Importance & Role of Strategic Human Resource Management


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Introduction to Human Resources

Strategic human resources is integral part of very organization. It involves management of human relations in a company. It is important in an organization for execution of operations effectively. Strategic human resources management is important for decisions, process and choices that effects the performances of an organization. The main aim of SHRM is to provide efficient workforces to company that give better work to business (Armstrong and Taylor, 2014). It provides guidelines to managers of the company how effectively use of human capital in decisions making process. From fresh hiring to selection of top executive in firm is part of strategic human resources' management. Business environment is always dynamics in nature in order to gain competitive advantages effective HR management is necessary for a small business as well. Kind Consumer is rapidly growing organization which focusses of developing novel inhalation technologies to reduce tobacco harm.

The present report focuses on strategic human resource management and explain its important in choose organization (Snow and Snell, 2011). It also explains strategic frame work of HR management and their roles in and their implications as well. It also addresses main problems for applying HR strategies infirm. This report also explains the best HR strategies for Kind Consumer and their implications on organization .

Activity 1

Strategic Human resources management

Strategic human resources' management is a method or approaches used by organization for managing their human resources (CHUANG and Liao, 2010). It includes human resources elements such as hiring, payroll and managing companies other activities such as quality improve, work experience and maintain long term relations between institution and their employees.

The main aim of strategic human resources' management is to provide efficient work force to company that can increases performance of organization. They how to make use of human capital in company effectively and manage their functions (Guest, 2011). The role of strategic human resources' management is managed leverage upon the capabilities of the people and ensure that employees of company are not treated only as resources of company but as an asset for organization. From hiring to selection of leaders process done by strategic human resources' management. It also ensures that business allow their employees inn decisions making process.

Importance of human resources' management.

Human resource management play important role in every organization. HR management 's main purpose is help business firm to accomplish their objectives (Brewster, Mayrhofer and Morley, 2016). An organization can not reach its goal without good Human resource . The key area of human resources' management are hiring people, training and development and motivating employees. HR management practices is also provided services in small business as well. The importance of human resources' management are as follows.

Recruiting: It is major responsibilities of human resources' management. HR managers design plan and strategies for hiring right persons for right job. They design criteria for selection of employees (Buller and McEvoy, 2012). Recruiting process includes formulating obligations for employees and prepared employees contract with company. By developing HR practices in business Kind consumer can hire better employees for their growing business.

Training and development: It includes provide training to new hiring employees in organization. This is important step to develop fore development of employer- employees relation in a company (Jackson, and et. al., 2011). Training provide to employees according to requirements of organization. Employees get opportunities to enhance their skills and give better work to company. By providing training to their employees Kind consumer can also increasing its productivity.

Strategy: HR strategy include to utilization of human resources in effective manner. Leaders with professional employees in organization participate in corporate decision making that include current staffing assessments and fulfil future demand of workforce (Snell, and Bohlander, 2010). With help of HR management the health company can also improve its bottom line by putting effective utilization of their employees.

Maintaining workplace ethics: By maintain workplace ethics and friendly environment in organization can gives more job satisfaction to their employees. A good organization culture provide better working condition to their employees because performance of individual is highly affected by company's atmosphere (Mondy and Martocchio, 2016). By providing good working conditions to employees organization can benefit to employees as well as business firm.

Developing public relations: To develop good public relation is lies with HRM. They assist company's management to conduct meeting, seminars and other gatherings for buildings their relationships with other business firm (Dickman, 2010). HR department play crucial in business to preparing plans. It also aids to company for developing their marketing strategy.

Performance appraisals: HRM encourages people to improve their work performance in company and develop their potential as well as suggest to them for further improvements. HR communicate with staff and give necessary information to employees time to time. By these methods' company's employees get aware about performance and enable to provide much better services to organization (Guchait and Cho, 2010). Kind consumer can also use it and encourages to their employees to better work.

Provide compensations: HR is responsible for managing employees' wages and salary structure. It duty of HR to pay reasonable amount to their employees and maintain financial status of company in line (Werner, and DeSimone, 2011). They also conduct wages and salary surveys in similar industry and analysis other companies' wages structures as well as their employees' skills.

