Strategic Human Resource Management

1. Introduction

In the late decade of 1980, the organisations realized the significance of their employees as a capital asset or human resources; and by adopting and implementing a set of HRM practices (such as recruiting, training and developing people etc.) aimed to succeed a sustainable competitive advantage based on a business strategic view by making the employees’ involvement the main key point of the new human resource management into the business process; and by establishing the organizational culture that they are part of the organization (Kaufman 2001: 506). During this period, the HRM is transformed into a Strategic HRM approach in order to sustain in these modern business challenges.
By effectively working in these areas can reflect on strategic human resource. Training and developing are essential elements that should be provided to employees in any organization.

Knowledge is a key to success and is acquired through training in some form. Training allows an employee to develop skills and abilities that will be used in the workplace. And development is the continuous training and learning that enhances the employee's talent and knowledge. That is why human resource needs to increase this asset by making an investment in training employees. Research suggests that the investment made by company in training their employees strengthens a firm's technical excellence and innovative capabilities (Sack, 2007). Some businesses don't have large budget to put into training like many large firms, but if done properly they can still be able to get most out of their training dollars.

In order to provide these benefits in organization that help keeping employee productivity and helps grow the business, HR leaders should know different ways to manage the difficult situation. For example in a case of labour costs, as we all know labour costs are often the most expensive part in a company. It includes payroll, benefits and training. And in any situation, despite the fact that employees are a critical component in an organization, they are the first target in a cost reduction program, where these reductions may be based on arbitrary, authoritarian dictates.