The Strategic Role of HRM in Companies

The administrative practices in some companies have been to limit the functions of Human Resources Management (HRM) to its simple traditional role, such as following up on working hours, issuing official documents, controlling behaviors and implementing violations and penalties, recruitment processes, performance evaluations, wages, benefit management, and employee relations to name a few.اضافة اعلان
 
However, if HRM was identified as a strategic role, squeezing the most out of its vital position, it can be looked at as a valuable resource towards achieving business goals at all stages, according to the planned strategy. By searching for skills, competencies and talents and refining them to form a real competitive advantage it can contribute to increasing the market share through inventions, creations, and innovations that can be achieved to enhance the organization's core capabilities.

Although some theoretical literature refers to this important role and sheds light on it when preparing the strategic plan and what other roles it may include for marketing and sales functions, information systems, supply chains, warehousing and distribution, some departments ignore this strategic role of HRM in that mix. 
Either due to the ignorance of the necessary knowledge and lack of applied practical mechanisms or deliberate marginalization of this role as a cost center that can be avoided now and compensated later.

The long term is imposed by the strategy, while traditional managers of the old school of management (The Old Management School) tend to focus solely on specific job outcomes that align with the visions of the board of directors. They tend to retain general managers in their positions for longer periods before realizing the existence of an apparent crisis. This happens while they overlook the strategic role of human resource management.

Modern management v. old school managementPractical experiences have proven that leadership mindsets differ from one company to another. Managers who are enlightened with scientific knowledge and up-to-date insights in modern management tend to better comprehend the increasingly important role of achieving the company's goals, not only in the medium term but also in the long term.

The long term is imposed by the strategy, while traditional managers of the old school of management (The Old Management School) tend to focus solely on specific job outcomes that align with the visions of the board of directors. They tend to retain general managers in their positions for longer periods before realizing the existence of an apparent crisis. This happens while they overlook the strategic role of human resource management.

With the increase in market competition and the entry of new competitors with innovative strategies, mechanisms, and methodologies, these traditional departments can be caught off guard, leading to a loss of achieved results or a slow exit from the market due to rising costs and the inability to capitalize on opportunities or avoid various crises. Such an outcome is expected, given that the market is a volatile and unstable environment, which cannot be relied upon for long periods without disruptions.

Experiences also indicate that the departments that follow the approach to intervention in details (Micro Management) are the most lagging departments to absorb this strategic role of human resources, and are the least efficient in development and modernization. Micro managers may take certain decisions, or impose perceptions that contradict or disrupt the aspirations of HRM, which can ultimately lead to the downfall of implementing a corporate strategic plan.

The success is linked to its human resources department The success of companies is linked in one way or another to the efficiency and skillset of its human resources department. It is not possible to see a real success story or experience a company’s success without the strengthening of this role. 
If companies took it this way: the best performance can initiate the lowest possible cost and lead towards a more efficient and effective use of resource, success could be measured a lot smarter.

Which leads us into smart management, we are all aware of this role and realize its importance. A smart manager, consults from the strategic plan before they even set their own smart goals/objectives. 

However, what is the strategic role of HRM in companies, and how can it contribute to enhancing competition, obtaining the lion's share in the market, improving financial positions by increasing revenues, profits, and reducing costs? This strategic role can be summarized in the following points:

The HR Department assists in setting strategies for recruiting, developing, and retaining talented and distinguished employees who support the vision and goals of the organization. It analyzes HR needs and directs recruitment, training, and staff development efforts in line with the organization's strategy.

Companies often focus on short-term returns and immediate results. Focusing solely on operational and financial aspects always leads to a delay in recognizing the importance of this role. The longer companies delay in realizing this role, the more difficult the task of making HRM the sustainable engine of creativity and innovation becomes.

HRM contributes to the development of employee capabilitiesOn the other hand, HRM contributes to the development of employee capabilities to enhance the organization's performance and increase its ability to adapt to new challenges. This includes implementing training and development programs, providing opportunities for learning, and developing skills and knowledge that enhance innovation and organizational effectiveness.

HRM manages change and transformationHRM also plays a critical role in managing change and transformation in the organization. It helps improve the organizational culture, enhance communication and cooperation between employees, guide them through periods of change and structural transformation, and also works to manage tensions and problems arising from change processes while promoting employee adoption of change.

HRM builds a positive organizational culture One of the strategic and important functions of HRM is building a positive organizational culture. It works to create a healthy and inspiring organizational culture in companies, which contributes to strengthening basic values and principles and encouraging employees to adhere to them. HRM enhances communication, cooperation, and transparency, in addition to investing in the talents of employees by encouraging creativity, innovations, and providing an incubating environment for them.

We emphasize here that a narrow and shortsighted view often prevents corporate management from realizing the dimensions of the strategic role of HR in their companies. 

Companies often focus on short-term returns and immediate results. Focusing solely on operational and financial aspects always leads to a delay in recognizing the importance of this role. The longer companies delay in realizing this role, the more difficult the task of making HRM the sustainable engine of creativity and innovation becomes.

Let us not ignore that investing in HR and enhancing their strategic role requires long-term investments, which constitute a financial challenge that may not be available to companies with limited resources.

In addition, poor coordination and direction within the company may lead to insufficient interest in managing HR, hiding a supportive and strong will towards managing human resources by senior leadership in companies, and diminishing the strategic role of HR in them over time.


Jehad Y. Al-Qdeimat is an HR Director for Several Companies in Jordan & the GCC., He is a PhD. Dissertation Researcher in Business Management.


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