Difference Between Strategic Hrm And Hrm Business Essay

Difference Between strategicalal Hrm And Hrm Business EssayThe flummox of this assignment is to analyze the intercourseship betwixt strategic and gentlemans gentleman pick be drop a go at itment. It explores the growing situation of HRM in providing a strategic dimension to an scheme. This essay identifies a number of critical organisational behaviors in corporations that seek to inter-link its HRM practices with its dodge.Comp any(prenominal)s Strategies should be formulated by considering the human resourcefulness aspects and the human resources should be managed based on the companys strategies. In fact, the consequences of liberalizations, privatization and globalization viz., competition, Quality, dispirited cost, high speed in delivery, customization and guest relationship, do the CEOs of Various companies to take on the human resource aspects in the strategic counseling make for and manage the human resources based on the companies strategies. As such, stra tegic human resource management gained its signifi bedce in the post liberalization period. Now, human resource manager, in most of the companies, is a member of strategic management police squad. (Ref P. Subba Rao book) outline (ref P. Subba Rao book)Increasing the sales of Suzuki by 1lakh motor cycles in 2012 is one of the objectives of the company. It trick be attained by increasing the fuel efficiency, reduce the legal injury of the through reducing the production costs or by up(a) the design etc. Increasing the fuel efficiency or reducing the costs argon the strategies.Strategy, in simple terms, is a unified person-to-person credit line of action to achieve the goal. Glueck defined the schema as Unified, comprehensive and combine plan designed to ensure that the basic objectives of the enterprise atomic number 18 achieved henry Mintzberg turn overs that strategy need not be the outcome of rational planning. With this view, Mintzberg defines strategy as, a sort in a stream of decisions or actions The pattern of decisions or actions is aimed at achieving the goals and objectives of the company.Human resource managementThe modus operandi indoors an organization that foc aims on recruitment, management and providing direction for the people is known as Human resource management. It to a fault deals with issues related to people such as hiring, compensation, employee motivation, operation management, safety, wellness, genteelness, benefits, administration, communication and organizational increment. HRM manages the relationship between the management and the employees. any(prenominal) definition we use for defining HRM, It is all well-nigh people in organizations. No wonder, in some MNCs (Multinationals) HR managers argon called People managers. Nowa twenty-four hourss, HR manager or People manager is no longer seen doing the activities or work described in the tralatitious carriage. In fact, most organizations declare different teams dea ling with payroll, retention and staffing etc. The HR manager is responsible for managing employee fulfillment and realization of management objectives.Difference between Strategic HRM and HRMHuman resource management is a strategic come near to the management of employees. As explained earlier, it mainly deals with the recruitment, compensation etc. There are no proper(postnominal) rules for HRM whereas in Strategic HRM, there are specific rules specified for alter fields. SHRM mainly focuses on programs with long term objectives. Unlike the traditional HRM, Strategic management uses many strategic methods and governanceatic tools for increasing employee motivation and productiveness. The strategic HRM re largesss the latest shift that explains how the continuing training and development of employees can directly contri exclusivelye to wider performance and function of the firm. (See Delery and shaw, 2001 Mathis and Jackson, 1999). Armstrong (2006a) explains the in a higher p lace notion in a brief summary by stating that The Fundamental aim of strategic HRD is to rear resource capability in accordance with the belief that the human large(p) of an organization is a major source of competitive benefit. It is therefore about ensuring that the right quality people are available to meet present and future needs. This is achieved by producing a coherent and comprehensive framework for developing people. Whereas HRM realizes the important contribution employees make to the life of the corporation but does not make a direct impact to its performance. SHRD postulates how an organization where employees realize bracing opportunities of branch and where they are able to utilize unused potential represents an interconnected link with the workings of the organization and its performance. SHRM argues that the business office of the employees should be managed and aligned to the wider somatic objective of its management. doing Appraisal writ of execution app raisal is a play of assessing the performance of an Employee compared to the standard/pre-determined level set by the organization gibe to its objectives. death penalty appraisal indicates the level of desired performance by the employer, real performance of the employee and the gap between these two. motion appraisal is useful for deciding upon employee promotion, salary determination etc but recent developments in the human resources management indicate that performance appraisal is the basis for employee development. The basic objective of Performance appraisal is to take a measurable account of its employees with dogmatic or negative performance so that the organization is able to have a better control over its operations and accordingly forecast work. Armstrong explains how Performance management reviews provide the inputs required to create personal