Strategic HR Management | smart sheet (2023)

People are the most valuable asset of any organization because they individually and collectively contribute to the achievement of objectives. But in a time of rapid change, how do you plan and make strategic workforce decisions that move your organization toward its goals?

In this article, we define and discuss the role and importance of strategic human resource management. In addition, three experts, including an entrepreneur with a background in human resources, an academic, and an organizational design specialist, share their perspectives on the value of strategic people management, its role in managing change, and best practices to help you succeed. continually improve and empower yourself. gain a competitive advantage.

What is Strategic Human Resource Management?

Strategic people management is an approach to human resources practice that addresses business challenges and directly contributes to long-term goals. The fundamental principle of strategic people management is to improve organizational performance and maintain a culture that inspires innovation and works tirelessly to gain competitive advantage. It goes a step further than traditional HR and has a broader reach across the entire organization.

Strategic human resource management does not have a set definition or specific model that professionals follow. there are organizations like thatAmerican College of Health Care Executives (ACHE)who propose best practices for their own profession.

the frame thatdisapproving gestureUniversally applicable to the discipline of strategic human resource management, it is the link between it and overall corporate strategy.

The relationship between the strategic management of human resources and corporate strategy

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Achieving ultimate business goals requires leadership. Strategic human resource management encompasses the traditional human resources functions of recruiting, selecting, interviewing, and hiring employees, but also works with the overall organizational strategy to achieve success.

The roots of strategic HR management

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Mitchell Langbert, Ph.D., is an associate professor of business at Brooklyn College. Langbert's experience includes positions withwealth-classified companies and the Ways and Means Committee of the New York State Assembly. His areas of expertise and research focus on human resource management, business ethics, and higher education. Widely published, Langbert has been an expert witness in human resources legal cases, includingAs for Tittle et. Alabama. v. Enron et. Alabama.

Langbert says that strategic human resource management grew out of important social and historical events: “Industrial psychologists and reformers laid the foundation for human resource management in the early 20th century. Some of the developments that have led to an interest in human resource management are the development of psychological tests, particularly IQ tests, during World War I, the social work movements, and the YMCAs that helped immigrant workers adjust. to working life, and the threat of unions. and strikes".

Human resource managers saw themselves in a unique role. "They often saw themselves as psychologists or specialists outside of the mainstream of the industry," says Langbert. “Remember the 1947 movieMiracles on 34th Street, the recruiter who thinks he's a psychologist and clumsily tries to book Santa Claus."

Langbert continues: "In his classic book on corporate strategyCompetitive strategy, Michael Porter points out that human resources are an essential element in the development of strategic advantages. Take the Japanese car companies as an example. They rose to prominence in the 1970s through long-term thinking about human resource management (eg, lifetime employment). They continued to increase in the 1980s and 1990s with the total quality management movement and the use of the dominant organizational culture.

(Video) Strategic Human Resource Management

How do we arrive at strategic HR management? Says Langbert, "The growing emphasis on technology and services has further increased the importance of human resources as a strategic variable."

Strategic HR management is all about working hand in hand with the C-suite

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Kimmie Marek is Creative Director and Co-Owner of7 adorable sisters, a jewelry company. He uses his Professional Human Resources (PHR) degree to grow his business. From his point of view, strategic workforce management is all about forecasting and collaborating with other departments to drive ongoing operations.”

He adds: “In the past, HR has been reactive. Directives would come from the top and HR would have to adjust accordingly. With strategic people management, HR H H. sits at the table and works hand-in-hand with COOs to forecast workforce needs, succession planning and other HR developments. H H. to determine how to proactively support the organization.”

