Q2

Q2. “The HR manager’s basic responsibility is to enhance his/her effectiveness for optimizing human resource potential in-order to achieve firm’s strategic objectives. What’s your analysis of this statement with respect of HRM?

Ans. Human resource manager is a single person who is responsible for looks after the people and the people processes, hiring employees, maintaining employee’s well-being, dismiss employees when necessary and handles many tasks related to salary and benefits management, behavior, communication, team-building, good employee relationships, trainings and teaching leaders to be better leader. HR managers act as a mentor and they are crucial to every organization because they know how to engage, motivate and retain employees and to create a better work environment that can lead to higher profits as they are experts in building a successful company culture.
However, HR manager’s primary challenge is to optimize human resource potential effectively as they are involved in the following processes:
1. Acquiring: HR manager serves a critical role in promoting organizational success, so they are responsible to hiring and selecting the right person for the right job. It means to acquire employees through certain processes:
• Skill fit, which is to resume people having the right skills, knowledge and experience in their field and can able to do a lot of things efficiently and effectively that is useful in an organization to get better outcome.
• Company fit, which is to interview and analyses the person weather he/she is best to the company’s working environment or not.
• Job fit, which means to assess the persons potential and capability through different interviewing techniques.

2. Training: HR managers are responsible to recruit better quality employees and retain top-notch talent, so HR manager provides training programs to properly communicate with workers because that’s why the person has been appointed for the specific work. Moreover, to do so they guide their workers that:
• Why they are hired for this job.
• What are their goals to achieve.
• How to do the task effectively.
However, the HR managers required to decide which task is going to perform by whom. When they see that some employees have got potential and have special qualities in that job then they use to train them accordingly and give the authority to perform the task.

3. Apprising: HR managers are required to give and receive feedback form their employees that would help to make understanding between a manager and an employee. HR manager are also required to evaluate their job performance and appreciate efforts and demonstrate how important they are to the organization, so that workers are motivated and satisfied with their job.

4. Compensating: HR managers are also responsible facilitating their worker with different rewards that maximize employee motivation and retention. However financial incentives aren’t only the motivator as people have different personalities, abilities, values and needs. So, HR managers are required to meet needs of their workers that includes:
• Workers compensation to those employees who suffered injury or illness on the job.
• Social security by providing retirement income and give them fair rewards.
• Unemployment insurance to protect workers from any job loss.
• Self-esteem and self-actualization to increase the job satisfaction.

Hence employees are the most important assets of the company, so to retain success HR managers should enhance the employee’s potential effectively by establishing workplace flexible, enjoyable and profitable and would be beneficial for the organization to accomplish goals and objectives.
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Q3: Define strategic human resource management and give two examples of strategic human resource management in practice.
Ans. Strategic human resource management is related with top management’s approach to HRM as a critical strategic dimension influencing organization performance. Strategy is a unified, inclusive and integrating the whole plan that increases the productivity and effectiveness resulting in formulation and implementation of a strategy to achieve organizational goals and objectives. It also establishes direction and scope of an organization in a long run that involves the need of forward planning by the vision and value, mission and strategy and setting of the objectives of the organization.
In today’s modern age business, objectives must be referred to as S.M.A.R.T, which means a consideration of the approach regarding the fact that needs to be clever in running the business effectively. In other words, the strategic objectives of an organization should be specific, measurable, attainable, relevant or realistic and timed to achieve it.
Strategic human resource management is the process of formulating and executing human resource policies and practices to support organizational culture that produce the employee competencies and behavioral traits the organization needs to achieve its strategic objectives. Currently strategic human resource management has become more relevant and beneficial in organizational growth and development. Each organization has its own HR style and techniques to create a high-performance work environment that includes:
• Commitment Strategy: In this strategy, the organization seeks to build-up a strong commitment among employees by making the good relationship with the managers.
• Compliance Strategy: In this strategy, Organization aims at increased labor efficiency through improved labor cost and process control.
• Paternalistic Strategy: The aim of this strategy is to acquire unique approaches to establish flexibility, workforce stability, promotions and job benefits.
• Collaborative Strategy: This strategy is to hire highly skilled labor and evaluate labor efficiency and give them good rewards on the performance.

For Example:
According to the recent survey employee loss and disengagement costs the U.S economy more than $500 billion per year.
One of the most innovative and successful HR departments is at Google. Through research, they discovered how to make employees happier in their jobs. The organization has initiated several innovative HR schemes and infect bagged many awards for their initiatives in the department that makes Google one of the most desirable places to work in the world.
However, with optimum utilization of organizational resources, human resource management paved way of sustained growth and development of any organization.