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  • Subject Name : Human Resource Management

Human Resource Management's Role in Strategic Planning and Business Success

Table of Contents

Part A) Strategic HRM assist with corporate performance.

Setting and achieving goals.

General Role of HR..

Support of HR in corporate strategy.

Part B) Key challenges HRM/ IHRM faces in contributing to meeting the goals of corporate strategy

Role HR should play.

Main challenges.

Leadership and management quality.

Use of data analytics to improve the decisions related to Human Resource (HR):

Managing the changing business need for talent and skills.

Impact of challenge and HR solution.

Part C) HRM and IHRM...


IHRM and its difference from domestic HRM...

The setting of strategies by company and impact of IHRM...

Key IHRM activities and their importance.

Recruitment and selection (Talent acquisition)

Performance management

Training and development



Part A) Strategic HRM Assist with Corporate Performance

Setting and Achieving Goals

Companies usually set goals after proper strategic planning that can be defined as the plan focusing on setting primacies, funds, energy, reinforces operation, and certifies that workers and all other participants are working for the mutual goals. The goal setting is done after creating a blueprint that consists of a vision statement, mission statement, strategies, and fiscal year primacies, managing meetings. The company needs to set SMART goals for the business that are simple, measurable, achievable, result-focused, and time-sensitive. Moreover, these goals challenge staff with the attainable goals that require considerable efforts (Ogbeiwi 2017). These goals can be achieved in numerous ways like management must involve its employees and managers in the setting of goals so that they are more devoted to attaining them. Management must know the fact that its employees are only ones who can drive more productivity for the organization thus it should invest in them to achieve the set by the organization in a sustained manner. These can be done by talent management who is responsible for always keeping its employees motivated, give constant performance feedback, refine business performance, and more.

General Role of HR

Human resource is the term that defines the people working in an organization and the department within the company that manages resources in respect of workers (Kianto, Sáenz and Aramburu 2017). The general role of human resources (HR) in business is managing the recruitment, promotion, and selection of the right employees for the company. The department is responsible for providing training and development to employees, addressing the concerns of workers, improving confidence, and more. The most essential role of HR professionals is to certify that the most important talent of the company, human capital, is being cherished and reinforced through the formation of rules, procedures, and programs (Bos-Nehles and Veenendaal 2019).

Support of HR in Corporate Strategy

Today, the role of HR is not limited to certain administrative tasks but has extended to certain strategic approaches. The HR professionals are now more concentrated on adding value to the strategic exploitation of workers and confirming that worker programs are influencing the business in a quantifiable way. With the changing time, they are more engaged in the corporate strategy of the business and it is required for competing positively with rivals. There are three corporate strategies namely growth, stability, and retrenchment. These corporate-level strategies must be aligned with the human resource strategies so that HR can understand the mission of the company and accordingly hire the right people for achieving those goals (Ahammad, Glaister, and Gomes 2020). HR can support the corporate strategy in the following manner:

  • Usage of more information technology to bring innovation
  • Emphasis on the development of HR talent
  • More focus on conducting activities related to business development, organization design, employee development, metrics, and change management
  • Understand business objectives and then plan HR objectives and action accordingly
  • For example, business objective is to reduce cost, and then HR must focus on reducing the labour cost and increasing retention. If the business aims to increase productivity, HR must plan to automate the processes of its operation using contemporary technology and software tools. If the business aims to go green, HR must go for paperless work and establish volunteer prospects.

Part B) Key Challenges HRM/ IHRM Faces in Contributing to Meeting the Goals of Corporate Strategy

Role HR should play

According to part (A), HR needs to play a strategic role that is aligned with the corporate strategies of the company rather than just accomplishing the administrative task. The HR professionals must involve themselves in the business strategies to assist the company in fulfilling the goals. They must play the role of skills review and succession planning that are a strategic issue for the company. Moreover, they should drive discussion around business direction like were to capitalize on resources and high-level talent matters like leadership development. In addition, they must be more responsible for the implementation, and managing the employee strategy of the company and assist in the efficient running of the business (Srivastav 2014).

Main Challenges

The key challenges facing human resource management in meeting the goals of corporate strategy are as follows:

Leadership and management quality: It is a well-known fact that a company cannot thrive without proficient employees who can enhance the productivity of the organization. In today's changing environment, the workers can only be made aware of the updated technologies and changes through the leadership of higher quality. There must be constant development in respect of leadership quality in a company and specifically the subsequent expansion of strategic leadership competencies. The quality leaders further are responsible for driving the business consequences while leading the company into the future.

