Other authors analyzed by Chang and Huang sustain that SHRM benefits company both directly and indirectly as it modifies passivity into initiative by clearly communicating organizational goals and encouraging the participation of line-managers. In addition, by generating structural cohesion, defined as "an employee-generated synergy that propels a company forward, enabling the firm to respond to its environment while still moving forward" (Chang and Huang, 2005), the SHRM influences positively organizational performance.
Various other testimonials strengthen the idea that a good strategic orientation of human resources will mostly appear in high performance firms, as contrary to the cases of low performance firms, which tended to apply more conventional methods. (Jackson and Schuler, 1995)
Human Resources Management (HRM) and the Strategic Management Process (SMP)
In order to successfully promote organizational performance, the SMP has to contain a series of 5 components.
These are: the vision, that, once formulated will help in creating the mission of an organization. The mission will subsequently be converted into the objectives of performance, for which achievement needing to have developed a set of strategies. Once these strategies implemented, and evaluation process will analyze the obtained performance of the activities. (Thompson and Strickleand, 1996)
The way HRM works in an efficient organization is by submitting its policies and activities to the achievement of SMP objectives. (Jain, 2005)
The trend in today's business world is to see human resources as being "the available talents and energies of people who are available to an organization as potential contributors to the creation and realization of the organization's mission, vision, strategy and goals" (Jackson and Schuler, 2000, p. 37)
Hence, SHRM serves as the route a successful organization will take in order to efficiently work with each of the components of its SMP.
Additionally, the linkage of HR activities with organizational strategies and the synchronization of the various HR activities are better described by the same authors when defining SHRM as being "the pattern of planned human resource developments and activities intended to enable an organization to achieve its goals."
As commented by Massey, the human resources reaches a strategic level, when it establishes the overall objectives and directions for key areas of HRM, with the purpose of ensuring that they will not only be consistent with the business goals, but they will also be a great support in their achievement. (Massey, 1994)
Thus, depending on the direction a certain organization wants to take, will adapt its approach to the strategic management of its human resources, as SHRM represents in fact an organization's general plan to achieve its goals through the people it has.
Therefore, SHRM can be seen as the complex process of dealing with long-term HR issues as components of organizational strategic management. Consequently, wide-ranging concerns regarding structures, quality, culture, values, commitment, development of HR and their performance, as being the inputs leading to the desired output: the accomplishment of organizational goals. (Jain, 2005)
SHRM has two important perspectives:
HRM as an integral part of the organizational strategy "which is chiefly about ensuring that the organization has the skilled, committed and well-motivated workforce it needs to achieve its business objectives. It can be achieved by linking HR strategies to basic competitive strategies" (Armstrong, 2000).
HRM as a strategy in itself, traducing in its preoccupation in developing employees in order to be able to face the challenges of this rapidly changing environment. (Jain, 2005).
To a high degree, the strategic framework of an organization can be simplified and applied to the field of HRM. The strategy of HRM can be developed depending on industry specificity, allowing HRM specialists to identify the specific training needs, and then create and implement customized training courses and programs. It can in fact be a must to develop the HRM development strategy based on the strategic framework of the organization, as it will place the HR within a specific strategy context, ensuring in this way a fully integrated role inside the organization, being able more easily to identify skill gaps and consequently provide the needed training and development programs and opportunities, that will enable staff to undertake adequately the formulation and implementation of organizational strategy. (Trim, 2003)
Challenges and benefits of global Human Resource Management
In the world we are living today, national differences are factors that complicate the process of transference of HRM practices across country boundaries, practice that has become lately a key strategy in the case of multinational companies in order to help them achieve competitive advantages in the global markets.
SHR is transformational, consultatively oriented, and views the organization in terms of the big picture. SHR is concerned with the contributions HR strategies make to organizational effectiveness, and how these contributions are accomplished. SHR involves designing and implementing a set of internally consistent policies and practices to ensure that an organization's human capital, that is their employees' collective knowledge, skills, and abilities, contributes to overall business objectives. Conclusion These three articles,
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