Managing disputes: In as organization there are several types of conflicts take place. In that case HR act as mediator try to sort out those problems and provide suitable solution to company. They hear employees' problems and consult to them in effective manner. In kind Consumer they can also allow such HR practices for more effective business management and also help to maintain good employer -employee relationships in company.

Job and workplace design: The HR of company is responsible for design of job for their employees. Designing of job include specification of contents, methods and relationships of job that are related to company (Jackson, Schuler, and Jiang, 2014) .It also includes to satisfy the requirement of company as well as job satisfaction among employees. In Kind Consumer Company HR of company improve job satisfaction and reduce employees' problems.

(c) Analysis of framework of strategic human

Framework of strategic human resources' management identify those factors that affects Business of organization (Strategic Human Resource Management, 2016.). The frame work of strategic human management analysis the internal and external factors that has impacts on company performance and develop strategies to overcome with those deficiencies.

Mission: Mission of company is actually define it business criteria and its objectives. The frame work of strategic human resources' management defines how company deals with its business environment in effective manner (Ng, Schweitzer and Lyons, 2010). The company mission statements help to identify those factors that affects it business operations. By identifying its mission statement, company can overcome with deficiencies that can affects its mission statements.

Internal factors: Internal factors of company includes employees, staff members, suppliers and work culture of company. The workers of employees and their experience and skills can effects has great impact on performance of business. Managing is employees in organization and use of their skills and create job satisfaction among them is big challenges for company. Kind Consumer need to focus on internal factors of company so performance of firm is not affected by internal factors. Company cultures is also promoted innovation in its environment.

External factors: It includes political, economy, social, technological factors that any business from externally. Company need to assess these factors carefully. The political factors include tax policy as imposed by government on business high tax policy imposed by government can affects revenue of organization (Kusluvan, and, 2010). Company also need to assess economic conditions of country in which there operations are operating. Kind consumer working as small business still it can effect by external environment so HR need to make adopt strategy as per external environment and allow enough flexibility in their strategies. The impact of external factors is effects the entire industry but company HR need to make strategy to overcome with those impacts.

Strategies: Strategies of company need to adopt as according to business environment of organization. The Strategies of human resources should indicate those business factors. The strategies of human resources for hiring and selecting employees is best on find correct persons for job (Boxall, and Purcell, 2011). After hiring company provides trainings to their employees to enhance their skills and development of their knowledge. The strategies also indicates to provide task to their employees and maintain team effectiveness among them.

Similar sample on HRM role & responsibility- 

Monitoring: The health care company after making strategic there is need of monitoring of their strategies in company. HR of company ensure that monitoring is done by any leaders or expert of company so targets can be achieve in effective manner (Guest, 2011). This process ensures that all strategy make by organization is should be attempt in effective manner so performance of company is not affected by it.

(d) Human resources Management process

Human resource process includes HR planning, employee remunerations performance management and employees relations (Kraaijenbrink, Spender, and Groen, 2010). The effective designing of these process depend on their effective implications. The following are process of human resource management.

Human resources planning: Human resources planning involves several stages. Planning includes not only hiring people in organization but it also includes evaluation, promotion and Layoff. The following steps consider under planning stages.

Recruitment: It focuses on find right person for right job. It aims to attract more talent people in organization that can meet the requirement of job (Guchait, and Cho 2010). HR of company recruit employees for different level in company based on their skills and experience.

Selection: In this stage company shortlisted candidates on the basis of qualification, expertise and have potential to for job. HR of company make selection of employees who has soft skills, interpersonal skills along with their knowledge. This skills help in a candidate help to company to maintain long term relations with their employees.

Hiring: It means to select final candidate for job as according to company's vacancy and their requirements (Kehoe and Wright, 2013). Hiring ensures the correct persons for job who meet the criteria of job and can perform activities of organization.

Training and development: This process institution work on to develop of employees' skills and abilities up gradation. Through providing correct training to employees they increase their efficiency. It also assists to organization to develop their performance and business activity in better way. It also provides employees to perform tasks and meet company objectives.

