Strategic Functions of HRM
The strategic functions of HRM are mentioned below:
1) Establishing High-Performance HRM Practices: Strategic human resource management ensures that the organizational strategy and human resource strategy are aligned with each other so that the human resource practices are linked. On the other hand, a small increase in human resource practices leads to a huge increase in individual employee profit
2) Organisation Re-Engineering: Strategic human resource management highlights the fundamental role of organizational structure in providing more freedom to employees while working and compressing the task both vertically and horizontally. Strategic leadership information technology accessibility, decentralized decision-making flat hierarchy, and a group of HRM practices that makes employee work behavior more compatible with the company's objectives and culture, etc. are included in redesigning of organizational work. The aim of strategic human resource management is to establish such organizational culture that facilitates the strategies and policies of the business.
It includes:
Association with trade unions.
Cooperation with other business organizations.
Formation of rewards to promote incorporation.
Optimal use of overall capabilities of the organization.
3) Developing Transformational Leadership: Leadership is the core of strategic human resource management. Therefore, it involves the contribution of the employees of an organization, encouraging commitment, innovation, change, and flexibility. On the other hand, transformation leadership includes strengthening of the employees from top to bottom, and towards the individual employment relationship.
4) Establishing Workplace Learning: Strategic human resource management aims to provide informally and formally work-based learning. This helps the organization in obtaining flexibility. committed and quality people for the organization. Learning plays a very important role in enhancing the core competencies of the organization and acts as a force for sustainable competitive advantages. On the other hand, strategic human resource management develops various action plans to transfer learning within the organization.
5) Assessing HR Effectiveness: Through strategic human resource management views manpower as a ‘Strategic issue', it tries to recognize the strategic human resource need according to the strategies of business to identify that the employees have essential skills and knowledge required within the organization. It demands advanced methods and tools for analyzing the priorities of manpower development and implementation of business solutions, which are human resource focuses for determining business results and impact. All of this can be achieved by continuous efforts of human resource processes and strategies.
