Importance Of Strategy, Human Resource Management And Performance

Activities involving the Capabilities

Discuss about the Strategy, Human Resource Management and Performance.

The primary intention of developing this report is discussing the importance of three different capabilities associated with the human resource managers and their necessary application to the fundamental business practices. There are seven primary capabilities highlighted in the Model of Excellence formed by the Australian Human Resource Institute (AHRI). AHRI is a national institution of Australia providing specific standards in the context of human resource and management of people at the workplace (Armstrong & Taylor, 2014). The model of excellence is devised and released by the association with the aim of providing a conceptual basis to the accreditation of HR practitioners and training activities offered by universities across the country. Amongst the seven vital features mainly identified by the organization for the HR managers and professionals, three capabilities are selected for developing the useful information (Jiang, et al., 2012). These capabilities include Business Driven, Strategic Architect, and Cultural and Change Leader. Firstly, the business driven approaches must need to be developed by the HR professionals and practitioners for shaping up their works towards the organization. It is vital to align the HR functions in a rightful manner for facilitating the achievement of core organizational goals and objectives. Secondly, the selection of strategic architect is based on investigating the roles of the business partners influencing the HR activities of the organization (Bratton & Gold, 2012). Strategic architects refer to the trading partners aligning the functions of the HR professional to the identified business strategies. Lastly, the cultural and change leadership activity associated with the roles of the HR managers is identified by considering the particular environment in which the organizations are currently operating. The present business environment is rapidly changing while driving the management practices to be culturally evolving.

Business Driven:

As mentioned earlier, the HR professionals must need to develop their operations in a manner, which can support the achievement of fundamental goals and objectives of the organization. Therefore, the HR professionals and practitioners are required formulating their human resource strategies and operational activities (Buller & McEvoy, 2012). It is important for the HR managers to conduct an environmental scan covering both internal and external environment of the organization, and incorporate the extracted information to the development of HR policies and approaches. The identified process efficiently helps these professionals to generate a business-centric approach regarding the roles and responsibilities of HRM (Mello 2014). In addition to this, a proper introduction of activities would develop an essential sense among these professionals regarding stakeholder management and establishment of successful relationships within the business. The success of the relationship within the firm contributes to the development of communication skills in the internal environment. Increasing communication skills subsequently helps the HR professionals to develop the business driven approaches for enhancing their management expertise and conflict handling abilities.

Importance of the Capabilities to the Human Resource Manager

Strategic Architect:

Strategic architect as part of the human resource architect, which helps to define the operations and their responses for the organization related to the continuously changing economic and social conditions of the market (Storey, 2014). Business operations are required evolving constantly to cope up with the changing social and economic needs of the specific industry in which the business is operating. The particular approach facilitates the success or survival of the organization in the chosen segment of the market. Therefore, the strategic architect capability influencing the roles and functions of HR professionals helps them to generate the ability to recognise the regional and global trends (Ulrich, 2013). These trends are highly involved with the core business operations having their impacts over the critical business decisions and their relevant responses to the overall market. For example related to the current environment, digital imaging is rapidly replacing the films for cameras or e-publishing activities are constantly substituting the printed magazine and books. The strategic architects within the business are highly informed about these certain trends in the market to use them accordingly in the formation of business plan (Mathis, et al., 2016). Therefore, the inevitable factor influence the roles played by the HR professionals within the particular business to modify its hiring, compensation, and employee training functions to cope up with the new changes in the identified market.

Cultural and Change Leader:

The cultural change throughout the organizations was never more relevant due to the stability of the business environment. However, the modern day business environment is dramatically changing in terms of economic and social perspectives. The entire scenario is critically demanding the organizations to be more flexible, changeable, and adaptable. These are the essential requirements of the modern day enterprises leading the HR practitioners to adopt more divergent policies and practices in their roles (Renwick, Redman & Maguire, 2013). Fundamentally, organization culture deals with the way of approaches and their responses to the business activities. Hence, cultural change provides the biggest impact to the effectiveness of the organization while holding the sustainability regarding the performance than any other elements of the organizational system. Organizational culture and change provide a high level of impact on the roles of HR managers including the policies they adopt for recruitment and selection or leadership development.

Importance of Business Driven Capability for HR Manager:

Business-driven roles must need to be developed by the HR professionals for enhancing their overall management skills and capability to handle the workforce conflicts efficiently. Business-driven approaches enable the HR professionals and practitioners to engage in certain activities favouring their understanding about the fundamental goals of the business (Crane, 2013). It helps the HR managers to gather a clear sense about the strategies of the organization pertaining to the identified goals of the business while they understand the need for the management approaches to be focused on the business. Business centric approaches help the HR managers to redefine their roles through the different HR strategies and principles for integrating them with the organizational goals successfully (Stahl, Björkman & Morris, 2012). Apart from that, the managers gain specific understanding regarding the importance of stakeholder management and establishing and maintaining successful business relationships to promote the communication throughout the business procedures.