Employee remuneration: Financial incentives is the best motivator for every employee. This process includes deciding worker salary, incentives and perquisites (Baumgartner and Ebner, 2010). By providing good salary and wages to employees they can retain their workers for long term in organization. For every employer to get good pay is prime motive so by paying good amount to their employees they motivate to them for better work.

Performance management: In this stages company train and motivated to their employees so they can meet organization goals with effectively. This process is not only for the workers but can also be for whole department or product (Tang and Tang, 2012). Kind consumer can also use Automated performance management systems that assist to company for adding all information that evaluate performance of employees and also provide them training as according to their needs.

Employee relations: To maintain employee relations is an important factor for every company. Employee relation includes labour relations, working environment, employees health and safety. All these are critical factors for retention of employees in organization. It is also very important for establishments to maintain good relation with their employees especially in industry that are highly competitive.

(e) Role of Strategic human resources' management

Maintain employees - employers relations is part of strategic human resources' management. The strategic role of HR in company is to provide manpower that can perform organization activities and increasing productivity of company. The following are the roles of strategic human resources' management.

Hiring and selection : It is main goal of HR management to hire right person in organization for different levels. This include take decisions for section and decide their pay and perks. The role of strategic HR management is design selection criteria for a particular job and find right person for the job (Armstrong and Taylor, 2014). By hiring and selecting right person for company they can increase performance of company. It also includes provides required training for fresh employees to enhance their skills in better way. The health care company can make strategies for hiring people by taking advices of their HR professional.

Leadership development: By introducing leadership programs in company HR develop leadership quality in their workers (Snow and Snell, 2011). HR identified potential workers in their company and analysed their skills and capabilities. In leadership development HR integrated with performance management systems which help to company to develop business strategy and leadership objectives. The HR also divide their workforce between potential workers and average workers. They give higher roles and responsibilities potential workers who are marked for fast track career progression based on performance management systems.

Team effectiveness: HRM divide workforces into teams and motivate to their employees to perform their tasks in team. HR set challenging task for their employees and motivate to them find innovative ways to achieve their targets (CHUANG and Liao, 2010). HR ensures that a team has right mix of skilled people so they can perform task in effective manner. These skills involve technical, problem solving and interpersonal skills. In Kind Consumer to manage effective team work HR can plan different activities that increase mutual and trusts between employees.

Workplace safety: Creating a healthy work environment is strategic role of HRM. Strategy for workplace safety includes risk management and analysis potential losses that may occur on workplace. It also includes to plan strategic compensations such as insurance coverage for their employees (Guest, 2011). In the health care company HRM also ensures reducing accidents through training employees and make provide clear guidelines to their worker to using machinery and equipment. It is primary task associated with organization for creating a safe work environment.

(f) Development and Implementations of Human resources strategies

Development of HR strategies are needed when numbers of clients are has increased. HR strategies are depended on organization size and structures and cost of the resources that are essential for deliver effective HR strategy. The following process includes development of human resources' strategy.

Create a vision: It is important for HR to develop a vision for company. With a vision company can decide how to achieve their goals. By sharing that visions with company's HR help to find correct methods that can assist in HR strategy (Brewster, Mayrhofer, and Morley, 2016). By dividing company goals into long term and short term HRM aid to organization to achieve their goals.

Understand current situations and identify deficiency: For an effective implementation of HR strategy workforces is important elements for organization. The company need to understand its current situation and also identify deficiency that are decreasing efficiencies of institution employees (Buller and McEvoy, 2012). By identifying those deficiencies the health care company provide a framework and time line to their employees. The development of HR strategy also includes assess new technologies and virtual work spaces for improving productivity.

Model of dynamics nature: Business is always dynamics in nature. External environment of company is always affect its strategies before developing any strategy organization need to consider future elements and their risk factors. It helps to business firm for maintaining enough flexibility in their strategies.

Bridge into action: To development of effective HR strategy, company needs to consider guiding principles and agree board themes into actions (Jackson and et. al., 2011). It also includes involve line mangers and ask for suggestions to develop strategy. Shared visions with company's employees and make aware them about goals. Create cross functional teams in organization to identify goals and find performance indicators.

