Introduction
Nowadays, HRM is the heart of every organization. According to Minbaeva (2018), HRM ensures that an organization’s work practices are great to get a competitive advantage. HRM focuses on the function of people inside the organization. Human resource management focuses on employee recruitment, discipline, payroll, and how to engage with employees to meet the company’s needs. Strategic human resource management (SHRM) refers to managing human resources that supports long-term organizational goals and outcomes through a policy framework (Lee, 2021). SHRM’s key goals are to improve company performance, foster an innovative culture, and relentlessly pursue competitive advantage. It is important to note that SHRM varies from HRM in that it works to frame human resource strategies such that employee activities are directed toward the organizational goal. As a result, SHRM collaborates with the human resources division to maximize the workforce’s potential through organizational design, talent management, strategic planning, and talent management. This approach to human resources focus on long-term issues with people, matching resources to future needs, and macro-concerns in a commercial enterprise regarding quality, structure, values, culture, and dedication to human resources. The HRM strategy is essential to how the company functions, produces outcomes and will continue to do so in the future. Furthermore, given that SHRM is becoming a complicated process due to recent emerging trends in the human resource body, human resource management research is necessary (Cooke, Xiao & Chen, 2021). To handle the most significant problems facing a company with people-centric solutions, it is imperative to properly clarify the various human resource strategies to provide a complete grasp of SHRM. As a result, this essay addresses and investigates modern research and thought in the field of human resource management, as well as its impact on organizational efficiency.
Discussions
Managing various human resources in an organization is done in connection to their welfare and relationships with the business. As a result, HRM assists employees in achieving their goals as company partners. Making certain that there are individuals accessible with the required abilities and motivation is one example of adding value. Another is assisting in developing a culture and environment that promotes high-level performance. The benefits of the human resource department will be determined by how it interacts with the business. The interaction between the organization, the business, and the suppliers determines the character of human resources. Consequently, the parties form the basis of the existence of any business in which their absence means the failure of the enterprise.
An organization’s most important resource is its human capital. As a result, HR professionals ensure that everything goes well and that everyone knows the organization’s regulations and standards. It incorporates all processes that impact people and their daily lives into its operations. It is important to note that there have been new human resource management trends, which have changed over time, affecting how effectively a company operates. For instance, consider how artificial intelligence (AI) and virtual reality (VR) are currently evolving among employees (Malik et al., 2021). Employees who opt to work remotely away from the organization’s offices and premises are another instances of the flexible working paradigm currently on the rise. On the other hand, the human effect has recently been the driving force behind human resource operations. However, as technology has advanced, HR activities have taken a different turn and are now dependent on technology. All operations in this industry are now carried out technologically, using equipment that store data and do numerous analysis for the business.
Many departments within an organization handle HR management. The roles are employer recruitment, employee promotion and reward, and worker discipline maintenance. HRM is responsible for managing human resources, their activities, and employee training. Businesses require more workers to deliver better results depending on their available production resources. This hiring procedure follows a precise methodology to ensure fairness and to make the process well known involving transparency with qualifications (Raghavan et al., 2020). When a company discovers it needs more workers, the human resources department evaluates the kind of people to look for. Before posting the position for application, they carefully examined the role to determine the duties and requirements. They promote the post using any medium that can reach the general public to encourage candidates to submit applications. The human resources department filters through the applications for the position and selects a subset of the most qualified candidates. In order to assure fairness, the interviewers asked identical questions of each candidate. Human resources are in charge of training and orienting the new employee on how the company runs after they have secured the candidate they require for the position, making sure to communicate the terms and conditions of the business operation.
After becoming accustomed to the company’s practices, the employee may want a promotion or pay. The human resources department also serves in this capacity. By examining personnel data, the department can determine who does what responsibilities and who deserves an honour or promotion. After noticing, the HR managers debate the employee’s advancement with the company’s directors. Promotion can take many forms, such as moving up in rank, obtaining a wage boost, or receiving a physical reward for a job well done.
