6 Characteristics of Strategic Human Resource Management

The strategic approach to human resource management applies the concept of strategy to managing a firm’s human resources. There are 6 characteristics of strategic human resource management, which are given below:

Characteristics of strategic human resource management

1. Recognition of the outside environment

The outside environment presents some opportunities and threats to the organization in the form of-

• Laws
• Economic conditions
• Social and demographic change
• Domestic and international political forces
• Technology and so on.

A strategic human resource strategy explicitly recognizes the threats and opportunities in each area and attempts to capitalize on the opportunities while minimizing or deflecting the effect of threats.

2. The impact of competition

The forces of competition in attracting, rewarding, and using employees have a major effect on corporate human resource strategy. Forces play out in local, regional, and national labor markets.

Labor market dynamics of wage rates, unemployment rates, working conditions, benefits levels minimum wage legislation, and competition reputation all have an impact on and are affected by strategic human resource decisions.

3. Long-range focus

Strategic human resource management should be a long-range focus cause this is not easy to change the strategic human resource policy.

4. Choice and decision-making focus

In other words, the strategy has a problem-solving or problem-preventing focus. The strategy concentrates on the question, “what should the organization do and why?” this action orientation requires that decisions be made and carried out.

5. Consideration of all personnel

A strategic approach to human resources is concerned with all of the firm’s employees, not just its hourly or operational personnel.

Traditionally, human resource management focuses on hourly employees, with most clerical exempt employees also included.

6. Integration with the corporate strategy

The human resource strategy adopted by a firm should be integrated with the firm’s corporate strategy.

The key idea behind overall strategic mgt is to coordinate all of the company’s resources, including human resources; in such a way that everything a company does contributes to carrying out its strategy.

Synergy means the extra benefit or value realized when resources have been combined and coordinated effectively.

This concept often referred to as economies of scope, makes the combined whole of the company make valuable than the sum of its parts. It is a true benefit of good strategic management of resources.

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