Implementation of strategic human resources mangement

Development of strategy is not sufficient it proper execution is also very important. Strategy which provide desire result in company. The key elements for implementing strategic human resource management are as follows.

Communication: It means make aware to everyone in organization about their strategy. With help of effective communication employees of organization can engaged with company's motive and aligns properly with strategy. This also help to company to solve conflicts which may occur during executive strategies.

Determine goals: while implementing company goals it is very important to determine company's goals. This goals help to HR to implementing their goals. Strategy is planned according to company's goals (Snell and Bohlander, 2010). Kind Consumer has goals to developing novel inhalation technologies to reduce harm of tobacco then their strategy focuses on that people who want to alternative solutions of tobacco.

Decide means of achieving goals: The best strategy execution is only possible if it fits with external and internal environment. Implementing to any strategy in business firms need to focus on external environment as well. There is flexibility and consistency in implementing business strategy. HR goals are should be relevant with external environment by considering the degree of flexibility.

Activity 2

Identification of HR strategy:

HR strategies are set according to organization goals. HR policies and practices are integrated with business goals. The purpose of HR strategies is to development organization. They provide a means of communication which has concerned intentions about management of human resources (Mondy and Martocchio, 2016). A good HR strategy helps to company to satisfy all area of management in company. This strategy is suitable for company because it makes people value. It helps to organization to make their people knowledge. It shows employees of organization how to fit adopt strategy and their implementations in effective manner.Specific HR strategy is followed by Kind Consumer. The specific HR strategy is focused on different aspects of management and related to their strategy. It matches with overall areas of functions in business. Implication of HR Strategy In the company.

Talent strategy: Human capital is very important factors for every organization. The HR of company is responsible for hiring employees and forecasting employee's needs in company. By applying this strategy the health care institution find knowledge, skills, and abilities in human capital that can creating more value in their services (Dickman, 2010). The HR strategy is focused on creating and maintaining job descriptions for their employees.

Continuous improvement: It includes development of skills and abilities of workers. It focuses on providing training and development programs of company workers. The health care company with help of HR can create high performance work cultures to motivate their employees (Human Resources Advice, 2016). Leaders of company support HR strategy to create high performance environment in organization (Guchait and Cho, 2010). This strategy also supports to providing training to employees so they can increase their skills.

Knowledge management: It involved creating and enhancing employees' knowledge about their work experiences. The knowledge of employees can be increasing by sharing information with their leaders or their mangers. This approaches include on job discussions, professional training and mentoring programs. To increases knowledge of their employees organization can conduct seminars and provide mentors for their workers in order to increasing their knowledge about industry (Werner and DeSimone, 2011). It also includes make aware to employees about company's norms and structures and their cultures.

Leadership strategy: Top executives in company play important role and can effects company performance (Kind consumer, 2017). HR plays important role into selection of executives in company. The quality of decisions making can effects company performance. So it important for HR to make correct selection of executives in company. HR is important part of organization their ideas and selection of employees can improve bottom line.

Employees' relations: To maintain employee's relation with company HR is play as mediator in business firm. They develop equal opportunities for their employees and provide training to their employees (Jackson, Schuler and Jiang, 2014). Employee relations can be improved by providing good and healthy environment to employees. In kind Consumer to develop good employees relations they give freedom to their employees for develop of their creativity in organization. HR makes sure to pay equal to their employees and maintain healthy competition between the employees.


Employees are important assets in every organization and to manage their efficiency and performance is responsibilities of HR management. The SHRM is responsible for planning and executive of policies and their implementations. For growing business it is important to manage their human resources so company can retain their employees for long term. Kind Consumer business are growing rapidly so company need to manger its human resources in effective manner. For successful impel mention of strategic human management it is important understand
Visions of company. By managing strategic human resources' management in company they can use and manage their employees' efficiency in better way.

From the above report it can conclude that by applying strategic human resources' management in health care company they can enhance efficiency of organization. It also concludes deficiencies faced by SHRM and also their implications on company. Furthermore, this report also conclude implications of specific HR strategies in different management area of company. At last as growing small business organization need to focus on maintain their business relations with employees for long term growth of firm.


