Strategic integration is a combination some components or functions of different units of business into a single combined and centralized unit to extract more benefits. Strategic integration is a very important process to improve the performance of the organization as it helps in aligning the business strategies continuously in a rapidly changing business environment. May 01, · Analysis of questionnaire responses and interview findings shows strategic integration of HRM practices has been adopted by both organizations, though their approaches vary slightly. Importantly, the involvement of HR at board level, direct reporting of HR to the CEOs and the organization's supportive culture symbolize the integrative approach to loveallfind.com by:
Strategic integration is a combination some components or functions of different units of business into a single combined and centralized unit to extract more benefits. Strategic integration is a very important process to improve the performance of the organization as it helps in aligning the business strategies continuously in a rapidly changing business environment.
Firms use strategic integration as an approach to achieve business goals of transitions and also to unpredictable challenges which are very what does momo mean in korean to occur in a business environment. Strategic integration aims at achieving the effective results through combined effort of different organizational groups and processes.
For the strategic integration to happen, organization should study the industry trends, external environment and resource capabilities and have a clear understanding of its strengths and core competencies. Effective strategic integration includes integration of both internal and external processes of a organization. Internal Integration: Internal integration is a strategic approach through which we achieve synergy by grouping up internal processes like advertising, accounting, supply chain, sales, purchases, trainings etc.
All the staff should be actively involved, the organization's strategy should be clearly understood, their roles and responsibilities should be clearly defined to achieve successful internal what is the metro in washington dc. Organizations should use modern technologies and IT to integrate internal systems and smoothen the communications across all the levels.
External Integration: External integration is a strategic approach through which we achieve synergy by grouping up functional processes which affect external stakeholders like suppliers, distributers, debtors, creditors, agents, customers etc. Organization should implement effective communication and networking systems and ensure that there is appropriate link between internal and external stakeholders.
Strategic integration involves high investments in the initial stages, but it is a tactical approach to handle unpredictable challenges, has long term advantages and reduce the costs in a longer run. Browse the definition and meaning of more similar terms.
The Management Dictionary covers over business concepts from 6 categories. What is MBA Skool? About Us. Business Courses. Quizzes test your expertise in business and Skill tests evaluate your management traits. Related Content. All Business Sections.
Write for Us. Start Learning Now! Share this Page on:. Follow us on.
You are here
Apr 17, · Human Resources Management (HRM) has a very important facilitative and strategic role in organizational success. Several financial and non-financial performance measures of an organization are positively related to its levels of HRM Strategic Integration (HRMSI). Strategic human resource management (SHRM) emphasizes the importance of establishing congruence between human resource policies and organizational strategic goals. Moreover, with regard to horizontal. integration, some researchers maintain that organizations that succeed in linking the human resource management Systems. HRM and Organizational Performance. The strategic human resource management (SHRM) empirical literature has mushroomed in recent years, and there is consistent evidence show more content. In terms of organizational performance, there was a significant association between integration and the two measures we examined—financial performance.
Strategic human resource management is the process of linking the human resource function with the strategic objectives of the organization to improve performance. No strategy, no matter how well designed, will work unless the organization has the right people, with the right skills and behaviors, in the right roles, motivated in the right way and supported by the right leaders. Strategic human resource management is the proactive management of people to the desired value to them.
It is designed to help companies better meet the needs of their employees while promoting company goals. Several commentators have argued that the concept of Strategic Human Resource Management SHRM has evolved as a bridge between business strategy and the management of human resources. SHRM is a philosophy of people management based on the belief that human resources are uniquely important to sustain business success.
An organization gains competitive advantage by using its people effectively, drawing on their expertise and ingenuity to meet clearly defined objectives. SHRM aims to ensure that the culture, style, and structure of the organization and the quality, commitment and motivation of its employees contribute fully to the achievement of business objectives. HR strategies combine all people management activities into an organized and integrated program to meet the strategic objectives of an enterprise.
