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Home » Human Resources » 7 Steps to Create Strategic HRM (Human Resource Management)

7 Steps to Create Strategic HRM (Human Resource Management)

January 6, 2021 | By Hitesh Bhasin | Filed Under: Human Resources

Strategic HRM or Strategic Human Resource Management is a process of attracting talent and then retaining, rewarding, and developing them so that at the end of the day, both the organization and the employees are clear winners.

The HR department works with other departments in the organization to understand their goals and then creates viable strategies that align with both department and organizational goals and objectives.

Table of Contents

  • How to create an effective strategic HRM process?
  • Benefits of strategic HRM
  • Barriers to Strategic Human Resource Management

How to create an effective strategic HRM process?

Steps to create an effective strategic HRM process

Take the following steps to create a strategic human resource management process-

1. Identify the objectives of your organization 

The first step in the process of creating a viable concept of the strategic human resource management process is to understand the organization thoroughly. Look at its mission, vision, goals, and objectives and articulate what it aims to achieve.

Identify both the long-term and short-term growth plans as it will prove useful in creating an effective strategy. The HR department should have a clear picture at the onset because only then will it be able to formulate a plan for the future

2. Evaluate the HR capabilities of your organization 

Employees are the backbone of every organization, and policy related to strategic HRM will revolve around them. If you are looking for effective steps to create a strategic human resource management process, then evaluate the HR capabilities of your organization. You must have a clear understanding of every aspect of the human resources working in your company.

Take the help of skills inventory to know which of the employees are experts in their specific area are and which ones are contributing the highest in fulfilling organizational goals and objectives. Take the help of a performance review to assess their skills.

This step will prove a blessing to the company as it will help to identify the employees who are interested in further growth and are looking for opportunities for training and development within the organization.

3. Analyze the current HR capabilities 

Until and unless the HR department is aware of the current HR competence, it is impossible to create a viable plan for the future. A proper assessment is the demand of the hour as it will help to recognize both opportunities and barriers on the way.

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Implement an action plan that will recognize barriers and deal with threats. It will also help to take advantage of opportunities. At this time, the strategic human resource management team will identify the best of the human resources the company has and the current skills they possess.

It will then offer training and learning opportunities so that they can later serve the organizational needs effectively

4. Forecast future HR requirements of your organization 

The HR department now has a greater understanding of the current HR capabilities of the company. It is time to analyze them thoroughly based on your objectives. If you are looking for effective steps to create a strategic human resource management process, then this is the time to estimate and forecast the future HR requirements of your organization.

Predict HR needs based on the number of employees and associated skills that will be required to fulfill future organizational needs and the number of employees and skills that the organization already has to fill those needs.

Forecasting will help to determine whether the skills of human resources are being utilized at optimal capacity, does the company need to create a new job and related roles to secure the future of the organization and whether the current HR team, its strategies, and practices are enough to accommodate future growth and development

5. Determine the required tools to fulfill job obligations

To create a strategic human resource management process, determine the tools necessary to fulfill job obligations.

It is the responsibility of the HR department to contact the appropriate departments to know how the tools that are being used by the employees and are having an impact on their abilities and resulting performances. It is time to identify gaps in tools so that it can be fulfilled to encourage an organized workforce.

6.Implement the human resource management strategy 

Start at the beginning and search for applicants that have the skills identified during the strategic planning. Now organize interviews and other selection processes to assess whether the candidate is equipped to handle the job position.

Hire the applicant who is the most talented. Design an effective Onboarding and training program to guide them through the initial phase.

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7. Take evaluative and corrective action 

If you are looking for effective steps to create a strategic human resource management process, then take evaluative and corrective action. Carry out a review to track the progress and identify specific areas that need improvement.

The million-dollar question at this time is whether the changes are helping the organization to achieve its goals. In case it is not so, then this is the time to take corrective action to fix the problem.

Benefits of strategic HRM

The benefits of strategic HRM are as follows

  • SHRM helps to create a business strategy for the future keeping in mind the vision of the company
  • The importance of strategic HRM is to boost job satisfaction, and this is beneficial for the company
  • Strategic human resource management is considered helpful for an organization as it helps to identify, understand and analyze external threats and opportunities that might prove vital for the company and prove a deciding factor on its success and failure at a later date
  • SHRM is considered beneficial for an organization as it provides competitive intelligence that is essential in strategic planning
  • To recruit, develop and retain competent talent to benefit the organization
  • SHRM is considered beneficial for an organization as it helps to motivate employees
  • Strategic human resource management process helps to address concerns regarding employee development in the most efficient manner
  • SHRM ensures that there is a continuous business surplus with the help of competency
  • Strategic human resource management is considered beneficial as it ensures the highest levels of efficiency and productivity in the organization
  • SHRM helps the organization to meet customer expectations effectively
  • Strategic human resource management provides essential information about the internal weakness and strengths of an organization
  • SHRM works towards providing a better work culture that is healthy and productive
  • Strategic human resource management takes a proactive approach and thus is quite effective at managing human resources in the organization

Barriers to Strategic Human Resource Management

Barriers to strategic HRM

The barriers to strategic HRM are as follows-

  • SHRM is a process where every department in the organization has to work in tandem with the HR department. Interdepartmental conflict is considered as one of its significant barriers
  • SHRM faces a great deal of resistance if the bottom line does not cooperate
  • Lack of support from senior management will prove a significant barrier to SHRM
  • If the organization has limited resources, finance and time then it will prove a strong barrier to SHRM
Also Read  5 Reasons Employee Development Is Important To Your Company

Conclusion

Strategic HRM is a process of using HR techniques to gain competitive advantage and boost business performance. It takes the help of the opportunities within the human resource department and utilizes the available talent to make the departments as well as the organization stronger and effective than ever.

Liked this post? Check out the complete series on Human resources

About Hitesh Bhasin

Hi, I am an MBA and the CEO of Marketing91. I am a Digital Marketer and an Entrepreneur with 12 Years of experience in Business and Marketing. Business is my passion and i have established myself in multiple industries with a focus on sustainable growth. You will generally find me online at the Marketing91 Academy.

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