Having a Human Resource Manager is extremely important for any organization’s success. Having internal HR experts can enhance the understanding of how important human capital is for the company’s performance. For small businesses, human capital is significant because it have many employees who perform cross-functional tasks. For small companies, if one person leaves the organization then the company has to fill a huge gap and it can be a potential threat to the company’s profitability.
Human resource management develops succession planning, which identifies employees with the promise and required capabilities to eventually move into leadership positions with the organization. This is a significant function as it can assure organizational stability and future success.
The human resource function assesses the existing workforce in order to determine the nature of training, skills and employee development needed for improving productivity. Training and development is less expensive rather than hiring additional staff. Also, this strategy can minimize employee turnover and increase employee retention.
The HRM strategy will have to work accordingly and for that it needs to focus on how personnel can be managed for the achievement of 10% growth. The various HRM functions that need to be tailored include recruitment, selection, recognition/reward, an HR plan and learning and development.
* Close collaboration between the senior management and HR, is also an essential tool for the development of the corporate strategy. Complete involvement of a senior HR official is highly required when corporate objectives of the organization are being devised. Out of all the functional areas of an organization, HR department is the one that plays a vital role.
* Persistent monitoring is also required to predict whether the strategy is properly working or not for the organization, via surveys, employee feedback, etc.
Implementing HR strategy depends on a number of factors like firm’s size, cultural approach within the firm, firm’s industry and firm’s people.
Collectively speaking, an HRM strategy aims at management of not only the people but also the various functional areas within the organization.