What role does strategic HRM play in modern business world?

Strategic Human Resources Management or strategic HRM is a management concept and fundamental science which is essential for any company or industry which has global expansion ambitions. The reason that I have used the word global ambitions is because when a company wants to operate at international levels, it has to have the manpower which is willing to learn and adapt to the new markets. After all, everything in the world of business depends upon the bottom line and it’s the humans which help a company grow. Role of Strategic HRM hence becomes vital and crucial for the success of such companies.  However, a point to be noted here is that there is still a lot to be explored academically when it comes to strategic hrm as a stand-alone management discipline.

In the current business scenario, human resource management (HRM) policies and practices are essential, to be integrated optimally and to become successful in global business environment. The wave of globalization has revolutionized the trends and challenges of HRM, which are required to be handled effectively for managing diverse workforce. Strategic human resource management (SHRM) is one of the most important aspects of HRM practices that facilitate implementation of effective HR policies to meet the requirements of employees, while proceeding ahead to accomplish the organizational goals (Mathis and Jackson, 2008)

The above-mentioned lines by Mathis and Jackson are true to the core. A company which is based out of India, for example, has a set of core values which are unique to them and would be working just perfectly for them. However, it is not necessary that the same values would work perfectly in let’s say American markets or the middle east. Hence having a set of strategic HR policies which would suit almost every scenario becomes essential. The essence of strategic human resource management is in team learning and we all know that having the right skills by our side is everything in the modern business world.

In the modern business environment, the concept of organizational learning solely depends upon the strategic HRM. Same has been emphasized by Jackson.

SHRM practices are also important to the improvement of the organizational learning. The focus of the HR policies and processes remain on the assessment of the roles and responsibilities, which are essential to be aligned for performing the duties optimally. It fosters the degree of transfer of knowledge among the diverse team members. Interpersonal processes also get positively related to the team performance through the engagement of teams in performing long-term responsibilities to ensure success and growth. Team behaviors and positive learning aspects are stimulated within the organization by considering well-defined framework of SHRM practice (Jackson et al., 2008).

Companies in order to be globally competitive need to have a culture of integrated learning. The role of developing knowledge-based assets in any company cannot be overemphasized. Knowledge brings the right attitude to face the challenges that everyday business throws at the company. Developing a knowledge-based worker is just one part of the equation, however sustaining and retaining them is another ball game. We know that a knowledge-based asset will be a good team player and have high levels of dedication to the work. However, controlling their attrition is also important. Here the Strategic HRM comes in to picture and plays a pivotal role. Strategic HR policies should be such that they promote building relationships and help create collective processes that enhance individual growth. A good policy, in this case, will have guidelines and milestones which would provide great incentives to the right person. Therefore greatly controlling the talent depletion from the company. Another role that Strategic HRM plays is in developing a unique culture in the company. The role of good trainers and motivators cannot be ruled out in this. The workforce needs to be developed strategically in such a way that they are flexible to changes and are willing to learn new things with a positive mindset.

As an end note, I would say that the role that strategic HRM plays for any company is something that cannot be explained in words or in writing. It is something that is unique to every company and is something which needs to be experienced. Having spent a lot of time in imparting such policies I personally feel that it is one of the most crucial part of any business mix and is something which every company should work upon proactively.

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