or team development plans, and to many people performance management is congenitally a development process. Performance re views can, however, produce data in the form of single(a) ratings, which whitethorn be used as the basis for performance-related pay decisions.Performance appraisal can be of benefit if it is exercised in a positive way, even though measuring of performance is a positive way in detecting strengths and weaknesses of an employee such kind of exercises can be perceived as intimidating by the employees leading to issues like demotivation and escape of zeal at work. According to Wiese and Buckley (1998) some of the proceedss of a performance appraisal outline are that it facilitates organizational decisions such as rewards and recognitions, promotion/demotions, layoffs/recall and transfers. It may also assist managers in developing employees. It serves to assist individual employees decisions regarding flight choices and the subsequent direction of individual time and effort. Additionally, performance appraisals may ontogenesis employee commitment and satisfaction due to improveme nts in organizational communication. The exercise of PA systems play a very important role in organizations that seeks to mingle HRM with its strategy because of the belief that managing and assessing the performance of each employee has a direct relation with the performance of the corporation as a whole. It is a very essential process to understand and improve the employees performance through HRD (Human Resource development). The process of HRD helps the employees to develop technical, behavioral knowl butt on, skills and abilities, beliefs and attitudes necessary to perform and attain future goals. Performance appraisal is the basis for HRD.The question however arises what kind of performance testament be appropriate to produce the required satisfaction amongst employees in graze to get positive performance as well as bear down out areas of improvements when weaknesses are detected? Many authors support the argument across a wide spectrum that Performance appraisal systems, cannot in themselves, become a positive resource for improvement in the organization. Performance management system can be manipulated by the members of the organization. For example, the line manager can deliberately give low scores to an individual if the person has any personal grudges against him/her, to send a message to someone that they should consider leaving the organization to speed up termination. All of the above features indicate how people deploying the performance appraisal can use it in a number of ways and according to their interests.Self-Managed Teams and High Performance work practices.Self-Managed Teams are believed to contribute to an increment of input and efficiency and it has become a popular way of organizing an employees working environment. It said that by being self-managed, employees get a great intellect of responsibility which leads to a much innovative decision making and greater performance.In using the work by Sirking (1993) Elmuti (1997) argues that Self-Managed Teams programmes can produce greater satisfaction, reduced costs, faster and better decision making, improved pricing, and increased fodder market share. Elmuti (1997) makes the distinction between two most popular approaches to self managed teams, that is to say a) work teams and b) problem solving teams. Elmuti (1997) argues that A problem-solving team is similar to a taskforce in that it is formed for temporary purposes. While problem solving teams are temporary, work teams, which are used by two-thirds of US companies, tend to be permanent. Rather than attack specific problems, a work team does day to day work activitiesIn addition to the above, the theater of self-management has been an issue because of lack of appreciation from the management for the employees contribution and decision making. The question remains of whether the vexed work and commitment of the employee is evaluated and recognized by the organization.From the above discussion, we understand that the use of Self-Managed teams can be a win-win situation, when the individual contribution to the organization is being recognized by exercising proper evaluation process. It can also be a loss-win situation for the employees when they do not get any profit from their innovative ideas which help the organization. At the same time, it can also be loss-win situation for the organization when the employees do not take advantage of their independence and become unproductive for the organization.High Performance work practices.The study of SHRM focuses on high performance work practices (HPWP) because it can lead to high level of performance when implemented. De Waal (2007) argues that high performance organizations (HPO) share some certain(prenominal) characteristics like strong financial results, satisfied customers and employees, high levels of individual initiative, productivity and innovation, aligned performance measurement and reward systems, and strong leadershi p.There is not much difference between HPWP and HRM, In fact HPWP aims at fortify specific set of relationship deep down HRM practices. Huselid argues that certain criteria must pull round if human resources are to be a source of competitive advantage first, the individual performance significantly affects the organizations productivity second, that the skills must be rare, and in the end that the human capital is difficult to imitate.Performance Management (PM), Learning and transfigure Management.Performance Management system is the associated with measuring the employees performance against the criteria introduced by the management or from the discussion with the employee. Organizations operating in the service sector (e.g. recollect Centre) often want to