Critically analyses the main models and theories of Strategic Human Resource Management and its relationship with Organisational Strategy.

Introduction

The current business environment is characterized by a considerable level of competitive rivalry and as a result businesses have to continuously reengineer their internal processes in to build and maintain a competitive advantage . This is the issue of developing a sustainable competitive advantage . In this respect , the importance of strategic human resource management is undeniable . Strategic human resource management will ensure that the organization has the right people for maintaining the strategic focus of the company . In this respect , there are three models available . According to model of best

fit , HR policies must be formulated depending on the stage of organizational development . The best practices model emphasizes the universality of best practices . The resource-based model emphasizes the development of HR policies depending on the resource constraint

Human resource development

Employees are now recognized as the most important stakeholder groups in setting strategies . Thus the job of strategic human resources management is to make sure that the employees are good at what they are doing . In setting long term goals and objectives , employee satisfaction is not taken into account . What is taken into account involves maximization of profit and market share . The human resources department is not involved in these areas . The development of new products and services and the minimization of costs of operations are the strategies the management sets to attain the ends of profit and market share maximization (cited in Omachonu Ross , 2004 . In these areas , the human resources department is not involved either . However the...