strategic hrm assignment

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Course info, instructors.

• Prof. Diane Burton
• Prof. Paul Osterman

Departments

• Sloan School of Management

As Taught In

• Industrial Relations and Human Resource Management

Learning Resource Types

Strategic hr management, assignments, course schedule.

Session 1: The Strategic Importance of HR Case: Southwest Airlines: Using Human Resources for Competitive Advantage (A), Stanford Case #HR-1.

Reading: Pfeffer, Jeffrey. The Human Equation: Building Profits by Putting People First . Boston, MA: Harvard Business School Press, 1998, chapters 1 and 2.

Assignment Questions

• What is Southwest’s competitive strategy? What are the sources of its success? How does it make money?
• What are the foundations of Southwest’s competitive advantage?
• How are these sources of competitive advantage produced and sustained by what the organization does and how it does it?
• To what extent are Southwest’s sources of advantage difficult to imitate and likely to persist over time?
• To what extent is Southwest’s success based on Herb Kelleher?
• How serious is the competitive threat? To what extent can United and/or Continental duplicate Southwest’s business model? Why or why not?

Session 2: Strategic Execution and Economic Value: Internal and External Alignment Case: Portman Hotel, HBS 9-489-104.

• What is Portman’s strategy for competing successfully in its chosen market?
• What behaviors, skills, and attitudes will it need from its people, particularly the personal valets, to execute its strategy?
• How do Portman’s human resource management practices (recruitment, selection, compensation, training, career development, performance appraisal, staffing and organizational design, management and supervision) help or hinder the development of the skills and behaviors listed in Question 2.
• Is Portman having problems? What are the symptoms? What are the causes of the problems Portman is experiencing?
• What should Portman do?
• How much should Portman be willing to invest to address its difficulties? Or alternatively, what is the successful implementation of Portman’s strategy worth? Some operating figures are given in the case. FYI: the capital costs of the hotel work out to $310,000 per room.

Session 3: Work Systems Cases: New United Motors Manufacturing, Inc (NUMMI), Stanford Case #HR-11.

Optional Reading: Rubinstein, Saul R., and Thomas A. Kochan. Learning from Saturn: Possibilities for Corporate Governance and Employee Relations . Ithaca, NY: Cornell University/ILR Press, 2001.

• What is motivating the workers at NUMMI?
• What are the design elements of the Toyota team-based manufacturing system?
• Why has General Motors had so much trouble learning from NUMMI and Saturn?
• Jamie Hresko is now running one of GM’s largest assembly plants. What advice would you give him for how he might introduce some of the NUMMI methods to this facility?

Session 4: The Role of the HR Function

Reading: Ulrich, Dave. Human Resource Champions: The Next Agenda for Adding Value and Delivering Results . Boston, MA: Harvard Business School Press, 1998, pp. 23-31 and 231-254.

Session 5: Self-Managed Teams Case: Slade Plating Department, HBS #9-496-018

Reading: Wageman, Ruth. “Critical Success Factors for Creating Superb Self-Managing Teams.” Organizational Dynamics . Summer 1997, pp. 49-61.

• How would you describe the culture of the Sarto group? Be specific. How has it evolved? What impact has it had on the effectiveness of the group?
• What are the determinants of social status and influence within the plating department? The Sarto group? The Clark group?
• What do you learn by analyzing the data provided in the exhibits? How does this influence your interpretations of what is going on?
• Why did management previously ignored the illegal “punch-out” system?
• What actions would you take if you were Porter? What are the risks associated with these actions?

Important supplemental information: The 1996 starting salary in the Plating Department was $8.00; Tony Sarto’s hourly wage was $12.00. The average wage for semi-skilled workers in the U.S. was $12.00. Firms similar to Slade in the Michigan area, such as suppliers to the auto industry, paid an average hourly wage of $14.70. United Auto Workers working at the ‘Big Three (General Motors, Chrysler and Ford), had starting salaries around $13.00 an hour and earned on average $19.00 an hour. The minimum wage in 1996 was $4.25, raised to $4.75 on October 1, 1996.

Session 6: Participation and Involvement Film: Breakdown at Eastern Airlines

Reading: Pfeffer, Jeffrey. “Can You Manage With Unions.” Chap. 8 in The Human Equation: Building Profits by Putting People First . 2000, pp. 225-251.

Session 7: Training and Development Case: ServiceMaster Industries, Inc., HBS #9-388-064.

• What role have ServiceMaster’s values and goals played in the firm’s success?
• Why haven’t other companies successfully copied the ServiceMaster approach?
• How important are training and development in the ServiceMaster system? How does ServiceMaster socialize its employees? How does training and development affect the organization’s continued growth?
• Why has ServiceMaster been willing to spend the resources it has on training and development for a set of jobs that many might see as comparatively low-skilled and for positions that typically experience high turnover?
• There have been proposals (particularly by former U.S. Secretary of Labor, Robert Reich) that the U.S. follow the lead of some other countries (e.g., France, Singapore) and mandate a certain level of training–for instance, as a percentage of the firm’s payroll. What do you think of this policy? Why and when might organizations spend less than a socially optimal amount on training? What else might be done if one believes that too little training and skill development are occurring in the economy?

Session 8: Culture Case: Morgan Stanley: Becoming a One-Firm Firm, HBS #9-400-043.

Reading: Kaplan, R. S., and D. P. Norton. “Linking the Balanced Scorecard to Strategy.” California Management Review 39, no.1 (Fall 1996).

• What do you think of Mack’s strategy for increased integration? Is this compelling to you? Why or why not?
• Given his strategy, what do you think of his emphasis on revamping the performance management system? What are the pros and cons of implementing a new system of the type being discussed?
• If Mack is to be successful at changing the strategy and culture at Morgan Stanley, what other actions would you recommend he take? What other HR levers should he be thinking about using?
• Given your answer to question #3, what recommendations do you have for how he should proceed? How should he implement these changes?

Session 9: Performance Appraisal Case: The Firmwide 360 Performance Evaluation Process at Morgan Stanley, HBS #9-498053 and Rob Parson at Morgan Stanley (A), HBS #9-498-054.

• What is your assessment of Parson’s performance? Should he be promoted?
• Using the data in the case, please complete the Evaluation and Development Summary presented in Exhibit 3 of the Rob Parson (A) case.
• If you were Paul Nasr, how would you plan to conduct the performance appraisal conversation? What would your goals be? What issues would you raise and why, and how would you raise them?
• If you were Rob Parson, how would you conduct yourself in the performance evaluation meeting? What are your goals? Be prepared to role-play the appraisal conversation in class as either Nasr or Parson.

Cases to be distributed in class: Rob Parson at Morgan Stanley (B), HBS #9-498-055, (C), HBS #9-498-056, and (D), HBS #9-498-058.

Session 10: Diversity Case: The Case of the Part-time Partner.

Reading: Thomas, David A., and Robin J. Ely. “Making Differences Matter: A New Paradigm for Managing Diversity.” Harvard Business Review (September-October 1996): 80-90.

• Would you vote to make Julie a partner? Why or why not?
• What are the pros and cons from the firm’s viewpoint and from the society’s viewpoint of this decision?
• What is your assessment of how the firm handled the situation?
• How might they have proceeded differently?

Session 11: Information Sharing Case: Jack Stack (A) and (B), HBS #9-993-009 and #9-993-010.

Reading: Case, John. “Opening the Books.” Harvard Business Review (March-April 1997): 118-127. (Reprint 97201)

• What does it take to succeed in the engine remanufacturing business? What are the critical skills and organizational competencies?
• What is it like to work in such a plant?
• What are the major risks of a leveraged buy-out such as this?
• What do you think of Stack’s ideas about management?
• What are the key elements of the program Stack put in place?
• Can this approach be used elsewhere? Under which circumstances would it be more (less) appropriate? How could it be implemented?

Session 12: Benefits Case: The SAS Institute: A Different Approach to Incentives and People Management Practices in the Software Industry, Stanford Case #HR-6.

Reading: Pfeffer, Jeffrey. “Six Dangerous Myths About Pay.” Harvard Business Review (May-June 1998): 109-119.

• What are the complementary elements of the SAS HR system that make the compensation system effective?
• Why has SAS been able to get away with a compensation system that seems to violate industry conventions?
• Could the SAS approach work in other high technology organizations?
• What would happen if VDS tried to emulate the SAS approach? Why?

Session 13: Compensation Systems Case: Visionary Design Systems, HBS #9-495-011.

• What is the basic philosophy and values of VDS?
• How would you characterize the VDS compensation (base, bonus, and stock) system? On what principles is it based?
• Why has VDS had problems with its Product Data Management effort? To what extent do you see incentive issues as important? What other issues are important?
• What should VDS do about the Product Data Management (PDM) problems?
• Would you make any changes to VDS’ compensation systems? What? Why?

Session 14: Pay for Performance Case: Performance Pay at Safelite Autoglass (A) HBS #9-800-291.

• What are the pros and cons of switching from wage rates to piece rate pay?
• Is Safelite a good candidate for switching from wage rates to piece rates?
• Should there be a guaranteed wage? If so, how should it be set?
• What are the likely consequences of a switch from wage to piece rates for turnover, recruitment, productivity, and product quality?

Session 15: Non-Profit Management Case: The John Snow Institute.

• How successful is JSI?
• How effective is their current human resource management system?
• What should Joel Lamstein do?

Session 16: Managing Service Workers Case: Harrah’s Entertainment, Inc.: Rewarding Our People HBS #9-403-008.

• What were the challenges facing Gary Loveman when he took charge?
• What were the key changes he undertook?
• What were the consequences for employees?

Session 17: Alignment and Motivation Case: Nordstrom Department Store. Center for Human Resources, Wharton School of the University of Pennsylvania.

Reading: Simons, Robert. “Control in an Age of Empowerment.” Harvard Business Review . Reprint #95211.

• How effective is Nordstom’s human resource management system? In what ways does it contribute to the firm’s success?
• Do you have any concerns about the practices described in the case?
• Would you change management systems at Nordstrom? Why? Which systems?

Session 18: Review & Wrap-up

Assignment Question

• Reflecting on the companies we have studied in this course, as well as your own work experience, what lessons do you draw about the respective roles that general managers and the HR function in organizations should play in the management of human resources?

Summary of Class Sessions and Assignment Due Dates ( PDF )

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• Strategic Human Resource Management 101:...

Strategic Human Resource Management 101: Your Essential Guide

What is Strategic Human Resource Management?

Traditional HRM vs Strategic HRM

Strategic human resource management examples, example 1: nissan.

• Recruiting the right talent, and
• Building a secure workplace environment where employees feel entrusted to meet challenges with autonomy and fresh ideas that drive achievement.

Example 2: Brigham and Women’s Hospital

Example 3: sainsbury’s, importance of strategic human resource management.

• Connecting employees with organizational goals – The Strategic Human Resource Management process ensures that HR practices, policies, and strategies link employees with the company’s path to accomplishing its broader organizational objectives. 
• Gaining a competitive advantage – Knowing exactly where leadership wants to take the organization allows the HR department to focus on the skills and abilities people need to do the work it takes to get there. Through effective talent management , training, and development, SHRM can lead to a more competent and skilled workforce that yields a competitive edge over rivals.
• Adapting to change – A strategic approach to HRM means continually looking ahead, allowing organizations to anticipate and quickly adapt to changes in the business environment. Plans can adjust to accommodate technological advancements, market shifts, or evolving workforce demographics. Meanwhile, HR supports, motivates, and communicates with employees throughout the adjustments. According to Simon A. Taylor , Head of Organization Effectiveness at Gap Inc., with an understanding that change is the new constant and no one knows the future, the best thing an organization can do to prepare for the future is to build the capacity to change quickly, hone in on what’s important, and quickly adapt. “Practically, this means two things: 1) building the mindsets, practices, and capabilities within the organization to spot and rapidly adapt to change, and 2) designing HRM practices with an understanding that they can – and maybe should – evolve in the not-too-distant future as the business strategy evolves,” says Taylor.
• Enhancing employee performance – Strategic HRM determines how employees add value and facilitates performance management systems that ensure they are motivated, well-trained, and properly evaluated. HR can implement methods for addressing employee weaknesses and reinforcing their strengths, leading to optimal job performance and productivity. What’s more, it can strive to improve performance through improved employee wellbeing.
• Driving business growth – With its emphasis on proactive planning, SHRM identifies gaps in current resources and forecasts future workforce needs. As a result, the organization is equipped with the necessary human capital to launch initiatives, enter new markets, and drive growth.
• Improving operational efficiency – A strategic approach to HR is about meticulously designing roles, responsibilities, and workflows to specifically suit the company’s human capital needs. This clarity streamlines operations to reduce redundancies and boost overall efficiency, directly contributing to better business performance.

