HR Strategy and HR Management

Organizational structure and strategic objectives have shown a great evolution in competitive industry situation. Organizations now foster their initiative culture to get competitive edge over competitors and build a credible market reputation. Organizations long term goals and strategic objectives that support the mission and vision of an organization emphasize on the achievement of goals with great decisions involvement. Recent restructuring of organizations in consideration of long term vision and sustainability is solely based on the human capital of an organization. Organizations have given more importance on human resource management for successful accomplishment of their goals.

Human resource management serves the interest of the organization in relation with the human capital that defines the ability of an organization for prosperity and growth in various market circumstances (Armstrong, 2000). In knowledge based economy human resource management has emerged as a paramount to facilitate the organization functioning by a particular set of strategic plans. Firms are becoming more sensitive towards the effective implementation of strategic objectives. This is based on the development of consistent and associated set of policies, programs and procedures that guide the principle objectives of an organization (Harrison  Kessles, 2004).  It is necessary for an organization to develop an appropriate fit to maintain its effectiveness in conditions severe to the industry growth, due to random occurrence of potential factors. In such conditions, organization requires to utilize its human resource management practices productive towards performance inclination and have strategic focus for system and people.

Strategic Positioning of HRM in the Knowledge Based Economy
Human resource management characterized as a supportive pillar of an organization functioning is essential root towards organization development in knowledge based economy. Determination of strategic characteristics of an organization that defines the capability and potential competence with respect to organization long term visionary goals is relative to human resource functioning (Beardwell  Claydon, 2007). Knowledge based economy, unlike traditional economy system which had operational focus towards system and people development, is more oriented towards strategic focus towards system and people. Knowledge based economy emphasize on skills, capabilities, performance, and information processing for the accomplishment of organization objectives (Thite, 2004). It has more concern towards the formation of policies and procedure in alignment to overall goal of an organization thus defines the role of strategic partnership and change agent in environment and culture for organization effectiveness.

Human resource management role in knowledge based economy is based on the willingness and capability of an organization to support the strategic collaboration in its respective environment. However, HRM in knowledge based economy place emphasis on two factors which include human capital and knowledge facilitator (Lengnick et al, 2003). Each of these factors has inter-linkages with the organizational goals that highlight the desired standard with respect to industry convergence. Human resource management in knowledge based economy has a strategic perspective that helps align the organizational procedures and policies formation which enable organization to get competitive advantage through effective utilization of resources (Svetlik  Costea, 2007). HRM focus on strategic issue instead of operational issues solely, which facilitate the mission and objectives within a larger framework (Leibold et al, 2005).

Human Resource Roles in Knowledge Based Economy
HRM typically perform two roles as an integrator for organization vision which place substantial consideration on human capital (knowledge based personnel) and its strategic roles as knowledge facilitator by policies and predefined procedures. HRM creates an environment for specialized and talented individuals to exhibit their skills and contribute towards organization advancement through their skills, ideas and energy in work. Such culture not only influences the cognitive capacity of an individual but also regulates the information processing essential for rapid progress with acquisition and dissemination (Raich, 2002). HRM as a knowledge facilitator secure the knowledge and skills necessary to restrict the information reliability and identification of skills that allow relevant information to be acquired in real time by individual and incorporated in the structure with proper dissemination across the channel. It is necessary to incorporate knowledge facilitator role in strategically designed employee development plan. Therefore strategic HRM enables the organization to achieve operational excellence in skills acquisition necessary to advance strategic principles focus on organization growth.

HRM helps organization build relationship in structuring that links the principle tasks across the members with appropriate skills and develop structure and work practices that support team work and collaborative activities (Marchington  Wilkinson, 2005). This provides the organization opportunity to accomplish tasks that require multiple set of skills and hence able to support complicate tasks structures. This builds network structure that aimed at strategic objectives of an organization. HR integration and organization restructuring has enabled the organization to have flexible organic structure that creates adaptable structure and systems (Millmore, 2007). Such culture embraces flexibility in decision making and involvement of necessary knowledge particulars (in the form of personnel knowledge) on the principles of empowerment to support productive and proactive change in consideration of notable changes in the market need by HR support.  Restructuring can be global to organization and implemented at all, strategic apex and knowledge level, with strategic focus on refining of redundant procedures and activities that allow organization to have adaptable culture and access to necessary knowledge for proper functioning.

Strategic HRM Positioning and Implications for Knowledge Based Organizations
Strategic HRM role has led towards the establishment of strategic relationship with knowledge sources (skilled and specialized personnel). This strategic integration of the system is based on a set of factors provided that organizational changes are deemed necessary and organization understand the need for change. Solely disserting the change at operational level that affect the strategic goals and objective creates discrepancies and may raise conflict at inter-department or at decision level. Therefore, HRM involve the personnel as premeditated resources in knowledge based organization. It facilitates the goals achievability by relevant knowledge involvement in the selection and defining of root channel for strategic focus. It is essential for an organization to adapt a set of competencies for effective utilization of resources in consideration of opportunities that are explained below.

