Strategic human resource management is a fundamental factor in the ongoing notions of a company. The effectiveness and use of Strategic Human Resource Management (SHRM) will determine the outcome of the future of an organisation. SHRM is built upon major principles to create dimensions for a company’s set up. All organisations will deal with both external and internal influences and it is how a company uses its SHRM to deal with these influences that will determine its present and future progression and success. The human resource management choices on behalf of the company on how they operate is essential as it will reflect their cultural, social, and political stance, also the way in which employees were dealt with.
Human resource management looks at implementing, evaluating and maintaining the policies, practices, and systems that influence employee’s behaviours, attitudes and performance. The strategic side of ‘human resource management’ (giving us ‘strategic human resource development), is in order to achieve effective outcomes in terms of an individual’s performance and ultimately the organisational performance to meet the company goals. The strategic human resource management is the pattern of the structures employed by the human resource team. This is maintained and achieved through the human resource practices and the effectiveness to be able to consistently influence employee attitudes and behaviours to ensure the organization is striving for the certain goals with the use of the strategies implemented. Strategic human resource management is the company’s process for analysing their competitive situation, developing a company’s strategic goals and devising an action plans and allocating resources, that will increase the likelihood of achieving these goals (Kramar, Bartram, De Cieri Edition 4 2012).
The process of SHRM, is a set of activities necessary for staffing the organisation and sustaining high employee performance. Therefor it is vital for a company to place great importance in these processes and procedures. The people of an organisation will predominantly be the significant source of a competitive advantage to their competitors. This requires management to work with and through their employees to see them as partners. In terms of potential progression of a company the organisational structure and strategies will derive from the output of the employees. Quality SHRM requires thinking ahead, and planning ways for a company to better meet the needs of its employees, and for the employees to better meet the needs of the company. Two critical components of the strategic management process are ‘strategy formulation’ and ‘strategy implementation’. Strategic formulation is the process of deciding on a strategic direction by defining a company’s mission and goals, its external opportunities and threats, and its internal strength’s (Kramar, Bartram, De Cieri Edition 4 2012). Strategy implementation is the process of devising structures and allocating resources to enact the strategy a company has chosen (Kramar, Bartram, De Cieri Edition 4 2012).
A crucial aspect of SHRM is the employee development. From the initial recruitment and interview stage of prospective employees, it is vital the interviewing techniques used can help to cypher applicants that may not be a good match for the company, to those that would excel and be a great suit for the company. An external factor affecting a company’s drive to hire new talent is the ‘pool of workers’ that it can search for. If the company needs to hire individuals with highly specialized skills, it may have difficulty locating and attracting suitable candidates, especially if the same skill sets are in demand throughout the entire industry. The company's geographic location may also be a factor, as it may need to focus its recruiting efforts outside the cities region if the talent pool is not large enough. Finding the right person…