Human Resource Mangement

HR M individual Assignment ЎVJohn

Abstract

The significance of aligning the SHRM with the business strategy becomes a major issue for many businesses to survive in now a daysЎ¦ competitive environment. In this paper, we would first find out the meaning of the SHRM, its functions on developing Employment Relation within the company. Then the paper will investigate what those company stakeholders desire from the business, and how the SHRM can help to achieve their needs. Finally, we will determine what is and whether the sound corporate governance should be included as one of the company goals.

All the above issues will be critically analysed based on the understanding of those ideas sourcing from relevant literature.

TABLE OF CONTENT

ABSTRACT 1

TABLE OF CONTENT 2

1. INTRODUCTION 3

2. STRATEGIC HUMAN RESOURCE MANAGEMENT 4

2.1 DEFINITIONS AND VIEWS 4

2.2 THE PROCESS OF THE SHRM 5

2.3 IMPORTANCE OF THE SHRM 6

3. COMPANYЎ¦S GOAL 7

3.1 GOAL PLANNING 7

4. CORPORATE GOVERNANCE 8

4.1 DEFINITIONS 8

4.2 ETHICAL CULTURE IN THE SHRM 9

5. CONCLUSION 10

REFERENCES 11

APPENDICES 12

APPENDICE1 12

APPENDICE2 12

1. Introduction

In recent years, Australian businesses getting more frequent to utilize some strategy management tools in their business decision. But a recent research surprisingly show that from the 90% of those Australia businesses, only 42% of the company CEO recognize there is a need for HR involvement, and only 14% be aware of HR as a strategic partner. The objective of this paper is to identify how SHRM can contribute the business all over its strategic management, and give the reason why SHRM is being ignored during the planning of business strategy. The paper will also discuss why sound corporate governance has to be considered as a part of company success.

2. Strategic Human Resource Management

2.1 Definitions and views

The SHRM is a process of fitting the HRM components into the business strategic planning in order to create and sustain competitive advantages, deriving from the concept that the employees are being recognized as a precious asset to the company.

Before the mid 1980s, the view of Strategic Human Resources Management has been viewed by the business as nothing rather than personnel management, where there is a lack of concerns on handling employeesЎ¦ relations at an organizational level, the 2 terms are ambiguous and dependences of the business strategy, until the concept of the SHRM was being distinguished by Mahoney and Deckop (1986: 229-234) from the Personnel Management in 1986. Mahoney and Deckop (1986: 229-234) explained both terms by identifying changes from narrow (PM) to broaden (SHRM) views in 6 different aspects:

(1) Employment Planning: From a narrow technical focus with forecasting work to establish linkage between HR planning and business strategy.

(2) Communication with Employees: From a collective, negotiating focus to general approach to direct communication with employees.

(3) Employee Feelings: Early concept of job satisfaction in Personnel Management evolved into a focus on the notion of organization culture.

(4) Employment term: From the focus on individualsЎ¦ selection, training and compensation to consider group working and efficiency is more important for effective performance to be achieved.

(5) Employment cost-benefits: From a concern that Personnel Management helps to reduce