Experts define SHRM from a different perspective. Some of the important definitions are listed below:. Strategic HRM focuses on actions that differentiate the firm from its competitors Purcell, It is suggested by Hendry and Pettigrew that has these meanings:. Given the increasingly significant role of human resources in an organization, HRM has become strategic. Strategic human resource management is an approach that relates to decisions about the nature of employment relationship, recruitment, training, development, performance management, reward, and employee relations.
The activities highlight the HR programs, policies, and practices as the means through which the people of the organization can be deployed to gain competitive advantage. The people, practices, and planned patterns are all purposeful, that is, directed towards the achievement of the goals of the organization. The critical issues facing an organization in the contemporary environment are mainly human issues, such as ensuring the availability of people, retaining, motivating, and developing these resources.
To stay ahead of its competitors, an organization will continuously look for ways to gain an edge over others. Today, an organization competes for less on products or markets, and more on people.
In the 21st century, there is increasing recognition among management thinkers and practitioners of the potential of human capital resources in providing a competitive advantage. The quality of human resources and their contribution to the organization determine the performance, and therefore, the success of the organization. An organization uses a combination of several resources—tangible and intangible—in the pursuit of its objectives. An organization may have huge capital and the most advanced machinery, but if it does not have capable, motivated, and high performing employees, the organization is not likely to demonstrate sustained levels of high performance.
Since all physical and capital resources depend on people for their efficient use, maintenance, and management, the quality of the people of an organization is important in attaining a competitive advantage.
Strategic human resource management and the traditional HR function differ from each other in several ways. The major points of differences between the two are;. The terms strategic human resource management and human resource strategies are often used interchangeably, however, some distinction can be made between the two.
In a general sense, the difference between SHRM and HR strategies is similar to that between strategic management and corporate business strategies. Both SHRM and strategic management describe an approach adopted by the management and focus on long-term issues and provide direction to the organization. Human resource strategies and business strategies are outcomes of this approach which focus on the organizational view concerning key issues and specific functions, or activities. The key characteristic of strategic HRM is that it is integrated.
HR strategies are generally integrated vertically with the business strategy and horizontally with one another. SHRM is regarded as the overarching concept that links the management and the individuals within the organization to the business as a whole and its environment.
The above-discussed theoretical perspectives have identified six key elements necessary in developing SHRM within the firm. There exists a significant difference in the skills needed by HR staff in the traditional and strategic orientations to HRM. In traditional HRM staff had to be specialized in certain functional areas like interviewing, recruitment and training.
Most HR units will face a significant transformation to manage human resources with a new strategic view. The major issue in designing a new strategic HRM unit is to determine whether to centralize or decentralize HR function. In some organizations, a centralized structure for the HR unit would be appropriate and in some highly decentralized HRM may be necessary. Regardless of which particular structure has used the key element in the successful transformation from traditional HR function to SHRM is to find a structure that meets the pressing needs of business strategy and allows the HR unit to provide services designed to help the firm achieve strategic objectives.
As administrative experts, HR staff members must take an active role in engineering, administrative and other processes within the firm and find ways to share services more effectively throughout the organization. The objective is to increase HR service efficiency and save money. Several processes are needed to enhance the administrative expertise of HR units. The first focuses on:. The strategic integration of HR requires the strategic planning process and the involvement of HR managers in that process.
The development of a strategic plan involves top management, with the help of outside consultants, to go through and analyze the current and future condition of the organization.
To achieve full integration, HR managers should not only have the ability to influence the development and selection of information used in decision making but should also have the ability to influence decision making. This issue of fitting HR practices to business strategy is becoming increasingly important and relevant HR issues for HR staff and line managers.
HR fit involves making sure HR activities make sense and help the organization achieve its goals and objectives. This aspect of vertical fit concerns the coincidence between HR practices and overall business strategy. Horizontal fit This relates to the extent to which HR activities are mutually consistent. Consistency ensures that HR practices reinforce one another.
