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Importance of Human Resources Management and its Development Strategies

3485 Downloads1 I Published: 04 Apr ,2019

Introduction

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

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The present report focuses on strategic human resource management and explains its important in choose organisation (Snow and Snell, 2011). It also describes the strategic framework 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 organisation  

Activity 1

a) Strategic Human Resources Management

Strategic human resources' management is a method or approaches used by an 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, works experience and maintains long-term relations between an institution and their employees.  

The main aim of strategic human resources management is to provide the efficient workforce to the company that can increase performance of an organisation. They how to make use of human capital in the company efficiently 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 a company are not treated only as resources of the company but as an asset for the organization. From hiring to the selection of leaders process done by strategic human resources' management. It also ensures that business allows their employee's in decisions are making process.  
 

(b) The importance of human resources' management.

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

Recruiting:  It is major responsibilities of human resources' management. HR managers design plan and strategies for hiring right persons for the 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 a 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 an organization. This is important step to develop for the development of employer- employees relation in a company (Jackson, and et. al., 2011). Training provides to employees according to requirements of an organization. Employees get opportunities to enhance their skills and give better work to the company. By providing training to their employee's Kind consumer can also increasing its productivity. 

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

Maintaining Workplace Ethics: By maintaining workplace ethics and friendly environment in the organization can give more job satisfaction to their employees. A good organisation culture provides better-working condition to their employees because the performance of individual is highly affected by company's atmosphere (Mondy and Martocchio, 2016). By providing good working conditions to employees, an organisation 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 the meeting, seminars and other gatherings for buildings, their relationships with other business firm (Dickman, 2010). HR department plays crucial in business to preparing plans. It also aids to the company for developing their marketing strategy.  

Performance Appraisals: HRM encourages people to improve their work performance in the 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 an organization (Guchait and Cho, 2010). The 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. Its duty of HR to pay the reasonable amount to their employees and maintain the financial status of the 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 organisation there are several types of conflicts take place. In that case, HR act as mediator tries to sort out those problems and provide the suitable solution for the company.

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They hear employees’ problems and consult with them in an 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 the company.  

Job and workplace design: The HR of the company is responsible for the design of job for their employees. Designing of the job include specification of contents, methods and relationships of job that are related to the company (Jackson, Schuler, and Jiang,  2014). It also includes satisfying the requirement of the 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 affect

The business of organisation (Strategic Human Resource Management, 2016.). The framework of strategic human management analysis the internal and external factors that have impacts on company performance and develop strategies to overcome those deficiencies.  

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

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

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

Strategies: Strategies of the company need to adopt as according to the business environment of an 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 the job (Boxall, and Purcell, 2011). After hiring company provides training to their employees to enhance their skills and development of their knowledge. The strategies also indicate to provide the task to their employees and maintain team effectiveness among them.

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

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(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 the process of human resource management. 

Human resources planning: Human resources planning involves several stages. Planning includes not only hiring people in the 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 an organization that can meet the requirement of a job (Guchait, and Cho 2010).  HR of company recruit employees for a different level in the company based on their skills and experience.  

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

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

Training and development: This process institution work on to develop of employees’ skills and abilities up gradation. Through correct providing training to employees, they increase their efficiency.  It also assists to the organization to develop their performance and business activity in the 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 the long term in the organization.  For every employer to get good pay is prime motive so by paying the 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 organisation goals with effectively. This process is not only for the workers but can also be for the whole department or product (Tang and Tang, 2012). The kind consumer can also use Automated performance management systems that assist to a company for adding all information that evaluates performance of employees and also provides 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 an organization. It is also very important for establishments to maintain good relation with their employees especially in the industry that is 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 the company is to provide manpower that can perform organisation activities and increase the productivity of the company. The following are the roles of strategic human resources' management.

