Strategic Human Resource Management (SHRM) Paper Example

Introduction

In the contemporary world of business, employee management has a become a critical factor that affects a company's success directly. SHRM is concerned with the employer-employee relationship. Its main aim is to foster a healthy working relationship and corporate culture to promote organizational growth and development. It is evident that firms that lack developed human resource management face a high rate of employee turnover, disengagement, and inefficiency in production. Despite businesses' focus on profit maximization, SHRM practices are imperative to increaser workers motivation, reduce job turnover rate, and improve efficiency on nonprofit organizations.

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Strategic Human Resource Management and Retention/ Employee Turnover

According to Imna & Hassan (2015), employee turnover poses a substantial risk to an enterprise's operational efficiency. Employees leave companies either voluntarily or involuntarily. Poor working conditions, deteriorated employee-employer relations, resource inadequacy, emotional exhaustion, or search for greener pastures may motivate voluntary termination of a working contract. On the other hand, involuntary departure is associated with the employer's dissatisfaction with a worker's progress (Imna & Hassan, 2015). Today, SHRM practices are employee centered. They aim at fostering employee-employer relationship, a situation that conventional methods of employee management cannot guarantee.

Firstly, SHRM stipulates the utilization of proper recruiting methods. For an extended period, organizations have utilized ineffective recruiting procedures that have contributed to many workers taking up roles outside their profession. Employers should provide potential employees with a proper job review to prevent the above situation. Notably, workers who fail to work within their expertise lack clarity of role and end up demotivated; thus, they terminate their work contracts. Bansal (2014) states that proper recruiting services and providing employees with job review have a positive impact on the retention of new workers.

Secondly, Imna & Hassan (2015) note that improved career development practices have a positive influence on employee retention. Career development is one of SHRM practices that actively advocate for employee retention. It provides workers with an opportunity to continuously be part of various corporate activities that develop their careers such as talent management, succession planning, leadership development, and self-assessment. In succession planning, employees have the chance to advance their career goals within the same organization through promotion (Imna & Hassan, 2015). On the other hand, self-assessment enables employees to create personal commitment plans that enhance their skills in an organization. The above practices promote career development in line with the Maslow hierarchy of needs leading to improved employee retention.

Thirdly, increased training and development incentives enhance employee retention. In the current global economy, training is a part of SHRM practices that encourage the acquisition of new skills, improved knowledge, abilities, and positive employee attitude resulting in business efficiency. Training may include on-job training, job-rotation, employee development, mentoring and coaching, or off-job training (Bansal, 2014). The above elements develop workers interest, improve work efficiency, reinforce commitment, and work satisfaction leading to employee retention. Additionally, they improve employee's motivation and loyalty towards a company.

Fourthly, performance appraisals, rewards, and recognition increase employee retention. Workers are motivated to work in organizations that appreciate their work. Performance appraisals involve evaluation of employees' performance to support further career development. Notably, it depends on employee-employer communications and utilizes techniques such as feedback, goal setting, and periodic review (Imna & Hassan, 2015). The practices enable the management to improve learning and working conditions thus enhancing retention.

Strategic Human Resource Management and Engagement

Today, employee engagement is a primary factor to a firm's success. Notably, research has proven that more than seventy percent of the global workforce is disengaged due to poor human resource practices. Commitment and engagement involve employees' job satisfaction and pride in their company in such a way that they believe in their professional roles and enjoy working in a specific organization with the perception that employers value their contribution (Macey & Schneider, 2008). It is evident that improved SHRM practices enhance engagement, which has a positive influence on business profitability, reduced turnover, and high employee ratings.

Firstly, provision of rewards and recognition of high performance has a significant impact on engagement. Typically, employees undergo many challenges to maintain a proper work balance, which may be emotionally consuming (Vance, 2006). Therefore, when individuals transverse all practical obstacles to improve their performance, they require appreciation to keep them motivated. Research has proven that rewards motivate employees leading to increased job engagement (Macey & Schneider, 2008). Noticeably, employee recognition enhances their attitude towards their jobs, which keeps them engaged.

Secondly, Vance (2006) notes that a good job design encourages employee engagement. Managers who provide workers with meaningful jobs and authority facilitate enthusiasm and participation. In this case, employees have adequate power to exercise their expertise. Additionally, jobs with a broad definition encourage employees to undertake challenges that are beyond their assigned tasks. The above elements are vital to fostering commitment and engagement in a company.