How to create a Strategic Human Resource Management plan

1. create an hr strategic plan that follows the business.

• Understanding the broader business strategy so you know what success looks like and how to measure it. 
• Evaluating strengths and weaknesses to uncover where you need to make improvements.
• Aligning what you’re doing in HR with the business strategy to build the capabilities needed to carry it out.
• What are the long-term goals of the organization?
• What are the strengths and weaknesses?
• What are your current resources? 
• What current skills does your workforce have, and are there any gaps?

2. Align HR activities with the strategy

3. emphasize data, 4. don’t forget hr’s other responsibilities, 5. take an outside-in approach, a final word.

Erik van Vulpen

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Home › Strategic Human Resources Management › What is Strategic Human Resource Management?

What is Strategic Human Resource Management?

TABLE OF CONTENTS

Strategic human resource management is a process that helps the human resources department maximize the potential of its workforce through strategic planning, talent management, leadership development, organizational design, and performance management.

In the past, strategic HR management was an administrative function. Today, HR managers play a critical role in ensuring that the organization has the right people that help improve business performance and ensure that it delivers on its mission.

It means that HR professionals need to understand its goals and objectives. How they can best help the organization achieve those goals, and what actions will allow them to do so. This article will help you better understand what strategic human resource management is and how a smart plan can bring tremendous value to the organization.

If you’re interested in learning more via video, then watch below. Otherwise, skip ahead.

What are Strategic HR Management Goals?

Strategic human resource management involves developing and implementing strategies for attracting, retaining, motivating, and managing talented individuals who contribute to the organization’s success. HRM also includes policies and practices designed to ensure fairness in employment relations.

Strategic human resource management aims to achieve a competitive advantage by creating value for customers, shareholders, employees, and other stakeholders. The term “strategy” refers to the organization’s overall plan of action to create value. It is not just one thing; it is a combination of many things, including:

• Actions are taken by the organization to meet customer needs
• Policies and procedures used to manage the organization
• Processes used to produce goods or services
• Marketing activities used to sell products and services
• Financial decisions made to fund operations
• Organizational structure
• The technology used to support business processes
• People-related issues such as recruitment, selection, training, compensation, benefits, and performance management
• Legal requirements and regulations affecting the organization

How Can Businesses Benefit from HR Strategic Planning?

Businesses benefit from strategic human resources management because it allows human resource departments to make better decisions. For example, companies can develop plans to improve productivity, reduce costs, increase profits, and enhance employee satisfaction. The sales and HR departments play a role in determining whether the company should expand into new markets, acquire another company, or merge with another business.

If you want to attract more customers, understand what your target market wants and how you can provide it. It would be best if you also decided which marketing methods would work best.

To retain current customers, you must first find out why they buy from you instead of competitors. Then you must figure out ways to keep them satisfied. You may even wish to consider offering discounts or gifts to reward loyal customers.

You must also think about motivating your employees to perform well and stay productive. If you want to hire more qualified candidates, you must first understand the qualities you are looking for in potential hires. You must also decide if you’re going to use job descriptions or conduct interviews when hiring.

Once you have determined your priorities, you can begin to implement changes to improve results.

Strategic Human Resources Management Benefits

Strategic HR involves careful consideration and analysis. Due to that, here are specific benefits of human resource strategic planning for businesses:

• Identify areas of weakness and strengths
• Develop strategies to address these weaknesses and strengths
• Establish sub-goals and objectives to measure progress toward the end goal
• Make sure there is alignment between business strategy and human resources strategy
• Ensure that all aspects of the organization revolve around the same set of goals and objectives
• Create a culture of continuous improvement
• Evaluate the effectiveness of programs and policies
• Increased job satisfaction
• Employee retention

Check our certified HR courses if you want to learn more about developing and implementing a strategic HR management plan. Master HR management and how to get the best out of your employees.

7 Steps to Creating a Strategic HR Plan

One of the main functions of HR is to provide an effective organization’s workforce management. It includes operational and strategic management and developing a plan that helps employees evolve. To do this, you need to start by determining the purpose of your human resource strategy.

Next, you need to look at the organizational structure of your company. How many levels are there? Do you have a different human resources department within each class? Are some divisions larger than others?

Some of the target outcomes for human resources planning include the following:

• Increase profitability through a strategic HR planning process
• Improve customer service
• Enhance employee morale and motivation
• Provide training and development opportunities
• Reduce turnover rates
• Maintain high-quality standards

Once you have these outcomes in mind, you can follow the following steps in developing a strategic HR department.

1. Define Goals

Defining goals helps you focus on a more strategic human resource management strategy. It gives you direction and provides a framework for measuring success. A goal is an objective you hope to achieve within a specific time frame. It’s something you want to accomplish. A plan is usually quantifiable. For example, you might say, “I want to increase my sales revenue by 20% to achieve a competitive advantage.”

Goals break down into sub-goals. The intermediate goals help you reach the ultimate goal. Additionally, they provide milestones in the strategic HR planning process. For example, if your ultimate goal is to increase sales revenue by 20%, then your intermediate goals can be:

• Achieve a 5% increase in sales revenue over last year.
• Achieve a 10% increase in sales revenue from January to June.
• Achieve a 15% increase in sales revenue during July.

It’s also essential to develop a SWOT analysis when defining your strategic HRM goals. The SWOT analysis helps identify any potential threats or obstacles that may hinder organizational success.

When conducting a SWOT analysis of your HR strategy, consider the following questions:

• What are your strengths?
• What are your weaknesses?
• Where are your opportunities?
• What are your threats?

Answering these questions will help you define business goals and improve business performance.

2. Determine Objectives

Objectives are measurable actions you take to meet your goals. They are how you achieve your goals.

Your objectives should be realistic. They should not be too ambitious. If they are too complicated, you may fail. You also don’t want them to be so easy that you will never succeed.

You should have a working strategic human resource management process to define specific human resource objectives for your business. Some examples include:

• Increase the number of new hires by 50%.
• Increase the average length of employment by three months.
• Reduce the percentage of employees who leave their jobs by 25%.
• Eliminate the use of temporary workers.
• Increase the number and proportion of women in management positions.
• Increase the proportion of senior managers with MBA degrees.

Your HR objectives should align with your overall company objectives. For example, if your company wants to increase its market share, setting up similar goals makes sense. Additionally, you should align all your HR objectives to your company’s financial objectives.

Keep in mind that the more tangible your objectives are, the easier it will be to measure progress.

3. Create Strategies

Strategic human resource management is all about the strategies you intend to use to achieve your objectives. They are the methods you’ll use to get there. There are many different strategies available. However, there are three main types.

• Change Strategy  – This involves changing the current status quo or making changes that are already underway.
• Reinforcement Strategy  – Involves reinforcing existing practices and policies.
• Innovation Strategy  – Introduces new ideas and processes.

Your organization’s strengths and weaknesses are the foundation for your strategic human resource management. There isn’t a single best tactic. Instead, the best strategy depends on the situation.

4. Develop Tactics

Develop HR techniques you’ll use to implement your strategies. There are two kinds of tactics:

• Direct Tactics  – These involve implementing your strategies immediately. Examples include hiring additional staff, promoting more people, giving raises to employees, and employee retention strategies.
• Indirect Tactics  – These involve using other resources to support your strategies. Examples include advertising, training, outsourcing services, etc.

When developing strategic human resource management tactics, think about the results you expect from each tactic. Do you need immediate results? Or can you wait until later? How much money will you need? How much time do you have before you need to start seeing results?

It would be best to keep in mind that you can only do what you have authority over. So, if you’re trying to promote employees but they report directly to someone else, you won’t be able to do anything about it.

5. Plan Implementation

Planning is determining when, where, and how to execute each tactic. Planning includes deciding whether to act now, wait until later, or do nothing.

While implementing, it’s essential to closely monitor different factors that may affect the composition of a workplace. These factors include:

• Age  – Older employees tend to have more significant experience than younger ones. Younger employees are usually less experienced. It can be hard to find good talent among young people.
• Gender  – Women typically make up about half of the workforce. Men generally make up the rest. Companies with a higher proportion of female employees tend to have better performance.
• Race  – People of color tend to earn lower salaries than white men. In addition, they are less likely to receive promotions.

6. Monitor Performance

Monitoring results is the process of evaluating what has happened after implementation. Monitoring includes measuring performance against pre-determined benchmarks. It also includes assessing the impact of any changes made by strategic HR management to improve effectiveness.

Monitoring performance is an ongoing activity. It requires constant attention. Monitoring helps determine what works and what doesn’t.

There are several tools you can use, including:

• Observation

7. Evaluate Performance

Evaluating performance is critical in any HR department. It is the process of comparing actual results to expected outcomes. Evaluation can be done by analyzing data collected through monitoring and evaluation.

Evaluating your performance is crucial because it lets you know if your strategies are working. If not, then you need to change them. For example, if your HR strategies aren’t producing desired results, you might consider changing your approach, including outsourcing strategic human resource services.

Including strategic human resource management in the overall business strategy help with creating a productive environment, but it also helps with other crucial aspects such as retaining employees.

If the human resource department succeeds in creating an effective strategy, it brings value to the organization.

Take time to create the human resource management strategy. Having the right plan creates a streamlined process that’s easy to follow. Good luck.

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Strategic Human Resource Management (2024 Guide)

Updated: Jun 8, 2024, 9:04am

Table of Contents

What is strategic human resources, why strategic human resources is important, 5 steps to strategic human resources, bottom line, frequently asked questions (faqs).

Strategic human resource management (SHRM) is a process that organizations use to manage their employees. It is a way to ensure that the organization’s HR are used in a way that supports the organization’s goals. Think of it as a bridge connecting human resources and the goals of the company. With SHRM, businesses can more effectively manage employee performance and development, as well as create programs and policies that support the company’s overall strategy.

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The goal of SHRM is to create policies and programs that align with the company’s business strategy. The main difference between human resources and strategic human resources is that human resources focus on the day-to-day management of employees, while strategic human resources focus on how employees can achieve the company’s overall goals. This means that SHRM must first understand the company’s business goals and then create programs and policies that support those goals.

Some common examples of SHRM programs and policies include:

• Performance management: Creating systems to track and improve employee performance
• Training and development: Identifying employees’ development needs and providing training and resources to help them improve
• Compensation and benefits: Designing compensation and benefits programs that attract and retain employees
• Employee relations: Managing employee relations to create a positive work environment

These are just a few examples of the types of programs and policies that can be part of SHRM. The specific programs and policies will vary depending on the company’s goals and the needs of its employees.

SHRM is important because it helps businesses achieve their goals. By aligning 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 can also help businesses save money by reducing turnover and improving productivity.

• Improve employee performance: SHRM can help businesses improve employee performance by creating systems to track and improve performance.
• Develop the workforce: SHRM can help businesses develop the workforce by identifying employees’ development needs and providing training and resources to help them improve.
• Create a positive work environment: SHRM can help businesses create a positive work environment by managing employee relations.
• Reduce turnover: SHRM can help businesses reduce turnover by designing compensation and benefits programs that attract and retain employees.
• Improve productivity: SHRM can help businesses improve productivity by improving employee performance and creating a positive work environment.

Now that you know what SHRM is and why it’s important, you may wonder how to get started. The process involves knowing the goals of your company, its abilities, future needs and resources. From there, you put your plan into action, then reassess and pivot if necessary.

Here are the five steps to strategic human resources plan:

1. Know your company’s goals and abilities

The first step to SHRM is understanding your company’s goals and abilities. When you know your company goals and can articulate them, you’ll have an easier time creating programs and policies that support those goals. You’ll also be able to more effectively measure the success of your SHRM programs and make changes as needed.

Consider the following questions:

• What are your company’s long-term goals?
• What are your company’s strengths and weaknesses?
• What resources does your company have now?
• What skills does your workforce currently have?
• Are there any gaps in talent or skills?

Answering these questions will help you understand your company’s goals and abilities, and how SHRM can help you achieve those goals.

