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The External Environment, Internal Environment, Corporate Culture and Global Environment, affect Human Resource Management. However, in determining the Key Factors that defines the success of Strategic Human Resource Management will be
• Being Focused in key relations / Productivity orientated.
This is derived from the external environment and the people who actually use the organizations goods and services are crucial to the firms survival. Therefore management ensures that employment practices do not antagonize the customers it serves. In Strategic Human Resource Management, the organizations should be trained to be customer focused and understand the customers needs and expectations. From the orientation program to the daily operational practices, they must be motivated to provide quality goods or services. Here it is directly related to the actual analysis skills, Qualifications and appropriate training to the organizations employees.
•Being Central to Corporate Plan. Write my Essay on What are the factors that determine the success of strategic Human Resource Management?
Businesses are often forced to make many changes to stay competitive. Therefore, it is fundamental for organizations to develop corporate plans, vision, objectives and common goals and the Human Resource Department will need to assist in coordinating and communicating such values to the employees. They interact and liase with all departmental managers and staff to install the corporate identity to achieve the vision of the organization as a united team. Thus it is an important characteristic within a strategic Human Resource Management to build a strong corporate culture with mission based values and behavior referent.
•Making fast and efficient decisions
As an organization faces intense competition in both its product and labour markets, unless an organization is in an unusual position of monopolizing the market it serves (niche product), quick efficient decisions on human resource issues are vital. Employees will have competence towards management and the organizations credibility remain strong within the external environment.
• Instill Integrated initiatives / multi dimensional approach.
The Human Resource Manager constantly works with the people who represent all organizational levels and functional areas. Here, they must recognize the different perspectives these individuals bring to Human resource. By understanding the many interrelationships, the human resource manager resolves problems and issues. Therefore, it is important for the Human Resource Department to initiate, encourage and lead the increasing role of line management, to facilitate, delivering and deliberating good communication methods and skills.
•Promote business/entrepreneur-ship thinking within the human resources
In business today, management must be prepared to explain the merits of a particular programme in terms of its costs and benefits. Within the organization must be trained in this aspect to monitor and maintain the right balance, understanding the profitable gains to the expenditure and overhead the organization bears.
•Possess good integrated selection and recruitment methods and skills
An organizations major task is to ensure that it obtains and retains a sufficient number of employees in various career field to allow the organization to compete effectively. A bidding war often results when competitors attempt to fill certain critical positions in their companies. Because of the strategic nature of their needs, firms are sometimes forced to resort to unusual means to recruit and retain such employees. Here, the Human Resource Manager will need to be aware of the various means/ methods that could be applied to recruit the right staff with the right skills. This will also depend on the external environment where the pool of labor force is available. The labor force is always changing which creates dynamic situations such as in managing a diverse workforce. It is a challenge in the coming decades to recognize and manage people with different characteristics who think, act and communicate differently. Based on what has been mentioned earlier on recruitment and selection as being one of the main function within the application of strategic Human Resource Management. It is thus critical for the personnel involved in this area to be focused, understand and sells the corporate values in achieving the targeted goals, have long- sited vision and plans well on the process of proper recruitment.
•Work on performance related pay and rewards systems.
Organization that can develop direct links between performance and rewards tend to create cultures conducive to achievement. This function within the Human Resource management need to constructively conduct job analysis for each position within the organization for wage determination, financial/ non-financial/ incentive compensation or fringe benefits. The Application of non analytical/quantitative , weighted point system methods or classification helps to determine the wage and pay structure. Performance related salary through a comprehensive appraisal system that include core values, core skills, core supervision skills as well as targets setting, could enhance productivity . There are different forms of compensation hat can be considered in performance or reward system as in
1.Financial-a) direct in the wages /salaries / commission /bonuses
b) indirect- legal requirement e.g. EPF / SOSCO /HRDF
-Health/ Welfare /Retirement Voluntary / Fringe Benefits
.Non financial- flex time, job sharing , comfortable working conditions/ sound
Company policies
.Compensation equity - Other Benefits including security, leave allowances , relocation, childcare food services , house car loan, etc are important concerns to the employees and therefore strategic human resource management should establish strong credible companies policies in these areas.
•Minimal job categorizing and grading and encourage job design based teamwork
In managing Human Resources today, it is good to define job descriptions but there should be minimal job categorizing and grading.
This will provide for good c- ordination and teamwork within the company. The risk of too many categorized jobs is that employees draw their line on their job and eventually turn to be calculate and wait on each other to complete the work, implying on this is not my job etc.
•Strong Cultural management especially in the area of conflict and possesses wide experience with fore vision in managing cultural / structural / personal strategies in the intervention processes.
Conflict management is today a strong management feature and it the need derives from within the Corporate Culture. Due to the diverse Human Resource and the complexity of the labour force, the human resource department will need to develop skills in conflict management. Counseling mentorship, good listenng skills and being the mediator are important traits in the Human resource personnel. Employee personality types vary and even in the healthiest corporate culture, stressful relationships among employees can occur. Combined with differing values and belief systems, communication can be so impaired that conflict situation arises. This factor could affect the external and internal environment as well as job performance. Hence, it is vital for the human resource personal of the organization to be sensitive and aware of such conflicts and address them as soon as possible to avoid drop in productivity and good interaction between the different departments.
•Build up on the wide ranging training and development activities as well being knowledgeable on an Occupational / Industrial Safety, Occupational / Industrial Safety, Occupational Health.
The acknowledgement and emphasis on training and development activities is an important function within the human resource role in the new millennium. Recognizing the need for change, analyzing and determining T & D needs, establishing specific objectives, selecting the T & D methods / media and implementing to evaluating the training programmers is a strong characteristic within the Human Resource Management. Adequate and proper planning on this area will strengthen the Human resource strategically providing for a learning organization with integrated high performance systems. Building this wide ranging training and development and it could help to generate and motivate employees to feel important with self-development. Here, the need to be aware of the organization corporate culture in adapting to changes and accepting diverse training and developments is also important. Acknowledging this issue from the initial planning on T & D programmers will help in meeting the objectives set out .
With rapid increase of industrial / occupational injuries , there will be implication on substantial financial cost, loss in Industrial Safety Regulations / Occupational Health and Safety ACT , SOSCO Act that every human resource department must be familiar with so as to manage their internal employees well physically and mentally. Helping employees to be free from physical and emotional illness caused by the work environment is important .
•Need to be well versed with the latest developments in the Employment Acts / Trade union Acts, etc in line with legislation requirement of the Ministry of Human Resource within the country.
Being knowledgeable in Employment Acts / Trade Union Acts are generally critical for strategic Human Resource Management. Union are treated as environmental factors because , essentially , they became a third party when they bargain with the company. The trend of union is expected to continue but more emphasis is being shifted to a human resource system that deals direct with the individual worker and his or her needs . Managing a non-unionised organization provide management organization provide management with more flexibility to enforce certain benefits whilst within the unionised companies, there are national interests that withhold many possible compensation or benefits. Thus strategically, human resource personnel should help to resolve employees issue internally and to preferably avoid the unionization process. However , there are some companies that have international established unions and if such the human resource management should consider strong negotiation skills needed during collective agreements process. Besides the external / internal environment and corporate culture to be considered and managed in strategic human resource , the global environment need focused . Global Corporation has corporate units in may countries that are integrated to operate as one organization worldwide . To a great extent , domestic companies deal with a relatively known set political , economic, legal and labor -management relations variables. A global organization must cope with a multitude of unknowns. It is enormously complicated by the need to adapt HR policies to different host countries. One such example is the recent HSBC employees dispute , which led to picketing and strikes. Differences in politics, law, culture, economics, labor- management relations system and other factors complicate the task of global human resource.
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