The work of Human Resource management is of greatest value when it enables the strategy of the business. HR guru David Ulrich (1) states: “HR should not be defined by what it does but by what it delivers – results that enrich the organization’s value to customers, investors, and employees”.
What is strategic human resources management? HR strategy creates a framework/ blueprint to support business objectives with systems, processes and programs designed to achieve enhanced organizational performance as seen in this diagram below:
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By creating systems to achieve better organizational performance, strategic human resource management promotes the following benefits:
- Talent Outcomes: Lower turnover, reduced absenteeism, increased job satisfaction, and higher employee commitment / engagement
- Organizational Outcomes: Heightened productivity, collaboration, quality, service levels, efficiencies, and customer satisfaction; improved bench strength and depth (succession planning)
- Financial Outcomes: Higher profits, sales, return on assets, and return on investment
- Capital Market Outcomes: Increased market share, valuation, stock price, and growth
If your organization is challenged in any of these areas, call Kevin Shane for a complimentary discussion.
Kevin Shane is a Partner at Newport, LLC, and Chairs the Human Capital Practice for the Mid-Atlantic Region. Schedule time with Kevin at Kevin.Shane@NewportLLC.com.
(1) David Olson Ulrich (born 1953) is a university professor, author, speaker, management coach, and management consultant. Ulrich is a professor of business at the Ross School of Business, University of Michigan and co-founder of The RBL Group.