2. Forecast future needs

Now that you have an idea of your company’s goals and abilities, you need to forecast future needs. In order to ensure your company’s future success, you need to predict how many employees with the required skills will be necessary and measure it against your company’s current workforce. This will help you determine what skills your company will need in the future and how to develop those skills in your workforce.

• What skills will your company need in the future?
• How many employees with those skills will you need?
• How does that compare to your current workforce?

By answering these questions, you will be able to comprehend what abilities your company will need in the future and how to cultivate a workforce with those required skills.

3. Determine the resources needed to achieve company goals

After you know your company’s goals and have forecasted future needs, you need to determine the resources needed to achieve those goals. This includes identifying the financial resources, human resources and physical resources required.

• What financial resources will you need to achieve your company’s goals?
• What human resources will you need to achieve your company’s goals?
• What physical resources will you need to achieve your company’s goals?

To determine these, you’ve got to conduct an audit of both your internal and external resources. This will give you a sense of what types of resources you have available to achieve your goals and where you may need to supplement.

For example, if you’re looking to expand your workforce, you may need to invest in recruiting programs. Or, after conducting a needs assessment, you may find that your current workforce doesn’t have the necessary skills to achieve your company’s goals, so you’ll need to invest in training programs.

Another example is if you’re looking to launch a new product. In this case, you’ll need to consider the financial resources required to develop and market the product, as well as the physical resources required to produce it. You’ve also got to consider talent and skill set when launching a new product. Do you have the right people in place to bring your product to market? And do they have the necessary skills to do so?

4. Execute your plan

Now that you’ve set your company’s goals, forecasted its future needs and gathered the resources required to achieve those goals, it’s time to put your SHRM plan into action. Most companies start by recruiting the right candidates, training and development and then performance management. However, this will vary depending on your company’s specific needs.

If you already have a large talent pool to choose from, you may be better off cultivating skills of current employees before recruiting outside talent. After you’ve satisfied that resource, you may find you still need to hire. If so, you’ll need to have clear expectations and skill requirements before recruiting.

Once you’ve hired talent, it’s imperative to have a proper onboarding process. This will help ensure that your new hires are set up for success and understand what’s expected of them. After you’ve brought new talent into the fold, you need to focus on development. This includes training programs as well as opportunities for professional growth. By offering these opportunities, you’ll be able to retain top talent and keep them engaged in their work.

Last but not least is performance management. This includes setting clear expectations, providing feedback and conducting performance reviews. Performance management is a key part of SHRM as it helps ensure that your workforce is meeting expectations and contributing to your company’s bottom line.

Here are a few things to keep in mind when executing your SHRM plan:

• Set realistic goals and timelines. Trying to accomplish too much in a short period of time can be overwhelming and lead to mistakes.
• Get buy-in from upper management. If those at the top aren’t on board with your SHRM plan, it’s going to be difficult to get everyone else on board.
• Communicate with your employees. Employees should be aware of the goals of the SHRM plan and how it will affect them. This will help get them on board and ensure that they’re working towards the same goals.
• Be prepared to adjust your plan. As with any plan, things may not go as expected. Be prepared to make adjustments to ensure that you’re still on track to achieve your company’s goals. We’ll discuss this in detail in the next section.

5. Assess and pivot

After you’ve executed your SHRM plan, it’s important to assess how things are going. This includes looking at what’s working and what’s not. Based on your assessment, you may need to make adjustments to your plan. For example, if you’re not seeing the results you want, you may need to change your recruiting strategy. Or, if you’re finding that your training programs aren’t effective, you may need to make changes to those as well.

It’s also important to keep in mind that your SHRM plan is not a one-time thing. As your company grows and changes, so too will your SHRM needs. As such, it’s important to revisit your SHRM plan on a regular basis to ensure that it’s still relevant and effective.

Strategic human resource management is a process that helps companies achieve their goals by better managing their workforce. By taking the time to develop a SHRM plan, companies can ensure that they have the right people in place to achieve their goals. While developing a SHRM plan can be time-consuming, the benefits outweigh the costs. Not only will a well-executed SHRM plan help you achieve your company’s goals, but it will also help you retain top talent and keep your employees engaged in their work.

What is strategic human resource management (SHRM)?

Strategic human resource management is a process that helps companies manage their workforce in a way that aligns with their company’s goals.

Why is SHRM important?

SHRM is important because it helps companies ensure that they have the right people in place to achieve their company’s goals. Additionally, SHRM can help companies retain top talent and keep their employees engaged in their work.

What's the difference between human resources and strategic human resource management?

The difference between human resources and strategic human resource management is that human resources focuses on the day-to-day management of employees while SHRM takes a more strategic approach.

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Strategic Human Resource Management Guide With Examples From Top Companies

Finn is an editor at People Managing People . He's passionate about growing organizations where people are empowered to continuously improve and genuinely enjoy coming to work. If not at his desk, you can find him playing sports or enjoying the great outdoors.

Strategic human resource management is vital to organizational success. Use this guide to understand the process with examples from top companies like Google, Cisco and American Express.

What Is Strategic Human Resource Management?

Strategic human resource management is a proactive approach to human resource management that supports long-term business goals and outcomes by aligning HR policy and practice to organizational objectives.

With a deep understanding of the organization's strategic priorities and needs, HR professionals can devise and implement initiatives to attract, motivate, develop, and retain talent and ensure the effective functioning and survival of the organization and its members.

Why Is Strategic Human Resource Management Important?

Strategic Human Resource Management directly impacts an organization's ability to achieve its long-term goals and maintain a competitive edge in the market. Here are the main reasons why strategic human resource management is considered crucial:

• Aligns HR with business strategy : Ensures that the human resource policies and practices are fully aligned with the strategic objectives of the organization. This alignment is critical for ensuring that the organization's talent is effectively utilized to achieve its goals.
• Improves organizational performance : By focusing on strategic workforce planning, talent management, and employee engagement, strategic human resource management plays a vital role in enhancing overall organizational performance. A well-managed and motivated workforce is more productive, innovative, and committed to achieving the organization's objectives.
• Enhances competitive advantage : Helps organizations develop a unique set of competencies through their human resources that competitors find difficult to imitate. This could be through cultivating a unique organizational culture, developing a skilled and adaptable workforce, or fostering innovative capabilities.
• Facilitates change management : Organizations operate in dynamic environments and effective change management is crucial for success. Strategic HRM provides a framework for managing organizational change, from restructuring to adopting new technologies or entering new markets, by ensuring that the human aspects of these changes are addressed effectively.
• Supports talent attraction and retention: In today's competitive job market, attracting and retaining top talent is a major challenge for organizations. Strategically managing HR helps create an attractive employer brand, design effective recruitment strategies for diversity , and implementing HR policies that contribute to high employee satisfaction and retention rates.
• Promotes legal compliance and ethical practices : Organizations can ensure compliance with employment laws and regulations. This minimizes legal risks and promotes ethical practices, contributing to a positive organizational reputation and reducing the risk of lawsuits and penalties.

How To Create A Human Resources Strategy

Creating a human resources (HR) strategy is an ongoing process that aligns the HR function with the overall strategic objectives of the organization.

It requires a deep understanding of the organization's goals, challenges, and the competitive landscape in which it operates. 

Here's a step-by-step guide to creating an effective HR strategy:

1. Understand organizational objectives

• Begin by thoroughly understanding the organization's strategic plan, including its long-term goals, competitive positioning, and key business drivers.

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2. Workforce analysis

• Conduct a talent review to assess the current workforce in terms of size, skills, competencies, age, turnover rates, and other relevant factors.
• Assess the external labor market for the availability of required skills and competencies.
• Assess employee feedback about any challenges they’re facing in the organization and how they’d improve things

3. Forecast demand for talent

• Predict future workforce requirements based on organizational objectives, projected turnover, technological advancements, and market trends.
• Consider both the quantity and quality of employees needed to achieve organizational objectives.

4. Identify skills gaps

• Perform a skills gap analysis to compare the demand for labor with the current supply, both internally and externally. The aim is to identify where the organization may face shortages or surpluses of specific skills or roles.

5. Develop HR strategies to address gaps

• Formulate strategies and initiatives to bridge identified gaps and optimize talent usage This could include recruitment, training and development, restructuring, outsourcing, workforce reduction, and retention strategies
• Create goals and key performance indicators (KPIs) to make it easier to track progress
• Consider long-term strategies like succession planning .

6. Assess HR’s capabilities

• Complete the above steps for the HR department. Are all the HR pillars developed and is there capability within the team to meet the new objectives and deliver projects?
• What HR software solutions could help and which processes could be improved?

7. Plan and implement HR Initiatives and Programs

• Plan how these initiatives will be implemented, including timelines, responsibilities, and required resources.
• Implement initiatives in accordance with project plans and timelines.

8. Monitoring, evaluation, and feedback:

• Periodically monitor the implementation of HR plans against set objectives.
• Evaluate the effectiveness of HR strategies and make adjustments as needed.
• Collect feedback from stakeholders to inform future HR planning efforts.

9. Review and revision:

• Regularly review HR planning processes and outcomes in light of changing organizational needs and external conditions.
• Revise HR plans to ensure they remain aligned with organizational goals and responsive to the dynamic nature of the labor market.

Best Practices For Developing An HR Strategy

There’s a lot to consider when developing an HR strategy. Here are some best practices to help ensure the success of your strategic human resource planning efforts.

• Engage senior management : Ensure that senior executives are involved in the planning process. Leadership buy-in is critical for securing the necessary resources and for cascading the importance of the strategy throughout the organization.
• Use data . Being able to accurately measure key HR metrics such as attrition and retention rates is vital for implementing your strategy. Technology such as HR analytics software can help here.
• Set clear KPIs . Your human resources strategies and initiatives should always be mapped back to your organizational strategies. Likewise, your HR KPIs should be able to articulate how HR professionals are providing real value realization against those same strategies.
• Gather feedback from employees. Great ideas can come from anywhere and employee listening should inform any HR strategic planning process.
• Create a skills library . Many organizations are now moving from a roles-based approach to talent management to a skills-based one. Part of this is building out skills libraries that define what skills mean in an organization and make it easier to track them.

Deconstruct complex processes. As part of your strategic planning efforts, segment complex HR challenges into simpler, easier-to-implement components. Each component should stack back to the big picture/end goal of what you are trying to accomplish.

4 Strategic Human Resource Examples From Top Companies

Today, too few companies are truly dedicated to improving their HR practices for better business performance. As we've touched upon, it requires getting HR professionals out of a silo and closely integrating their work with business strategy .

Here are four top companies that demonstrate exemplary strategic human resource management.

Use Data to Drive Learning and Development Like Google

Google being Google, it's no surprise that their approach to HR broke away from tradition.

We all know about the tons of employee perks and amazing "Googlified" facilities that set a new trend in office design. But Google's strategic approach to human resources goes beyond that.

Like most tech companies they're obsessed with data and the HR function is no exception.

In 2006, co-founders Sergey Brin and Larry Page decided to take an empirical approach to HR founded on feedback and employee data.

A manifestation of this is Project Oxygen , an ongoing study into management practices that identifies and measures key management behaviors and helps nurture them.

It all gets quite technical, but essentially Google hired some smart people to perform an in-depth statistical analysis of what their employees consider to be good managers.

They discovered ten common traits exhibited by the top-performing managers and then trained the rest in them. Those traits include:

• Collaborative
• A desire to coach
• Firm decision maker
• Possess a technical skill set
• Supportive of career development
• Good communicators
• Understand vision and strategy
• Focus on productive behavior and results
• Embody inclusivity
• Empower teams by avoiding micromanagement

As a result, Google saw an overall improvement in people management and team metrics such as turnover, satisfaction, and performance over time.

By examining your current workforce composition, identifying skills gaps and digging into historical data, HR can effectively start to forecast the organization's future needs.

Choose Your Analytics Tools Wisely

Use predictive analytics tools to forecast future workforce trends. These tools can analyze current data and historical patterns to predict future staffing needs, skill requirements, and potential turnover rates.

Put Development Pathways in Manager's Hands like Cisco

True to their industry, CISCO developed their own HRM technology to guide strategy and better serve the needs of the business.

The CISCO Talent Cloud is essentially an internal CRM that gives managers transparency into the competencies and experiences of the company’s 70,000+ employees.

