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Strategic HRM As A Response To The Challenges of Globalization

1) Strategic human resource management (SHRM) involves aligning human resource policies and practices with business strategy to improve organizational performance. It is important for adapting to changes like globalization. 2) Effective implementation of SHRM practices requires both HR professional competence and business-related competence from HR staff. This allows HR to select practices that fit the organization's strategy, structure, and culture. 3) The document discusses developing HR management capacity at the zone level and building international management skills to strengthen the volunteer and staff base of the International Federation, as outlined in their strategic plan.

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57 views

Strategic HRM As A Response To The Challenges of Globalization

1) Strategic human resource management (SHRM) involves aligning human resource policies and practices with business strategy to improve organizational performance. It is important for adapting to changes like globalization. 2) Effective implementation of SHRM practices requires both HR professional competence and business-related competence from HR staff. This allows HR to select practices that fit the organization's strategy, structure, and culture. 3) The document discusses developing HR management capacity at the zone level and building international management skills to strengthen the volunteer and staff base of the International Federation, as outlined in their strategic plan.

Uploaded by

atifatanvir1758
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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STRATEGIC HRM AS A RESPONSE TO THE CHALLENGES OF

GLOBALIZATION
The world has undergone a dramatic change over the last few decades, the forces of
globalization; technological changes have greatly changed the business environment.
Organizations were required to respond in a strategic manner to the changes taking place
in order to survive and progress. Strategic Human Resource Management (SHRM)
involves a set of internally consistent policies and practices designed and implemented to
ensure that a firm's human capital contribute to the achievement of its business
objectives. Strategic human resources management is largely about integration and
adaptation. Its concern is to ensure that: (1) human resources (HR) management is fully
integrated with the strategy and the strategic needs of the firm; (2) HR policies cohere
both across policy areas and across hierarchies; and (3) HR practices are adjusted,
accepted, and used by line managers and employees as part of their everyday work.
SHRM practices are macro-oriented, proactive and long term focused in nature; views
human resources as assets or investments not expenses; implementation of SHRM
practices bears linkage to organizational performance; and focusing on the alignment of
human resources with firm strategy as a means of gaining competitive advantage.
IMPLICATIONS FOR HRM PRACTICES
The role of people in the implementation of strategic responses has a significant bearing
on the success rate. It is therefore imperative for organization to look at the human issues
involved before implementation of any strategic responses. At this connection the
question is: How can organizations effectively adopt, implement and maximize HRM
practices for valued firm level outcomes? That is, how can firms increase the probability
that they will adopt and then effectively implement appropriate HRM practices? Insuring
that members of the HRM personnel have the appropriate human capital or competencies
has been suggested as one way to increase the likelihood of effective implementation of
HRM practices .The future HR professional will need four basic competencies to become
partners in the strategic management process. These include business competence,
professional and technical knowledge, integration competence and ability to manage
change.
HR professional competence describes the state-of-the-art HR knowledge, expertise and
skill relevant for performing excellently within a traditional HR functional department
such as recruitment and selection, training, compensation, etc. This competence insures
that technical HR knowledge is both present and used within a firm
Business-related competence refers to the amount of business experience HR personnel
have had outside the functional HR specialty. These capabilities should facilitate the
selection and implementation of HRM policies and practices that fit the unique
characteristics of a firm including its size, strategy, structure, and culture .In other words,
these competencies will enable the HR staff to know the company's business and
understand its economic and financial capabilities necessary for making logical decisions
that support the company's strategic plan based on the most accurate information
possible.

1 The incidence of implementing strategic HR practices is lower in organizations


especially in the developing countries.
2 Both HR professional competence and knowledge of the business (business
related competence) significantly contribute to the extent of implementing SHRM
Practices
3 Managerial competencies are significantly related to organizational performance
4 The extent of implementing SHRM practices contribute significantly to firm level
outcomes
5 The relationship between SHRM and organizational performance is affected by
organizational context variables (firm size, level of technology and union
coverage).

Developing and implementing a soundly based strategy for human resource management
is a specific area for improvement in the Federation of the Future’s section outlining the
Framework for Action. The Federation Human Resources (HR) Strategy was approved in
April 2005 and actions to deliver it commenced in June of that year. The support of
Department for International Development (DfID) during the years 2007 and 2008 has
been fundamental in facilitating the achievement of major elements of the strategy.

For the years 2009 to 2010 the strategic HR focus will be on;
Establishing effective human resource management at zone level to provide genuinely
value added support to the new operating model;

Developing the organisation’s international management capacities;

Refining and implementing the remaining elements of the “delegate profiling” approach
that sits at the heart of the “delegate effectiveness” section of the HR strategy; and

Building further Movement wide understanding, adoption and cooperation in the delivery
of consistent human resource priorities;
1
“A human resource strategy to strengthen the volunteer and staff base of the
International Federation” (FoF p.12)

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