The integration of the ideas of strategic management and human resource management are the principal basis of strategic human resource management. According to Boxall and Purcell (as cited in Armstrong & Armstrong, 2011), Human Resource Management refers to all the activities that are involved in the management of the relationships of employees within an organization. SHRM focuses on helping organizations in better meeting the employees’ needs as well promoting the goals of the organizations. In this paper, review literature will focus on how SHRM creates initiatives in order to meet employee satisfaction and organizational goals and objectives.
Over the last twenty years, there have been several contributions in the literature focusing on the management of employees. The main focus has been directed towards the human resource management and over the last 10 years, studies have mainly dealt on how human resource management influences organizational performance and it is on this basis that there has been a rising interest in the area of Strategic Human Resource Management. The concept of Strategic Human Resource Management has been defined as the proactive management of employees and involves the aspect of strategizing on how organizations can better meet the needs of their employees as well as how the employees can help maximize the needs of the organizations. In recent years, there has been globalization, rapid changes in the environment, innovations and inventions that have led to the emergence of new competitive products and services. This has in turn led to a new outlook in the market whereby there have been new demands by the investors and customers.
For effective completion, firms and organizations have to operate on reduced costs, quality enhancement, and product differentiation. In order to realize such goals and objectives, and then firms have to focus more on business and strategic oriented priorities and initiatives that include; employee empowerment, total reward programs, engagement studies, incentive compensation, and team-based job programs among others. The idea behind strategic human resource management is the diagnosis the organizational strategic requirement and predetermined talent development that is considered vital in the implementation of the competitive strategies and the realization of operational goals.
Pundits have continuously criticized the theoretical framework linked with the development of the concept of the Strategic Human Resource Management. Two key factors have contributed to this criticism; firstly, scholars researching on the field of Strategic Human Resource Management have approached the topic from a wide range of perspectives, and there has been no single thread that can bring a convergence thread in the perspectives. Secondly, the theoretical framework of Human Resource Management, on which Strategic Human Resource Management was founded, has been considered to be poor (Delery & Doty, 1996).
Under the human resource plan, it is considered appropriate that organizations should take into consideration the requirements of the workforce and the ability of the organization in providing such needs to the employees. Compared to smaller companies, larger companies have the potential to provide initiatives such as benefits programs and training programs. However, it does not imply that smaller companies and organizations are not exempted from engaging in SHRM. The main objective of strategic human resource policies is to put in place initiatives that will help in realizing optimal employee satisfaction while maximizing the organizational output. The initiative programs can be offered on-site in the case of smaller companies unlike in the case of larger companies where the initiative can be provided off-site.
Strategies in SHRM assist in strong training alongside mentoring programs of the existing employees together with any new absorbed employees and can help in speeding up on the organizational policies. This will be important as it can also help the organization, small and large, in offering high quality and consistent products. From past studies, it has been verified that strategic human resource management is essential to both small and larger companies (Mathis & Jackson, 2012). Under the SHRM, smaller companies, the manager may undertake even reviews by regularly observing, assessing, and assisting the workforces. On the other hand, the human resource department in larger companies should put in place policies that help in meeting employee needs while benefiting the company/organization (Phillips & Gully, 2013).
There is a strong correlation between SHRM and the level of employee performance and the level of organizational output. This is in relation to the aforementioned initiatives but as earlier mentioned, there have been continued criticisms over the strategic human resource management. In that case, there is a need to undertake further research for better understanding of strategic human resource management. Such studies should focus on the initiatives of strategic human resource management, and this implies a need to undertake further studies on theoretical development and empirical evidence (Jing & Huang, 2005).
In conclusion, this research focuses into looking at the strategic human resource management approach. The research looks into the initiatives of strategic human resource management and will mainly focus on adding to the existing literature of SHRM and how such initiatives may impact on the employee satisfaction alongside optimization of the firms’ total output.
Armstrong, M., & Armstrong, M. (2011). Armstrong’s handbook of strategic human resource management. London: Kogan Page.
Delery, J. E., & Doty, H. D. (1996). Models of theorizing in strategic human resource management: Tests of universalistic, contingency, and configurational performance predictions. Academy of Management Journal, 39(4), 802-835.
Jing, W., & Huang, T. (2005). Relationship between strategic human resource management and firm performance. International Journal of Manpower, 434-449.
Mathis, R. L., & Jackson, J. H. (2012). Human resource management: Essential perspectives. Mason, Ohio: South-Western.
Phillips, J. M., & Gully, S. M. (2013). Human resource management. Mason, Ohio: South-Western Centage Learning.