It also gives employees themselves the tools and insights they need to take the initiative and advance their careers (like an internal LinkedIn!).

This approach allows managers to:

• Put together the best team to complete a particular project
• Give employees the opportunity to learn by working on a project that helps them meet a particular goal
• Access real-time intelligence on team performance, such as how they produce results, execute priorities and levels of engagement.

Cisco calls this a ‘one-size-fits-one’ employee experience and it seems to be working. The company is ranked number one in Fortune’s Best 100 Companies To Work For and is able to attract top talent to help meet company goals.

By developing tools that help managers see a more holistic view of the talent at their disposal, organizations empower team leaders to make better personnel decisions when big projects and key initiatives come around.

Personalize Development Plans

Empower managers to work with each employee to create personalized training and development plan. The planning process should align the individual’s career goals, strengths and areas for improvement with the organization’s objectives.

Create Clarity with Performance Scorecards like Hilton

Hilton is regularly recognized as one of the best global companies to work for (just behind Cisco in the rankings)—quite a feat for a service industry company.

The secret to Hilton's success, on both fronts, is in no small part down to a highly strategic approach to managing their organizational culture. 

Hilton's approach was to introduce a method of quantitative analysis into its talent management practices. One is ' the balanced scorecard ' and the other is 'the team member survey'.

The balanced scorecard seeks to:

• Intertwine corporate vision, strategy and goals with team member performance
• Track KPIs such as revenue maximization, customer loyalty, employee satisfaction, skills training and diversity.

Employees and teams are able to see how their roles and performance impacts the company. Discoveries and best practices are regularly shared across the company (this is a highly simplified version, you can read more here ).

The team member survey compliments the balanced scorecard. It's conducted globally once a year and measures factors such as morale, leadership effectiveness, employee engagement and development.

The purpose of any scorecard should be to create a level of transparency in performance management.

Align the goal of the scorecard with organizational values, and design it to foster a positive and constructive feedback environment.

This approach helps in setting clear expectations and benchmarks for performance while promoting a company culture of continuous improvement and open communication.

Employee Involvement = Engagement

Make employees a stakeholder in the development of their own scorecard template. This collaborative approach increases buy-in, ensures that the objectives are realistic and attainable and gives employees a sense of ownership over metrics and performance.

Create the Right Level of Flexibility for Your People like American Express

Number three on top places to work list, and the only financial institution in the top ten, is Amex. 

So how have they done it?

The company's approach to flexible working called the ‘Amex Flex work model’ has been in place since before the pandemic.

The company had started investing in collaboration tools , hardware and security protocols to streamline remote working, so that ~20% of staff were already virtual.  

This investment was accelerated by the pandemic but, after listening to employees through surveys, Amex discovered that, while most liked the flexibility to work from home, many missed the in-person collaboration.

Taking onboard the feedback, Amex launched a hybrid model encouraging employees to ‘come into the office with a purpose’, i.e. make use of office time to collaborate and network.

Under the new model, Amex colleagues can “work form anywhere” for 30 days of the year, 80% can work remotely day-to-day, and 99% are eligible for hybrid work.

Recent feedback found that:

• 90% of respondents were either very satisfied or satisfied with Amex Flex
• 87% felt supported in their career development.

The success of the new model is in no doubt predicated on the company continuously listening to its employees and using the feedback to shape strategy.

In order for any flexible working arrangement to succeed, one key ingredient must be in place; trust.

Cultivate a culture of trust where management believes in the employees' ability to complete their work effectively, regardless of how many hours they are at their desk or their location.

This will have a positive impact on employee retention and create a work culture that is attractive to new hires.

Focus on Results

In creating a flexible work model, focus on results rather than time spent working. This approach, often referred to as a “Results-Only Work Environment” (ROWE), shifts the emphasis from the traditional 9-to-5 work schedule to the actual outcomes and achievements of employees.

Key Takeaways

• Data-Driven Decisions:  Google's approach, epitomized by Project Oxygen, shows the power of data in transforming HR practices. The lesson here is clear: leverage data to understand and enhance management practices, leading to improved performance across the board.
• Technological Integration:  Cisco's Talent Cloud demonstrates how technology can revolutionize HR, offering transparency and development opportunities for employees. This highlights the importance of using technology to align HR practices with organizational needs and employee aspirations.
• Balanced Metrics:  Hilton's balanced scorecard approach exemplifies how aligning employee performance with corporate goals can drive success. It underscores the need for organizations to create clear, measurable objectives that resonate with both the company's vision and employee roles.
• Flexibility and Adaptability:  American Express's hybrid work model, especially in response to the pandemic, illustrates the significance of flexibility in the workplace. Listening to employee needs and adapting strategies accordingly is crucial for maintaining a motivated and productive workforce.
• Trust and Empowerment:  Across all these examples, one common thread is the trust in and empowerment of employees. Whether it's through personalized development plans, flexible work arrangements, or data-driven management, these companies show that valuing and trusting employees leads to a positive work culture and business success.
• Continuous Improvement:  The ongoing efforts of these companies to refine their HR strategies highlight the necessity of continuous improvement. It's not about finding a one-size-fits-all solution but evolving and adapting practices to meet changing needs and challenges.

In conclusion, the examples from these top companies provide a roadmap for us as we seek to integrate human resources management with strategic business objectives effectively.

The key is in recognizing the value of human capital, leveraging technology and data, and maintaining a culture of trust, flexibility and continuous improvement.

By doing so, our organizations can not only attract and retain top talent but also enhance overall performance and our competitive edge.

A couple of relates articles to help you on your journey:

• Managing HR in SMEs
• HR Best Practices
• Key HR Metrics

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The Human Resources Management course includes a series of openly licensed written assignments and discussions aligned to specific learning outcomes and chapters. If you import this course into your learning management system (Blackboard, Canvas, etc.), all of the assignments and discussions (listed in the table, below,) will automatically be loaded into your LMS assignment and discussion-board tools. They can be used as is, modified, combined with your own assignments, or removed altogether.

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You are a college senior who has been selected to participate in a hybrid internship/onboarding program with an elite HR research and advisory firm. Your training consists of a combination of formal education—specifically, enrollment in this Human Resource Management course—and a rotation in support of the principals of the firm. In your rotations, you will synthesize what you’ve learned in the relevant modules to address firm or client issues, conducting additional research as necessary and developing draft deliverables as instructed by the principal consultant. The quality of your deliverables – that is, your ability to convert learning into practical insight – will largely determine whether, at the end of the internship period, you are offered a position with the firm or simply thanked for your participation.

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Practicing Strategic Human Resources

Overview Background Benefits of HR Strategic Planning Developing a Strategic HR Plan

Assess the Current Situation

Envision the future, develop strategic hr objectives, monitor and evaluate, additional resources.

This article provides a definition, background, information, resources and suggested reading on how to begin the process of strategic human resources. Topics include the following:

• Benefits to HR to engage in strategic planning.
• Developing a strategic HR plan.
• Assessing the organization's current environment.
• Creating statements of vision, mission and values.
• Implementing, monitoring and evaluating the HR strategic plan.

Strategic human resource management involves a future-oriented process of developing and implementing HR programs that address and solve business problems and directly contribute to major long-term business objectives.

HR management was once largely an administrative function focused on day-to-day responsibilities such as employee recruiting and selection and managing employee benefits. Changing labor market conditions and new business thinking call for HR business strategies that include recruiting and retaining the right people, as well as providing ethical and cultural leadership.

Strategic planning presents great challenges and opportunities for HR professionals. Nearly all HR leaders in the largest global companies are involved in strategic decision-making and participate on the organization's strategy team, and a majority of HR professionals report that strategic planning is part of their function. In contrast, HR professionals in many medium and small organizations are not often involved in organizational or functional strategic planning. Consequently, to achieve long-term strategic HR objectives and to be a key player in the organization's strategic planning process, some HR departments may need to convince senior management of the value and contribution HR can provide.

Benefits of HR Strategic Planning

The closer the alignment between HR and an organization's overall business strategy, the better the company's ability to anticipate and respond to customer needs and to maintain competitive advantage. Rigorous research, planning and development involving workforce culture, behaviors and competencies promote the successful execution of business strategy.

Particular benefits of HR strategic planning include the following:

• Avoiding costly and disruptive surprises that interfere with achieving goals.
• Addressing key issues in a timely manner to avoid crises.
• Promoting employee productivity and overall organizational success.
• Providing a sense of direction to positively affect how work gets done.
• Keeping employees focused on organizational goals.
• Providing a strategic focus to guide training and development initiatives.
• Giving leaders tools to help focus and implement their strategic initiatives.

Developing a Strategic HR Plan

HR's role includes developing a plan of HR initiatives to achieve and promote the behaviors, culture and competencies needed to achieve organizational goals.

Results-oriented goals broadly include the following:

• Correctly assessing staffing and skills needs and keeping training up-to-date.
• Developing and maintaining competitive pay and benefits.
• Managing performance and designing a rewards system that keeps employees motivated.
• Knowing what competitors are doing to recruit and retain talent.
• Providing training, including ethics, which reinforces corporate values.

The strategic planning process begins with four critical questions:

• Where are we now? (Assess the current situation.)
• Where do we want to be? (Envision and articulate a desired future.)
• How do we get there? (Formulate and implement a strategy and strategic objectives.)
• How will we know if we are on track toward our intended destination? (Establish a mechanism to evaluate progress.)

See  HR as Strategic Planning Facilitator .

The following sections examine each step in greater detail.

Being a strategic business partner means carrying out HR activities with the long-range goals of the organization in mind. To do this, HR professionals must do the following:

• Understand how the various organizational components interact and recognize the long-term implications of HR decisions. The impact of HR decisions must be thoroughly researched and analyzed before changes are implemented.
• Have a firm grounding in business basics, including finance, marketing, sales, operations and IT. These skills help with budgeting and with maintaining a workforce with the correct mix of skills.
• Develop and exercise analytic skills directed at "the why" as well as "the what." This may mean spending more time on so-called translational work (such as coaching business leaders, planning and implementing HR practices that effectively execute strategy, and helping teams manage change) than on transactional work (such as recruitment, training, human resource information systems and other traditional HR functions).
• Conduct a strengths, weaknesses, opportunities and threats (SWOT) analysis of their organizations. The SWOT approach offers a clearer picture of customers, markets and competitors.

What are the basics of environmental scanning as part of the strategic planning process?

What is SWOT analysis, and how does it apply to an HR department?

How to Make Strategic Choices in Uncertain Conditions

Aligning the HR function to the organization's business strategy

For HR departments, intradepartmental strategic planning can be a good way to start the functional alignment process. However, regardless of whether strategic planning begins in the HR department or in another department, or is managed on an organization wide scale, the actions of the HR department will be integral to the success of the strategic plan. Thus, HR professionals must take care to align the HR function with every aspect of the strategic plan, even if the strategic plan does not explicitly address HR issues. Recent SHRM research reveals that HR professionals foresee significant workplace challenges, including rising health care costs, the retirement of large numbers of Baby Boomers and the increased demand for work/life balance. Retention programs, work/life programs, succession planning, and health, safety and security programs are among the HR efforts that are viewed as key workplace challenges through which HR can strategically contribute to organizations. See  Aligning Workforce Strategies with Business Objectives.

The HR alignment process is often driven by workforce composition issues. Although every organization's particular strategic plan is unique, the demographics and other characteristics of the available workforce have a major effect on the way businesses are staffed. In turn, the way organizations are staffed has a significant impact on the execution of the organization's strategy.  

HR professionals should monitor and respond accordingly to factors that may affect workforce composition, including the following:

• Age. The age of the existing employees, the age of the available workforce, and the patterns of retirement for older workers and for the entrance of younger workers can significantly affect workforce availability.  
• Current economic conditions. Unemployment rates, natural disasters and political changes can also have an impact the availability of workers.  
• Globalization. One aspect of globalization that will affect almost all organizations is the increasing diversity of the workforce. Another aspect of globalization is the economic incentive to outsource labor and production activities to wherever such costs are lower. A third, and related, aspect is immigration, both legal and illegal, in the United States and abroad.

Conducting a SWOT analysis

Understanding of the current situation can be enhanced by conducting a SWOT analysis. This analysis includes an internal assessment of the organization's capabilities and limitations as well as an external environmental scan to review its customers, markets and competitors, and to forecast to external opportunities and threats.

