Role of Strategic Human Resource Management
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Introduction to Human Resource Management
Every organization has different resources that it uses for its efficient functioning. Human resources are considered to be most significant assets to an organization. The present report is based on studying role of Human resource management (HRM) and the way they contribute to organizational effectiveness (Sharma, Sharma and Devi, 2009). This study is done taking NHS into consideration and manages to understand importance of HR there. NHS is a health care organization located in UK and run by government funds. The report carries definition and explanation of strategic HRM in context to its importance to NHS. This study also manages to define a framework of strategy formulation in health care organization and analyses strategic human resource management (SHRM). Further report also studies roles in strategic human resource management and development and formulation of strategies. Final part of report is based on identifying various plans that could be effective for the selected health care organization that is NHS and also assesses these strategies with context to their application in this organization (Kabene and et.al., 2006).
Activity 1: Role And Importance Of Human Resource Management In Organizational Effectiveness
1.1 Definition of Strategic HRM
Strategic human resource management can be defined as management and involvement of HR with strategies and goals of an organization. It is done to make employees focus on developing and improving performance in business and thereby maintaining a healthy work environment and culture so as to enable these people to foster their productivity (Getting to Know the Strategic Human Resource Definition...and Related Terms, 2014). By linking HR with strategic goals, they are able to develop innovation and a competitive advantage for firm. For developing and formulating organizational strategies, HR are given a major role so that they focus on achieving long term objectives of the organization and help in offering efficient performance. SHRM involves all functions of management in a strategic perspective that is recruiting by taking into consideration employees who have better skills and competencies.
Strategic HRM requires to focus on development of workers those can prove to be advantageous to NHS in a long term (Armstrong and Redmond, 2011). It is focussed on encouraging long term improvement in work and quality as well as maximizes profits for the organization by making all to work in a collaborative manner. For NHS, SHRM is considered as planning and analysing the ways in which goals of business can be effectively achieved by collaborative working with people. It deals in defining certain plans and actions that help it to differentiate itself in industry. It also aims at achieving long term improved performance and quality service to patients by effectively managing its Human resource and help them in improving their skills by ongoing learning and self development (Zurn and et.al., 2004).
1.2 Explanation of importance of SHRM in organization
Strategic Human resource management plays very significant role for every organization. For health care enterprise like NHS also, SHRM is of greater importance. Human Resource of heath care organization has a vital role in functioning of enterprise and to ensure efficient service. The SHRM helps NHS in following functions:
Employment activities: HR needs to focus upon better recruitment and selection of employees that most suit job requirement (Manojlovich and Ketefian, 2002). It is necessary to identify and define nature of work and skills required so as to recruit right person at right place.
Compensation and benefits: Compensation may be a cost to the health care industry as they have to invest in many goods and medication but still linking compensation and benefits to employees may help in retention and better performance.
Development and training: It is responsibility of HR to timely provide training and development as required by workers of NHS. By working on SHRM perspective, it is very important to keep all employees known with all political, technical and legal aspects from time to time and involve them in training so as to ensure improvement in performance and therefore meet organizational objectives (Foot and Hook, 2011).
Succession planning: SHRM’s crucial aspect is to develop present workforce in order to occupy future expected positions. This is one of the most motivating factors foe employees to focus upon their performance to ensure promotion in future. NHS can plan to specialise and develop particular employees that are efficient and can prove better people for organization and thus also manages to reduce retention. The HR and board members are involved in planning for succession by considering next possible vacancies.
Ethics and motivation: Ethics are important to be managed in field of HR and therefore it is required to be included in SHRM perspective and ensure proper implementation of code ethics (Martocchio, Liao and Joshi, 2011). SHRM also plays an important role in improving employee morale by efficient reward mechanism. They must be made to understand that their performance may affect the life of a patient and thus better performance can be given rewards to improve their motivation level to work more effectively.
