HRM integration with strategic managementA businesses strategic management decision-making process usually takes place at its top levels, with a strategic planning group consisting of the Chief Executive Officer (CEO), the Chief Financial Officer and Executive members. It is important to note that each component of the process involves people-related business issues. (Noe, R. et al 2003). With this in mind, it is essential that the HRM function is involved in each of the decision-making components. In recent years the most striking change in HRM's role is its growing importance in developing and implementing strategy. Traditionally, business strategy was incorporated in the role of ...view middle of the document...
(Noe, R. et al 2003). This process helps to cement the case for a HRM Executive to be an integral member of the Senior Management Team. In today's environment, direction has changed from strategies being implemented and incorporated by the Line Manager function. Dessler argues that strategies increasingly depend on strengthening organisational responsiveness and on building committed working teams. (Dessler, G. et al 1999). This puts HR in a central role. In the fast changing and globally competitive environment that we are working in, it is often the businesses Employees / Human Resources themselves who provide the competitive key, thus cementing the need for HR to be involved in the earliest stages of developing and implementing the businesses strategic plan rather than just responding to it. The HRM function should be proactive in the input to a businesses strategy rather than reactive to it. Storey and Sisson argue that both the 'best practice and contingency models carry assumptions that the HR department would have access to strategic decision-making within an organisation, and if given such access, the business strategy would be in such a coherent and overt form that integration - if acceptable as desirable, would be achievable.(Legge, K. 1995)Competitive AdvantagePorter suggests the concept of gaining competitive advantage to organisations wishing to engage in strategic activities that would be difficult for competitors to copy or imitate quickly. Shuler and Macmillan apply this theory to HRM. They suggest that firms can use HRM to gain competitive advantage because it is difficult for competitors to duplicate. That is, while technology and capital can be acquired by almost anyone at any-time for a price, it is difficult to acquire a ready pool of highly qualified and highly motivated employees. It is increasingly difficult to plan strategy in an era of discontinuous change. In today's intensely competitive and global marketplace, maintaining a competitive advantage by becoming a low-cost leader or differentiator puts a heavy premium on having a highly committed and competent work force. Committed workers play a strategic role in a company achieving its competitive advantage. For example, a competitive advantage lies not just in differentiating between a product or service, but also in being able to tap the companies special skills or core competencies and rapidly respond to customers needs and competitors moves.(Dessler, G. et al 1999). In a growing number of companies, Human Resources are viewed as a source of competitive advantage. There is great recognition that distinctive competencies are obtained through highly developed employee skills, distinctive organisational cultures, Management processes and systems. It is becoming recognised that competitive advantage can be obtained from a high quality work force that enables organisations to compete on the basis of market responsiveness, product and service quality, differentia...