What is a S.W.O.T. analysis, and how does it apply to an HR department?

Cultivate Critical Evaluation with a PESTLE Analysis

How To Build On Your Organization's Strengths

Major areas to consider during an external scan include economic, demographic, political, social and technological trends. An analysis of customers, markets and competitors is used to determine how the market is changing, to predict who the future customers will be and to analyze competitors in the marketplace. See Strategic Planning: What are the basics of environmental scanning? and Report: HR Lags in Using Data to Make Decisions .

When conducting a customer/market/competitor analysis, HR professionals should answer the following questions:

• What business are we in?
• What is going on in the world in which we do business?
• What business should we be in?
• What are our resources?
• What are our core competencies?
• Who are our competitors?
• How will we compete?

When the HR strategic planning team has fully evaluated the current situation, it should consider what the ideal future would look like from an organizational perspective.

The question "Where do we want to be?" can be answered and clearly articulated by creating statements of vision, mission and values. A vision statement provides a description of what an organization wants to become or hopes to accomplish in the future. An effective vision statement paints a mental picture of the organization's preferred future that is inspirational, aspirational, compelling and concise. See  Human Resources Mission Statement Examples .

A values statement describes what the organization believes in and how it will behave. This statement can serve as the organization's moral compass and should be used to guide decision-making and assess actions taken. See  Mission: What Is the Difference Between a Company's Mission, Vision and Values Statements?

Setting strategic objectives is an important part of the strategic planning process. Therefore, these objectives must be aligned with the organization's mission, vision and overall strategy. Strategic objectives will vary from organization to organization.

To identify whether strategic objectives have a solid foundation for success, HR should consider the following questions:

• Have the benefits of obtaining the defined objectives been outlined and communicated?
• Are the strategic objectives relevant to the organization's position in the external market? For example, do they consider competitor positions, organizational size and financial strength?
• Do the strategic objectives recognize the organization's strengths and weaknesses?
• Do employees throughout the company understand how these objectives affect them and how they contribute independently and collectively to the defined objectives?
• Are the strategic objectives realistic and feasible? Unrealistic objectives typically result in disappointment for all involved.
• Have timelines for benchmarking progress and targets for completed objectives been set?
• Will the organization realistically be able to identify the success or lack of success in the accomplishment of strategic objectives in some quantitative fashion?
• Can the strategic objectives be linked back to the organization's overall strategy?

As an example, ABC Company may identify in its strategic planning analysis a need to improve the talent acquisition process. The strategic objective to address this issue is to design selection criteria to ensure best-fit hiring while reducing the time-to-fill positions.

Once a key initiative is identified, the organization should do the following:

• Continuously ensure that the objective and action plan are aligned with the organizational and HR strategy.
• Identify the primary actions required to achieve the objective.
• Set milestones for each action, and plan for contingencies.
• Identify the required resources, including budget and staff.
• Establish success measures.
• Communicate key messages.

Ultimately, a strategic objective is only as good as the overall strategic plan.

At this step of the strategic planning process, the focus is on specifying short-term answers to the question "How do we get there?" Specific, concrete short-term objectives that can be completed within six months to a year should be established to answer this question.

Although many organizations engage in strategic planning, very few of them believe they are highly successful at strategy execution. According to a survey by the American Management Association and the Human Resources Institute, only 3 percent of executives polled said their organizations were very successful at executing corporate strategy, whereas 62 percent stated their organizations were moderately successful. However, the companies that reported relatively high success in strategy execution were more likely to realize favorable revenue growth, market share, profitability and customer satisfaction.

Though every organization has its own strategy execution challenges, this study found that mastering the following areas is essential to successfully implementing strategic plans:

• Clarity of communication.
• Alignment of practices.
• Leadership.
• An adaptive organizational infrastructure.
• Resource management.

The single greatest barrier to executing strategy is the lack of adequate resources, the study found.

The final step should be establishing a mechanism to monitor and evaluate progress toward the achievement of strategic objectives. Most organizations conduct annual or quarterly strategic reviews for this purpose. These reviews do the following:

• Determine whether the organization is on track to achieve key objectives.
• Provide the opportunity to identify and adapt to significant internal or external changes that affect the strategic plan.
• Update annual action priorities.

Some organizations may find that systems or tools such as balanced scorecards, benchmarking and dashboards are helpful for keeping focus and monitoring results.

How can the balanced scorecard be applied to human resources?

How do I determine which HR metrics to measure and report?

9 Tips for Using HR Metrics Strategically

How AI Is Changing HR Jobs and Tasks

Wilkinson, Michael (2011) The Executive Guide to Facilitating Strategy Atlanta, GA: Leadership Strategies Publishing.

Stroble, K. R., Kurtessis, J. N., Cohen, D. J., & Alexander, A. (2015). Defining HR Success: 9 critical competencies for HR professionals. Alexandria, VA: Society for Human Resource Management.

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HRM Assignment: Strategic Human Resource Management

Assessment Task: You are required to compile an Annotated bibliography of 5 peer-reviewed journal articles

Step 1. Select an industry sector Read the Assessment 3 Essay task and identify which sector you will study for Assessments 2 and 3 (e.g. agriculture; construction; financial services; health care; hospitality; manufacturing; mining; retail; transport).

Step 2. Undertake research of the recent academic literature since 2013. Identify five (5) academic peer reviewed journal articles relevant to the Assessment 3 Essay topic. It is suggested that you align your selected articles with the unit themes from Weeks 3 to 5 (e.g. job design, HR planning, recruitment and selection). It is recommended that you undertake your research via the online ‘search’ of CQUniversity Library

Step 3. Write 2 paragraphs on each article For each journal article, you are to write approximately 400 words in two paragraphs. The first paragraph will summarise the main ideas of the article, identifying the hypothesis, purpose, research methodology and conclusions. The second paragraph will identify how you will use that article in relation to the Assessment 3 Essay

Step 4. Use an appropriate format Present your Annotated bibliography in a format similar to that provided below. For more information, see the library guide for writing an annotated bibliography. http://libguides.library.cqu.edu.au/ld.php?content_id=37972692

Introduction The sector chosen for the HRM Assignment is manufacturing sector as it is one of the fastest developing sectors across the globe. The paper will present the various articles in respect with the manufacturing sector. The topics which have been highlighted in this are strategic human resource management, recruitment and selection, social media recruitment and social influences in recruitment. All these are the primary topics which are highly relevant in the developing manufacturing sector such as there has been an increased use of social media in the process of recruitment and selection as well as the role of HRM has also enhanced in the organisational performance. In this HRM assignment we have strictly followed the format given in marking rubrics to cover in helping the student to cover all the deliverables in the annotated bibliography.

Annotated Bibliography of the Articles

Article 1: The Impact of Strategic Human Resource Management on Organizational Performance

Reference: Cania, L. (2014). The impact of strategic human resource management on organizational performance. Economia. Seria Management, 17(2), 373-383.

Key words: (strategic HRM, organizational performance, effective management, HR outcomes)

The main idea of this Human Resource Management Assignment by Cania.L is to understand the impact of the strategic human resource management upon the performance of the organisations. There are no hypothesis developed for undertaking this research as it is basically a secondary research where all the data is taken from the various secondary resources such as the articles, books, journals and other website articles. The key purpose behind the development of this paper is to thoroughly understand the effect of the strategic human resource management on the performance of the organisation. The research methodology of the article is that the study is conducted on the basis of collection and analysis of data from several publications on this field. There has been chosen two cities for the research purpose i.e. Durres and Albania. Data collection is done for the manufacturing sector and the service sector. There was also used a questionnaire which was filled by the general manager or the human resource managers. The number of organisations taken was 30 and out of which 14 are of manufacturing and 16 are of service. The article concludes that there is a vital role of SHRM in the effective organisational performance and though sound HR strategies, HR planning and effective management must be used for achieving better performance (Cania, 2014).

There is a vital significance of strategic human resource management in the study as it has a direct relation with human resource planning. There are a number of findings which are useful in the study of manufacturing sector because the manufacturing sector in present scenario had attained a huge growth. There is higher employment generation through the manufacturing sector across the globe. Thus, there is a need to understand the impact of strategic human resource planning and strategic human resource management upon the performance of the manufacturing sector. The organisational managers of the manufacturing sector are required to led down huge emphasis upon the human resource planning and human resource management . The effective human resource planning and SHRM contributes to the accomplishment of the goals and the survival of the manufacturing firm. It also supports the successful implementation of the business strategies in the manufacturing organisations. It helps the manufacturing industries in maintaining a competitive advantage and enhancing the responsiveness of the organisation. There is a significance impact of SHRM and HR planning upon the performance of the organisation as it improves the cooperation among the line managers and HRM departments as well as it also enhance the number of strategic options for the manufacturing organisation.

Article 2: The Impact of Recruitment and Selection Criteria On Organizational Performance

Reference: Ekwoaba, J. O., Ikeije, U. U., & Ufoma, N. (2015). The Impact of Recruitment and Selection Criteria on Organizational Performance.

Key words: (Recruitment, Organization, Selection, Human Resource, Performance)

This Human Resource Management Assignment article published in 2015 focus on understanding the impact of recruitment and selection upon the performance of the organisations. The hypothesis developed for the research are that first i.e. the criteria of selection and recruitment have significant impact upon the performance of the organisation and second, the more objective the selection and the recruitment criteria, the improved is the performance of the organisation. The key purpose behind the development of this paper is to thoroughly understand the effect of the recruitment and selection on the performance of the organisation. The research methodology of the article is that the study is conducted on the basis of survey research design where there has been prepared a structured questionnaire for collecting data. The research population comprises of the 6 main business divisions of Fidelity Bank Plc. Random sampling technique was used for selection of every element of the population. There were selected a total of 16 full staff and 6 contract staff. s. A total of 132 copies of questionnaires were administered and out of which 130 copies were filled properly. The article concludes that there is a vital role of recruitment and selection in the effective organisational performance and though sound recruitment and selection strategies, recruitment planning and effective selection must be used for achieving better performance (Ekwoaba, Ikeije & Ufoma, 2015).

There is a vital significance of recruitment and selection in the study at it has a direct relation with the organisational performance. There are a number of findings which are useful in the study of manufacturing sector because the manufacturing sector in present scenario had achieved huge development and growth. There is higher employment generation through the manufacturing sector across the globe. Thus, there is a need to understand the impact of recruitment and selection upon the performance of the manufacturing sector. The organisational managers of the manufacturing sector are required to lay down huge emphasis upon the process and strategies of recruitment and selection of the employees. Because of the increased demand for talent, skills and competence the manufacturing organisations are required to put efforts in the selection of appropriate recruitment strategies. It helps the manufacturing industries in maintaining a competitive advantage as the effective recruitment and selection practices helps n fetching the attention of the required talent. There are negative costs incurred when the wrong candidates are recruited in the organisation. Therefore, the sound recruitment and selection helps in saving huge costs.

Article 3: Recruitment and Selection Practices in Manufacturing SMEs in Japan: An analysis of the link with business performance

Reference: Gamage, A. S. (2014). Recruitment and selection practices in manufacturing SMEs in Japan: An analysis of the link with business performance. Ruhuna Journal of Management and Finance, 1(1), 37-52.

Key words: (business performance; HR outcomes; human resource management; recruitment and selection; small and medium enterprises)

The main idea of this HRM Assignment by Gamage is to understand the link between the practices of recruitment and selection in the manufacturing SMEs with the performance of the organisations. There are no hypothesis developed for undertaking this research as it is basically a secondary research where all the data is taken from the various secondary resources such as the articles, books, journals and other website articles. The key purpose behind the development of this paper is to thoroughly understand the link between the practices of recruitment and selection in the manufacturing SMEs with the performance of the organisations. The research methodology of the article is that there has been prepared a structured questionnaire for collecting data. For the study, the three key dimensions used are organizational development, training & development and the career development. A total of 436 questionnaires were distributed to the randomly selected sample in the various manufacturing SMEs. Out of which 105 effectively responded to the survey. The article concludes that there is a vital the link between the practices of recruitment and selection in the manufacturing SMEs with the performance of the organisations and though sound recruitment and selection strategies, recruitment planning, sound human resource management practices and effective selection must be used for achieving better performance (Gamage, 2014).

