Aligning strategic human resource management to Human Resources, performance and reward

Abstract

In a rapidly changing business environment, one may recognise the words “the only thing constant in life is change” by French author Francois de la Rockefoucauld. Yet, with on-going change, it can be difficult to know what to do and how to do it. The world out there is harsh and competition is fierce. Indeed, the world is changing at a rapid pace. Therefore, both public and private sectors have to plan for the future and prepare for any unforeseen circumstance. This paper will discuss the link between Strategic Human Resource Management, Human resources, Performance and Reward, what we know, and the future direction of Strategic Human Resource Management.

Strategic Human Resource Management involves making those decisions that define the overall vision, mission, core values and objectives of the organisation, thus determining the most effective utilisation of its resources. Walker (1992: 16) states that Strategic Management enables managers to respond to environmental changes based on a defined business mission, vision and values. Strategies are directional plans that guide management actions in the pursuit of opportunities. In essence, strategies point the way for the most promising changes. They are plans that give direction and address people related business issues. Human Resource strategies are important because they help determine how to manage people in relation to business strategies. Strategic Human Resource Management aligns Human Resources, which is necessary for the success of the organisation.