The strategic functions of HRM are as follows:
1) Establishing High-Performance HRM Practices:
The strategic human resource management ensures that the organisational strategy and human resource strategy both are aligned with each other so that the human resource practices are linked with each other. On the other hand, a small increase in human resource practices leads to huge increase in individual employee profit
2) Organisation Re-Engineering:
Strategic human resource management highlights the fundamental role of organisational structure for providing more freedom to employees while working and for compressing the task both vertically and horizontally.
Strategic leadership information technology accessibility, decentralised decision-making flat hierarchy and a group of HRM practices that makes employee work behaviour more compatible with company's objectives and culture, etc. are included in redesigning of organisational work. The aim of strategic human resource management is to establish such organisation culture that facilitates the strategies and policies of business.
It includes:
❏ Association with trade unions.
❏ Cooperation with other business organisations.
❏ Formation of rewards to promote incorporation.
❏ Optimal use of overall capabilities of organisation.
3) Developing Transformational Leadership:
Leadership is the core of strategic human resource management. Therefore, it involves the contribution of the employees of an organisation, encouraging commitment, innovation, change and flexibility. On the other hand, transformation leadership includes strengthening of the employees from top to bottom, and towards the individual employment relationship.
4) Establishing Workplace Learning:
Strategic human resource management aims to provide work-based learning both in an informal and formal manner. This helps the organisation in obtaining flexibility. committed and quality people for the organisation. Learning plays a very important role in enhancing the core competencies of the organisation and acts as a force for sustainable competitive advantages. On the other hand, in order to transfer learning within the organisation, various action plans are developed by strategic human resource management.
5) Assessing HR Effectiveness:
Though the strategic human resource management views manpower as ‘Strategic issue', hence it tries to recognise the strategic human resource need according to the strategies of business so as to identify that the employees have essential skills and knowledge which are required within the organisation.
It demands advanced methods and tools for analysing the priorities of manpower development and implementation of business solutions, which are human resource focuses for determining the results and impact of business. All of this can be achieved by continuous efforts of human resource processes and strategies.
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