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Strategic Hr Approach

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HRM 5355 Strategic HRM
Midterm

A strategic HR approach provides three critical benefits, including facilitation of:

Development of a high quality work force through its focus on the types of people and skills needed

Having a high quality workforce has a major influence in the operations of an organization. A workforce that is knowledgeable, adaptable, and receptive to new changes ensures the efficiency of the work system. According to Mello (2011), “An organization is only as strong or as weak as its employees, and the skills, backgrounds, and motivation these employees bring to their jobs will therefore be a key factor in the organization’s overall performance” (p.108). Planning could be in the form of performing a need analysis regarding human capital as it can help assess what is needed in terms of skills and capabilities in order for an organization to gain a competitive advantage. Planning can also include evaluating the external and internal market to evaluate what compensation and benefits are needed in order to attract the right employees. Evaluating what competitors offer and building a strategy to attract the right personnel can also result in attaining a high quality work force. Furthermore, it is essential for an organization that once they have the required skills from the current human capital pool that these be updated along with the goals and strategies of the organization. Having outdated skills would make a company lag in the outside market and to possibly be set in a disadvantage position.

Cost-effective utilization of labor

Managing labor effectively can reduce costs for any organization. This is true if there are evaluation methods in place and the organization is constantly monitoring the human capital pool. Creating cost-effective strategies would reduce not only the amount of hiring personnel but turnover costs, while

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