Strategic Human Resource Management
Third is operations where business processes are carried out. Lastly, there is a human resource that is considered by most researchers as essential in the success of any business operation (Terry 1953).Strategic human resource management is a process or an approach to addressing the competitive challenges an organization faces. It is managing the strategies which involve planning and developing human resources for the company and integrates an organization’s major goals and policies to these resources to achieve a competitive advantage (Price 1997).Moreover, strategic human resource management is a holistic process that combines human resource management with strategic management in the design of internally and externally consistent policies and practices that facilitate the achievement of organizational goals. Alignment with the organization’s vision and mission is very important in the concept of strategic human resource management (Price 1997). Moreover, strategic human resource management involves strategic planning that starts at the top level. Top-level planning means that strategies or plans made by the company begin at the highest levels. that is, the CEO or president of the company. Strategic planning translates the organizational objectives and strategies into actionable tasks (Price 1997).This approach is based on the idea that business resources such as people, capital, and technology are important in the success of a company. Hence in this approach, great emphasis on how these resources will be utilized is shown (Barney 1991). Moreover, this approach is directly linked to the study of economics wherein those accorded with superior resources can attain a competitive advantage. However, the allocation of these resources is the main issue. According to Barney (1991), intangible resources are the best resources. Intangible resources are said to increase in value when used.