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).

Conclusion

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.

References

Andersen, J 2010, ‘Resource-based competitiveness: managerial implications of the resource-based view’, Strategic Direction, vol. 26, no. 5, pp. 3-5. Emerald, doi:10.1108/02580541011035375

Bartlett, CA & Wozny, M 2005, GE’s two-decade transformation: Jack Welch’s leadership, Case 9-399-150, Harvard Business School.

Bird, A & Beechler, S 1995, ‘Links between business and transnational human resource management strategy in US based Japanese subsidiaries: an empirical investigation’, Journal of International Business Studies, vol. 26, no. 1, pp. 23-46. JSTOR.

Bose, R 2004, ‘Knowledge management metrics’, Industrial Management & Data systems, vol.104, no. 6, pp. 457-468, doi:10.1108/02635570410543771

Haines, VY & Lafleur, G 2008, ‘Information technology usage and human resource roles and effectiveness’, Human Resource Management, vol. 47, no. 3, pp. 525-540. Wiley Interscience, doi: 10.1002/hrm.20230.

Caldwell, R 2011, ‘HR directors in UK boardrooms: A search for strategic influence or symbolic capital?’ Employee Relations, vol. 33, no. 1, pp. 40-63 (online Emerald)

Cohen, AR 2004, ‘Building a company of leaders’ Leader to Leader, 16-20.

Court, T 2011, ‘How the HR function can build the capability to change’, Development and Learning in Organizations, vol. 25, no. 1, Emerald, doi:10.1108/14777281111096780

Hurn, BJ 2007, ‘The influence of culture on international business negotiations’, Industrial and Commercial Training, vol. 39, no. 7, pp. 354-360 (online Emerald).

Ismail, WKW, Omar, R & Bidmeshgipour, M 2010, ‘The relation of strategic human resource practices with firm performance: considering the mediating role of resource based view’, Journal of Asia Pacific Studies, vol. 1, no. 3, pp. 395-420, viewed 19 November 2011, < http://www.japss.org/upload/1.%20humanresourcesismail.pdf>.

Kane, B & Palmer, I 1995, ‘Strategic HRM or managing the employment relationship?’ International Journal of Manpower, vol. 16, no. 5/6, pp. 6-21, (online Emerald).

Kelly, J & Gennard, J 1996, ‘The role of personnel directors on the board of directors’, Personnel Review, vol. 25, no. 1, pp. 7-24, (online Emerald).

Kim, Y & Gray, SJ 2005, ‘Strategic factors influencing international human resource management practices: an empirical study of Australian multinational corporations’, International Journal of Human Resource Management, vol. 16, no. 5, pp. 809-830. EbscoHost, doi: 10.1080/09585190500083368.

Lawler, E 1995, Strategic human resource management: an idea whose time has come, Center for Effective Organizations, Marshall School of Business, viewed 19 November 2011 <http://www-marshall2.usc.edu/ceo/publications/pubs_pdf/g95_1.pdf>.

Seymen, OA 2006, ‘The cultural diversity phenomenon in organisations and different approaches for effective cultural diversity management: a literary review’, Cross Cultural Management: An International Journal, vol. 13, no. 4, Emerald, doi:10.1108/13527600610713404.

Singh, AK & Sharma, V 2011, ‘Knowledge management antecedents and its impact on employee satisfaction: a study on Indian telecommunication industries’, The Learning Organization, vol. 18, no. 2. Pp. 115-130. Emerald, doi:10.1108/09696471111103722

Wang, D & Shyu, C 2008, ‘Will the strategic fit between business and HRM strategy influence HRM effectiveness and organizational performance?’, International Journal of Manpower, vol. 29, no. 2, pp. 92-110, doi:10.1108/01437720810872677

Wells, JE & Peachey, JW 2011, ‘Turnover intentions: do leadership behaviors and satisfaction with the leader matter?’ Team Performance Management, vol.17, no. 1/2, pp. 23-40, Emerald, doi:10.1108/13527591111114693.

Zheng, C, Rolfe, J, Di Milia, L, & Brethron, P 2007, ‘Strategic people management of coal mining firms in Central Queensland’, Management Research News, vol. 30, no. 9, pp. 689-704, (online emerald).

find the cost of your paper