The function of the human resources ( HR ) map has increased well in recent old ages with a figure of the HR-related activities being considered as strategic activities. These activities provide for the increased function of the HR map in the direction of the concern taking to the term strategic HRM ( human resources direction ) which defines the difference in attack and importance of the HR map. The construct of strategic HRM refers to HR activities that “ facilitate strategic flexibleness with the end of making a dynamic tantrum and adequately replying the petitions of the scheme of the administration and the environment ” ( De Pablos & A ; Lytras, 2008, p.50 ) .
This implies that the HR activities which could be considered as strategic HRM are the HR activities which straight impact the execution of the scheme of the administration including those which impact the strategic way of the administration. These activities are best seen through illustrations of HR activities in administrations which can be referenced as strategic HRM. The illustrations presented in this essay include the execution of relevant preparation programmes to convey important sweetening in a house ‘s operational public presentation, the development of cognition direction in the administration, and the development of overall endowment degree in the administration. Each of these illustrations is discussed farther.
The first illustration is the execution of relevant preparation programmes to convey important sweetening in a house ‘s operational public presentation. The HR map has as portion of its typical authorization the preparation of staff in an administration. The development of staff and their continued growing in footings of professional and personal development is one of the chief challenges of the HR map peculiarly in the recent period where increased competition in the market topographic point has demanded greater accomplishments and capablenesss from forces ( Kaplan & A ; Norton, 2004 ) . For preparation and development activities to germinate from typical HR functional activities to strategic HRM enterprises, the actions need to hold an implicit in importance in support of the administrations ‘ operational activities.
The research of Pandey ( 2007 ) is of import as it provides some illustrations in which the actions of the HR map in preparation and development of forces were considered to be strategic HRM activities. In this research, the impact on the house public presentation was noted with the sweetening of operational efficiencies of the administrations taking to competitory advantage versus other participants in the market. The consequences of the research indicate that the Six Sigma intercession concentrating on a instance survey administration resulted in “ procedures which are the industrial best patterns that synchronise with the socio-cultural system of the administration and do it the discriminator, which is complemented with its alliance with the organizational manner of working including the strategic purpose of the house, proficient expertness of the work force and organizational civilization ” which were all integrated in the Six Sigma attack and nonsubjective ( Pandey, 2007, p.149 ) .
Clearly, in the instance survey of the research, the preparation enterprise of the instance survey administration was considered to be a strategic HRM activity given the impact of the procedure on the overall attack in the operations of the concern. The chief restriction of the survey was that the range was limited to one individual instance survey administration. In add-on, the impact was non quantified and the instances study administration was non identified given confidentiality considerations and it was merely referred to as a transnational corporation in the fiscal services sector.
The research of Pandey ( 2007 ) did place a figure of other companies which pursued Six Sigma intercessions which could be considered as strategic HRM enterprises given the graduated table of the impact of the actions. Linda ( 2004, cited in Pandey, 2007 ) noted that the HR map of Dow Chemical was able to bring forth US $ 3.2 million in positive fiscal impact for the administration through the Six Sigma intercession enterprise. In a separate illustration, Bhatnagar & A ; Sharma ( 2004, cited in Pandey, 2007 ) noted that Ford had generated more than US $ 1 billion in nest eggs from 2000 as a consequence of the house ‘s Six Sigma intercession implemented by the HR map.
In both these instances, the HR map pursued arguably strategic HR enterprises as the actions taken in relation to the preparation and instruction of the work force led to improved operational capablenesss which enhanced the competitory place of the houses, and besides generated important fiscal benefits impacting the bottom line of the houses positively. In the cordial reception industry, an illustration of a house which incorporates strategic HRM in its activities is the Hilton Group which links strategic HRM to its improved concern public presentation and the bringing of the ‘Hilton promise ‘ to its clients ( Maxwell & A ; Lyle, 2002 ) .
The 2nd illustration is in the development of cognition direction in the administration. This is peculiarly helpful for administrations where cognition is critical and is the chief competency that differentiates an administration from other participants in the market. An illustration of a sector in which this is the instance is the professional services sector. The research of Teo et Al ( 2008 ) is of import to see as it noted the HR actions that impact the strategic place of the professional services houses. These were the HR enterprises which impact the accomplishments, cognition and capablenesss of the staff in the administration with a peculiar focal point on the direction of cognition workers as this straight leads to the increased fight of the professional services houses.
It is the development of the human capital and its constitution as the cardinal discriminator for the houses and its competitory advantage that distinguishes this peculiar action to be considered as strategic HRM. Youndt & A ; Snell ( 2004 ) is besides an of import diary to see as this shows the increased importance of human capital in the competitory advantage of administrations versus other touchable capital and assets that used to drive the fight of administrations. The impact of human capital and its nexus to the house ‘s public presentation has been noted in other research works every bit good ( Teece, 2003 ; Hill et Al, 2003 ) . The restriction in the usage of the research of Teo et Al ( 2008 ) as a instance survey research for this essay is that it does non supply the specific names of the professional services houses included in the research.
The 3rd illustration is the development of overall endowment degree in the administration. The research of Sharma & A ; Bhatnagar ( 2009 ) showed how the development of a endowment direction scheme is one of the cardinal strategic HRM actions that have a important impact on the public presentation of a house. The endowment direction scheme can impact non merely the endowment degree of the single employees in the administration but besides the leading in different degrees of the administration. The direction of endowment and the grapevine is a strategic HRM activity as it impacts the leading grapevine of the administration ( Cogner & A ; Fulmer, 2005 ) . As with the old two illustrations, this illustration of an HR activity leads to improved public presentation in the administration. Talent direction therefore is a driver of the enhanced capableness in the administration and its improved operational and fiscal public presentation ( Chugh & A ; Bhatnagar, 2006 ) .
The research works indicated for this illustration of the development of endowment direction in an administration as a strategic HRM action show that this is considered to be a cardinal activity that many administrations pursue. However, the research plants have non named the specific administrations utilised in the research works and the instance surveies consistent with typical confidential surveies. However, it is clear that talent direction is considered to be an of import action for administrations and is one activity that is included in the class of strategic HRM enterprises. This is driven by the impact that the enterprise has on the public presentation of the administration every bit good as the ensuing competitory place of the administrations which are implementing talent direction schemes to develop the accomplishments and capablenesss of the forces in the administration. The talent direction includes actions that develop the forces in the administration and besides attracts and recruits other staff to the administration in order to raise the overall endowment degree that exists in the administration.
The illustrations are merely some of the HR activities that could be considered as strategic HRM. The illustrations presented are non meant to be thorough as there are surely a figure of other actions that can specify strategic HRM actions. The illustrations do demo that there are a figure of rules that underpin the activities initiated by the HR map in order for these activities to be considered as strategic HRM. The HR activities that are present in an administration which can be termed strategic HRM activities are those which impact the competitory advantage of the administration with the HR map driving the development of the enterprise and pull offing the actions related to the enterprise.
These are besides the activities which are portion of the typical HRM map but which now involve a strategic facet in footings of the actions taken peculiarly as these relate to and back up the strategic actions of the administration. Finally, these are besides the activities which generate important benefit to the administration in footings of fiscal impact or development of accomplishments and capablenesss or personal which lead to enhanced fight of the administration. The illustrations presented provide an apprehension of which HR activities can be portion of strategic HRM and which of these activities can be meaningful plenty to be considered as portion of the construct of strategic HRM. Overall, the chief counsel for the actions to be considered as strategic HRM is that the actions of the HR are linked to strategic determination doing which impact the house ‘s public presentation.