Strategic HRM assumes that people make a crucial contribution to the results of your company through their knowledge, skills and abilities. Together they form the human capital.
Strategic HRM always starts from the business activity and strategy in order to develop HR practices and mutual coherence.
From this point of view, strategic HRM is an integrated and flexible set of HR practices and systems, policies and strategies that help the company achieve its goals and manage its human capital.
Alignment, the core of strong HR practices
The hallmark of strong HR practices and systems is their mutual alignment, i.e. vertical and horizontal alignment, but also alignment over time.
As the business evolves, so does HR. The HR practices and systems adapt to the needs of the business. HR does not lag behind the business, but is ahead of the change and the evolutions of the business. Strategic HRM is in essence also strategic change management.
Vertical alignment
In order to achieve vertical alignment, you translate the organisation's goals into team and individual goals. The objectives must be congruent and coherent at all levels, i.e. they must be aligned in order to produce achievable results.
You translate the business strategy to the organisation with the Balanced Score Card from Kaplan and Norton. Using this practical tool, you also determine the Critical Success Factors (CSF) and the Critical Performance Indicators (KPI) in 4 domains: the processes, the employees, the customers and the financial.
With this tool you also identify the core competencies and/or attitudes of the workforce and translate them into the workplace.
For example: you follow the strategy of product leadership. Innovation then becomes an important CSF. Rigid processes and control freaks will not fit into your R&D team/department and will nip creativity in the bud.
Last but not least, with the help of the BSC you will succeed in implementing HRM in the business.
Strategic HR assignment
As a Strategic HR Manager, your task is to ensure that management and employees are self-reliant as much as possible and are able to use their own resources (and therefore competencies) optimally and to be able to adapt quickly to changes.
Put as many HR practices as possible in the hands of managers and employees.
This is good for their self-reliance and autonomy. And it helps you to keep your focus on the strategic, to keep up with the business and to act proactively with regard to change and evolutions.
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