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Essay Paper on Strategic HR Management

by Herbert G. Aldridge 

Human resource management consists of all activities aimed at ensuring the development, motivation and retention of human resources within the organization in order to achieve the organizational objectives with maximum efficiency and meet the needs of employees (Torrington, Hall, 1995). The human resources represent the creative, active and coordinating element of all activities within organizations, influencing decisively the efficacy of material, financial and informational resources. To describe people as “strategic resources” emphasizes their importance. Their management requires a high level of a sincere concern for people, attention and professionalism.

The essential principles of human resource management are:

  • Appreciation of the human factor as a vital/strategic resource;
  • The correlation in an integrated manner, of the policies and human resources systems with the organization’s mission and strategy;
  • Sustained preoccupation for the concentration and targeting of the capabilities and individual efforts in order to effectively achieve the organization’s mission and objectives;
  • Developing of a healthy organizational culture.

The main objectives of human resource management are:

  • Increasing staff efficiency and effectiveness (increased productivity);
  • Reducing absenteeism, fluctuation and the extent and number of strikes
  • Increasing job satisfaction of employees
  • Increasing the capacity for innovation and problem solving

Each HR activity must be part of an overall HR strategy. For a greater efficiency, this strategy (like all other strategies) needs to have clear objectives, development and implementation stages, along with evaluation criteria. An interesting approach to human resource strategies is presented by Rolf Bьhner, who divides HR strategies according to the degree of dependence on the organization’s overall strategy, distinguishes three types of personal strategies, namely (Bьhner, 2005):

  • HR strategy oriented towards investments – With this orientation, human resources are the very object or investment element for the company’s further development, since it is based on the idea that investing in the human resources of the organization, support its future development. The efficiency of the activities included in this strategy is thus related to the efficiency of the investments.
  • HR strategy oriented towards value – This strategy takes into account the basic requirement of respecting the interests, wishes and aspirations of the staff, along with the proper use of its potential.
  • HR strategy oriented towards resources – The recognition and promotion of this HR strategy involves reversing the purpose-means relationship. Under this strategy, human resources or the staffing opportunities greatly influence the company’s strategy content and the human resources function development contributes actively to its realization.

As a company has different HR strategies according to the overall objectives of the company, also the evaluation of the HR activities needs to be done accordingly. The structure presented above is maybe one of the most realist ones and with the greatest level of efficiency.

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Bьhner R., (2005) Personal management, Oldenbourg Wissenschaftsverlag
Torrington D., Hall L., (1995), Personnel Management, 3ed edition, Prentice Hall

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