Challenges in Strategic Human Resource Management

It is important to identify what consequences SHRM has on the performance of business. In other words, as HRM is concerned with the people implications of the company, how can it change the vision of the organizations future and how can it help to fulfill the mission.

The key role of strategic HR management is already known and there are some issues that HR strategy may address:

1. Structure

The success of the company depends a lot on whether there is a proper management structure in place.

2. Team-working

By withdrawing old traditional hierarchies a background of creating a team building is created. In a lot of cases, the less layers there are between the workers and director there are, the more harmonized is the working environment. Also the communication between staff is easier and more effective. In addition to that, it could have far-reaching effects on flexibility and performance and to achieving a better coordination of business.

3. Performance

This strategy is based on an analysis of the critical success factors and the performance levels reached in relation to them. The performance can be improved by taking the steps to improve training, development, reorganization, the development of performance management processes, business process re-engineering, etc. A lot of companies have already adopted performance management processes in which the emphasis is on performance improvement and development and not reward. This scheme brings new priorities of involvement, teamwork and self-development.

4. Quality and customer care

The aim of most companies is to achieve the competitive advantage. The competitive advantage is often measured by customer satisfaction and hence loyalty and retention. Innovation and cost reduction is still important but the main focus of attention should be the customers because if they reject the product due to it not meeting their expectations then everything else looses the sense. Therefore the strategy for quality should be built into the business strategy.

Achieving a complete integration of HR and business strategies is quite complicated. Partly the reason for that is that in the past HR manager in the company was not considered to be a part of a general management team. Furthermore, the personnel advice was not a part of strategic direction. However, in today’s modern business HR is indispensable.