The HR executives must also make sure that employees are disciplined. In some circumstances, there may be conflict among the organization’s employees due to a dispute. There may be instances where employees misuse company resources. The HR division is responsible for ensuring discipline is upheld at all times. Moreover, employee training has an impact on the firm’s success. Employee training should be continued in an organization, especially in light of the Covid-19 pandemic, which has rendered most unemployed. Because most persons laid off had been out of work for an extended period, training is necessary to re-establish their business and job abilities. Human resources departments should provide the best courses to their staff to enhance employee morale and foster teamwork. During training, employees become acquainted with the right methods, which aids in providing excellent results.
HRM is the key driver of company competitiveness and strategic advantage in the twenty-first century. A rising body of evidence supports the assertion, which is shocking. It is incredibly difficult to capture and inspire the minds and hearts of tomorrow’s workforce in a culture where less than 15 per cent of all workers are aware that they are actively involved in their jobs (Gardner, 2021). However, HRM has a complicated history: human resource professionals (HRPs) are predominantly unskilled, and corporate members are more interested in technologies and innovation than in the people who create value for their organizations. On the other hand, an increasing number of excellent businesses and informed leaders see the value of clients for increased client pleasure, business growth, profitability, and profits.
Despite a greater emphasis on personnel as a strategic resource for an organization, HR management relies on transformational leadership to promote corporate efficiency. The function of the HR component has recently been modified dramatically. Human resource professionals are now regarded as company partners. They are expected to offer their technical experience to the organization’s plan. The company’s HR strategy must be based on a shared ideology to ensure organizational sustenance and sustainability. Organization executives, for example, must continually analyze their personnel base to determine whether the organization has adequate experience to carry out its business strategies.
As a result, HRs significantly impact today’s highly dynamic society because they impact employees, which is a long-lasting strategic advantage for the modern economy. Since the business world is becoming performance-driven, it is crucial to balance putting employees first and concentrating on the bottom line. As a result, transformational leadership in HR is gaining popularity among working managers worldwide; such a managerial approach is a win-win situation that enables an employer to achieve organizational objectives while enhancing employees’ quality of life (Miao & Cao, 2019). Employee interests and needs are matched with business objectives by the strategic HRM and transformation management leadership, who also instil a sense of internal involvement in workers so that they continue to give it their all and help improve overall organizational performance. For organizations to succeed in the future, they need to understand strategic HRM and the whole concept of HRM and appreciate it in an organizational setup.
Conclusions
Human resources impact every firm since they play an important role in employee welfare and organizational effectiveness. The business sector’s operations and outcomes will improve as technology improves and people get more information about managing human resources. Organizations must exercise extreme caution when dealing with employees because they determine how and what the company will create in terms of quality and quantity. Consequently, the HRM must ensure efficiency in recruiting, promoting, rewarding and disciplining employees concerning the organization’s long-term goals. Strong and transformational leadership is important in the HRM in ensuring the effectiveness and a win-win situation between the employees and the organization. Therefore, this topic on strategic human resource management and its impacts on organizational efficiency is crucial in aligning the business with the goal requirement in the changing world.
References
Cooke, F. L., Xiao, M., & Chen, Y. (2021). Still in search of strategic human resource management? A review and suggestions for future research with China as an example. Human Resource Management, 60(1), 89–118.
Gardner, H. (2021). Disciplined mind: What all students should understand. Simon & Schuster.
Lee, S. H. (2021). An attention-based view of strategic human resource management. Academy of Management Perspectives, 35(2), 237–247.
Malik, N., Tripathi, S. N., Kar, A. K., & Gupta, S. (2021). Impact of artificial intelligence on employees working in industry 4.0 led organizations. International Journal of Manpower.
Miao, R., & Cao, Y. (2019). High-performance work system, work well-being, and employee creativity: Cross-level moderating role of transformational leadership. International journal of environmental research and public health, 16(9), 1640.
Minbaeva, D. B. (2018). Building credible human capital analytics for organizational competitive advantage. Human Resource Management, 57(3), 701-713.
Raghavan, M., Barocas, S., Kleinberg, J., & Levy, K. (2020, January). Mitigating bias in algorithmic hiring: Evaluating claims and practices. In Proceedings of the 2020 conference on fairness, accountability, and transparency (pp. 469–481).
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