The Role of SHRM in Busienss Organizations

1. Explain the importance of SHRM in any organisation by justifying with an example. (AC: 1.1 Explain the importance of strategic human resource management in organizations).

According to Armstrong, (2008), SHRM has great importance to any business organization as it adds a strategic role for human resource management in the organization in addition to providing the management with different strategies and practices that can be used aligned with the usual practices of human resources. SHRM turns the role of HR professionals to be strategic partners who are able to ensure the business strategies success through raising the business capacity for executing the different strategies required by it. When the business strategies are translated into HR practices, the business then is helped in three ways which are having the ability to adapt desirable change as a result of having less time to achieve such change, the second is meeting the demands of customers due to having better customer services strategies that are based on certain practices and policies and the third is achieving the financial performance by the business by the best execution of strategies. SHRM importance in the business organization can be based on its effect in reducing costs as strategic managers tend to apply different practices that can help in reducing costs such as job rotation, downsizing practices and compensation practices that are able to reduce costs. SHRM can also turn hiring to be more competing by ensuring multinational hiring that can increase the business's global revenues. SHRM is able to help the organization execute its business strategies more effectively than the usual HR practices as when HR professionals are strategic partners; they can master skills of organizational diagnosis and then to make the HR practices aligned with the general business strategies. Dhar, (2008) added that SHRM has different roles in the business organization as it enables HR professionals to do the roles of strategic partners and share in the defining business strategy processes by providing questions that can push the business strategy to real actions and by designing the HR practices with great consideration to the business strategies and make the business strategies as priorities on all agendas; he also added that SHRM can help in achieving the business goals by the help of strategic HR managers who have the skills and talents needed for this task and who can work together with other managers to team up to achieve these goals. Sani, (2012) added that SHRM can be helpful in making the organization more able to apply change that is effective and useful as HR professionals can be responsible for culture change when they are strategic partners as he explained that this can make the organization not in need for external change consultants and that HR professionals can do their roles by training them on applying the needed approaches for change management especially they are more aware with employees' needs and ambitions than any other external consultants, SHRM can also focus on long term planning that tends to achieve the organizational goals by integrating managerial decisions to suit the business environment and the type of change required to improve performance. Becker and Huselid, (2006) discussed how SHRM can have a positive role in manpower planning as it provides high effective management for the company's human resources to reach competitive advantage as SHRM can encourage using different frameworks for stressing the strategic role of HR function and for using the different skills and talents of people to achieve the organizational strategic goals.