Growth Mindset Framework and Strategic Human Resource Management

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Reed Deshler, a former human resources manager, is a change and organizational design leader atAlignOrg Solutionsand author ofMastering the cube: overcoming obstacles and building an organization that works. Reed has supported the strategic plans of many companies. These plans have resulted in increased operating efficiencies and cost savings.

in your article"How HR leaders can improve strategic management processes",Deshler writes: “Effective HR leaders must be catalysts for the growth mindset and multiply that thinking wherever they are involved. In many ways, HR leaders can set the stage for the organization to make the most significant change possible." He adds: "Done right, consciously creating the perfect environment can lead a team to greater success. general".

Efficient HR functions support strategic people management

Managing the core functions of people is an essential element of overall business success and an indispensable part of effective strategic people management. For free information and templates to keep your HR department running smoothly, go toThe best Excel templates for human resources. The article provides useful tools such as the following in connection with a staffing/recruiting plan:

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Strategic planning in human resource management.

Human resource leaders at successful international companies like Starbucks and Coca-Cola make proactive decisions and are an integral part of the organization's strategy team. Most of these executives indicate that strategic planning is part of their role. Deshler points out that start-ups and smaller organizations should pay attention: If large companies use the strategic human resource management approach, they may also want to use strategic human resource management to help their company succeed.

Creating your strategic people management approach begins with creating a plan based on your organization's strategic goals. start with aSWOT analysis(Strengths, Weaknesses, Opportunities and Threats).

SWOT Analysis Strategy Template

Understanding strengths, weaknesses, opportunities, and threats is the foundation of any strategic plan. Viewing these factors side by side highlights what is important in formulating an effective strategic plan for people management.

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‌ Download SWOT Analysis Strategy Template - Excel

(Video) Traditional vs Strategic Human Resource Management

As you continue to work on your written plan, focus on the gaps that exist in the organization's current state and create your strategy by focusing on your mission and looking to the future. For the best results, involve managers in the process.

Strategic HR Management Plan Template

Organize your strategic HR plan and share it with team members to get feedback. Add your full SWOT analysis. Use the template as-is or modify it to suit your needs and translate your strategies into measurable action plans. This simple design makes it easy for interested parties to review important information.

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‌ ‌Download HR Roadmap Template

Roles in Strategic Resource Management and the New Economy

In Champions of Human Resources(1996), David Ulrich argues that there are four HR roles: strategic actor, management expert, employee advocate, and change agent,” says Langbert. "The traditional psychologist and union avoidance are implicit in the roles of management expert and employee advocate."

According to Langbert, there are different considerations in the new economy: “The role of strategic actor and change agent suggests that HR managers must work with both managers and employees. They need to think about HR systems and design them to fit the culture, technology processes, and organizational structure to support top management strategic thinking.”

Langbert gives examples: “In high-cost companies like Wal-Mart, the human resources department has to think about minimizing costs. In New Economy focus and differentiation companies (companies Warren Buffett would say have a wide moat), HR. and improve the service.

The advantages and competitive advantages of strategic human resource management

The greatest benefit of strategic human resource management is also its purpose: to improve organizational performance through integration and alignment with business strategy.

“Strategic human resource management is undoubtedly a competitive advantage. In manufacturing companies, quality processes depend on stable human resource systems. In service companies, the human resources department provides training, bonuses, performance management, and assistance in recruiting employees that enable companies to better serve customers. Large hotels, whether they are high-end hotels like the Four Seasons or more modest ones like Hampton Inn, use quality processes that rely on training, support, staff selection and rewards,” says Lambert.

By creating systems to achieve better organizational performance, strategic human resource management promotes the following benefits:

  • Results related to human resources:Less turnover, less absenteeism, higher job satisfaction and greater employee engagement
  • Organizational results:Increased productivity, quality, service, efficiency and customer satisfaction
  • Financial results:Higher profits, sales, ROI and ROI
  • Capital Market Results:Increased market share, share price and growth

According to Deshler, a company can only achieve these benefits when strategic human resource management aligns with business strategy. “Strategic human resource management by itself is not a competitive advantage for most companies; in fact, I think sometimes we are wrong. Strategic HR management is strategic when the company's strategy allows it. Too many HR leaders have sought out HR programs and skills that the company didn't want or need. Of course, we mean well in recommending and developing strategic people management skills, but close attention must be paid to how those skills enable business strategy,” she emphasizes.