Books and Journals

  • Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management practice. Kogan Page Publishers.
  • Baumgartner, R. J. and Ebner, D., 2010. Corporate sustainability strategies: sustainability profiles and maturity levels. Sustainable Development. 18(2). pp.76-89.
  • Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
  • Brewster, C., Mayrhofer, W. and Morley, M. eds., 2016. New Challenges for European Resource Management. Springer.
  • Buller, P. F. and McEvoy, G. M., 2012. Strategy, human resource management and performance: Sharpening line of sight. Human resource management review. 22(1) pp.43-56.
  • CHUANG, C. H. and Liao, H. U. I., 2010. Strategic human resource management in service context: Taking care of business by taking care of employees and customers. Personnel Psychology. 63(1). pp.153-196.
  • Dickman, A. J., 2010. Complexities of conflict: the importance of considering social factors for effectively resolving human-wildlife conflict. Animal conservation. 13(5). pp.458-466.
  • Guchait, P. and Cho, S., 2010. The impact of human resource management practices on intention to leave of employees in the service industry in India: the mediating role of organizational commitment. The International Journal of Human Resource Management. 21(8). pp.1228-1247.
  • Guchait, P. and Cho, S., 2010. The impact of human resource management practices on intention to leave of employees in the service industry in India: the mediating role of organizational commitment. The International Journal of Human Resource Management. 21(8). pp.1228-1247.
  • Guest, D. E., 2011. Human resource management and performance: still searching for some answers. Human Resource Management Journal. 21(1). pp.3-13.
  • Guest, D. E., 2011. Human resource management and performance: still searching for some answers. Human Resource Management Journal. 21(1). pp.3-13.
  • Harzing, A. W. and Pinnington, A. eds., 2010. International human resource management. Sage.
  • Huselid, M. A. and Becker, B. E., 2010. Bridging micro and macro domains: Workforce differentiation and strategic human resource management. Journal of management.
  • Jackson, S. E. and et. al., 2011. State-of-the-art and future directions for green human resource management: Introduction to the special issue. German Journal of Human Resource Management: Zeitschrift für Personalforschung. 25(2). pp.99-116.
  • Jackson, S. E., Schuler, R. S. and Jiang, K., 2014. An aspirational framework for strategic human resource management. The Academy of Management Annals. 8(1). pp.1-56.
  • Kehoe, R. R. and Wright, P. M., 2013. The impact of high-performance human resource practices on employees' attitudes and behaviors. Journal of management. 39(2). pp.366-391.
  • Kraaijenbrink, J., Spender, J. C. and Groen, A. J., 2010. The resource-based view: a review and assessment of its critiques. Journal of management. 36(1). pp.349-372.
  • Kusluvan, S., and, 2010. The human dimension a review of human resources management issues in the tourism and hospitality industry. Cornell Hospitality Quarterly. 51(2). pp.171-214.
  • Mondy, R. and Martocchio, J. J., 2016. Human resource management. Human Resource Management, Global Edition.
  • Ng, E. S., Schweitzer, L. and Lyons, S. T., 2010. New generation, great expectations: A field study of the millennial generation. Journal of Business and Psychology.25(2). pp.281-292.
  • Scullion, H. and Collings, D., 2011. Global talent management. Routledge.
  • Snell, S. and Bohlander, G. W., 2010. Principles of human resource management. South-Western Cengage Learning.
  • Snow, C. C. and Snell, S. A., 2011. Strategic human resource management. In The Oxford Handbook of Organizational Psychology. Volume 2.
  • Tang, T. W. and Tang, Y. Y., 2012. Promoting service-oriented organizational citizenship behaviors in hotels: The role of high-performance human resource practices and organizational social climates. International Journal of Hospitality Management. 31(3). pp.885-895.
  • Werner, J. M. and DeSimone, R. L., 2011. HOnline uman resource development. Cengage Learning.
  • Online
  • Human Resources Advice, 2016. [Online]. Available through: <>. [Accessed on 12th January 2017]
  • Kind consumer, 2017. [Online]. Available through<>. [Accessed on 12th January, 2017]
  • Strategic Human Resource Management, 2016. [Online]. Available through: <>. [Accessed on 12th January 2017]


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