The article is much useful in the study as the overall aim of the human resource management for ensuring the business is able to attain high success by the means of individuals. The HRM objects to enhance the organisational skills and effectiveness which means the competence of the manufacturing unit for attaining the goals by the means of available resources in the most potential manner. The researchers have also found the human resource management systems as the source of abilities of the firm which allows the employees to benefit and learn from the opportunities. The recruitment and selection practices generate and help in retaining a contended and appropriate workforce which offers the high contribution to the growth and success of the organisation. Thus, the contented, motivated and qualified employees are the key factors for the growth of the business. Additional, the effective recruitment and selection practices support the manufacturing industries to fetch the attention of and hire the qualified individuals and keep them updated. It means the sound policies and practices of recruitment and selection keeps the employees motivated and brings a number of benefits to the organisations.

Article 4: Using Social Media as a Research Recruitment Tool: Ethical Issues and Recommendations

Reference: Gelinas, L., Pierce, R., Winkler, S., Cohen, I. G., Lynch, H. F., & Bierer, B. E. (2017). Using social media as a research recruitment tool: ethical issues and recommendations. The American Journal of Bioethics, 17(3), 3-14.

Key words: (Research, ethics, social media, recruitment, privacy, transparency)

The main idea of this HRM Assignment is to understand the use of social media as a recruitment tool and to get informed about the various ethical issues which are related to this. There are no hypothesis developed for undertaking this research as it is basically a secondary research where all the data is taken from the various secondary resources such as the articles, books, journals and other website articles. The key purpose behind the development of this paper is to thoroughly understand the use of social media as a recruitment tool, its ethical issues and recommendations. The research methodology of the article is that there has been used various cases for the research. There has also been used the non-exceptionalist approach so that both the purposes are solved i.e. maintaining the privacy and other interests of social media users and also to maintain investigator transparency. The article concludes that there is increased use of social media as a recruitment tool but still there are several ethical issues which are associated. Therefore, there is a need to follow some kid of recommendation to manage these ethical issues and effectively take use of social media as a recruitment tool (Gelinas Pierce, Winkler, Cohen, Lynch & Bierer, 2017).

There is a significant role of the topic in the study as in the modern and globalized world; there are increased use of the social media sites and platforms. The various social media sites such as LinkedIn, Instagram, Twitter, Facebook and various other social media sites provide the platform for sharing information and interest and connecting. It permits the users for maintaining a degree of anonymity as well as physical separation. This article defines the social media as the platform which helps the users in developing a semi-public or public profile as well as for maintaining a list of other users with whom there can be shared the information with other social networking and interaction sessions. With the continuous and improved use of the social media platforms, the investigators have exploited number of ways for utilizing social media. The social media has been emerged in the manufacturing sector as the promising way for the identification and the recruitment of the potential candidates. The social media is very much attractive when it comes to enable the investigators for widening their reach also target the people based upon their personal info.

Article 5: Social Influences in Recruitment: When is Word-of-Mouth Most Effective?

Reference: Van Hoye, G., Weijters, B., Lievens, F., & Stockman, S. (2016). Social Influences in Recruitment: When is word?of?mouth most effective?. International Journal of Selection and Assessment, 24(1), 42-53.

Key words: (recruitment, employer branding, recruitment source, word-of-mouth, organizational attractiveness, incentive)

The main idea of this HRM Assignment is to understand the various social influences in the recruitment and also to understand that at what time word-of-mouth is effective. There are developed 6 hypotheses for undertaking the research (H1. When the recipients know that there has been offered a monetary incentive to the source then they will be less attracted towards the positive word-of-mouth. H2. When the source is an organization’s employee then they will be more attracted towards the positive word-of-mouth. H3. While receiving the positive word-of mouth, women will be more attracted in comparison with men. H4. When the source is of same gender then the recipients will be more attracted towards the positive word-of-mouth. H5. When the source is a friend instead of an acquaintance then the recipients will be more attracted towards the positive word-of-mouth. H6. When the message comprises of symbolic info rather than instrumental information then the recipients will be more attracted towards the positive word-of-mouth). The key purpose behind the development of this article is to understand the various social influences in the recruitment and also to understand that at what time word-of-mouth is effective. The research methodology is that two different samples have been taken of actual job seekers, and thereby taking out the possible differences among the employed and unemployed job seeker populations into account. The article concludes that there are increased social influences in the recruitment process and also word-of-mouth plays an effective role in the recruitment process and social influences (Van Hoye, Weijters, Lievens & Stockman, 2016).

There is a vital role of the topic in the study as with the rise in the modern ways of recruitment there is a major role played by the social influences. It has become vital to attract the talented and competent employees for the organisations and its survival. One of the most important factors which determine the attraction of the job seekers towards the organisation is the key source by the means of which the individuals receive employment information. A number of advertisements, job fairs and job sites which help the job seekers to understand and take use of the job opportunities. The job seekers have learn a number of things by a wide range of sources that comprises of advertisements, friends, family and other people. The study has also helped in understanding the effects of word of mouth based upon the independent recruitment process. ?

Cania, L. (2014). The impact of strategic human resource management on organizational performance. Economia. Seria Management, 17(2), 373-383.

Ekwoaba, J. O., Ikeije, U. U., & Ufoma, N. (2015). The Impact of Recruitment and Selection Criteria on Organizational Performance.

Gamage, A. S. (2014). Recruitment and selection practices in manufacturing SMEs in Japan: An analysis of the link with business performance. Ruhuna Journal of Management and Finance, 1(1), 37-52.

Gelinas, L., Pierce, R., Winkler, S., Cohen, I. G., Lynch, H. F., & Bierer, B. E. (2017). Using social media as a research recruitment tool: ethical issues and recommendations. The American Journal of Bioethics, 17(3), 3-14.

Van Hoye, G., Weijters, B., Lievens, F., & Stockman, S. (2016). Social Influences in Recruitment: When is word?of?mouth most effective?. International Journal of Selection and Assessment, 24(1), 42-53.

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1 Introduction to HRM: Meaning, definition, scope, objectives and functions of Human Resource Management

Garima Jain

1.      Learning Outcome:

After completing this module the students will be able to:

Understand the meaning and definition of

HRM. What is the scope of HRM.

Describe the Objectives of HRM.

Understand the functions of HRM.

2.      Introduction

Source:https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcSyhBbVnMmrAZiGAC6Ue_–ZW3d9pW3QyDJjIPR3WZWJYkhy1NdRQ

Why name human resource management?

Human : refer to the skilled workforce in the organisation .

Resource : refer to limited availability or scarce.

Management : refer to maximise or proper utilisation and make best use of limited and a scarce resource.

The success of any organization depends upon how it manages its resources. While several resources are the non – humanresource such as land, capital, and equipment, it is the human resource and its management which is at the heart of an organization’s success.

Human Resource (HR) refers to all the people who work in an organization called personnel . Human Resource Management refers to the organizational function which includes practices that help the organization to deal effectively with its people during the various phases of the employment cycle. HRM is management function concerned with hiring, motivating, and maintaining people in an organisation. It focuses on people in the organisation.

Source : http://thesis.tcdhalls.com/images/hrm-thesis.jpg

1.1 According to Lawrence Appley, “Working with, for and through people is the way in which a manager accomplishes his job. Maintaining good human resources is a Manager’s responsibility. Providing human satisfaction from work output and relationship is a Manager’s obligation.”

1.2 In the words of Mr. NR Narayana Murthy, Chairman Emeritus, Infosys, “You must treat your employees with respect and dignity because in the most automated factory in the world, you need the power of human mind. That is what brings in innovation. If you want high quality minds to work for you, then you must protect the respect and dignity.”

1.3 In the words of John F. Kennedy, “Our progress as a nation can be no swifter than our progress in education. The human mind is our fundamental resource.”

3.  Meaning and Definition

Essentially, the Human Resource Management (HRM) is a management function that deals with recruiting, selecting, training and developing human resource in an organization. It      isconcerned with the”people” dimension in management. It includes activities focusing on the effective use of human resources in an organization. It is concerned with thedevelopment of a highly motivated and smooth functioning workforce. It also includes planning, acquiring, developing, utilising and maintaining ‘human resources’ in theachievement of organizational goals.

3.1 According to Edwin B. Flippo , “Human resource management is the planning, organizing, directing, and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and societial objectives are accomplished.”

3.2 The Indian Institute of Personnel Management defines HRM as, “Human resource management is a responsibility of all those who manage people as well as being a description of the work of those who are employed as specialists. It is that part of management which is concerned with people at work and with their relationships within an enterprise. It applies not only to industry and commerce but to all fields of employment.”

3.3 According to Tead and Metcaff , “Human resource management is the planning, supervision, direction and co-ordination of those activities of an organization which contribute to realising the definite purpose of that organization, with an animating spirit of co-operation and with a proper regard for the well-being of all the members of the organization.” 

3.4 Milkovich and Boudreau view HRM as, “A series of integrated decisions that form the employment relationship; their quality contributes to the ability of the organizations and the employees to achieve their objective.”

It is thus clear that human resource management is a specialized knowledge and practice concerned with the management of human resources in an organization. It constitutes a significant activity of the management. It attracts and selects capable men, organises them in productive groups, develops their potential, gives them necessary motivation and maintains their high morale.

Source: https://vacancycentre.com/wp-content/uploads/2015/03/human-resource-management-malta-hr-consultancy.jpg

4.   Scope of HRM

The scope of HRM is indeed vast. All major activities in the working life of a worker -from the time of his or her entry until he or she leaves- come under the purview of HRM.

Source: http://cf.ppt-online.org/files/slide/l/l1zGK5pQWmvhq3IjBEUfu8d2OgNT4nr7ta6xkD/slide-19.jpg

4.1. According to Dale Yoder , the scope of human resource management consists of the following functions:

• 4.1.1.  Setting general and specific management policy for organisational relationships, and establishing and maintaining a suitable organisation for leadership and co-operation.
• 4.1.2.  Collective bargaining, contract negotiation, contract administration and grievance handling.
• 4.1.3.  Staffing the organisation, finding, getting and holding prescribed types and number of workers.
• 4.1.4.  Aiding in the self-development of employees at all levels providing opportunities for personal development and growth as well as for acquiring requisite skill and experience.
• 4.1.5.  Developing and maintaining motivation for workers by providing incentives.
• 4.1.6.  Reviewing and auditing manpower management in the organisation.
• 4.1.7.  Industrial relations research – carrying out studies designed to explain employee behavior

4.2. The Indian Institute of Personnel Management has described the scope of human resource management into the following aspects:

4.2.1. The Labour or Personnel Aspect: It is concerned with manpower planning, recruitment, selection, placement, induction, transfer, promotion, demotion, termination, training and development, layoff and retrenchment, wage and salary administration (remuneration), incentives, productivity, etc.

4.2.2. The Welfare Aspect: This aspect is concerned with working conditions and amenities such as canteens, creches, rest rooms, lunch rooms, housing, transport, education, medical help, health and safety, washing facilities, recreation and cultural facilities, etc.

4.2.3. The Industrial Relations Aspect: This is concerned with the company’s relations with the employees. It includes union-management relations, joint consultation, negotiating, collective bargaining, grievance handling, disciplinary actions, settlement of industrial disputes, etc.

All the above aspects are concerned with human element in industry as distinct from the mechanical element.

Source: https://bitsthoughtideas.files.wordpress.com/2012/01/hrm1map_small.gif

5.   Objectives of HRM

The primary objective of HRM is to ensure the availability of a competent and willing workforce to an organization. Apart from this, there are other objectives too.

Specifically, HRM objectives are four fold: societal, organisational, functional, and personal.

Figure 1 – Objectives of HRM

5.1. Societal Objectives

The societal objectives are socially and ethically responsible for the needs and challenges of society. While doing so, they have to minimize the negative impact of such demands upon the organisation. The failure of organisations to use their resources for society’s benefit in ethical ways may lead to restrictions. For example, the society may limit human resource decisions to laws that enforce reservation in hiring and laws that address discrimination, safety or other such areas of societal concern.

5.2. Organisational Objectives

The organisational objectives recognise the role of human resource management in bringing about organisational effectiveness. Human resource management is not an in    itself; it is only a means to assist the organisation with its primary objectives. Simply stated the human resource department exists to serve the rest of the organisation.

5.3. Functional Objectives

Functional objectives try to maintain the department’s contribution at a level appropriate to the organisation’s needs. Human resources are to be adjusted to suit the organisation ’s demands. The department’s level of service must be tailored to fit the organisation it serves.

