(PDF) The Different Models Of Strategic HRM | Dr. Oday Alnabhan

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The Different Models of Strategic HRMProfile image of Dr. Oday AlnabhanDr. Oday Alnabhan

2006, © www.odayalnabhan.com

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23 pages

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Human Resource function has evolved as a strategic business partner from its traditional passive transaction processing role. The central purpose of strategic HR function is to "improve the performance of the company's workforce to support overall corporate goals." The strategic target for HR should be to increase revenues and productivity while maintaining relative labour costs; as whenever revenue is increased in a competitive marketplace it's obvious that products and services are also improving, which are long-term competitive advantages.(Sullivan 2005). HRM attempts to leverage people capabilities strategically and ensures the competitive advantage of the firm. Studies have shown that effective HR practices can positively affect the bottom line and Employees can have a direct impact on customer satisfaction. Effective HRM practices also contribute to compliance with laws and regulations, Community relations and social responsibility. Through all these measures HR can create synergies from the diverse concerns of various stakeholders and thereby sustain the competitive advantage.

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