External fit The third aspect concerns how well HR activities match the demands of the external environment. Ensuring these aspects of fit requires HR practice choices. There is a need for strategic flexibility along with a strategic fit for the long-term competitive advantage of the firm. The two types of flexibility identified are:. Resource flexibility is the extent to which a firm can apply its resources to a variety of purposes.
It also involves the cost, difficulty, and time needed to switch resources from one use to another. This task is accomplished by having an effective partnership between HR managers and line managers. The rationale for strategic HRM is the perceived advantage of having an agreed and understood the basis for developing approaches to people management in the long term. It has been suggested by Lengnick-Hall that underlying this rationale in a business is the concept of achieving competitive advantage through HRM.
Strategic HRM supplies a perspective on how critical issues or success factors related to people can be addressed, and strategic decisions are made that have a major and long-term impact on the behavior and success of the organization. The fundamental aim of strategic HRM is to generate strategic capability by ensuring that the organization has the skilled, committed and well-motivated employees it needs to achieve sustained competitive advantage.
Its objective is to provide a sense of direction in an often turbulent environment so that the business needs of the organization, and the individual and collective needs of its employees can be met by the development and implementation of coherent and practical HR policies and programs. When considering the aims of strategic HRM it is necessary to consider how HR strategies will take into account the interests of all the stakeholders in the organization: employees in general as well as owners and management.
Ethical considerations will be important. Strategic HRM should attempt to achieve a proper balance between the hard and soft elements. All organizations exist to achieve a purpose and they must ensure that they have the resources required to do so and that they use them effectively. But they should also take into account the human considerations contained in the concept of soft strategic HRM. In the words of Quinn Mills , they should plan with people in mind, taking into account the needs and aspirations of all the members of the organization.
The problem is that hard considerations in many businesses will come first, leaving soft ones some way behind. There are several models of SHRM. Two representing models, which are divergent, are discussed below in brief to show the process of SHRM. Tichy proposed this model. According to this model the strategy and not the vice versa influence HRM.
In the HR cycle, the model shows four generic processes or functions that are performed by the HR system in all organizations-selection, appraisal rewards, and development. These four processes reflect sequential managerial tasks and performance is the function of all these four HR components. Some of the major perspectives are;. They clarify the distinction between the older concept of personnel management and HRM. While personnel management is viewed primarily as an administrative-operational activity dealing with responsibilities such as recruiting and selecting personnel or resolving employee grievances.
HRM is seen as a strategic function focussing on tasks such as human resource planning or devising compensation policies and strategies.
This definition is similar to what Beer et al. Anthony classified management level into three classes: strategic, managerial, and operational. These three levels deal with, though not solely, on three distinct types of decisions respectively.
Tichy et al. These represent only a subset of the principal HR functions for illustrative purposes. A question posed at the managerial-level is, for instance, if the company is about to set up two plants in different parts of the country, what kind of people will be needed and how will they be found? Here a question such as this could be posed: what kind of people will be needed to manage and run in the future? Lilt-implications of the long-run position are then retracted to guide current selection, placement, and training practices.
From this discussion, it is clear that Tichy et al. According to this view, every function of the HRM process has its strategic elements.
Inputs, in their model, act on the strategy, operations, and interaction levels requiring a three-tiered response at the levels of the organization, resourcing, and pay. For instance, operations at the organization-level require planning for jobs and people, resourcing requires recruiting and formulating contracts of employment, while pay determination needs job evaluation and assessment of incentives and fringe benefits.
The stage in staffing, say, the choice of selection criteria needs to focus on the strategic dimensions of the type of knowledge, skills, and abilities required for the job. Different environment, vision, mission, and objectives require different types of strategies. This resulted in their popular classification of organizations as defenders, prospectors, and analyses depending on their strategic behavior and supporting characteristics.
These authors attempt to relate the elements in the HRM system across these three types of organizations. About the HRM system, the basic strategy of the defenders, according to them, could be to build the human resource, of prospectors could be to acquire a human resource, and of analyzers to allocate human resources.