Strategic HR Essay Example | Topics and Well Written Essays - 250 words

Strategic HR - Essay Example R systems are the most critical in HR architecture since they are the source of value creation and have greater inimitability depending on how they are aligned with the overall corporate strategy. According to the Resource based View (RBV) of the firm, human resources are the most strategic assets for the firm and should be recognized in order to attain competitive strengths. In implementing SHRM strategy, the firm should focus on the key strengths and capabilities. According to Porter, the firm should emphasize on cost leadership and differentiation in the competitive strategy (Becker and Mark 902). Current trends in focus on differentiation in the SHRM since business processes should create value for the organization (Becker and Mark 903).unique and firm specific HR architectures will create and sustain competitive strength for the firm. Modern SHRM literature focuses on the holistic view of human resources since all employees have unique talents and contribute differently in the value creation process. Effective human resource management strategy includes both HR core architecture that creates equal value to all business processes and HR differentiated architecture that provides specific skills and attributes for the effectively performance of certain strategic jobs in the organization. According to five national surveys conducted between 1991 and 2000 and data from 3200 firms, the standard deviation from HR systems change is 10-20 percent in value of the firm. Increase of one standard deviation leads TO 4.6 percent increase in return on assets (ROA) (Becker and Mark 907). SHRM should focus on intermediate outcomes since financial performance should not be the only dependent variable and outcome of SHRM. Focus should be on strategic business processes that involve a high level of human resources. New focus should be on contingencies and fit since HR architectures should also be differentiated. HR managers face challenges of measuring employee performance