Importance of SHRM in an Organization

Keywords: importance of shrm, shrm importance

The importance of strategic human resource management in a business organization must be projected. Most of the organizations when was recently introduce the role of strategic HRM to the long-term growth and survival of the business organization. Most who are the these most of them managers of the managers have realized that specific defining the mission of their organization are better and able to give direction and focus activities.

According to Ansoff (1979), who strongly recommended that, “the success or failure of strategic planning is determined by a number of components which include the environment, organization structure and strategic decision making. When these three components are properly matched, the performance of any organization is optimized”.

Furthermore Lorange (1979) has describe that “the importance of strategic planning is to accomplish a sufficient process of innovation to support and enhance the planning process and effective strategic planning does not have to be complicated but must be logical and focused on strategic decisions to be undertaken.”

Based on Alli (1992) who has presented characteristics of an effective strategic management as follows:

1. Clear direction and purpose.

Objectives, goals, and strategic consistency.

Continuous monitoring of internal and external environment.

Integration of operating budget and profit plans with strategic plan.

Continuous monitoring of progress with revision of plan and programs as appropriate.

Creation of strategic atmosphere that foresters a team spirit

Commitment of necessary resources and the development of system to provide necessary management information.”

SHRM has increased its importance since the 1980 and day by day it improved the role dramatically in business organizations. Because of,


Government regulation

Stronger knowledge or research base.

Changing role for labor unions.

Challenge of matching worker expectations with competitive demands.

It is also important to ensure that staff management, human resource management work with the interests of the organization. Many organizations change and increase their view to HRM is a strategic rather than operational issue, and means that SHMR functions tackled and solved by the particular line manager. It is also requires attention to establishing, maintaining and developing the organizational management style and culture and involving management development programs.

Therefore, it realized that, the SHRM is highly required in an organization. Without any proper plan business organization cannot achieve their goals. At the end, it realizes the need of strategic human resource management cannot be over-emphasized in a business organization.

4. Purpose of SHRM activities in an organization (AC1.2):-

Strategic Human recourse management plays an important role of the growth of the business organization .All the organization activities managed whose are fully incorporated into general management practice and supported by the specialist corporate HR functions. There is a correlation between the ways and methods in which each and every aspect is addressed, approached and organizational success, effectiveness and profitability.

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The key activities of SHRM are as follows with discussion with the impact on Tesco.

Equal Opportunity/ diversity: Diversity describes people’s differences, in a business context; it often focuses on a particular set of characteristics which are: gender, ethnicity, religion, disability, age, sexual orientation, location, marital status. Tesco’s diversity programme is essential to keeping position as a leading employer. The programme helps Tesco maintain first-class reputation and the opportunity to maximize market share. Tesco feels that diversity is important because of employing and managing diverse people makes them well-rounded and balanced.

Sexual orientation: The research discovered that lesbian, gay and bisexual (LGB) staff can sometimes feel lonely. Tesco committed to making sure that employees who are LGB can be comfortable being open about their sexual orientation at work.

Staff planning: It is the process of analysis an organization’s future needs in terms of number, skills and locations. It allows the organization to plan for the future employees and a vital for Tesco to plan for the future work force. The key elements involved are as follows:

Work analysis: Work analysis is interesting, rewarding and fulfilling to the individual and profitable for Tesco. Tesco uses a workforce planning to establish the demand for new staff. The planning runs each year from the last week in February. There are quarterly reviews in May, August and November, so Tesco can adjust enrollment levels and recruit where necessary. It allows Tesco sufficient time and elasticity to meet demands for staff and allows the company to meet its strategic objectives.

Fitting the work to people; fitting the people to work:-

The process is abbreviated to FWP-FPW balance provides a sound basis on which to address to each of the following:-

Job and work descriptions: parceling up task into occupations and patterns of work.

Meanwhile- the behavior, attitude, skills, knowledge, expertise and technological proficiency required and asked for in jobs holder.

Job description and person specification shows how a job-holder fits into the Tesco business. It helps Tesco to recruit the right people and provide a benchmark for each job in terms of responsibilities and skills.

Recruitment: Attracting the right standard of applicants to apply for vacancies. Tesco first looks at internal Talent Plan to fill a vacancy. For external recruitment, Tesco advertises vacancies via the Tesco website or through vacancy boards in stores. People interested in store-based jobs with Tesco can approach stores with their CV or register though Job centre Plus. The store prepares a waiting list of people applying in this way and calls them in as jobs become available.

