Mohammad Mosaddek Hussain :
Nowadays, the function of human resource management is getting more complex throughout the world due to various types of organizations, enterprises, companies and business firms. Goal of the organizations is also a deciding factor in planning the human resource management systems based on the organizational objectives, capacity, stability, resources and attitudes of the entrepreneurs and stakeholders as a whole. Besides, organizational mission and vision content should be given prime importance during the planning and implementation stages of the activities. Considering the present situation, we should bear in mind that the mobility of mind of the employees and employers are volatile, instable and the economic flow are uncertain in many business both in developed and developing countries. So, proper strategy should be identified for the organization to this end.
As Senga Briggs and William Keogh opined that “Integrating human resource strategy and strategic planning to achieve business excellence”, developing a HR strategy to support the business plan requires HRM planning to be recognized as a fundamental part of the business planning process, as it is fundamental to integrate HR strategy and strategic planning in order to achieve business excellence.
In real sense strategic planning and decision-making begins with a clear, definite and relevant vision, mission, and objectives and to be communicated to all stakeholders for their clear understanding and ideas. To put these into practice, one should have to identify the processes in which the organization must excel in order to add value for stability and progress.
The strategic planning process should identify the routes an organization needs to take in order to achieve its mission, vision, and objectives.
The key factor influencing the interest in linking business strategies and HR policies is the search for a competitive advantage suitable to the vision of the organization and need. According to George C. Tokesky and Joanne F. Kornides highlighted in their article “Strategic HR management is vital” strategic HRM (SHRM) is the process and idea that HR management that can be used to gain or enhance a competitive business advantage when its practices are integrated into the organizational strategy, practice and culture.
“The HR planning process is a part of business planning. SHRM lifts HR management from the micro level, namely the individual personnel issues to the macro level, concerning the business strategy as a whole.”
Considering the whole, it denotes that the HR assets are the current talent, policies, programs, organization structure, culture and capacity to manage diversity in the different situations.
Further, to this respect, SHRM also includes organizational analysis and design, meaning the HR function has the role to provide management with not only analysis, but also with organization-design recommendations.
The two theories of Briggs & Keogh and Tokesky both prove the importance of HR management being recognized as a business partner in the planning process and to integrate HR strategy and strategic planning in order to achieve business excellence. This is the proved fact that HR does not only help to achieve business goal, but also provides the organization or company with a competitive advantage if HR practices are integrated properly into the overall strategy of the organization.
As stated by Senga Briggs and William Keogh, the vision, mission and objectives as being important tools for the business planning process, whereas George C. Tokesky and Joanne F. Kornides emphasize the importance of organizational design of the company.
The relationship between organizational strategy and HR strategy should be understood properly for the development of the business process and at the same time this should be explained to what degree HR strategies are integrated in the overall organizational strategy. Ideally the two strategies are developed together in an integrated way with the people of the organizations recognized as the key to competitive advantage as a whole.
Challenges For Current Situation
Needless to say that today’s business situation is going more and more complex and critical in all respects. So, the international business enterprises and commercial organizations are planning innovative measures to combat the situations for keeping stability and growth trend at a rapid speed.
In this connection, Dave Ulrich in his article namely “A new Mandate for Human Resources”, highlighted that companies today face five critical business challenges: globalization, profitability through growth, technology, intellectual capital, and change.
For this reason, these challenges that collectively require organizations to build new trend, skill, knowledge and capabilities among the employees and the roles of managers are frequently changing to cope with the emerging situation in the work places. Reputed organizations are thinking of the matter well ahead for their existence and stability so that innovative measures and strategies are taken by them for own interest.
Thinking of Growth & Globalization
Besides this, for the rapid expansion of global markets, managers have to think globally and act locally as they understand the upcoming situation and think of the techniques which are to be appropriate to run the activities smoothly. Globalization requires that organizations increase their ability to learn and collaborate. Ethics also play an important role here, companies have to be able to adapt to new cultures and to manage diversity, complexity, and ambiguity as these are created manifold and various issues.
Nowadays, many companies have realized the gains of downsizing, reengineering, delivering, and consolidation to increase efficiency and cut costs in the organizations. All level of employees will now have to be creative and innovative, and must encourage the free flow on information and shared learning among employees to build a positive culture for rapid success and raising congenial atmosphere within workplaces. They must also become more focused on the market and of the fast changing needs of their customers and stakeholders. From hiring and firing labor force to formulating selection, training, and compensation policies for expatriate employees, managing globalization will be a major HR challenge in the next decades.
Development of Technology
Moreover, the modern technology helps the business world in various ways. In view of this, in modern organizations HR strategy is supported by information technology in the form of human resource information systems and workforce management systems. Developments in IT are leading to significant changes in the measurement of performance.
Extensive statistics can be generated but how meaningful are they? It is also true that not all technology adds value, but it can and will affect how and where work gets done. That’s why managers have to make sense and good use of what technology offers, to make technology a viable, productive part of the work setting.
They will need to stay ahead of the information curve and learn to take advantage of information for business results. In other words, technology plays a major role in running organizations effectively and competently as a whole. There is no alternative of using modern technology for keeping growth and stability of the organizations, business enterprises of commercial and other organizations.
Frequent Change
To adjust the volatile situation and frequent change, companies must be able to learn rapidly and continuously, innovate at all times, and take on new strategic imperatives faster and more comfortably to fit into the work method. They must detect emerging trends quicker than the competition, be able to make rapid decisions, and the flexibility to seek new ways of doing business. Organizations should be aware of the changing business situation and should take advance measure to combat the situation and to keep the continuous trend of progress.
Use of Human Capital
It is equally true that knowledge has become an indirect competitive advantage for companies attempting to differentiate themselves by how they serve customers. The challenge for organizations is to make sure they have the capability to find, attract, assimilate, develop, compensate, and retain talented individuals who can drive an organization that is responsive to both its customers and the opportunities of technology.
As opined by William M. Mercer1, Human Capital can be seen as the sum of intellectual capital (competence & commitment), social capital (network, access to people, reputation, etc.), and emotional capital (behavior, traits, character, etc.).
(To be continued)
