Relationship between human resource management and strategic management

Figure 1: Relationship between human resource management and strategic management (Poppulo, 2019)


Relationship between human resource management and strategic management

The word "human resource" is used to describe the people who make up an organization's workforce. In labor economics, it is also used to describe entire industries and even nations. Another name for the department tasked with carrying out people management strategies and policies is human resources. Human resource management involves striking the ideal balance between routine and administrative activities as well as the welfare of every person in a company. How well employees are treated in return for their knowledge and experience has an inverse relationship with employee retention (UK esseys, 2023).

Every business aspires to increase production and efficiency. The success of a company depends on its capacity to progress globally and technologically. In order to be more effective and accomplish its objectives, a company should concentrate on its human capital, or intellectual assets, which are the most important assets of all other resources. After all, a person or an employee carries out every achievement or activity in a firm. Therefore, maintaining this asset in top condition and managing it to a high standard requires time and money. On the other hand, a successful organization depends more on having a well-managed human resource. The strategic management process includes features such as situation analysis, strategy implementation, strategy formulation, and strategy assessment. By dealing with these parts of the SM process in the order presented, companies can review and re-evaluate situations as they evolve, ensuring that the company is appropriately positioned in the business environment. Human resource management can be defined as a series of actions aimed at improving the performance of a company. Having an excellent human resources management department is just as crucial as having a strong finance department. Any business has goals and objectives to meet, and its staff is responsible for achieving them. Employees constitute the workforce of the organization, so managing and maintaining them is very important for the senior managers of the organization (MBA knowledge base, 2021).


        Figure 2: Strategic HRM (Heath, 2015)                               Figure 3 : Strategic Management (Apverma, 2011)

Conclusion

A company must select from a variety of competing possibilities when deciding on a strategy. Competitive advantages might be used to conceptualize the organizational structure. The strategy boosts the competitiveness of the companies and helps senior management make reasonable decisions. Additionally, the companies may obtain a sustained competitive advantage. Strategic Human Resource Management (SHRM) enables the customization of HR practices, employee behavior, and expertise in response to the immediate demands of the firm. In conclusion, in order to achieve an active fit, SHRM must offer strategic freedom.


Refference 

Heath.V. (2015) Slide Player: Strategic HRM [Online]
Available at: https://slideplayer.com/slide/4639952/
[Accessed 22 April 2023].

Apverma (2011) Slide Share: Strategic Management [Online]
Available at: https://www.slideshare.net/apverma01/strategic-management-9257478
[Accessed 22 April 2023].

MBA knowledge base (2021) Strategic Management: Relationship between Strategic Management and Human Resource Management [Online]
Available at: https://www.mbaknol.com/strategic-management/relationship-between-strategic-management-and-human-resource-management/
[Accessed 20 April 203].

Poppulo (2019) Poppulo: Relationship between human resource management and strategic management [Online] Available at: https://www.poppulo.com/blog/importance-of-strategic-human-resource-management [Accessed 22 April 2023].

UK esseys (2023) UK esseys: Relationship between top management and human resource management [Online] Available at: https://www.ukessays.com/essays/business/relationship-between-top-management-and-human-resource-management-business-essay.php [Accessed 20 April 2023].

 

By: S. Satheesh





Comments

  1. Mahinda MBA28 April 2023 at 01:48

    Always strategic management can achieve more than traditional systems, short and valuable.

    ReplyDelete
  2. L.D.Nilukasajeewani28 April 2023 at 19:10

    Hi Satheesh, thanks for sharing this blog details as HRM will guide the organization's strategies and strategic planning process, organization's strategic plans must direct the design of HRM operations approaching performance evaluation, human resource planning, employee selection, training, and remuneration,

    ReplyDelete
    Replies
    1. SATHEESH5 May 2023 at 11:22

      Thank you for your valuable comments. it mean to me alot.

      Delete
  3. Dakshini MBA blogs29 April 2023 at 04:57

    good content...!and useful information.

    ReplyDelete
  4. Thusitha kumara29 April 2023 at 10:49

    always strategies must be laid while giving the priority for the human resource management policies. contents are well aligned Satheesh.

