Strategic human resource management is an approach that supports long-term business goals and outcomes with a strategic framework for managing human resources. It focuses on people’s long-term issues, matching resources available to the future needs and micro-concerns about quality, structure, culture, commitment and value .The approach encompasses some strategies including delivering of fair and equitable reward, improving employee performance and streamlining organizational structure.
Strategic human resource management
The approach gained momentum around the early 1990s when academics defined it as the undertaking of all those activities that affect the behavior of individuals in their effort to formulate and implement the strategic needs of business.
People factors inform a good business strategy. This is a driving demand for greater evaluation. Most organizations today recognize that human resource is what drives value making it the most valuable business asset. Individual skills and abilities are assets that companies should invest in and influence to create sustainable value for the organization and its stakeholders.
The way in which people are motivated, managed and deployed should shape the business strategy. One important area of people strategy is workforce planning. Workforce planning helps companies meet their future skills needs and support their long-term business goals .It also involves putting the business strategy into action.
Long term absence due to illness, unmotivated and unproductive employees and high staff turnover can cost a company a lot of money. Human resource managers are therefore required to enhance individual employees’ performance. This is the point where the approach comes in handy.
The approach includes typical human resource components such as hiring, benefits, payroll, training, administration and discipline .It also involves working with employees in a collaborative manner to boost retention, maximize mutual benefit between employer and employees, and to improve the quality of the work experience .It may also provide work incentives and safety procedure information.
The approach is designed to help companies meet the needs of their employees while promoting its goals. Therefore, it requires thinking ahead and planning ways that a company will employ to meet better its employees’ needs and for the employees to meet the needs of the company.
Companies that strive to meet its workers’ needs can create a conducive atmosphere for productivity. Developing a strategic human resource management is the best way to achieve this. Ability to plan for the needs of employees by focusing on the future can help in improving the rate of skilled employees who in return chose to be loyal to the company .It’s also a good way to reduce the money companies spend on finding and training new employees.