resource management involves HR departments working with other organisational units to determine their goals and implement strategies to support the company's primary objectives.
Strategic human resource management is important because it helps organisations achieve their objectives. By supporting HR programs and policies with the company’s business strategy, SHRM can help businesses improve employee performance, develop the workforce and create a positive work environment. SHRM helps organisations save money by reducing turnover and improving productivity.
Improve Employee Performance: SHRM enables organisations to improve employee performance by creating systems to track and improve performance. Once organisations know the performance of their employees, they help employees improve their performance.
Develop the Workforce: SHRM helps organisations develop the workforce by identifying employees’ developmental needs. When they already know the developmental needs, they can easily provide training and resources to help them improve.
Create a Positive Work Environment: SHRM manages the employees relations that helps organisations create a positive work environment for their employees. Thus, the organisation's work environment becomes a work-friendly place to work.
Reduce turnover: SHRM also designs compensation and benefits programs that help organisations attract and retain employees to reduce their turnover.
Improve productivity: SHRM helps organisations improve productivity by improving employee performance and creating a positive work environment. A positive work environment insists employees work fairly toward achieving their goal.
You might be wondering how to get started with SHRM. If you are curious to know about its process you need to understand the goals of your company, its abilities, future needs and resources. Following are the five steps to a strategic human resources plan.
Know Your Organisation’s Goals and Abilities
First of all, you need to understand your company’s goals and abilities. When you know your company goals, it would be easier for you to create programs and policies that support such goals. Furthermore, it enables you to effectively measure the success of your SHRM programs and make changes as needed.
Forecast Future Needs
Once you have an idea of your company’s goals and abilities, you can forecast future needs. Future need forecasting helps your orgnisations determine the required number of employees with specific skills to achieve big business.
Allocate the Resources to Achieve Organisation’s Goals
For achieving your organisation’s goal, you need to allocate the resources required for the same. This involves understanding the financial resources, human resources and physical resources. This will help you identify the types of resources you need to achieve your goals.
Execute Your Plan
After setting your organisational goals, forecast future needs and gather the resources required to achieve those goals. Now you can put your SHRM plan into action. Most organisations start by recruiting the right candidates, providing training and development and ensuring performance management. However, this can vary depending on your organisation’s specific needs. So, prioritise executing plans according to organisational needs.
As we know that Strategic human resource management is a process that helps companies achieve their goals. But they can be time-consuming and costly for organisations already tied up with so much work. If you want to outsource the SHRM plan, Kutumbh HRCare (Kaam matlab Kutumbh), a leading HR Consultancy in India, can help you achieve your goal.
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