What is strategic HRM To what extent and in what ways might HRM have a Essay

What is strategic HRM To what extent and in what ways might HRM have a strategic role to play in organisations - Essay Example In addition, the traditional employees’ motivators have changed and individuals are given more decision-making power. As the result, the role of HRM is also changing. HRM is already recognized to have influence in overall organization effectiveness. Human Resource strategy is focused on integrating different HR practice into businesses to provide competitive advantage. â€Å"HRM cannot be viewed as the separate function of business unit because the alignment of HR processes with business strategies is of primary importance† (Armstrong 2002). Despite of technological advances, the knowledge and skills of employees are the key source of organizational efficiency. According to the statistics in UK, the HR specialists have the seat on the Board of Directors in almost every company. Thus, the HR department has the significant level of influence within an organization. As many as 54 percent of HR managers in UK are involve in the development of overall company strategy. Having the right people on the right positions determines the organizational success. Companies are become more oriented to global markets and as the result, the personnel becomes culturally diverse. Ensuring â€Å"the productive cooperation of multicultural individuals is vital for strategy accomplishment† (Tyson 1995). If the company wants to succeed, having flexible, effective workforce is the first step to start with. For this reason, there is the tendency to outsource HR activities to professional agencies. Recruitment, training, consultations, team building and even downsizing are the services provided by outside professionals. Despite of the increasing need to implement strategic Human Resource Management, there are several concerns that challenge the transition from traditional to strategic functioning. Globalization has increased to need in â€Å"well-educated, trained and flexible workforce† and â€Å"individuals