Use of data analytics to improve the decisions related to Human Resource (HR): In the strategic decisions of human resources, there is a need of big data analytics that can analyze the huge amount of employee data. This is the biggest challenge for the HR department as most of the HR doesn't know about the importance of big data analytics and some do not implement it due to the issue related to this analytics like privacy and security issues, the complexity of setting up, the cost factor and more. It can be said that if HR implements big data analytics into its operations, it will benefit the company by making its decisions in a short period and improves the HR strategies (Angrave et al 2016).

Managing the changing business need for talent and skills: Strategic HR understands the business need before making its strategies and policies pertaining to employee selection and others. However, the needs of businesses keep on changing with respect to skills and talent with the advent of newer processes and automation of processes. Thus, there exists a challenge for HR to keep them updated about the changing needs of the business so that it can effectively be able to recruit the right talent with suitable skills for performing the task of the company (Gupta 2015).

Impact of Challenge and HR Solution

There is a huge impact on the above challenges to the Human resource that they enable them to plan to overcome these challenges. These could be solved by HR in numerous ways like to have quality leadership; HR can keep practicing for attaining the decision-making skills and develop strategic thinking skills. To tackle the challenge of changing the needs of the business, HR must collaborate with the business management and bosses on a routine basis to know their strategies and decisions. Moreover, they must know the importance of big data analytics before its implementation so that it could make accurate decisions (Nocker and Sena 2019).

Part C) HRM and IHRM

Introduction to HRM and IHRM

This essay discusses the key areas of human resource management that are unique to international human resource management. In addition, it entails the areas of business where IHRM has an impact in setting strategies. Moreover, it discusses the importance of key activities and their assistance for the company to achieve its goals. It also discusses what IHRM must do to support the strategy.

IHRM and its Difference from Domestic HRM

IHRM refers to the set of business actions that are expected to professionally manage and guide human resources to reaching the aims of the business and build a competitive edge over the competitors both globally and nationally. Domestic HR has to deal with the employees within the borders while IHRM functions beyond the national boundaries. Moreover, the functional activities increase in the case of IHRM that entails global taxation, managing expatriation, cross country repositioning, and more (Raghuram et al. 2017). The key role of HRM is to hire people, retaining them, negotiating their salary, performance management, and more (Boon, Hartog and Lepak 2019). On the other hand, the key role of IHRM is to achieve a balance between the necessity for regulation and direction of overseas companies and the need to adjust to local surroundings (Michael and Francis 2018).

The Setting of Strategies by Company and Impact of IHRM

Since the IHRM has to deal with the diverse people in the overseas and local subsidiaries. Thus, the company sets a strategy by considering all the challenges and issues that may come when expanding overseas. The three strategies to IHRM are cross-cultural administration, industrial associations, and HRM in global businesses. In these aspects, the company makes policies and IHRM impacts in these areas of the company.

Key IHRM Activities and Their Importance

Recruitment and selection (Talent acquisition)

Talent acquisition entails staffing and selection of an appropriate individual for the company (Kumar 2019). Although it may be a challenging thing for the company in respect of international processes, it brings numerous prospects. In overseas businesses, there are certain methods to accomplish the necessity for human resources. The principal method is when an overseas business can refer persons from its domestic country to manage businesses in the overseas country. An alternative method is when a multinational corporation can hire the persons of the host nations to accomplish HR requirements. The last method is that company can utilize the rules and strategies the third-country nationals in terms of services. There are four methods to global staffing that are ethnocentric, polycentric, regiocentric, and geocentric. The talent acquisition activity of the IHRM needs a huge amount of funds in case of hire from the parent country. Moreover, the strategy of growth could be achieved by this activity of the IHRM (Farndale et al. 2019).

Performance management

Performance management refers to the process that allows a company to order an individual's accountability with the aims of the corporate at the part, section, and business level. In the worldwide experience of a corporate, performance assessment is a large concern (Tweedie et al. 2018). Though, in the native situation, there is the constancy in the performance management scheme. While, the global growth of corporate involves varied issues that must be deliberated viz. values; the business aims of the parental business, and the overseas business, the performance assessment will be done by whom, and the period at which it must be led. The performance evaluation of many groups of representatives in the foreign business is a vital constituent in the IHRM that must be led frequently. Though, it is very hard for parental business management to measure the performance of the employees abroad. Global performance management refers to the examination of an individual, who functions in a global business on a provisional basis to allocate the knowledge or found universal leadership abilities (Slavić, Berber and Leković 2014).

