Strategic Human Resource Management Essay Example | Topics and Well Written Essays - 2500 words

Strategic Human Resource Management - Essay Example It is important to note that it is difficult to have a consistent HRM approach in the presence of workforce representing multiple demographic segments as compared to earlier uniform workforce. This periodic and apparently long-term change requires management to have flexibility in its practices in order to maintain a positive psychological contract with a diversified workforce comprising of people from different cultures, ages and genders. Therefore, it is essential to determine if SHRM approach and flexibility in its practices can present employers with effective and desired outcomes. Since there are multiple forms of flexible practices used by employers, it is also important to identify likely consequences of these flexible approaches in the light of SHRM. Hence, SHRM advocates integrating HRM functions and organisational goals in order to respond to requirements of external environment. Four major forms of flexibility offered by SHRM are changes in employment models of wage, funct ion, numerical status i.e. contracts, and temporal state i.e. number and patterns of hours worked (Kalleberg, 2001). Different Forms of Flexibility There are various forms of flexible approach that govern current ideology of strategic human resource management. These flexible approaches entail practices regarding workplace, scheduling and compensation. Although a general perception of flexible HRM approach is viewed as employees working from remote locations however it is a more extensive phenomenon than that as not every job can be handled remotely. The term flexibility itself refers to organisation’s ability of adjusting its workforce numerically, functionally and financially in response to external environment and employees’ needs with reference to structure of the business (Wu, 2010, pp. 278-9). The concept of ‘flexible firm’ provided by Atkinson (1985) acts as a foundation behind workplace flexibility and its relation to strategic human resource manag ement. A flexible firm or employer is able to change number of employees according to its needs and also alter source of acquiring potential talent i.e. permanent or temporary hiring, outsourcing or part-time/ remote work arrangements. Another major area concerning flexibility offered by SHRM is the alteration in organisational structure followed by work design. As organizations have transformed into humanistic employers, their organisational model has become more decentralised with reduced bureaucracy. Reduction in levels of management has made employees more accountable and participative in organisational decision making (Armstrong, 2009). Another important element of ensuring flexibility in organisational practices is training employees with reference to external environment. Updating organisational skills’ base is essential for acquiring necessary competitive edge over other firms. The concept of upgrading is also supported by Armstrong (2008) as he has considered adaptat ion to be an important element of employer’s flexibility and adoption of SHRM as a fundamental ideology. Armstrong (2008) and Purcell (2001) have further presented three concepts i.e. resource-based view, strategic fit and strategic flexibility to be the foundation of strategic human resource management which is also supported by Wei (2006).