5.4. Personal Objectives

Personal objectives assist employees in achieving their personal goals, at least in so far as these goals enhance the individual’s contribution to the organisation. Personal objectives of employees must be met if they are to be maintained, retained and motivated. Otherwise, employee performance and satisfaction may decline giving rise to employee turnover.

6.   Functions of HRM

Human Resources management has an important role to play in equipping organizations to meet the challenges of an expanding and increasingly competitive sector. Increase in staff numbers, contractual diversification and changes in demographic profile which compel the HR managers to reconfigure the role and significance of human resources management.

Human Resource or Personnel Department is established in most of the organisations, under the charge of an executive known as Human Resource/Personnel Manager. This department plays an important role in the efficient management of human resources.

Some of the major functions of human resource management are as follows:

Managerial Functions

Operative Function

Advisory Function

Figure 2 – Functions of HRM

6.1. Managerial Functions:

The Human Resource Manager is a part of the organisational management. So he must perform the basic managerial functions of planning, organising, directing and controlling in relation to his department. These functions are briefly discussed below:

6.1.1.   Planning: To get things done through the subordinates, a manager must plan ahead. Planning is necessary to determine the goals of the organisation and lay down policies and procedures to reach the goals. For a human resource manager, planning means the determination of personnel programs that will contribute to the goals of the enterprise, i.e., anticipating vacancies, planning job requirements, job descriptions and determination of the sources of recruitment.

The process of personnel planning involves three essential steps.

6.1.1.1. A supply and demand forecast for each job category is made. This step requires knowledge to both labour market conditions and the strategic posture and goals of the                          organization.

6.1.1.2. Net shortage and excess of personnel by job category are projected for a specific time horizon.

6.1.1.3. Plans are developed to eliminate the forecast shortages and excess of particular categories of human resources.

6.1.2.   Organizing: Once the human resource manager has established objectives and developed plans and programs to reach them, he must design and develop organisation structure to carry out the various operations. The organisation structure basically includes the following:

6.1.2.1. Grouping of personnel activity logically into functions or positions;

6.1.2.2. Assignment of different functions to different individuals;

6.1.2.3. Delegation of authority according to the tasks assigned and responsibilities involved;

6.1.2.4. Co-ordination of activities of different individuals.

6.1.3.   Directing: The plans are to be pure into effect by people. But how smoothly the plans are implemented depends on the motivation of people. The direction function of the personnel involved encouraging people to work willingly and effectively for the goals of the enterprise.

In other words, the direction function is meant to guide and motivate the people to accomplish the personnel programs. The personnel manager can motivate the employees in an organisation through career planning, salary administration, ensuring employee morale, developing cordial relationships and provision of safety requirements and welfare of employees.

The motivational function poses a great challenge for any manager. The personnel manager must have the ability to identify the needs of employees and the means and methods of satisfy those needs. Motivation is a continuous process as new needs and expectations emerge among employees when old ones are satisfied.

6.1.4.     Controlling: Controlling is concerned with the regulation of activities in accordance with the plans, which in turn have been formulated on the basis of the objectives of the organisation. Thus, controlling completes the cycle and leads back to planning. It involves the observation and comparison of results with the standards and correction of deviations that may occur.

Controlling helps the personnel manager to evaluate the control the performance of the personnel department in terms of various operative functions. It involves performance appraisal, critical examination of personnel records and statistics and personnel audit.

6.2. Operative Functions:

The operative functions are those tasks or duties which are specifically entrusted to the human resource or personnel department. These are concerned with employment, development, compensation, integration and maintenance of personnel of the organisation. The operative functions of human resource or personnel department are discussed below:

6.2.1.     Employment: The first operative function of the human resource of personnel department is the employment of proper kind and number of persons necessary to achieve the objectives of the organisation. This involves recruitment, selection, placement, etc. of the personnel.

Before these processes are performed, it is better to determine the manpower requirements both in terms of number and quality of the personnel. Recruitment and selection cover the sources of supply of labour and the devices designed to select the right type of people for various jobs. Induction and placement of personnel for their better performance also come under the employment or procurement function.

6.2.2.     Development: Training and development of personnel is a follow up of the employment function. It is a duty of management to train each employee property to develop technical skills for the job for which he has been employed and also to develop him for the higher jobs in the organisation. Proper development of personnel is necessary to increase their skills in doing their jobs and in satisfying their growth need. For this purpose, the personnel departments will device appropriate training programs. There are several on- the-job and off-the-job methods available for training purposes. A good training program should include a mixture of both types of methods. It is important to point out that personnel department arranges for training not only of new employees but also of old employees to update their knowledge in the use of latest techniques.

6.2.3.       Compensation : This function is concerned with the determination of adequate and equitable remuneration of the employees in the organisation of their contribution to the organisational goals. The personnel can be compensated both in terms of monetary as well as non-monetary rewards. Factors which must be borne in mind while fixing the remuneration of personnel are their basic needs, requirements of jobs, legal provisions regarding minimum wages, capacity of the organisation to pay, wage level afforded by competitors etc. For fixing the wage levels, the personnel department can make use of certain techniques like job evaluation and performance appraisal.

6.2.4.     Maintenance (Working Conditions and Welfare): Merely appointment and training of people is not sufficient; they must be provided with good working, conditions so that they may like their work and workplace and maintain their efficiency. Working conditions certainly influence the motivation and morale of the employees. These include measures taken for health, safety, and comfort of the workforce. The personnel department also provides for various welfare services which relate to the physical and social well-being of the employees. These may include provision of cafeteria, rest rooms, counseling, group insurance, education for children of employees, recreational facilities, etc.

6.2.5.     Motivation: Employees work in the organisation for the satisfaction of their needs. In many of the cases, it is found that they do not contribute towards the organisational goals as much as they can. This happens because employees are not adequately motivated. The human resource manager helps the various departmental managers to design a system of financial and non-financial rewards to motivate the employees.

6.2.6.     Personnel Records: The human resource or personnel department maintains the records of the employees working in the enterprise. It keeps full records of their training, achievements, transfer, promotion, etc. It also preserves many other records relating to the behaviour of personnel like absenteeism and labour turnover and the personnel programs and policies of the organisation.

6.2.7.     Industrial Relations: These days, the responsibility of maintaining good industrial relations is mainly discharged by the human resource manager. The human resource manager can help in collective bargaining, joint consultation and settlement of disputes, if the need arises. This is because of the fact that he is in possession of full information relating to personnel and has the working knowledge of various labour enactments. The human resource manager can do a great deal in maintaining industrial peace in the organisation as he is deeply associated with various committees on discipline, labour welfare, safety, grievance, etc. He helps in laying down the grievance procedure to redress the grievances of the employees. He also gives authentic information to the trade union leaders and conveys their views on various labour problems to the top management.

6.2.8.     Separation: Since the first function of human resource management is to procure the employees, it is logical that the last should be the separation and return of that person to society. Most people do not die on the job. The organisation is responsible for meeting certain requirements of due process in separation, as well as assuring that the returned person is in as good shape as possible. The personnel manager has to ensure the release of retirement benefits to the retiring personnel in time.

6.3. Advisory Functions:

Human resource manager has specialised education and training in managing human resources. He is an expert in his area and so can give advice on matters relating to human resources of the organisation. He offers his advice to:

6.3.1.     Advised to Top Management: Personnel manager advises the top management in formulation and evaluation of personnel programs, policies and procedures. He also gives advice for achieving and maintaining good human relations and high employee morale.

6.3.2.    Advised to Departmental Heads: Personnel manager offers advice to the heads of various departments on matters such as manpower planning, job analysis and design,  recruitment and selection, placement, training, performance appraisal, etc.

The functions are responsive to current staffing needs, but can be proactive in reshaping organizational objectives. All the functions of HRM are correlated with the core objectives of        HRM (Table 1).

For example- Personal objectives is sought to be realized through functions like remuneration, assessment etc.

                                                                   1-HRM Objectives and Functions

Source:http://www.nicheconsulting.co.nz/images/HRM_impacts_on_bottomline_results.jpg.

Human Resource Management is the management function that helps the managers to plan, recruit, select, train, develop, remunerate and maintain members for an organization.

Maintaining good human resources is the manager’s responsibility. Providing human satisfaction from work output and relationship is a manager’s obligation

The scope of HRM is very large. All major activities in the working life of a worker i.e. from the time of his or her entry until he or she leaves the organisation comes under the purview of HRM.

HRM has four objectives of societal, organizational, functional and personal development.

HR manager performs three functions within organizations like managerial, operative and advisory functions

Books and References

• Aswathappa, K. Human Resource Management. Tata McGraw-Hill. • Dessler, Varkkey. Human Resource Management. Pearson. • www.aast.edu/…/pdf_retreive.php?url…HRM12e_PPT…ppt.. • lib.vcomsats.edu.pk/library/MGT450/…/LECTURE%201%20new.ppt

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Strategic Human Resource Management

What makes Arden University special?

Course Overview

The new MSc Strategic Human Resource Management has been devised to prepare business professionals like you for today’s rapidly evolving human resource management sector, helping you take on your future senior-level role with confidence.

This is the only UK-based university course recognised by three global HR professional bodies.

This course offers dual accreditation from the Chartered Management Institute (CMI) and the Chartered Institute of Personnel and Development (CIPD). Upon graduation, you'll gain Foundation Chartered Manager Status from CMI and the Assoc CIPD designation, enhancing your professional profile. The course is also aligned with the Society for Human Resource Management (SHRM) and the HR Certification Institute (HRCI). Additionally, we are a member of the Australian HR Institute (AHRI).

Your course materials will cover all the essential emerging topics that are moving the human resources (HR) industry forward, including people analytics, globalisation, and disruptive technologies, providing you with the most up-to-date knowledge of contemporary HR operations and innovations, and the ability to apply this to leverage strategic people management. This critical application of your learning will help you develop the skills you need to respond creatively and effectively to the dynamic and global HR world of tomorrow, and to advance to the very highest levels of your profession.

The course has a ‘real world’ focus, using live case studies and practical scenarios to ensure you graduate with the experience and knowledge employers need right now. We also work closely with expert industry partners so that your modules are all current and future-focused, covering the latest advancements, opportunities, and challenges in the field.

That means that by the end of the course, you’ll have developed the real-world skills needed to strategically lead and manage in today’s agile HR environment. This, combined with your knowledge of how to utilise people, data analytics, and new technologies to create organisational value will give you a powerful, modern skillset sought after by leading employers in a range of exciting industries.   

Quick tools

Course details and modules.

Your course modules have been designed to advance your knowledge and skills in strategic people and business management. You’ll cover a broad range of in-demand HR topics, such as people analytics, resourcing, well-being, and development, as well as the strategic and ethical utilisation of people to create lasting value for your organisation - helping you graduate with the specialised skills to excel in the future of HR and beyond. 

Arden’s online platform is very easy to navigate and my tutors are very quick and supportive when responding to any of my queries. The extra support provided at Arden has gone above and beyond my undergrad experience, I have attended many of the study skills support sessions which are very helpful when trying to get back into the style of academic writing.

• Strategic Planning and Ethical Decision Making (20 credits)
• People Analytics and Value Creation (20 credits)
• Strategic Employment Relations and Employment Law (20 credits)
• Organisational Development, Culture and Change (20 credits)
• People Development, Well-being and Performance (20 credits)
• Resourcing and Rewarding Talent (20 credits)
• Research Project (60 credits)

How do we assess you?

Assessments.

Assessments on the MSc Strategic Human Resource Management have been designed to help you apply your learning to real-world scenarios in the modern HR environment. That means you’ll have the opportunity to align your studies to how you’ll help transform your current or future organisation’s operations and functions once you have completed the course. 

Practice-driven - No exams in sight!

You won’t take a single exam on this course. Your course assessments will be practice-driven, drawing from live case studies so that you can apply your learning in real time. This innovative, modern approach will provide you with the unique opportunity to engage in industry relevant consultations and respond to real-world organisational challenges within a range of local and global contexts. 

Research Project

The MSc Strategic Human Resource Management course culminates with an independent research project pertaining to an issue or question within Human Resource Management. You’ll be expected to identify and examine a relevant topic of your choice and make robust recommendations based on your findings, helping you gain transferable skills for your future.