measure whether the employee initiated proper contact with the customer, whether all questions asked by the customer was answered in a professional manner resembling the values and principles of the organization. Authors a rgue that PM should not only point out the different targets to be met by the employee but also provide the necessary learning structures so employees are able to develop the right competencies to meet them. Kirkpatrick, (2006) also argues that In an extensive study on performance reviews, researches at general electrical came to the following conclusion Implicit in performance appraisal programs are now structured and include two distinct objectives 1) letting a person know where he or she stands via ratings and salary actions, and 2) Motivating him or her to improve The learning or change management is about introducing employees to new or different knowledge areas that needs to be developed in order for them to meet their targets. Armstrong (2006b) rightly argues how Discussions takes place on ways in which the individuals role could be developed so that it becomes more challenging from the view point not only of new tasks to be accomplished but also need to acquire or extend kn owledge and skills to unravel out those tasks.A-One BakeryA-One bakeshop is one of the leading bakeries in the Indian Market. They have approx 800shops nationwide it has been maintaining a reputation for freshness and quality for days now and because of this A-One has won a trust of many customers, overtime. Rolls, Samosas, pastries, Cake, doughnuts and soft drinks are some of the products it deals with. There are many small shops and malls where A-One supplies its freshly make products hence due to the difficult logistics demand, employees play a critical role in the large selling and manufacturing targets. In order to achieve customer satisfaction one of the important activities of A-One is that it keeps a personal interaction with the customers at the time of selling despite the fact of distribution of products from the central bakery around the country. By examining the companys published information and report. It is clear that A-Ones envisaged expansion is achieved by not p ositioning the role of its employees at a strategic level. The companys function which is not perceived as critical is supported by the role of employees. The image of the corporation is improved by the involvement of the employees within the wider community. In addition to that, little information is provided by the company about the competencies and skills that efficiency be needed by the employees in order for them to apply it in different depts. Reference is made to different sections such as Marketing, purchasing, food/health and safety, finance, IT etc. Even though the above presentation of A-One bakeries intervention of its employees might not reflect the working of its staff environment, it is clear that the strategic importance on its people is not placed by the company. In contrast, the corporation emphasizes more on expansion of its products, marketing practices, opening or more stores worldwide and use of more robust advertising. The company would have positioned the areas of employee development, learning and training as more central to its growth.Creating a more strategic HRM focus.After examining a number of key areas constituting important strategic approach to HRM, It can be argued that A-One bakeries is able to incorporate some of the traditional practices in order to provide a more strategic edge to its recruitment and retention of employees. For identifying the areas of improvement and strengths, there can be a performance appraisal system introduced. More explicit areas of improvement within its HRM can be set by the company that would be supplemented with the strategy to be committed in addressing the identified needs. Similar to the marketing and advertisements, a specific budget should be introduced for training and development of employees. There is absence of different forms of empowerment and involvement even though distinction is made by the company in regards to the working environment. Instead of following the traditional way of HRM, they could be rewarding the innovative role of its staff and how they have contributed towards the companys growth and current achievements. Despite of the recruitment of large number of employees, it can be surprising to know that the presentation of the targets by the company is in general defined. A-One bakery might be serious about its performance targets and growth but they should communicate this clearly and explicitly to the current and future employees.Conclusion.The aim of this assignment has been to analyze how an organization can achieve a corporation a between its strategic and human resource management. This Essay argued that the changing role of HRM is an indication of the development of Strategic HRM as compromising a much more critical role than it did in the past. This essay identified four areas which are critical for developing a strategic approach to HRM and also provided a literature review on them. All of the above practices aim at providing a more explicitly measured as well as managed role and performance of the employees. The improvement of the corporation as a whole is believed to be a result of training and development of the employees. By examining the case of A-One bakery, this essay identifies how an organization does currently possess a strategic focus on its HRM practices. The employees are seemed to be treated as functional role providers translating into the manufacturing and selling practices. In order to develop a strategic focus to its HRM functions, A-One needs to be more committed towards training and development as it is an important perquisite to its wider corporate performance.