What is Strategic Human Resource Management? | HRM | From A Business Professor

Hello everyone, welcome to Business School 101. Have you ever wondered how companies manage to align their labor force with their general commercial strategy to achieve long-term success? Or how do you make sure that your employees not only meet the current needs, but are also prepared for tomorrow's challenges? The answer is often found in a strategic approach known as human resources or SHRM strategic management. But what exactly is SHRM? How does it work? Are there any examples of the real world? What are its main benefits? In this video, I will analyze these questions with you. Section 1. Definition. The strategic management of human resources, SHRM, is the proactive management of people. It involves aligning human resources policies and practices with the general commercial strategy to ensure that the labor force of an organization is able to achieve its long-term goals. Unlike traditional RHHs, which focus on the daily management of staff, SHRM adopts a broader vision, considering how RHH activities such as recruitment, training and performance management can support the company's strategic objectives. Section 2. Process. In general, the implementation of human resources strategic management involves following the following steps. Step 1. Align the RHH strategy with the business strategy. The first step in SHRM is to align the RHH strategy with the general business strategy. This involves understanding the company's long-term goals and ensuring that RHH activities are designed to support those goals. For example, if a company aims to expand to new markets, the RHH strategy could focus on hiring employees with international experience or on developing global leadership programs. Step 2. Perform a labor force analysis. Once the RHH strategy is aligned with the business strategy, the next step is to perform an exhaustive analysis of the current labor force. This involves evaluating the skills, competencies and performance levels of existing employees to identify any gap that should be addressed. An exhaustive analysis of the labor force helps the company understand where it is currently and what it should do to create a labor force capable of achieving future goals. Step 3. Develop RHH policies and practices. Based on the labor force analysis, the company can develop RHH policies and practices that support its strategic objectives. This could include the implementation of new recruitment and selection processes, the design of training and development programs, and the establishment of performance management systems that promote behaviors aligned with the company's objectives. For example, a technology company focused on innovation could prioritize hiring creative problem solvers and invest considerably in continuous learning initiatives. Step 4. Implement and communicate the strategy. Once the RHH policies and practices have been developed, it is necessary to implement them and communicate them throughout the organization. This involves training managers and employees on the new RHH processes, as well as ensuring that everyone understands how these practices contribute to the company's strategic objectives. Efficient communication ensures that the entire organization is aligned and works towards the same objectives. Step 5. Supervise and adjust the strategy. Finally, it is essential to periodically supervise the effectiveness of the SHRM strategy and make the necessary adjustments. This involves monitoring the key performance indicators, KPIs related to RHH activities, such as employee commitment, rotation rates and productivity, and making changes to the RHH strategy. If it is not giving the desired results, supervision and continuous adjustment help the company to remain agile and receptive to changing business needs. Step 6. An example of the real world. Google. Google is widely recognized for its innovative approach to human resources strategic management. This is how Google applies the SHRM effectively. Step 1. Acquisition and recruitment of talent. Google employs a highly selective and data-based hiring process to attract the best talents that align with its strategic objectives. By using analysis to identify the qualities that predict success and the implementation of a rigorous hiring process, Google ensures to create a workforce capable of promoting innovation and problem-solving, which are fundamental to its business strategy. Step 2. Employee Development and Continuous Learning. Google invests heavily in the development of employees through extensive training programs and promotes innovation with policies such as 20% of the time that employees can work on election projects. This focus on continuous learning and personal growth ensures that employees remain highly qualified and committed, contributing to the long-term goals of the company of innovation and leadership in technology. Step 3. Performance Management. Google uses OCR, key goals and results to align individual and team goals with the company's broadest strategic initiatives, which ensures that all efforts are directed towards the achievement of key goals. In addition, Google's ERE 360 feedback system provides a comprehensive evaluation of employee performance, promoting a culture of collaboration, continuous improvement and strategic alignment. Step 4. Employee Commitment and Organizational Culture. Google promotes a culture of openness, transparency and well-being that aligns with its strategic goal of maintaining a collaborative and innovative work environment. The company emphasizes employee commitment through integral benefits, flexible work agreements and a commitment to the balance between work and personal life, which ensures that employees remain motivated and aligned with the company's goals. Step 5. Planning Retention and Succession to retain the best talents. Google offers clear opportunities for professional growth and the opportunity to work on high-impact projects, which ensures that employees are motivated to stay and grow within the company. The company also focuses on the planning of retention through the identification and development of future leaders through mentoring and leadership programs, which ensures the continuity of its strategic leadership. Step 6. Innovation and Experimentation. Google's RHH team, known as staff operations, uses people analysis to continuously perfect RHH strategies and align them with business goals. The company also prioritizes diversity and inclusion as part of its SHRM strategy, as it believes that a diverse workforce improves creativity and innovation, which are fundamental to Google's success in the competitive technological sector. Step 4. Benefits. The benefits of human resources strategic management include the following. Step 1. Alignment with business goals. The SHRM ensures that RHH activities are directly aligned with the company's strategic goals, which leads to a more focused and cohesive approach to achieving long-term success. Step 2. Better Employee Performance. By aligning RHH practices with business goals, the SHRM helps create a motivated and better-trained workforce that is committed to achieving the company's goals. Step 3. Competitive Advantage. Companies that implement the SHRM effectively can gain a competitive advantage by creating a better-equipped workforce to face the challenges of a rapidly changing business environment. Step 4. Better Talent Management. The SHRM allows companies to attract, develop and retain the best talents by creating RHH practices that are aligned with the company's strategic needs, which ensures that the right people occupy the right positions. Step 5. Better Organizational Agility. The SHRM allows companies to remain agile and receptive to changes in the market or business environment, which ensures that they remain competitive. Step 6. Summary. In summary, human resources strategic management is a proactive approach to managing people who align RHH practices with the general business strategy. The process involves aligning the RHH strategy with business goals, carrying out a labor force analysis, developing and implementing RHH policies, and supervising and adjusting the strategy continuously. When carried out effectively, the SHRM can lead to better employee performance, competitive advantage and greater organizational agility. That's all for today's topic. If you have any questions or comments, leave a comment below. I hope this video has been useful to you and, if so, don't forget to like and subscribe to my channel to get more information on strategic management. Thanks for watching the video and see you next time.