Thirdly, engaging employees in open communication fosters engagement. Workers are more engaged in firms that managers are trustworthy and involve them in decision-making. For instance, while initiating corporate change, it is imperative for managers to communicate the plan for workers to prepare psychologically (Vance, 2006). Failure to do so disengages employees since they feel left out in a company's decision-making process. Furthermore, open communication reduces employee-management conflict. Trust plays a vital role in the improvement of employee attitude. Workers are more engaged and confident with the management if it issues honest information and adheres to its promises.

Fourthly, provision of benefits such as salary increments, loans, and proper housing, improves commitment and reveals management's concern towards employees' wellbeing. Workers appreciate their employers' effort to improve their living standards (Macey & Schneider, 2008). Thus, people are comfortable working in an environment where their needs are addressed accordingly. According to Maslow hierarchy of needs, love and belonging mainly promote employee engagement (Macey & Schneider, 2008). Employees prefer to work in organizations that foster friendship and strong affiliation bonds.

Strategic Human Resource Management in Non-profit Agencies

The number of nonprofit and charitable organizations in the United States has had an upward projection for the past decades. The institutions depend on their employees' dedication to realise their social goals. However, HRM activities are unique in the nonprofit sector compared to the public and private business sectors (Guo et al., 2011). Thus, most of these organizations tend to implement SHRM practices, while others are reluctant in the application of the same due to factors such as information technology, government dependence, and national involvement.

According to Guo et al. (2011), dependence on government funding affects how nonprofit organizations adopt SHRM practices. For instance, those that depend on government grants apply temporal recruiting contracts. In this case, it is easier to manage workers due to increased uncertainties in case the state reduces its aid. On the other hand, others might prefer professionalism through SHRM to facilitate successful funding from the government. Notably, Guo et al.'s research results proved that the government's involvement has both negative and positive influence on the adoption of HRM practices.

Secondly, IT in an organization influences the adoption of strategic human resource practices. According to Guo et al. (2011), IT offers various advantages to these organizations such as improved methods of recruiting, broad access to the labor markets, the absence of intermediaries, and less paperwork. Notably, if IT contributes to the transformation of conventional HR practices to strategic value addition, then nonprofit organizations are more likely to blend the adoption of SHRM practices and IT.

Thirdly, national affiliation enhances the adoption of SHRM practices in nonprofit agencies. The tendency of charitable organizations to associate themselves with the National umbrella facilitates diffusion of innovation and improved HRM practices (Guo et al., 2011). Fourthly, the use of independent contractors allows incorporation of SHRM by enabling corporates to outsource workers and other peripheral services. Independent contractors enable organizations to access specialized employee skills, maintain labor, and cost flexibility. Additionally, large charitable organizations have a high tendency to incorporate strategic human resource practices. They prefer the sophisticated approach due to their large workforce and extensive social missions. Lastly, dedicated HR functions hinder implementation of HR practices in an organization.

Conclusion

Overall, strategic human resource practices aim at fostering an employee-employer relationship. The phenomenon increases employee engagement and commitment. Additionally, SHRM is associated with low job turnovers and employee retention. Notably, factors such as IT, national affiliation, and government dependence affect the rate at which nonprofits adopt strategic HRM. It is incumbent on all managers to implement appropriate HRM practices to enhance their organization's efficiency.

References

Bansal, S. (2014). Employee retention strategies. International Journals of Research Management and Social Sciences, 22, 62.

Guo, C., Brown, W. A., Ashcraft, R. F., Yoshioka, C. F., & Dong, H. K. D. (2011). Strategic human resources management in nonprofit organizations. Review of Public Personnel Administration, 31(3), 248-269.

Imna, M., & Hassan, Z. (2015). Influence of human resource management practices on employee retention in Maldives Retail Industry. International Journal of Accounting, Business and Management. Research Paper, 3(1), 28.

Macey, W. H., & Schneider, B. (2008). The meaning of employee engagement. Industrial and organizational Psychology, 1(1), 3-30.

Vance, R. J. (2006). Employee engagement and commitment: A guide to understanding, measuring and increasing engagement in your organization. SHRM Foundation.