Investigate (The impact of strategic human resource management on organizational performance,The importance of human resource management in strategic sustainability: an arts and sciences perspective, yThe role of strategic human resource management in creating a competitive advantage) demonstrates that significantly better financial results are achieved with advanced HR approaches.

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The role of strategic HR management in strategic change

The main objective ofchange managementit is the successful implementation of new processes, products and business strategies minimizing the negative consequences. Strategic human resource management and strategic change are closely related.

“Changes in policies, processes, products, markets, culture or mission depend on the human resources department on many levels. New approaches often require a new way of thinking, for example in relation to pay and bonuses,” says Langbert. “Shifting to a more dynamic style of doing business might require the introduction of a risk reward. New technologies require training programs. Senior management needs to think about cultural issues, the impact on employee morale, the impact of layoffs on culture and morale, and the like.”

Deshler explains what it takes to drive change: “Change is a constant occurrence in any organization, but most organizations lack strong organizational capabilities to manage change. Yes, there may be some change experts on the team, or there may be some tools available, but to develop truly strategic change capability, HR leaders need to think about how to create a change platform that transcends traditional change management. and the combined program. administration. Achange platformIt not only has a blueprint for change and some tools, but also a mechanism for training leaders and practitioners, time structures and roles for driving change, project schedules and risks/issues, and a means of measuring progress. Without all these elements, the results of strategic change can be uneven.

Communication plan for organizational change management

Keeping team members informed about upcoming changes makes transitions smoother and less stressful. Use this template to track the communication process and ensure you stay on schedule.

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(Video) #01 The strategic Side of Human Resources Management

‌ ‌Download the change management communication plan template

Change impact evaluation template

Every change affects team members and company performance. Before initiating changes, impact assessment helps you determine how changes may affect team members, processes, and systems. Examine the timing of the impact, the risks to consider, and the actions that can help mitigate the impact. Use this template only to assess changes, or add it to a general workforce plan.

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Download the change impact assessment template

Standing out|smart sheet

Change Management Policy Template

This template provides an overview of change management, from clarifying the nature and scope of changes to identifying the roles and responsibilities of affected team members and assessing risk factors. Include detailed information about the control procedure you will use and the procedures to follow.

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‌ ‌Download Change Management Policy Template - Word

Transition Plan Template

As you move team members into other roles in your organization, a written transition plan can reduce information loss. This template helps the person who previously held the position connect with and train the new team member. Enter start and end dates, tasks, goals, assumptions, and more.

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Download the transition plan excel template

Standing out|smart sheet

Obstacles to the strategic management of human resources

HR departments may need to overcome their ideas and concerns to achieve long-term goals. As Deshler states, “Change is hard. Strategic people management has been on the rise for decades, but it continues to challenge HR professionals due to its resistance and other forces.

Here are the resistance factors you may encounter:

  • Fear to fail:Strategic human resource management is a significant game changer for people in organizations, especially due to metrics and the need for transparency. High-level managers may resist taking strategic action for fear of incompetence. There may also be a fear of victimization after a possible failure.
  • Lack of commitment/cooperation:A status quo approach by employees is a barrier to change. You may not have the approval of the entire senior management team. Unresolved interdepartmental conflicts can complicate a new approach. There may also be leadership conflicts over the issue of authority.
  • Resource challenges:There may be real or perceived limitations of time and resources.
  • external pressure:Immediate economic and market pressures may prevent the introduction of strategic people management. The organization may be vulnerable to changes in the law. Resistance can also come from unions.

