The strategic role of hrm

Nevertheless, a grand unifying aspect of scholarship on strategic HRM is the assumption that further insights about managing human resources can be gained through research that treats the many activities involved in managing the workforce as a set of activities that, if properly aligned with the needs of the business, can result in many positive consequences. Central to this definition are three essential constructs: Together, these elements form an HRM system. Although made up of discrete, identifiable elements, an HRM system functions as an indivisible whole that is more than the sum of the parts.

The strategic role of hrm

In particular, we have analyzed how effective people management goes a long way in ensuring better economic performance. Among the components of people, management that the HRM function does is the aspect related to leadership development. Research into the HRM practices of successful companies has shown that these companies significantly outperform their peers in terms of economic profitability by following the leadership development practices discussed in this article.

By successful companies, we mean those companies in the Fortune list that have managed to retain their position in the firms over a decade. To put this in perspective, it needs to be remembered that many companies that were in the Fortune list for a few years failed to retain their positions in subsequent years and hence, the fact that these companies have managed to stay in the hunt means that they have outperformed their peers and competitors.

The Components of Leadership Development The leadership development programs in these companies follow the philosophy of grounding them in value, the expected contributions from the leaders are defined, and the organizational culture geared towards inspiring leaders.

In other words, promotions are based on individual performance as well The strategic role of hrm people development activities and these in turn are linked to the business strategy and objectives. These companies also have a leadership pipeline, which means that the leadership development is embedded in their strategic workforce planning which is comprehensive, and longer term oriented.

These companies also ensure that they divide their workforce into job families and the potential leaders are identified and groomed for higher roles and responsibilities. In many of these companies, it is common to find lists of potential leaders known as high potentials who are earmarked for fast track career progression based on the organizational assessment of the skills and capabilities of these leaders.

Further, the recruitment and training of new employees is based on longer-term analysis of demand and supply patterns, which ensure that newer generation of leaders, are hired into the company to replace those who have made it to the higher levels.

Collaboration between the HRM Function and Senior Management The HRM functions in these companies work on a collaborative model with their potential leaders which means that the job of people development is not left to the HRM function or the leaders alone. Instead, the potential leaders are identified and then their performance is linked to the enabling and empowerment of others to move up the chain.

Working at Waikato: University of Waikato

In other words, the ability to spot talent and identify leaders for the future is done by both the HRM function and the senior management who work in tandem in this effort. Research into these successful companies has shown that the people management in these companies is world class and the contributing factor that differentiates these companies from others is that the HRM function plays a critical role throughout the employee lifecycle and not at the recruitment and training phase alone.

The other factor is that the leaders in these companies are expected to have skill sets that match the need for adapting to the challenges of the 21st century business landscape. In other words, these companies groom the leaders of the future right from the middle management level.

The strategic role of hrm

Closing Thoughts Finally, leadership is a combination of natural abilities and the organizational nurturing of the employees with those skills. Hence, this interplay between nature and nurture is what determines the success or otherwise of the HRM function and the senior management efforts to develop leadership in these companies.Strategic human resource management then is the process of using HR techniques, like training, recruitment, compensation, and employee relations to create a stronger organization, one employee at.

The Strategic Role Of Hrm 1. Chapter 1 The Strategic Role of Human Resource Management 2. This report mainly studies about the leadership theories and leadership style in Foreign Subsidiaries.


The goal of this analysis is to examine and mention if and how a manager’s role and leadership style is impacted by a foreign owner. This course explores the impact of using technologies in serving HR by building an awareness of technological skills.

Role of Human Resource Management (HRM) in Leadership Development

The content investigates how information technology can be applied to strategic management, records and employee tracking for enhanced recruitment, selection, staffing, compensation, benefits administration, policies and procedures, performance evaluation, training and.

HRM took a look into the history of some current office jargon and wonders whether you’ll have to engage in a “thought shower” in the near future. International Journal of Humanities and Social Science Vol. 2 No. 10 [Special Issue – May ] 62 Relationship between Strategic Human Resource Management and Firm.

Strategic Planning | Human Resource Management