Strategic Human Resource Management

Strategic Human Resource Management In Perth Businesses

February 26, 2016 | By Christine Howitz, Vitil

"Strategic thinking is the process by which an organisation's direction-givers can rise above the daily managerial processes and crises, to gain different perspectives of the internal and external dynamics causing change in their environment, and thereby give more effective direction to their organisation." B Garratt: Develop Strategic Thought.

Strategic Planning is an organisation's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy.

In many Perth organisations, this is viewed as a process for determining where an organisation is going over the next year or more, and in order to determine where it is going, the organisation needs to know exactly where it stands, then determine where it wants to go and how it will get there.

And in any strategic plan, an organisation must consider its human resources, as their greatest asset is their people.

What Is Strategic Human Resource Management?

Strategic human resources managing is an approach to managing human resources, staff or a team of people, that supports long-term company goals and outcomes with a strategic focus and framework.

When a local Perth organisation considers their longer term goals, they must also consider their recruitment services and human resources requirements for the future, people issues, and consider the job structure, culture, values, KPIs, job expectations, human resources services and recruitment processes that must be in place to support that growth.

Strategic human resources managing is a constantly evolving process. The managing of human resources plays a key part in all aspects of any company. The human resources recruitment and managing should be developed in line with the core strategic plan.

The strategic managing of people is defined as "The undertaking of all those activities affecting the behaviour of individuals in efforts to formulate and implement the strategic needs of business."1

According to Wright and McMahan it is "the pattern of planned human resource deployments and activities intended to enable the organisation to achieve its goals"2 thereby it is about designing the behaviour of individuals to achieve success.

Human Resource Management In Small Businesses

In many Perth businesses, Human Resources are taken on by the founder and managed by trial and error. In these instances, the human resources function is not strategic in nature therefore the alignment of pay, person and position are ad hoc with salaries given without the appropriate market knowledge or structuring.

When the founder is not human resource focused, this recruitment role can be taken on by a multi tasker who manages the office, accounts, does a bit of hiring, payroll and team events. This is more a functional role about employee cost control and less about company strategic thinking, alignment and workforce planning.

An absence of Human Resource concepts means the company is managed by less trial and more error, with deeper people issues not being dealt with resulting in time being spent on people managing and poor hiring decisions, rather than people engagement, performing and attaining company goals.

How Do I Become Strategic?

To help achieve company goals through strategic human resource management, many companies are turning to engaging a strategic Human Resource partner. A consultant that feels like a peer to help achieve company goals through strategic people management. By serving the company owner and questioning them as an insider, yet still bringing the perspective of an outsider, this style of partnership combines the skill of a Human Resource specialist with the vision of an entrepreneur.

The purpose of the role is to advise the owner on four main areas – Performance, Rewards, Talent Management and Engagement.

The HR partner can play a vital role in engaging the team, setting expectations, defining the parameters for acceptable behaviour and increasing productivity, whilst building the culture. Working together, the HR partner will understand the DNA of the company and be able to add value as the company grows.

At Vitil Human Resource Consulting Services, a boutique HR consulting specialist in Perth, we partner with many SMEs to develop their strategic human resource plans and implementation schedules. Vitil Outsourced HR Services: offers flexible, reliable and affordable outsourced human resource support, to help you and your human resources engage their teams.

Vitil's company services is built on flexibility with performance our key focus. We work with your staff in your organisation to manage your people needs. By outsourcing HR to an expert our experienced professionals can objectively assess your environment, your human capital, your culture and assist you in developing your company performance with the right people for your organisation.

1 SCHULER, R.S. (1992) Strategic human resource management: linking people with the needs of the business. Organizational Dynamics. Vol 21, No 1. pp18-32.

2 Wright, P.M., & McMahan, G.C. (1992). Theoretical perspectives for strategic human resource management. Journal of Management, 18(2), 295-320.

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