Hiring and Selection: It is the main goal of HR management to hire right person in the organization for different levels. This includes take decisions for the section and decide their pay and perks. The role of strategic HR management is designed selection criteria for a particular job and find the right person for the job (Armstrong and Taylor, 2014). By hiring and selecting the right person for the company they can increase the performance of the company. It also includes provides required training for fresh employees to enhance their skills in the better way. The health care company can make strategies for hiring people by taking advice 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 the 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 divides workforces into teams and motivate to their employees to perform their tasks in the team. HR set challenging task for their employees and motivate them find innovative ways to achieve their targets (CHUANG and Liao, 2010). HR ensures that a team has the right mix of skilled people so they can perform the task in an 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 the strategic role of HRM. Strategy for workplace safety includes risk management and analysis potential losses that may occur in the workplace. It also includes planning 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 the organization for creating a safe work environment.  

(f) Development and Implementations of Human Resources strategies

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

Create a vision: It is important for HR to develop a vision for the 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 the organization to achieve their goals.

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

Model of Dynamics nature: Business is always dynamics in nature. The external environment of the company always affects its strategies before developing any strategy organisation 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 the development of effective HR strategy, the company needs to consider guiding principles and agree on board themes into actions (Jackson and et. al., 2011). It also includes involve line managers and ask for suggestions to develop the strategy. Shared visions with company’s employees and make aware them about goals. Create cross-functional teams in the organization to identify goals and find performance indicators.

Implementation of strategic human resources management

Development of strategy is not sufficient it proper execution is also very important. A strategy which provides desired results in a company. The key elements for implementing strategic human resource management are as follows. 

Communication: It means make aware to everyone in the organization about their strategy. With the help of effective communication employees of the organization can engage with company's motive and aligns properly with strategy. This also helps to the 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. These goal help to HR to implementing their goals. The strategy is planned according to company's goals (Snell and Bohlander, 2010). Kind Consumer has goals to developing novel inhalation technologies to reduce the harm of tobacco then their strategy focuses on that person who want to alternative solutions of tobacco.

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

Activity 2

Identification of HR strategy:    

HR strategies are set according to organisation goals. HR policies and practices are integrated with business goals. The purpose of HR strategies is to the development organisation. 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 the company. This strategy is suitable for the company because it makes people value. It helps to the organization to make their people knowledge. It shows employees of the organization how to fit adopt the strategy and their implementations in an 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. The implication of HR Strategy In the company.   

Talent strategy: Human capital is very important factors for every organisation. The HR of the company is responsible for hiring employees and forecasting employee’s needs in the company. By applying this strategy the health care institution finds knowledge, skills, and abilities in human capital that can create 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 the development of skills and abilities of workers. It focuses on providing training and development programs for company workers. The health care company with the 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 the 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 managers. These approaches include on job discussions, professional training and mentoring programs. To increases knowledge of their employee's organisation can conduct seminars and provide mentors for their workers to increase their knowledge about an industry (Werner and DeSimone, 2011). It also includes making aware to employees about company’s norms and structures and their cultures.  

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

Employees’ Relations: To maintain employee’s relation with company HR is playing as the mediator in the 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 the good and healthy environment to employees. In-kind Consumer to develop good employees relations, they give freedom to their employees for developing their creativity in the organization. HR makes sure to pay equal to their employees and maintain healthy competition among the employees.  

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Conclusion 

Employees are important assets in every organisation 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 the company can retain their employees for the long term. Kind Consumer business is growing rapidly, so company need to manage its human resources in an effective manner. For successful impel mention of strategic human management it is important to understand Visions of the company. By managing strategic human resources' management in the company they can use and manage their employees’ efficiency in the better way.  
From the above report, it can conclude that by applying strategic human resources' management in health care company they can enhance the efficiency of an organization. It also concludes deficiencies faced by SHRM and also their implications on a company. Furthermore, this report also concludes implications of specific HR strategies in the different management area of the company. At last as growing small business organisation need to focus on maintaining their business relations with employees for long-term growth of the firm.

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