1.3 Analysing framework of SHRM
This framework was given by Harvard school that focussed on linking HR policies with organizational strategic policies for which Line managers are responsible. It also aims at managing the employees to portray commitment towards achievement of organizational goals (Gupta and et.al., 2003).
For NHS, These stakeholders can be suppliers, patients, financial corporations, competitors, government, patients, health care providers, governing bodies etc. These stakeholders’ interests need to be valued. Employees are considered to be the most important stakeholders in a health care organization as they are responsible for efficient running of organization through their performance and quality service. The Harvard framework identifies four key areas on which a HR policy is focussed:
Employee influence: This is related to identify employees’ level of authority and power delegation (Cakar, Bititci and MacBryde, 2003).
Human resource flow: It is concerned with activities like better recruitment, selection, appraisal, promotion etc.
Reward system: These systems are linked with the motivation of employees through reward structures.
Work systems: This involves designing an appropriate work structure and culture that helps in designing work for people.
These areas of HRM are focussed for NHS to achieve outcomes in the form of ‘Four C’s’ that are Commitment, Congruence, Competence and Cost effectiveness. These are aimed to be achieved for organizational effectiveness in long run. With a strategic perspective they are evaluated to benefit different levels that are individuals, organization as a whole and society (Gibson, Ivancevich and Konopaske, 2012). These levels need to achieve commitment for NHS, develop coordination and competitiveness for enterprise and at the same time offer service and performance ensuring it to be cost effective.
Activity 2: SHRM
2.1 Analysing process of SHRM
There are five steps in the process of SHRM that involve:
- Defining vision and mission: At this stage, NHS needs to define its mission and vision and all objectives that are to be achieved. Here, employees are allotted their goals and objectives linked such that they are able to achieve organizational objectives.
- Analyzing the environment: The business or environment where NHS operates needs to be analysed. This environment is internal and external to enterprise and helps in gathering data that is useful for achieving predetermined objectives (Strategic human resource management: concept and process, 2014).
- Identifying goals and objectives: Further goals and objectives are formed that are short term and required to be achieved for fulfilling ultimate goals and objectives. The environment determines various stakeholders that are to be taken care of while identifying key goals as all the related people who have a stake on NHS need to be satisfied.
- Strategy formulation: It is the first step of formulating final strategy that involves identifying resource requirements, considering feasibility of strategy and linking it with set goals and targets (Shepherd and Mathews, 2000). Also standards of performance are set against which achieved outcomes are measured.
- Strategy implementation: The whole strategic management process can prove to be waste if implementation is not proper and successful. Therefore NHS needs to ensure that strategy formulated by them should is applicable and implemented on time with optimum utilization of resources.
2.2 Assessing roles in SHRM
HR in traditional system was just managing personnel. But today’s HRM is not just managing these employees but keeping them focussed and aligned to achieve organizational goals and objectives effectively (Sheehan, 2005). The role of HR is not just confined to managing people and providing them with wages and salaries but it also includes better planning to achieve future set objectives. Now in present scenario, HR is termed as strategic partner of enterprise that helps in achieving all goals with efficiency. NHS needs to focus on better HRM in order to align all its workers and make them to achieve organization’s overall objectives that serves all patients in a better way. The changing role of HRM includes, HR development that involves, career planning, succession planning, professional development and training (Henderson, 2011).
Career and succession planning: The SHRM focuses on developing employees as they are most important resource of NHS. These service providers need to be involved in training from time to time which will improve their competencies. This includes extra certification and education for nurses for better level of service etc. The general practitioners may also move forward for getting higher educational degree etc. It will also helps NHS to further plan possible vacancies and develop potential employees to acquire higher positions in future (Bratton and Gold, 2012.).
Training and development: SHRM also plays important role in making NHS efficient by providing timely training to its employees. The workers working there may require particular training and acquisition of skills that may be important to improve their performance at job.
Rewards structure: NHS can also consider linking performance of its workers with rewards to ensure better service delivery and thus improved performance of overall enterprise.