Many organizations have seen a considerable decline irrespective of the market growth. This identifies principles determination and role of HR in achieving the organizational goals by strategic contribution with employees. Development of strategy creates a set of relevancies between information resources and knowledge level of an organization. However, employee skills involvement with specialized functioning resources is valuable for strategic characteristic approach of an organization. In certain scenarios, rapid growth and change creates disturbances and ambiguity for goals accomplishment which requires critical analysis of market knowledge and available capacity of an organization. HRM enable the strengthening of information acquisition which helps determine the appropriate procedures and set objectives providing the resource constraints for an organization (Rodwell  Teo, 2004). This identifies the necessary skills for an organization for which considerable and measurable emphasis in depicted in HR programs and policies. HR programs and policies help distinguishing the employee roles based on their skills level and knowledge characteristic. It helps identification of principle and procedures regarding serving the internal customers through effective and efficient programs. However technology use in human resource management extensively accommodates the need for proper and alternatively defined policy and programs which modify the task structure and organization cultural setting norms.

Outcomes of Strategic Human Resource Management in Knowledge Based Economy
Strategic HRM not only defines the policies, programs and procedures but also increase the employee performance, customer and employee satisfaction, and shareholders value achieving the strategic goals of a organization which characterizes its standard and market position. Therefore, strategic human resource management flourish the organizations goals by the collaboration of employees that act as knowledge centre and possess skills necessary for accomplishment of objectives (Schuler  Jackson, 2007). Access to knowledge centre is limited by reach and extent of effectiveness HRM defines the skills and knowledge need and then develop proactive plan for identified market opportunities in consideration of organization knowledge resource. This is based on effective management and staffing system to retain specialized employees that fit with strategy and organization culture.

HRM locates the knowledge centre identify the skills requirement and access the human capital to support the organization strategic objectives and goals (Schuler  Jackson, 2007). This requires integrated HR programs and policies to support organization vision and thus motivating the existing human force to adapt relevant master skills. Organization change requires facilitation with respect to organizations current competencies and knowledge level possess by employees for identification of necessary change characteristics and effective implementation through strategic support (Raich, 2002). Extensive focus on emerging markets and opportunities for organization demands the availability of quality human resource with high specialized skills, as deemed necessary for industry and external environment of an organization, therefore puts pressure on organization to incorporate relevant structure change that increase the employee performance, shareholder value and organization functioning.

Organization knowledge development requires access to labour markets and screening of competent employees with high cognitive abilities that enables the organization to prosper certain required knowledge skills due to internal abilities of employees (Sheehan, 2005). However internal labour markets can contribute directly to enlargement of organizations knowledge assets (human capital) to improve knowledge need and persistent performance with respect to competitors strategies. Recent advancement in industries and modifications in organization structure requires a set of standardized skills that offer flexibility in decision making and formation of work setting around corporate teams comprise of a number of people specialized in different skills (Starkey et al, 2004). Such team structure is most suitable for organization operating in intensive competitive and requires rapid analysis of conditions that help facilitate the organization functioning and enables the organization to form a proactive strategy for market penetration to support growth objective. Such cross-functional and inter-organizational teams can be utilized for collaborative and strategic partnership responses towards organization advancement and growth.

Strategic role of human resource management depends on organization work design, processes and culture (Armstrong, 2000). Proper assessment of organization on above stated perspectives is essential for the dominating role of HRM in knowledge based economy. Skills demand and current knowledge level of an employee is essential for the HR program and policy formation to effectively support the organization principle goals. Such goals are the guidance mechanism for defining the strategic HR planning in consideration of work environment and organization culture that foster continuous learning principles and reduces ambiguity over decisions and work foundation principle rules.

Strategic positioning of human resource management in knowledge based economy provides an organization, operating in such environment, to develop consistent program in relation to the market factors. Cultural change forces eradicate the traditional approach towards organization mission and objectives by solely having operational focus (Harrison  Kessles, 2004). Administrative structuring lead the influential changes, promotes the concept of market opportunity evaluation and organization responses towards such environment factors by utilizing the knowledge resources in the form of specialized human capital factors that act as raising agents for the organization goals cultivation (Leibold et al, 2005).  Strategic human resource management applies two featuring aspect, content and process, which help designing the tasks, programs and procedure reactive or proactive to environmental change factors (Schuler  Jackson, 2007). Therefore, human resource management has been positioned strategically to influence the organizational functioning and deriving the change forces of organizational culture. Human resources capitalization for skills and knowledge and designing programs to encourage the employee participation in decision making for the setting of objectives and goals of an organization incredibly support the operation and strategic focus of growth orientation.

Strategic positioning of human resource management in knowledge based economy is based on the environment factors that direct the goals setting and objectives of an organization involving human capital as input for strategies transformation into achievable practices. Strategic human resource management analyze the skills and act as knowledge facilitator, while increasing the sustainable competitive edge through relying on personnel skills and role of external factors in affecting organization procedure. HRM system should have distinctiveness and consistency that is driven by strategic goals and values of an organization.

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