STRATEGIC HRM ESSAY Harvard Case Solution & Analysis


Practical Importance of Core Concepts and Theories of SHRM

All these experiences have helped me in knowing the importance of Strategic Human Resource Management (SHRM), as now even small companies from all over the world are worried about the future of their businesses due to the increase in competition and technological advancement. So, to link skilled employees with the company’s mission by providing decentralized and employee-centric environment has become very important for an organization as common factors amongst the successful organizations of present are that they are very selective hiring, give job security, become decentralized, encourage teamwork by decreasing status differences, share information and provide required training to their employees (pfeffer, 1999).

Moreover, Strategic HRM helped me a lot in my career as I worked for various organizations in the discipline of Finance, Business, and Human Resource. Importance of Strategic HRM is equally important irrespective of the business type. As the resource-based view of strategic HRM is that, human capital is the most important component in making the organization profitable because it deals with the effective management of resources, capabilities, competitive advantage and profitability (Grant, 1991). Moreover, as the competitive advantage can only be achieved in today’s world if the organization has more skilled and motivated human resource than its competitors. While working with organizations of different industries, I experienced the implementation and importance of Strategic HRM’s theories and concepts i.e. as nowadays service sector has grown both in industry size and importance as compared to manufacturing sector, so those companies have more chances of growth that have more competent and satisfied human resources as I experienced this while working in both General Electric and APM Australia.

In addition, bundling is the development and implementation of various Human Resource practices together (Kaufman, 2001), such that they become interrelated and reinforce each other. It works on the idea that, tasks within bundles which  are similar are overlapping with each other therefore employees must be provided with multiple skills in their domain through proper training and careful selection, then should be provided incentives to keep them motivated and committed to their jobs. This practice is also becoming very important because in most of the service sector jobs, the horizontal hierarchy has numerous tasks that overlaps with each other. Organizations provide training to their employees to increase their skill base and through the provision of incentives they boosts employees ‘motivation in order to make them more competent and motivated than their competitors. Along with this, if management creates an employee-centric environment and encourages teamwork then in such case organization can easily attain the competitive advantage. However, to maintain this competitive advantage a culture of innovation should be introduced in the organization and  management needs to carefully design training according to the need of the time. And those employees should be focused more who are in need of training, in such cases employee-centric training should be customized to keep the quality of service up.

Management Competence - Adding Value to the Organization

Resource-based Strategic HRM, as defined by (Boxall, 1996), is “creation of firms that are more intelligent and flexible as compared to their competitors which is only possible if they hire and develop more talented employees by stretching their skill base”. Given this definition and my personal experience of working in the various organizations including G.E and AMP, I have seen the organizations worldwide, focusing on hunting skilled and talented human resources and then doing the necessary measurements to retain such employees. This is because now the strength of organizations is the competence of its management as compared to their competitors, that’s why General Electric trained staff increased by 600% in just 3 years and its revenue also became more than double in the same period of three years.  Moreover, AMP’s business is successful just because of its employees have the required skills and they are committed to AMP which results in  of increased number people in Australia trusting the AMP for seeking financial advices. This means the competence of management adds the significant value to the organization in terms of  quality services and customer attraction.

Being the Financial advisor in a company, my role is to provide financial advice to our customers about investment decisions, superannuation, income protection and life insurance etc. As I have worked in various departments of various organizations including human resource management and finance, so it became very easy for me to deal with customers and colleagues. Moreover, if I provide quality information to customers who become much more satisfied then it would increase the customer base of AMP because positive word of mouth will be spread amongst the public and vice versa. Due to my earlier experience my organizations don’t need to invest more on human resource management skills, however, they need to provide training about the market of dynamics of Australia and type of market forces that affect the financial decisions of the customers. When this is done, I will be able to provide more precise and accurate advice to the customers, this will increase the value of AMP and make it trustworthy Wealth Management Company of the country.

Now, we can better understand the role of competent management in adding value to the organization. Moreover, all of this can be done only if AMP hires a skilled and competent management, which will identify the need for competent and talented human resource, which is both satisfied and motivated. In addition, the management will make necessary arrangements for the training and development of the human resource, so that company will have satisfied customers who will spread positive word of mouth about AMP. Similarly, providing enough training and remuneration will create a sense of confidence and loyalty amongst the employees, moreover, they will start to actively contribute to the goal achievement of the organization and put their optimum efforts in adding value to the organization. Therefore, a competent management is vital for any organization because it creates the environment where ideas flourish and employees learn skills and share their ideas that become the reason for organizations to succeed in the long-term while leaving their competitors behind...........


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