The Human Resource Strategy Significantly Develops Efficiencies Of Human Resources To Confirm To The Long And Short-Term Strategic Goals Of The Organization
Abstract
This paper is an effort to elaborate the role of human resource strategy in the development of human resources’ efficiencies and attainment of short and long-term strategic goals of the organization. Results explored that human resource strategy contributes in the development of efficiencies and lead to the achievement of strategic goals of the organization. Human resource strategy turns from reactive to proactive. It has been encountered that human resource strategy might be distant from the organization’s strategy.
Introduction:
Human resource strategy is a corresponding set of actions. The aim of these set of actions is to integrate organization’s people, its systems and organizational culture and the organization itself to achieve the business long and short-term goals. Human resource planning or human resource strategy is a process in which organization finds the human resource needs that are essential in order to have both long and short-term organizational goals. Human resource strategy is about arranging the top executive in a line with the human resource team; it is a process of connecting business strategy with human resource efforts in order to formulate better competitive organization (Greer, 143).
Human resource strategy clears the objectives of human resource management in the domain of organizational development, talent development and sequence planning, and these clear goals lead an organization to the successful attainment of goals. Human resource strategy describes or defines core areas that are required to be used as competitive advantage. Human resource strategy also identifies the things in the area of people management that require improvements (Geer, 143). According to William Henns “strategy is a concentration of resources on selected opportunities for competitive advantage”.
In current business arena, human working in an organization is considered organizational capital and strategic human resource is to gain competitive advantage through the utilization of human resource. Management of humans has an important effect on the performance of the organization. Organizations do not seek to meet short-term goal they plan to attain competitive advantage for future. The view of strategic human resource management has become changed from reactive top proactive. Human resource management team develops strategies through which they do not wait for opportunities, but they find out opportunities and actively search for the talent that meets the needs of the organization. Human resource strategy demand managers to have a constant look at on-going processes of the organization. Human resource strategy is liable to create sustainable competitive advantage for an organization, which means offering services or products in such differentiating features that cannot be copied conveniently by rivals.
The strategic goal of human resource management is not just to hire skilled workforce in the right amount and to manage the employees to make sure that all are working properly. However the role of human resource is also to attain the goals and objectives by formulating effective HR policies and going through the strategic plan. The role of HR has become highly important in the strategic management of the organization. However, to develop the efficiencies through proper training, motivation and job satisfaction is the critical on in current organizations. Strategic human resource management is to encourage human resource to enhance their capabilities to the utmost extent possible. Through this action, management can increase the productivity of the firm and job satisfaction while able to lowering the turnover and absenteeism. Human resource strategy is the organizations’ future.
There are four very common and famous views of human resource strategy resource-based view, behavioral view, cybernetic view, and transaction view also known as agency view. According to resources based view, human resource strategy is an explanation of practices through which an organization can gain competitive advantage. For instance, allocation of organizational resources in a unique manner, distinctive competence, and organizational culture is one of the practices of HR. Second is behavioral view that is based on contingency theory, according to this view human resource strategy explains the practices that have been formulated in order to manage behaviors and attitudes. Emphasis of behavioral view is on the practices that contribute in the attainment of strategic objectives. Third view is based on cybernetics systems; this view defines or elaborates the adoption of practices that have been formulated by following the feedback; this feedback is the result of contributions made to the strategy (Wright, and McMahan, 295-320). Cybernetics system is a perspective through which organization adopts the training programs or updates them according to the feedback in order to pursue a business strategy. The fourth view is transaction cost view, according this view human resource strategy is an explanation of reasons to use control systems. For example, if the performance evaluation system is not linked with a reward system, business strategies might not be followed.
H0: If the organization possesses human resource strategy, then it will not be able to develop efficiencies in human resources
H1: If the organization possesses human resource strategy, then it will be able to develop efficiencies in human resources.
H0: If the organization has effective human resource strategy, then business will not be able to achieve short and long-term strategic organizational goals.
H2: If the organization has effective human resource strategy, then business will be able to achieve short and long-term strategic organizational goals.
According to Jackson, Schuler & Rivero (1989, p. 727-786), human resource strategy is a system that has an impact on the behaviors of employees working in the organization. Thus, it means that human resource strategy offers practices that help employees in the enhancement of their efficiencies or encourage them to behave in a helping way. According to Evans & Davis (2005, p. 758-775), through the establishment of human resource system (strategy), organizations make an influence on the behaviors of employees and through influencing the behaviors organizations build social capital that in result become a potential source of gaining competitive advantage (Evans & Davis, 758-775). This approach supports the alternative hypothesis that “If the organization possesses human resource strategy, then it will be able to develop efficiencies in human resources”. However, the null hypothesis is rejected. The role of human resource strategy is highly effective as these strategies can allow the organization to offer differentiated services. These strategies cannot copy them easily. Thus, organization can achieve its long-term goals through sustainable competitive advantage by implementing effective HR strategies and policies. This is the resource-based view of human resource strategy, management thinks that conventional sources such as technology, natural resources, and economics of scale build competitive advantage that is imitable and not sustainable. Thus, it means that businesses can achieve short-term goals but not long-term due to lack of sustainability of competitive advantage (Becker & Gerhart, 779-801; Lado & Wilson, 699-727). This approach accepts the second alternative hypothesis that “If the organization has effective human resource strategy, then business will be able to achieve short and long-term organizational goals” and rejects the null hypothesis. Human resource strategy is a special source of achieving long-term organizational goals through sustainable competitive advantage (Pfeffer, 55-69).
