Critically Analyse the Article for the Meaning of Strategic Human Resource Management and Identify the Factors Impacting on Strategic Human Resource Management in Contemporary Organisations.

5516 Words Aug 7th, 2011 23 Pages
Q. Critically analyse the article for the meaning of strategic human resource management and identify the factors impacting on strategic human resource management in contemporary organisations.
Before an argument can be put in place about whether human resource management (HRM) can be strategic, we need to be aware that human resources (HR) is more then maintaining personal functions. Corporate and economic developments since the 1950Ў¦s have dictated that businesses, to remain competitive, need to view HRM as an evolutionary process which combines the HR functions with the HR policies and strategies, with the business strategies and management teams, with all stakeholders (Unions and Governments) and with the organisation and
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The consistent theme with the articles is that the actions and conduct of the employees directly affects whether these forms of competitive advantage can be achieved. Strategic HRM focuses on influencing the behaviors of the employee so that their activities are aligned to achieving the corporate goals. The key is to identify the policies needed to influence and guide employees so that this, working towards a similar goal, can be achieved.
Value, first area covered by the VIRO model, focuses on minimising costs and differentiating products offered. If your product is a service then you can differentiate it by having well trained, competent and qualified staff that the clientele will like dealing with. To achieve this you may need to implement HR policies such as certified training programs. If your corporate strategy is to create value then the role of HR is to implement strategies that will achieve adding value. These may be to cut costs and improve production efficiency. HR may also add value to a firm by increasing revenues through increased employee satisfaction and responsibility ÐŽV linking an employees remuneration to their individual and over all company performance is one method to building an incentive for employees to generate revenues. The Barney and Wright article provided an example of where a strategic HR choice (paying aircraft on-time bonuses to

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