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Strategic Human Resource Management and Organizational Performance
Abstract
The discipline of human resource management has progressed significantly over a period of time. Today it is being considered as the most critical source of competitive advantage to the firm. It has progressed to a strategic business partner. Various approaches and models of strategic human resource management have been developed within the framework of strategic human resource management. Like many theories of organization, none are complete. Rather being right or wrong each approach points to different aspect of the process needed to develop effective strategic human resource functions. The issue of fitting HR practices to business strategy has become increasingly relevant over few years. Therefore in the present study we have made efforts to highlight various issues which are relevant to the strategic HRM in the changing scenario of business environment. The present chapter has been divided into five sections. In the first part, the changes occurring in the business environment and its implications for human resource functionaries have been discussed. In the second section we have highlighted the changing role of human resource management. Historical background of strategic human resource management, its role in addressing the challenges of changing business scenario and determinants of strategic fit have also been presented in the second section. In the third section issues regarding the relationship of strategic human resource management with business performance have been discussed. In the fourth section we have made efforts to bring into notice those emerging future trends which might become key issues for high performance in the organization of new era. At last conclusions have been drawn that what needs to be done on the part of the HR functionaries and the organization itself to enhance the strategic fit between the various HR practices and the overall organizational strategic plan.
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