2.3 Development and implementation of HR strategies
The strategies defined by NHS would need to be developed in such a way that they ultimately are focussed on achieving set objectives and goals (Truss and Gill, 2009). It is therefore necessary to efficiently develop these plans. These plans may become ineffective if they are not implemented in a proper way. So it is necessary that development of strategy implementation should be effective.
The formulation or development of HR strategies follows these steps:
Feasibility analysis: This determines resources required in strategy and therefore helps in estimating people, material, technology requirements and performing a cost benefit analysis that must not have costs higher than benefits (Chimhanzi, 2004).
Determining relevance: These strategies must be evaluated on basis of their relevance to mission and vision. The strategies of NHS must be able to achieve its ultimate mission of delivering quality service and improved performance in industry.
Determining key goals: Organization’s main goals and objectives are to be considered along with identifying issue that may restrict efficient strategy formulation.
Deciding ways to achieve these goals: The extent to which conditions of external and internal environment are favourable determines possibilities of success of strategy.
The final implementation must consist of plans and actions that are to be followed. It involves delegating responsibilities at each stage, determining resources with better arrangements for training, aeffective management of strategy and its implementation (Stredwick, 2005). The strategy implementation should also involve influencing workers to accept changes in a positive way.
Activity 3: Formulation And Implementation Of HR Strategies
3.1 Identifying range of HR strategies for organization
NHS can develop certain strategies for its organization that can prove to be beneficial for its effective performance. These HR plans can be:
Effectively manage changes in NHS: This would ensure better management of changes in NHS and develop employees to remain flexible to adapt new developments (Gilmore and Williams, 2012).
Effective methods of recruitment and selection: If the methods of recruiting people in NHS are improved then there could be fewer chances of turnovers and attrition. Better management can help in achieving commitment from these employees that can prove better for the overall organization.
Effective use of IT and technology: NHS can consider using IT for managing data and information of patients on database and ensure effective running of enterprises. Also efficient use of technology can ensure better performance levels and a good image of NHS in industry (Marshall, 2014).
Develop appraisal systems: NHS can also plan to apply appraisal systems as a HR strategy for its organization to ensure improved efforts of people and ensuring thereby higher service quality of its employees.
Better training and development practices: It is also very important for employees to be imparted with relevant training to make them more skilled in their work. NHS can develop it as a part of their strategy to involve its employees in regular trainings to offer better services (Salaman, Storey and Billsberry, 2005).
3.2 Assessment of HR strategies and their application in an organization
The HR strategies implemented by NHS must be evaluated against predetermined objectives to measure their efficiency. It is therefore necessary to monitor the strategic implementation process as well as performance of employees that will contribute to better execution (Sifri, 2003). It is necessary to consider various issues and challenges that organization is facing in order to eliminate their intervention during application of strategy. There are different people at management level who are assigned to certain roles and responsibilities to implement the strategy. These people need to ensure that all steps and processes are going in a right direction as expected. It is also necessary to see whether HR strategy has a link with corporate and business strategy. The corporate strategy may be related to growth, expansion etc. that requires HR to work in accordance (Price, 2011). There must be benchmarks or performance standards set that would help NHS to monitor and assess the performance level. By implementing above strategies its successful result can be justified by lower absenteeism. Due to efficient management of people and better staffing practices, employee absenteeism can be reduced to a certain level and this can help in retaining these employees. There can be audits from health committees and commissions that would let know the quality of service. By higher profits and funds generated, NHS can ensure successful implementation of strategies (Groschl, 2012).
The traditional HRM systems were just concerned with managing personnel. Modern HR deals in linking people with organizational strategies. It also develops them to interact with all functional areas in order to manage efficiencies (Armstrong and Redmond, 2011). The present report is based on studying various concepts related to Strategic Human Resource management and to develop a clear understanding of this concept with relevance to NHS as organization. This study carries out an analysis of roles that are responsible in SHRM process. This report also includes Harvard model to under framework of Strategic HRM. The final part of this study carries out various plans that can be formulated for NHS and their assessment and application.
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