Importance of Strategic Architect Capability for HR Manager:

Strategic Architect is one of the particular areas from the perspective of business, which constitutes a shift of paradigm for the HR professionals. It drives the professionals and practitioners from the particular field of the business to provide more focus on the tactical aspect rather than the operational and administrative function. It aims the organization to become strategic while participating in the long-term achievement of organizational goals (Jackson, Schuler & Jiang, 2014). According to Ulrich, Brockbank & Dani (2013), the tactical roles of the organization caused the emergence of perceptions claiming that the HRM is not the central function of the business. However, the identified factor provides critical implications to the HR functions. The remarkable competence can be achieved in the roles played by the HR professionals due to the application of strategic architect. As a result, the managers learn to overcome various misconceptions. The particular implication importantly helps the HR managers to relate to the present market trends to develop new HRM policies and principles (Renwick, Redman & Maguire, 2013). The newly defined strategies aim to deliver proper values to the market customers and support the survival of the business in an efficient manner.

Importance of Culture and Change Leader Capability for HR Manager:

Cultural change focuses on the development of organizational programme. Corporate culture is a significant factor for the business due to the dynamic nature of culture. It not only informs the employees about their working performance but also notifies the leadership teams about the possible approaches to be taken during the decision making process. It is important for the HR managers to develop knowledge regarding the entire structure, rules, policies, guidelines, systems, and behaviours of the individuals as part of the organization are all determined by its absolute culture. Hence, it is the duty of the HR practitioners to raise awareness within the organization related to the associated cultural phenomena (Mathis, et al., 2016). Additionally, challenges in the culture should need to be removed for providing balance in the organization and influencing the comprehensive decision-making. Due to the implication, the behaviours of individuals within the organization are aligned to the cultural landscape and ultimately developing the way of conducts within the particular industry.

Conclusion

As part of producing the overall information outlined in the paper, critical knowledge regarding the capabilities or requirements associated with the roles played by the HR managers is identified successfully. In order to demonstrate the business driven approach in the HRM functions and responsibility, the graduated individual applying for an HR position must need to possess the internal and external assessment of the organizational environment. The particular capability is essential for the individual for designing the exceptional HR strategies and operational functions. In case of the strategic architect skills in the roles of the HR managers, they must need to describe the preferred outcomes of the HR activities that are valued by the CEO and various line managers of the organization. Their roles must need to relate directly with monitoring the achievement of organizational goals by the different business departments. Lastly, the individuals applying for the HR position must need to showcase the skills regarding the talent management and succession planning for matching the capabilities regarding the cultural change and leadership.

References

Armstrong, M., & Taylor, S. (2014). Armstrong's handbook of human resource management practice. Kogan Page Publishers.

Bratton, J., & Gold, J. (2012). Human resource management: theory and practice. Palgrave Macmillan.

Buller, P. F., & McEvoy, G. M. (2012). Strategy, human resource management and performance: Sharpening line of sight. Human resource management review, 22(1), 43-56.

Crane, A. (2013). Modern slavery as a management practice: Exploring the conditions and capabilities for human exploitation. Academy of Management Review, 38(1), 49-69.

Jackson, S. E., Schuler, R. S., & Jiang, K. (2014). An aspirational framework for strategic human resource management. The Academy of Management Annals, 8(1), 1-56.

Jiang, K., Lepak, D. P., Hu, J., & Baer, J. C. (2012). How does human resource management influence organizational outcomes? A meta-analytic investigation of mediating mechanisms. Academy of management Journal,55(6), 1264-1294.

Mathis, R. L., Jackson, J. H., Valentine, S. R., & Meglich, P. (2016). Human resource management. Nelson Education.

Mello, J. A. (2014). Strategic human resource management. Nelson Education.

Renwick, D. W., Redman, T., & Maguire, S. (2013). Green human resource management: A review and research agenda. International Journal of Management Reviews, 15(1), 1-14.

Stahl, G. K., Björkman, I., & Morris, S. (Eds.). (2012). Handbook of research in international human resource management. Edward Elgar Publishing.

Storey, J. (2014). New Perspectives on Human Resource Management (Routledge Revivals). Routledge.

Ulrich, D. (2013). Human resource champions: The next agenda for adding value and delivering results. Harvard Business Press.