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Strategic Importance of Human Resource Management

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Strategic Importance of Human Resource Management

For the case assignment, read all of the required readings listed on the background page.

Assignment Expectations:
Please respond to the issues raised below. Be sure to draw upon and integrate concepts from all of the module required background materials, other materials you might find on the web, and your previous course material (e.g., Mgt 407, Mgt 411, Mgt 412):

Imagine you have just been hired as the CEO of a mid-sized firm, and the current HR department is limited to payroll, benefits, recruiting, training, performance management, and safety. The current HR manager reports to the VP of Operations. Given this information and that provided in the background readings, create a blueprint for redesigning the HR function as a critically important strategic partner in the future of the organization.

Solution Preview

While the Human Resource department in most organizations serves many functions, it must also align its activities with corporate strategy. Knowing where the organization is headed and how it plans to get there is crucial information for human resource departments. Corporate strategy does affect human resources, as the organization seeks to hire and retain employees who understand the strategy and will help the organization achieve its objectives. Many of the human resource functions directly affect the organization's ability to achieve its strategic goals.

The following map indicates how human resource functions relate to strategy:
1. Payroll- Payroll is an essential function that provides compensation to workers. While management typically makes decisions about salary and wages, the human resource department must ensure that wages are correct and that employee withholding is also correct. The department may also handle any inquiries about incorrect payment or other questions employees have. The type of payroll program utilized can affect the organization, in terms of cost, flexibility and tracking or record keeping. Costs for salaries are a variable cost that the organization incurs. Decision makers must be able to access such information to generate reports.

2. Benefits-The benefits management program or plan selected may affect the organization's costs. Some programs attempt to control costs of health care and other benefits, such as sick ...

Solution Summary

This solution discusses the strategic importance of human resource management.