    ReplyDelete
    Replies
    1. SATHEESH5 May 2023 at 11:23

      Thank you for your valuable comments. it mean to me alot.

      Delete
  5. Srimali MBA 202330 April 2023 at 07:05

    Hi Satheesh
    This is really Essential and timely very important topic.You have explained it clearly and neatly .Thank you very much for sharing this important knowledge .

    ReplyDelete
    Replies
    1. SATHEESH5 May 2023 at 11:23

      Thank you for your valuable comments. it mean to me alot.

      Delete
  6. Sameer MBA 20231 May 2023 at 23:30

    HR must be strategic business partner

    ReplyDelete
  7. Thusitha kumara2 May 2023 at 01:45

    looks like a book review , lot of use full information. good job

    ReplyDelete
  8. Lionel Perera2 May 2023 at 19:54

    Hi Satheesh, thanks for sharing this blog details with us

    ReplyDelete
  9. Amila Devapriya2 May 2023 at 22:04

    Your analysis of the role that HR plays in supporting and aligning with broader business goals is insightful and thought-provoking.

    ReplyDelete
    Replies
    1. SATHEESH5 May 2023 at 11:23

      Thank you for your valuable comments. it mean to me alot.

      Delete
  10. Mafaz2 May 2023 at 22:05

    HR plays an important role in organizational decision making. Proper HR strategy and practice will lead the staff and management to focus on the achievement of Organizational goals in several ways.

    ReplyDelete
    Replies
    1. SATHEESH5 May 2023 at 11:23

      Thank you for your valuable comments. it mean to me alot.

      Delete
  11. Himani MBA 20233 May 2023 at 06:54

    Appreciating your efforts satheesh. Nicely written. well done.

    ReplyDelete
    Replies
    1. SATHEESH5 May 2023 at 11:23

      Thank you for your valuable comments. it mean to me alot.

      Delete
  12. FazilMBA20233 May 2023 at 10:44

    In order for a business to attain its long-term objectives, strategic management is crucial.

    ReplyDelete
    Replies
    1. SATHEESH5 May 2023 at 11:24

      Thank you for your valuable comments. it mean to me alot.

      Delete
  13. MOHAMED RAHMATH RALLY3 May 2023 at 12:36

    Useful post

    ReplyDelete
  14. Rubinie Rajendran4 May 2023 at 07:33

    Well explained, Strategic Management gives a broader perspective to the employees of an organization and they can better understand how their job fits into the entire organizational plan and how it is co-related to other organizational members.

    ReplyDelete
    Replies
    1. SATHEESH5 May 2023 at 11:24

      Thank you for your valuable comments. it mean to me alot.

      Delete
  15. Himali MBA 20234 May 2023 at 09:41

    Something valuable is defined by a limited number of facts
    Good satheesh...

    ReplyDelete
  16. Bhagya Joseph4 May 2023 at 16:45

    Impressive blog Satheesh. HR plays an important role in organizational decision making Process. Proper HR strategy and practice will lead the staff and management to focus on the achievement of Organizational goals in several ways.

    ReplyDelete
    Replies
    1. SATHEESH5 May 2023 at 11:24

      Thank you for your valuable comments. it mean to me alot.

      Delete
  17. Janith4 May 2023 at 21:24

    Those HR leaders can make significant role to strategy development and achievement as well as to improve the quality of decision related strategy and talent. Good topics

    ReplyDelete
    Replies
    1. SATHEESH5 May 2023 at 11:24

      Thank you for your valuable comments. it mean to me alot.

      Delete
  18. Chinthani Jayasekara4 May 2023 at 23:08

    Good content and very well explained satheesh. Thank you for sharing !

    ReplyDelete
    Replies
    1. SATHEESH5 May 2023 at 11:24

      Thank you for your valuable comments. it mean to me alot.

      Delete
  19. Dhanusha Rodrigo5 May 2023 at 07:37

    In making decisions for the organization, HR is crucial. The workforce and management will become more focused on achieving organizational goals in a number of ways as a result of proper HR strategy and practice.

    ReplyDelete
    Replies
    1. SATHEESH5 May 2023 at 11:24

      Thank you for your valuable comments. it mean to me alot.

      Delete

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