The strategic role of Human resource management

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 THE STRATEGIC ROLE OF HUMAN RESOURCE MANAGEMENT

The Human resource function has to always prepare a promising case for any activity that they propose as it is perceived as expenditure by the financial heads. The HR budgets are pared the first in the times of financial crisis. The field of SHRM, facilitates the HR department  to demonstrate the value of HR function to the organization In 1984, Devanna,  Fombrun and Tichy could link the HR and corporate strategy and laid the foundation for new field in HR i.e. SHRM. SHRM focuses on aligning human capital with the corporate strategy to increase competitiveness of the organization. According to Aswathappa (2004), “the advent of SHRM has brought forward the issues of linkages between the employer-employee relationships and wider organizational strategies and corporate objectives”.

 Since, the ‘employee’ is at centre of the business as the competitive advantage, the role of SHRM becomes critical.  The organizational performance is being linked with the employee development and performance.   The role of HR as strategic partner need to be portrayed now and it is expected of HR to work with top management to carve out corporate strategy, which provides the framework to formulate strategy for the most important resource of the organization “Human Resource”. This integration would help in the identification of employee competencies and behaviours required to achieve the strategic goals and hence would guide the HR strategy implementation by developing HR policies and practices. 

Strategic Human Resource Management benefits the organization by ushering the path of the top management in strategy formulation and of the employees in achieving the strategic goals of the organization. This helps in establishing the organizational competitiveness by focussing on the competitive advantage of the firm. 

SHRM is an integrative approach that connects the management and the employees to the business as a whole and to its environment. But should the human capital be 'consumed' to achieve corporate goals? Or organizations re-define their strategies to achieve the organizational performance not by 'consumption trends' but by ' sustainable practices' towards the human capita??It's high time to think about this... 






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