Human resource strategy is not easy to copy because these strategies are based on casual ambiguity and for other organizations. It is not easy to grab the accurate mechanisms through which the interaction of practices and policies can generate the same value. Because in order to copy the complex strategies it is essential to capture the ways in which elements interacts, otherwise copycats cannot attain the same value as their competitor generated. The second reason is that these human resource strategies are path dependent. This means that the strategies are strongly connected with policies that are developed over time. Moreover, these policies cannot be copied easily by the competitors (Becker & Gerhart, 779-801). Through multiple researches, it has been encountered that human resource strategy is an elaboration or formulation of all those practices that are essential for the success of organization and help in achieving the short and long-term goals.
Human resource strategy develops firm-specific skills and enhances the knowledge of employees through proper training and development strategies. Hunan resource strategies are people oriented and aligned with organization strategic goals. Sometimes human resource strategies that are developed on the central level might be different from the processes and practices of human resource that exist at organization. Human resource strategies are the conceptual one as compare to strategic goals of the organization. Human resource strategy supports several training courses; maintain balance between rewards and risks; rewards are given to employees in order to give their best for the better achievement of organizational performance. HR strategy demands the systematization of resources and effective utilization of people.
Techniques Chose to Describe the Hypothesis
This study is qualitative in nature, and the purpose is explanatory. This study is based on secondary research and observational technique has been utilized in order to make a strong conclusion. Different researches and theories have been studied, and it has been encountered that human resource strategy has an immense change in itself. Practices associated with human resource strategy have turned from reactive to proactive, and it has significant positive impact on organizations. It has been evident that human resource strategy significantly contributes in the development of efficiencies of human resource management and through these developments leads organizations to attain short as well as long-term organizational goals.
Conclusion:
It has been encountered that human resource strategies can be different from organizational strategies, and the process of realization of these strategies is very straightforward and simple because these strategies are documented. Development and implementation of effective human resource strategies require constant evaluation at all level. Human resource management has to keep the balance between regular operations and strategy. Human resource strategy is about being proactive and not reactive. From the findings, it has been encountered that human resource strategy has multiple definitions, and its application vary according the nature of the organization. It is an alignment between organizational functions to assure a long and short-term organizational goals. It has been encountered that human resources’ efficiencies can be developed through human resource strategy and these efficiencies assure the long-term strategic goals of the organization. It has been encountered that human resource strategy includes multiple practices that encourage employees to show their efficiencies in the achievement of organizational strategic goals. However, for the development of efficiencies, organization makes different policies, and the formulation of such policies comes under the domain of human resource strategy. Human resource strategy serves organizations with sustainable competitive advantage due to the inimitable processes and practices. These strategies are conceptual, therefore, easy to understand, but copying them is not easy because these are path dependent and capturing the whole mechanism is not easy and sometimes impossible for competitors.
Post Reflection
It has been expected that human resource strategy be about hiring right people for the right jobs, searching talent that suites organizational requirements and taking creative actions towards the solution of the problem. However, research revealed that human resource strategy is not just hiring and searching people, but it involves practices through which behaviors are directed towards the strategic goals of the organization. It has been encountered that solution of the problem is not a concern of human resource strategy anymore, but it is seeking for the opportunities and taking proactive initiatives. Organizations having human resource strategy do not wait for the problem, the take proactive steps through which issues can be resolved before problem occurs. Findings support the alternative hypothesis and reject the both null hypothesis. It has been encountered that organizations possess HR strategies have sustainable competitive advantage and due to this reason they can attain their long-term goals. However, organizations with no HR strategy have a competitive advantage but it is not sustainable because these practices can be copied easily. Therefore, from such practices organizations able to achieve short-term goals, but they do not work for long-term.
Works Cited
Becker, Brian, and Barry Gerhart. "The impact of human resource management on organizational performance: Progress and prospects." Academy of management journal 39.4 (1996): 779-801.
Evans, W. Randy, and Walter D. Davis. "High-performance work systems and organizational performance: The mediating role of internal social structure."Journal of Management 31.5 (2005): 758-775.
Greer, Charles R. Strategic human resource management. Pearson College Div, 2001.
Jackson, Susan E., Randall S. Schuler, and J. Carlos Rivero. "Organizational characteristics as predictors of personnel practices." Personnel psychology42.4 (1989): 727-786.
Lado, Augustine A., and Mary C. Wilson. "Human resource systems and sustained competitive advantage: A competency-based perspective." Academy of management review 19.4 (1994): 699-727.
Pfeffer, Jeffrey. "Producing sustainable competitive advantage through the effective management of people." The Academy of Management Executive 9.1 (1995): 55-69.
Susan Jackson, Randall Schuler, and Carlos Rivero. 1989. Organizational Characteristics As Predictors Of Personnel Practices. Personal psychology. 42, 727-786.
Wright, Patrick M., and Gary C. McMahan. "Theoretical perspectives for strategic human resource management." Journal of management 18.2 (1992): 295-320.