Other assessment methods

Throughout the course you’ll have the opportunity to apply your learning through additional assessments. Designed with industry feedback to meet the needs of today’s employers, each assessment will impart both subject knowledge and desirable workplace skills. These include: 

• Case based problem solving exercises
• Formal reports in response to client live case studies
• Presentations
• Skills-based exercises
• Consultancy case studies
• Autoethnography
• Research project

Study options

This course is available to study full time through our blended learning study mode at our campus in Berlin, Germany.

The course is also available to students via online learning . This gives you the convenience of being able to study from anywhere in the UK or worldwide, providing you with the same high standards of teaching but with lower tuition fees. 

Continuing my studies at Arden has been the best decision I made. I’m very grateful for Arden University and feel that I have progressed not only professionally, but also personally.

Part-time online learning

How does it work.

Studying the MSc Strategic Human Resource Management online gives you the ultimate in convenience. You can enrol with Arden from anywhere in the world and study your degree from the comfort of home, without the requirement to attend classes in a physical location. 

Our online students study their degree through ilearn, Arden’s university campus in the cloud.  ilearn provides everything you need to study at University. It offers an integrated virtual learning experience, including your virtual classroom, lecture theatre, and access to our Library Portal. The portal includes an extensive digital library including thousands of journal titles, eBooks, and academic and industry databases which you can use to research your assignments and projects. All of these materials are provided to you free of charge, and contain all the research information you’ll need to complete your degree with us.

Studying online doesn’t mean studying alone. As well as receiving regular feedback and guidance from your course tutor, you’ll be studying with like-minded students who you can meet with through our Unitu community, and you’ll have access to community message boards to discuss your course and the topics being raised within it. We’ve even set up community boards embedded into each of the course modules so you can have discussions with your tutor and classmates on the topics you’re currently learning. 

Distance learning students resident in the UK can apply for a Maintenance Loan if they cannot attend their course in person because of a disability. Please find more information on our fees and funding page. If you're a student from Scotland, Wales or Northern Ireland you can find information on Living Cost Loans from your student finance body.

Learn more about online learning

Full time, blended learning in Berlin

This course is available to study full time through our blended learning study mode at our campus in Berlin, Germany. When you choose our blended learning study mode, you’ll have eight hours of timetabled classes spread over two days at our centrally located Berlin campus. This is combined with around 25 hours of independent study, which takes place through ilearn, our university campus in the cloud. ilearn contains all the resources you need to study successfully. As a blended learning student you’ll also have access to our Library Portal, an extensive digital library with thousands of journal titles, eBooks, and a range of academic and industry databases that you can use to research and gain in-depth information on your area of study. At Arden, all of your course materials are provided free of charge, removing the need for you to buy expensive textbooks to study your degree successfully.   Full time study in Berlin is the best option for students who prefer the structure of regular face to face classes with their tutor and fellow classmates, and is particularly suited to students who are attracted by the opportunity to move to Germany to study, where you can take advantage of the employment opportunities available for overseas students.

Introducing your Digital Backpack

Once you’ve enrolled on your Strategic Human Resource Management degree with Arden you’ll get access to your Digital Backpack, a toolkit of digital resources we’ve put together to help you succeed during your time studying with us.   Here are some of the digital resources you’ll have available throughout your course:

• Office 365 subscription
• Integrated zoom video conferencing
• Careers support in-person and online available through Arden Futures, your careers platform, to help you throughout your career journey whether you are a Career Starter, Changer or Developer
• Free online access to our Library Portal, which includes thousands of eBooks and journals, as well as industry databases which we’ve carefully hand-picked to support your studies – all yours for free while you study with us.
• Subscription to Togetherall for an abundance of mental health support

After conducting extensive research and comparing various options, I chose Arden for several reasons: the degree is CIPD-accredited, I could study online, and the application/onboarding process was very structured and smooth.

The training and guidance provided were excellent and helped me quickly establish a routine that worked well for me. The platform and modules are easy to understand and work with, and the support from teachers and other Arden staff was always prompt and professional.

Entry requirements

At Arden University we consider applications on a case by case basis. If you have significant work experience, have qualifications you have gained elsewhere, or a degree or qualification that isn't a clear pathway to this degree - we are more than happy to discuss your application.

What do you need to study with us?

Our aim is to make learning as accessible as possible by ensuring that you can join us, wherever you are.

That's why we keep our requirements simple. All you need is a laptop or computer (we recommend one running the latest version of Windows), and a good stable internet connection. With this one tool, you'll be able to access information, advice, support, learning materials and our online library, as well as create assignments, keep notes, and collaborate with other students effectively. 

We’ll also support you with getting access to the resources you need, wherever you study from, including assistance with obtaining any software you need to successfully complete the course.

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Eligibility

To be eligible for our MSc Strategic Human Resource Management, you should normally have:

• A UK Honours Degree at a minimum of second class (2.2) or equivalent.
• We will also consider applications from students who lack formal qualifications but can demonstrate their motivation to study the course and possess relevant work experience.

English proficiency

• IELTS 6.5 (no less than 6.0 in any element); or TOEFL iBT 90; or equivalent.
• Alternatively, evidence you have previously studied in English, such as a letter to show that the Medium of Instruction was in English can be accepted.

We also offer an internal English test for applicants who are unable to provide the above evidence of English proficiency. More information can be found here.

Before you start studying

Whilst you can read your study materials on your smart phone or tablet, to make the most of your learning experience, you will need access to a laptop or computer (we recommend one running the latest version of Windows), and a good stable internet connection.

Course fees and funding

Funding and scholarships.

The Arden University Postgraduate Merit Scholarship offers UK Online Learning students with a 2.1 undergraduate degree or higher £2,000 off our postgraduate tuition fees. You can also apply for up to £12,167 funding from Student Finance England fund your studies. 

If you’re an international student, we have a number of Regional Offers that can help you save money on your tuition fees.

Refer a Friend

When you help a friend or family member to study with Arden through our Refer a Friend programme, both you and the person you refer will receive a £500 Amazon e-voucher or £500 tuition fee credit.

Find your country

Use the dropdown above to find course fees and funding information for your country. If you can’t find information for your country in the dropdown, visit our International support page.

Meet the faculty

Dr Aaron Taylor has been involved in teaching and training for over 20 years, both in the UK and internationally. During this time, he has built up expertise in teaching and learning specifically across postgraduate HRM programmes. Prior to his role as Head of School of Human Resource Management at Arden University, Aaron was a Principal Lecturer at the University of Sunderland and a Principal Lecturer in HRM at Coventry University London. Aaron is an External Examiner for HRM programmes at the University of Suffolk and the University of Sussex. He is a CIPD academic member, a Senior Fellow of the HEA and a certified management and business educator (CMBE).

Career prospects

The course will help you develop your existing skills and knowledge in the area of people and business management, alongside the newest theoretical, practical, and technological advancements in the field. By immersing you in the HR world of tomorrow, the course will prepare you for senior HR management roles in practically any industry.

• Masters in Business Administration (MBA)
• MBA (Graduate)
• BA (Hons) Business Management (Human Resource Management)
• Human Resource Management articles
• Career Advice

What will the MSc Strategic Human Resource Management do for me?

You’ll graduate from the course with the hands-on strategic HR, leadership, and technical skills required to effectively manage people and excel in today’s evolving HR sector. You’ll also have expanded your knowledge of contemporary HR operations, all within a real-world context. Because the course prioritises a future-focused, practical application of your syllabus, you’ll gain pertinent, advanced expertise that will help you become a future HR leader.

This course provides you with the valuable opportunity to:

• Develop in-depth knowledge of contemporary HR practices, including people analytics and technological advancements.
• Respond effectively to increasingly complex, dynamic, and diverse external business environments.
• Critically evaluate and apply strategic people management ‘next’ practice in a range of contexts.
• Acquire the real-world skills needed to transition to a more senior level role. 

What can I do after Arden University?

The MSc Strategic Human Resource Management will help you develop the latest knowledge and skills you need to accelerate your career to a senior-level role in HR. Some of the positions you may want to consider after graduation include: 

• Human Resource Manager
• General Manager
• Pay and Reward Specialist
• Human Resource Business Partner
• Organisation Development
• Director of HR
• Chief People Officer
• People Consultant

Industry skills

Chartered Management Institute (CMI)

This course awards a CMI Level 7 certificate in Strategic Management & Leadership Practice and offers CMI Foundation Chartered Manager Status*

The Chartered Management Institute (CMI) promotes excellence in UK management and leadership. As the CMI possesses a Royal Charter, they are the only organisation in the UK that can award Chartered Manager status to their members – the gold standard in management. With 140,000 members, the institute aims to boost career development across the management sector and connect like-minded professionals.

As an Arden student, you’ll have free CMI Membership throughout your studies, giving you access to a range of additional resources including a mentoring service and invitations to networking events both online and offline.

Upon completion of this CMI-accredited course, you will be awarded CMI Level 7 certificate in Strategic Management & Leadership Practice and gain CMI Foundation Chartered Manager Status. This recognises you have the skills needed to be an effective manager, helping you stand out from the competition and start your management career journey - with a CMI qualification and a fast-tracked pathway to full Chartered Manager status.

*Upon completion of your course, the CMI award and level of chartered status awarded will depend on your level and length of study, whether you entered your course with Recognition for Prior Learning (RPL) or if any compensation is applied on your modules throughout the duration of study. If this criteria applies to you, you may receive one of the 2 different levels; an Award or Certificate.

Chartered Institute of Professional Development (CIPD)

Our MSc Strategic Human Resource Management is accredited by the CIPD at level 7.

The Chartered Institute of Professional Development (CIPD) , the leading professional body for HR professionals in the UK, and the second largest globally. This course is accredited by the CIPD, which sets the industry standards for human resource management and people development.

For Arden students, the cost of your CIPD membership is also included during your studies, giving you access to a range of additional resources and networking events. We are one of only a few universities that pay this for students.

Arden graduates will also have the chance to upgrade their membership and become a prestigious Chartered Member (Chartered MCIPD), a mark of your pursuit of continuous professional development in the field of human resource management.

The Society for Human Resource Management (SHRM), the Australian HR Institute (AHRI), and the HR Certification Institute (HRCI)

This course aligns with SHRM, the world’s largest HR association with over 300,000 members in 165 countries, ensuring your degree is globally recognised. It is also aligned with HRCI, a leading HR certification provider in the US.

Your course modules have been mapped to SHRM and HRCI membership requirements. That means upon completing your degree, you will be eligible for SHRM and HRCI certifications, valued globally by employers. We are also an organisational member of AHRI, allowing students to benefit from member-only products and services.

Arden is the only UK university offering CIPD accreditation alongside these alignments and memberships.

Association to Advance Collegiate Schools of Business (AACSB) membership

Arden University is a member of the prestigious Association to Advance Collegiate Schools of Business (AACSB). AACSB International is a global association of leaders in education and business dedicated to supporting and advancing quality business education worldwide.

This membership reflects the fact that Arden University has successfully matched the high standards required by the AACSB, and enables the sharing of ideas and the exchange best practises between global business schools. Membership also gives our faculty members access to in-depth data and research to support the development of our courses and teaching methods, ensuring that we are able to provide you with the best possible university experience.

Business Graduates Association

The BGA is a membership and quality assurance body. As a member, Arden University have signed up to the BGA Charter, committing their institution to responsible management practices and lifelong learning, positively impacting their students, communities, and the economy. This shows our students that we are demonstrating responsible management ourselves, as well as it being a central theme that runs through our own courses.

As Arden University is a member of the Business Graduates Association (BGA), students will receive complementary BGA student and graduate membership. Through this membership, current students will have access to the BGA Career Development Centre, packed with interactive tools, e-learning content, partner discounts and the latest job opportunities. This is a lifetime access, which means students will continue to have access to these services even after they graduate.

LinkedIn Learning

All Arden students will have free access to LinkedIn Learning through the Library Portal. LinkedIn Learning is a video-based online learning platform offering over 16,500 expert-led courses across a wide range of subjects including business, technology, and creative skills.

With LinkedIn Learning, you can:

• Pursue curated learning pathways aligned with our curriculum and your career goals.
• Add value to your LinkedIn profile by showcasing your newly acquired skills.
• Personalise content based on skills relevant to your chosen career path, interests and prior learning.

Start your journey with Arden University

Places to start.

Course Enquiry

Course brochure download, speak to an advisor.

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