How can you overcome these barriers? Effective communication of benefits and strong leadership from top management can eliminate fear of failure and lack of commitment and cooperation. To deal with resource problems, top management can allocate appropriate budgets and reallocate tasks to make strategic human resource management viable. It may not be possible to relieve external pressure immediately, but planning for the future can be done.

You can also overcome resistance to change by using the best practices outlined in the next section.

Best Practices in Strategic Human Resource Management

Each organization should create its own detailed best practices, as by its very nature strategic workforce management planning must be tailored to each specific organization.

Marek believes that metrics are a must: “Some key metrics that a strategic HR professional should always look at are attrition, available workforce, growth needs, current staffing needs, and employee positions at risk. In the event of change, the groups of employees who are at risk should always have a succession plan in place to fill key positions."

To create a framework, consider the following actions as you refine your process:

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(Video) What is Human Resource Strategy?

Download the Strategic People Management Best Practices Checklist

Retention and incorporation of employees in the strategic management of HR

Hiring the right team members is time consuming and expensive, so employee retention is a key factor in achieving business goals. Onboarding, or organizational socialization, is a proven method of helping new hires adjust at all levels. Learn more as you readEmployee Onboarding Processes: Plans, Best Practices, Flowcharts.

Onboarding Plan Template

Use this template to create a general plan of activities to complete at each stage of onboarding. Note the contacts in the leftmost column. The rest of the table shows the onboarding tasks assigned to each contact throughout the year. Add or remove columns as needed to create your comprehensive onboarding plan.

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‌ Download the onboarding plan template

Standing out|smart sheet

Executive Onboarding Template

While it's important for a leader in a new role to get going, their onboarding process is often more complex and personalized than that of a new hourly employee. Due to the potential financial risk a business faces if hiring doesn't work out, it's important to follow a thorough onboarding process. Based on identified skills, goals, and areas for growth, this template includes input from individuals to customize the onboarding process.

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‌ Download the executive onboarding template

Onboarding Feedback Form

In many processes, honest feedback is the best way to continually improve. An onboarding survey provides insight into what's working and what's not working in your existing process and helps you meet your productivity, performance, and employee retention goals.

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‌ Download the onboarding feedback form

Trends and forecasts for the future of strategic personnel management

Says Deshler, “I see two trends in strategic human resource management. The first is that strategic changes are happening more frequently and in more areas simultaneously. HR professionals and leaders must think about how to lead when there are many changes going on at the same time. The second is that organizations are adopting more agile ways of working, a great opportunity. This means that HR leaders and professionals think differently about the speed at which they design and implement strategic people management programs. You'll have to get used to less precision and more comfort in delivering "minimum viable products."

Where is strategic HR management headed? Langbert predicts: “Technological innovation will continue as fast as the need for training. Diversity has many benefits, but it also requires management and support. Employee benefits remain a sensitive area as the aging population increasingly demands company benefit programs. Business will be a competitive place, and training in customer service and interpersonal skills will be in demand. In the early days of the Internet, some of my students thought that technology would reduce the need for management and interpersonal skills. The opposite is true. As technology becomes more sophisticated, the need for a highly motivated and tech-savvy workforce becomes even greater. Managers have to deal with discontinuities and change, and HR will continue to play an increasingly demanding role.”

Strategic leadership skills in people management can take professionals to a new level

Being a human resources manager requires a high level of experience and a variety of skills: business acumen, understanding of cultural differences, knowledge of demographics, talent for change management, and the ability to act as an advisor to executives and the organization. together to function. These skills are critical in the new economy and are becoming more and more common.Duties of President and CEO. AHarvard Business ReviewArticle, "The new path to the C-Suite', points out that CHROs have what it takes to rise to the top of the organization, and Korn-Ferry research has found that strategic people management skills can be the future career springboard for the top executive positions. high in organizations.

Enhance your strategic workforce management skills with Smartsheet for Human Resources

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(Video) Strategic Resource Management With Smartsheet and 10,000ft

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What is strategic human resources management? ›

Strategic human resource management (strategic HRM) provides a framework linking people management and development practices to long-term business goals and outcomes. It focuses on longer-term resourcing issues within the context of an organisation's goals and the evolving nature of work.

