Core Competencies for effective strategic human resource management

To achieve an effective SHRM approach, HR professionals need to show leadership. Leadership competencies help HR professionals to motivate employees, for instance, to change a culture that is detrimental to the organization. Conversely, ineffective leadership could result into high employee turnover negating any benefits achieved by integrating the HR strategy to the corporate strategy (Wells & Peachey 2011). Leadership approaches such as interacting with employees at various levels of the organization could help to enhance the capability of the HR professional to balance administrative and strategic roles. Such interaction for instance allows one to advocate for better employee policies while identifying weaknesses that limit the capability of the entity to adapt to change.

Another necessary skill for HR professionals is proficiency in communication. By being excellent communicators, HR professionals can lobby support for HR policies in the entity’s decision-making arena. Effective communication is also important in such aspects as negotiation that are prevalent in roles such as labor relations and salary determination that the HR department engages in (Hurn 2007). Through effective communication, HR professionals could prepare the employees to adapt to change in their role as change agents (Court 2011).


The increasing competition in business environment has eroded factors that enhanced the competitive advantage for entities. For instance, the Internet-based platforms for selling products and services reduce the necessity of having distribution channels to compete effectively. Accordingly, entities need to find new approaches through which they can establish a means to compete effectively. To sustain their competitive advantage, the resource-based view advances that entities need to develop their resources and capabilities constantly. SHRM, in this respect, is advanced to offer organizations a means of developing such competitive advantage. This paper evaluated whether SHRM results into enhanced performance for businesses.

SHRM link to business performance is evident from financial and non-financial metrics. In financial aspects, SHRM positively influences labor productivity by enhancing HRM effectiveness. Secondly, by enhancing job satisfaction SHRM reduces employee turnover thus reducing the costs the entity incurs in staff recruitment and training. Using non-financial measures of performance, SHRM improves innovation by instituting policies that encourage innovation. Additionally, SHRM helps to build the capacity of the organization to adapt to change. Through such a role, it enables entities to remain competitive in an increasingly dynamic business environment.

To ensure that SHRM is effective in meeting such challenges, HR professionals need to address challenges that impede the achievement of SHRM objectives. For instance, the challenge of inadequate time to engage in strategic functions may be alleviated by developing systems that reduce the time spent on routine administrative functions. Additionally, by acquiring specialist management skills, HR professionals would be able to argue out the case for appropriate HR practices in the entity’s decision-making organs. Finally, core competencies such as leadership abilities and effective communication help the HR professionals to achieve a good balance between strategic and administrative roles thus enhancing the achievement of SHRM objectives.


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