The growth of a business depends on the performance of the employees; thus, this activity can be useful for businesses to achieve growth. Moreover, it needs to invest in the talent and thus funds are required substantially.

Training and development

Training and expansion are the vital activities of the IHRM. Training refers to an ordered set up where workforces are qualified and cultured materials of applied knowledge regarding the job. Development refers to the comprehensive and informative growth and development of individuals in administrative positions. Training and development place a superior position in global human resource management (Walters and Rodriguez 2017). There are definite areas of the training and expansion in the IHRM viz. language competence, national awareness, understanding of the communal environment, and civil environment of the host nation, wants of the employees’ career development, competence in the use of contemporary and current systems in the business, flexibility to altering situations, and more. Training and development also require funds to train people with greater leadership quality (Farndale et al. 2017).

Conclusion on IHRM and Strategic Planning

From the above, it can be concluded that the key activities of international human resource management are recruitment & selection, performance management, and training & development. All these activities contribute to the business in achieving the growth strategy. Companies can excel at foreign subsidiaries if the talent is properly trained, hired, and managed.

References for IHRM and Strategic Planning

Ahammad, M.F., Glaister, K.W., and Gomes, E. 2020. Strategic agility and human resource management. Human Resource Management Review30(1), p.100700.

Angrave, D., Charlwood, A., Kirkpatrick, I., Lawrence, M. and Stuart, M. 2016. HR and analytics: why HR is set to fail the big data challenge. Human Resource Management Journal26(1), pp.1-11.

Boon, C., Hartog, D. N. D., and Lepak, D. P. 2019. A systematic review of human resource management systems and their measurement. Journal of Management, 45(6), pp. 2498-2537.

Bos-Nehles, A.C. and Veenendaal, A.A. 2019. Perceptions of HR practices and innovative work behavior: the moderating effect of an innovative climate. The International Journal of Human Resource Management30(18), pp.2661-2683.

Farndale, E., Horak, S., Phillips, J., and Beamond, M. 2019. Facing complexity, crisis, and risk: Opportunities and challenges in international human resource management. Thunderbird International Business Review61(3), pp.465-470.

Farndale, E., Raghuram, S., Gully, S., Liu, X., Phillips, J.M., and Vidović, M. 2017. A vision of international HRM research. The International Journal of Human Resource Management28(12), pp.1625-1639.

Gupta, M. 2015. The five major strategic challenges for hr. [Online]. Available at http://www.strategicthinking.eu/the-five-major-strategic-challenges-for-hr/ [Accessed on May 12, 2020].

Kianto, A., Sáenz, J. and Aramburu, N.2017. Knowledge-based human resource management practices, intellectual capital and innovation. Journal of Business Research81, pp.11-20.

Kumar A. P., S. 2019. Aligning talent acquisition practices to strategic business objectives. NHRD Network Journal, 12(3), pp. 261–269.

Michael, M., and Francis, R. 2018. A Study on International Human Resources Management Practices (IHRM). International Journal of Engineering Technology Science and Research5(1), pp.340-347.

Nocker, M. and Sena, V. 2019. Big data and human resources management: the rise of talent analytics. Social Sciences8(10), p.273.

Ogbeiwi, O. 2017. Why written objectives need to be really SMART. British Journal of Healthcare Management23(7), pp.324-336.

Raghuram, S., Brewster, C., Chen, X.P., Farndale, E., Gully, S. and Morley, M.J.2017. On theory, technique and text: guidelines and suggestions on publishing International Human Resource Management Research. The International Journal of Human Resource Management28(12), pp.1640-1660.

Slavić, A., Berber, N. and Leković, B.2014. Performance management in international human resource management: evidence from the CEE region. Serbian Journal of Management9(1), pp.45-58.

Srivastav, A. 2014. Why hr needs a role in business strategy. [Online]. Available at https://www.thehindubusinessline.com/specials/new-manager/why-hr-needs-a-role-in-business-strategy/article23029003.ece# [Accessed on May 12, 2020].

Tweedie, D., Wild, D., Rhodes, C. and Martinov‐Bennie, N. 2019. How does performance management affect workers? Beyond human resource management and its critique. International Journal of Management Reviews21(1), pp.76-96.

Walter, K., and Rodriguez, J. 2017. The importance of training and development in employee performance and evaluation. World Wide Journal of Multidisciplinary Research and Development, 3(1), pp. 206-212.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Human Resource Management Assignment Help

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