Role and Importance of Strategic HRM – CIT case study
An organization is constructed of people. These people who assemble together as an organization’s workforce are recognized as human resources. Human resources department clutches all the scopes of employee concerns like recruiting, training and motivating. Basically, the function that focuses on how to manage the people within an organization is known as Human Resource Management (HRM). HRM deals with issues related to people such as compensation, recruiting,performance management, organization development and employee concerns like- safety, wellness, benefits, motivation, communication, administration, and training. HRM thrives to manage the workplacecultureand environment. Effective HRM enables employees to contribute efficiently and productively to the overall company direction and the accomplishment of the organization’s goals and objectives.
HRM is not managed using the traditional approaches anymore. Rather, the increased use of outsourcing has created the urge for building up new and innovative ways to manage the workforce in today’s workforce. It calls for comprehensive and thorough strategies to respond to the contemporary issues of globalization and diversity.
Complete IT (CIT) is an UK based IT support Service Company that has been providing with local IT support to SMEs for over 20 years now. They tend to maintain the highest levels of technical expertise and accreditations to resolve IT issues. They hold the motto of not just fixing problem, but finding ways to improve systems and positively impact on their clients’ tea, and business. Their services range from reactive support to proactive management of the clients’ IT, but each built specifically for each client. They promise to deliver IT support with passion and commitment with a friendly, honest and simple approach.
Strategic HRM is known as the preventive management system of the employees in an organization. More elaborately speaking, it is a technique of managing human resources that brings a strategic outline to upkeep long-term business objectives and outcomes.
There are three major theories of strategic HRM used in today’s HRM. Like many other companies, CIT also uses these theories into application.
- Universalist Approach:
Also known as Best Practice Approach, this theory assumes that high performance output in an organization can be achieved via a set of HRM practices. These practices are described in a set of four policy goals-
- Commitment: Confirming the faithfulness of employees to the organization so that they provide with their best of performance.
- Strategic Integration: The integration of the HRM to the company’s strategic planning so that HRM can be a part of company’s overall strategy should be ensured. Moreover it should also be ensured that the line managers use HRM strategies in their everyday work.
- Quality: The fact that employees should always be kept satisfied and motivated in order to bring out their optimum performance so that they can deliver products and of the highest of quality should be ensured.
- Flexibility: Today’s workforce seek out flexibility in their workplace. Administration should ensure this aspect in order to keep the staff driven enough to deliver the maximum productivity.
However, it is to be noted that Guest believed all of these theories shall work only together, and not individually, to attain the company objectives.
- Fit or Contingency Approach:
HR plans and practices must be coordinated with the organization’s plans and practices for the maximum performance to be produced. This synchronization of HR and Company strategies can be labeled as the “vertical fit”. This approach is also known as the “best fit approach”.
The best fit approach:The best fit approach supports that HR strategies and organizational policies have to be aligned. There are three available simulations of this best fit approach-
- Lifecycle model: Organizational development is done in four stages – Start-up, Growth, Maturity and Decline. The HR department should be well aware of the company’s ongoing stage so they can select the correct strategies to match up the company’s current stage.
- Strategic configuration: In this model it is said that companies can be on the operative front if they can implement tactical configuration policy (market-type structure or internal type structure), coordinated with company types (namely Defenders, Prospectors and Reactors, Analyzers), and (classified as; Machine Bureaucracy, Divisionalised form, Simple Structure, Adhocracy Professional and Bureaucracy).
- Best fit and competitive strategy: three competitive strategies are; Quality, Cost-Leadership and Focus (Niche). Companies should adopt competitive strategies in order to maximize performances. This is more important because of the increasing competition in today’s business world. It is always better to have a competitive edge and to use that edge in the best way possible.
- The Configurationally Perspective:
This model deals with the importance of the outline of several HR policies and in what way these outline of HR policies (independent variables) affect the Organizational performance (dependent variable). The term configuration is explained differently by various scholars and writers for two reasons. The first one being “the scope to which HR policies are associated into an overall HR structure” and the second one- “the notch of fit amid an overall HR structure and an administrative type”.
In CIT, HRM is perceived as one of the most consequential drives of the corporation. HR management’s significance can be classified into the following subsequent activities:
- Enrollment and Training: Recruiting new people and training them as per the organizations’ needs are the key responsibilities of HRM. To fill up the vacant position in the organizations, HR managers plan test and trials for potential candidates. HR also fixes the terms and conditions of the contract that takes place between the employee and the organization.
- Performance Evaluations: HRM prompts the workforce to bring out their finest performance. It provides with feedbacks to the employees that creates a proper communication between the employees and the employers.
- Nourishing Work Atmosphere: Work ambiance is a crucial aspect for employee satisfaction and high level of performance. HRM manages to maintain a decent, safe and clean working environment for its employees. The performance of the workforce largely depend on the work atmosphere and company culture. So, HRM strives to keep up the best possible work environment for its staff.
- Handling Disputes: Inner disputes and conflicts among colleagues is a very common element in organizations. It is always the HRM’s duty to mediate in such situation so as to resolve such clashes and therefore establish an order in the workforce. While it’s important to take care of the disputes in a fair manner, the HRM must also be very cautious in handling such cases as sometimes, the methods can easily create employee displeasure.
- Increasing Public Relations: Developing public relation with numerous interested parties and stakeholders of the organization is a vital role played by the HRM. HRM stands responsible for organizing meetings, seminars, workshops etc. to interconnect with these parties. In some cases HR department even helps into business and marketing planning.
- The Harvard Analytical Framework for HRM: Produced by Beer et al. (1984), is a good equilibrium between the Universalist Approach and the Fit Approach. CIT relates this model in its HR management. This framework works on the conjecture that the problems of managing employees can be explained when the general managers of the company have their own perspective about how they want the employees to be involved in the company and what sort of policies are best for this method.
- Ulrich’s Multiple Role Model: Ulrich et al. (2009) proposes a multiple competency framework involving of four potentials for HR mangers other than recruiting, training, and motivating. It is specified below: