Linking of Decision Areas in Human Resource With Strategic Management

The success of an organization is not an accident.It is a strategy.Strategic human resource management focus on improving the human capital as people and their skills are more important in attaining business success through better products and services. There is a paradigm shift in the perspective of modern organizations towards human resource, they view human resource as assets and it is imperative that human resource to become strategic business partners for the organization.

Organisations face a very challenging economic climate, changing demographic pattern, the shifting of employee values and technology all impact the ability of organisation to compete and succeed in a global environment. It is the prerogative of the organization to analyse its competitive stand in the industry, to develop strategies and goals, develop plan of actions and allocation of resources such as human-experience, skills and intelligence, organizational-structure, planning, control and coordination and physical-plant, equipment, technology, geographical location etc. ,

The various decision areas in human resource management are:

  • Mission
  • What type of people to recruit and employ?
  • How many?
  • Productivity through performance development
  • Developing competencies
  • Potential appraisal
  • Performance appraisal
  • Career planning
  • Compensations
  • Employee welfare and relations

Linking such hr activities into strategic management will help to keep pace with the fast changes in the environment, to compile competitively in the market, to link individual’s goal to the organizational objective and to raise the levels of competency, professionalism and accountability to the organization from the people.

Strategic choice is the organisation’s strategy that describes the ways the organization will attempt to fulfil its mission and achieve its long term goals. The SWOT analysis done by the firms includes external analysis that gives an idea about strategic opportunities and threats of that organization and internal analysis that pinpoints the strengths and weaknesses of that firm. These informations are collected to generate strategic alternatives. These alternatives are compared by keeping the ability to attain the organisation’s strategic goals in mind, the top level people such as CEO, finance officer, president, vice presidents, make their strategic choice.

Artful planning and management is what we call strategy that integrates an organisation’s major goals, policies and action into a cohesive whole. Hr managers should be trained to identify the competitive issues the company faces with regard to HR-and think strategically-about how to respond and react. Strategies have to be evolved in lieu of the environmental conditions that the organisation is subjected to. If you want to stand in the market and retain your market share, innovative thinking and swift action are the key factors.

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