Selection: identifying the critical behavior, attitudes, skills, knowledge, expertise and technological proficiency aspect are to be tested in individuals for capability and willingness; identifying the best to test, observe and understand the particular qualities.

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At the first stages of screening, Tesco selectors look carefully at each applicant’s summarizes education and job history. A candidate who passes screening attends an assessment centre. Applicants are given various exercises, including team-working activities or problem solving exercises. These involve examples of problems might have to deal with at work approved by the internal assessment centre.

Induction: It identifies those qualities required as a condition of employment and ensures that people learn quickly and effectively to applied. In Tesco, the new employee joint to work through an induction and learn how to do their works.

Employee and organization development: It identifies those areas where expertise and capability are not present or need to be improved. Tesco employees assess their own skills to give them a focus for their development. Tesco’s Options programme provides a long term route for development like leadership workshops.

Work patterns: Reflecting the demands for maximizing and optimizing returns on investment in technology and expertise and ensure that product and service are available to customers and clients. Tesco’s purpose is to serve its customers. Their work pattern has the customer at the top. Tesco needs people with the right skills at each level of these patterns. There are six work levels at Tesco. This gives a clear structure for managing and controlling the organization. Each level requires particular skills and behaviors.

Pay and rewards: Balancing the demands with offer and recognizing the actual and potential problems of retention for those who are coming into work. It’s a most important activity of Tesco. The elements activities for effective staff pay and rewards scheme as follows.

Expectations: all systems must meet of the jobs holder extent to be attracted and retained staff. Tesco lists current employees looking for a move, either at the same level or on promotion. They do Talent Plan or developing on the internal management Development programme to retain their current employees.

Motivation: within the constraints illustrated above, all payments and reward motivates to an extent; the rewards offered to carry implications for nature, complexity and commitment to the work is required on their part.

Tesco motivates its staff in many ways -financially and non-financially. Tesco apply Maslow’s ‘hierarchy of needs’, Herzberg’s two sets of factors to motivation, theorist Elton Mayo’s motivation came from a number of factors and Taylor’s motivational theory to motivate their employee. Good pay and conditions satisfy basic needs. Reviews and Personal Development Plans ensure that their staffs are able to make progress and achieve higher goals. This benefit staff and Tesco.

There are some other pay and rewards activity of elements to be done by the organizations includes Mixes of pay with other aspects, Occupational aspects, International, organizational and local variations, Respect and value and the nature of the work and working environment.

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Contribution of SHRM to the achievement of an organization (AC1.3):-

Frank Mueller describe as “the human resources are scarce, valuable, firm specific and difficult to imitate resources that can contribute significantly to the achievement of competitive advantage and should be regarded as strategic assets.”

The approaches of an organization to career planning, performance appraisals, reward management and employee development must be re-appraised according to vision, characteristics and mission outcomes as reflected in the SHRM plans, policies, and practices. Development responses aim to increase business skills, the application of business skills and the behavioral elements -whose contribute to effective performance to achieve its goal. Investment initiatives for individual, team and organization are toward to achieve high levels of organizational goal. Reward strategies aim to align the performance of the organization with the way it rewards its people, providing the necessary incentives and motivation to staff.

Beardwell I 2004: “Tesco has strategically integrated SHR plans. Managers have been to realize aspects of SHR in their decision making, has shown high commitment, attempting to gain acceptance from all employees, and offering to all employees’ basic and extended training.” Tesco’s strategic direction is discussed with all employees to help individual to understand their role and importance.

A human-resource-leading business strategy has helped Tesco to take the lead over its rivals in the fiercely-competitive UK supermarket sector. It has introduced a high commitment model which offers training and development to employees. It operates in a very competitive market; the consumer has a choice where to shop for their necessities. Their slogan every little helps used to show their commitment to customers, reduce prices and to increase the level of customer service which used in staff training to increase the knowledge of the work force.

Tesco is widely reported in news papers to the success of the business. They are rapidly expanding has taken a great deal of their resources in the planning and implementing stage of expansion. The human-resource strategy at Tesco’s revolves work simplification, challenging unwritten rules, rolling out core skills to employees and performance management linked to achieving targets. Tesco ensures that each and every employee has the opportunity to understand individual role in contributing to purpose and values. The training provide by Tesco through the history, purpose, values, business goals, financial aims, operations and marketing strategy and commitment to customers. Tesco intends to increase the skills of its workforce to make learning into a truly integrated part of culture, as an important way of developing organizational flexibility and remaining ahead of its rivals. Future concentrates provides that all employees are responsible, accountable, consulted and informed. (Anonymous 2003). (P-3)

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