What are the 5 steps of strategic HR management? ›

Here are five steps to creating an effective strategic HR plan and gaining a competitive advantage for your company.
  • Assess your current workforce. ...
  • Create employee development plans. ...
  • Create a succession plan. ...
  • Perform a gap analysis. ...
  • Decide how to increase resources for the future.

What are the 4 HR strategies? ›

exter- nal labour orientation are combined to develop the four different HR strategies, which include Loyal Soldier (cost leadership/internal labour), Bargain Labourer (cost leadership/external labour), Free Agent (differentiation/external labour) and Committed Expert (differentiation/internal labour).

What are examples of strategic HR management? ›

Examples of strategic HR functions include compensation planning, recruitment, succession planning and employee development.

What is the difference between HR and strategic HR? ›

A strategic HR manager is focused on forming a long-term strategy. For example, when they are looking to hire for a position, they are considering future growth projections and goals of the company. While traditional HR managers work reactively, strategic HR managers work proactively.

What is difference between HRM and SHRM? ›

The key difference is having a competitive advantage. Some may characterize HRM as HR teams keeping pace with an organization, whereas SHRM means strategically setting the pace of an organization through alignment with long-term goals.

What are the 5 P's model of SHRM? ›

As its name suggests, The 5P's Model is based on five constitutional aspects: purpose, principles, processes, people, and performance.

What are the key elements for a good HR strategy? ›

5 Pillars of a Successful HR Strategy
  • Legal requirements. When onboarding an employee, it's important that you follow and fulfill all legal requirements to ensure that you protect the business and the employee. ...
  • Employee engagement. ...
  • Career advancement programs. ...
  • Corporate image. ...
  • Performance management system.
Jan 16, 2018

What are the six core HR processes? ›

The six main function of HR are recruitment, workplace safety, employee relations, compensation planning, labor law compliance and training.

What are the 5 HR principles? ›

The seven basic principles of HR

Recruitment and selection. Performance management. Learning and development. Succession planning.

What are the seven 7 human resource management practices? ›

Recruitment & selection, performance management, learning & development, succession planning, compensation and benefits, Human Resources Information Systems, and HR data and analytics are considered cornerstones of effective HRM.

What does strategic HR look like? ›

A comprehensive strategy addresses all the key areas of HR: recruitment, compensation, learning and development, performance appraisal, and succession planning. Strategic HR provides the most value when it aligns HR activities with an organization's goals.

What are strategic HR models? ›

A strategic HR model is a plan to manage a company's human capital such as employees. It aligns its strategies with those of the business and provides direction to hire talent, appraise performance and determine compensation. Models are typically long-term plans that take time to develop and implement.

What are the main characteristics of SHRM? ›

SHRM's main characteristics are as follows:
  • There is a clear link between HR policy and practices and the overall strategic goals and environment of the firm.
  • There is some sort of organisational structure that connects individual HR interventions so that they are mutually beneficial.
Mar 1, 2022

Why is strategic HR management important? ›

Strategic Human Resource Management is essential for retaining the best talent and developing of human resources. It focuses on making employees feel valued and engaged so that they are motivated to stay with the company.

Does HR play a role in strategic management? ›

In order for strategic human resource management to be effective, human resources (HR) must play a vital role as a strategic partner when company policies are created and implemented. Strategic HR can be demonstrated throughout different activities, such as hiring, training, and rewarding employees.

What are the key elements of strategic Human Resource Management? ›

Seven steps to strategic human resource management
  • Develop a thorough understanding of your company's objectives.
  • Evaluate your HR capability.
  • Analyze your current HR capacity in light of your goals.
  • Estimate your company's future HR requirements.
  • Determine the tools required for employees to complete the job.
Sep 19, 2019


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