University of Gloucestershire

Major: Business and Marketing Management

Class: 17G1BM01
Student: Nguyen Ngoc Phuong Trang
Student ID: 179011035
Word Count: 500 words

1. Briefly analyze the impact of strategic HRM on organization performance.

Nowadays, to ensure successful competition in the market, companies need to improve their
performance continuously. According to the essential need for that, it is realized that the human
resources (HR) and human resource management (HRM) is also considered one of the most
important resources of today's companies. In the spheres of HRM, there is a new conversion
which accentuates the importance of HR to the success of an organization that is strategic human
resource management (SHRM). Through SHRM, if the HR policies and practices are accurate and
effective, organization performance and competitive advantage will be enhanced and achieved
easily.
First of all, a benefit that SHRM brings to organization performance is improvement employee
morale and productivity, which helps the company's goals not only to be achieved but also to far
exceeded what they expected. With SHRM, discipline for employees will be guaranteed and the
company can avoid or limit problems about time, budget, expense, unexpected accidents, ...
Besides, a good SHRM policy with proper management, attractive and flexible salary and reward
policies will make employees feel comfortable and interested in working and get higher
productivity. Thence, employees will have faith and feel respected by managers and companies
and following that, they will develop feelings for their work and workplace to make decisions that
they will faithfully work in long-term to the organization. Those employees are one of the factors
that managers need to find ways to retain them because with their deep affection, seasoned
experience and mature skills, they will contribute to helping the proposed target can proceed
smoothly and get high efficiency.
Another aspect of SHRM that needs to be mentioned is that improving the qualifications and
skills of the employees also contributes significantly to increasing competitive advantages and
organizational performance. Regular training will help the skills and capabilities of employees to
be increasingly advanced and in line with the requirements and goals of not only organization
but also the market. In addition, a wise recruiting and selection is also a way for the company to
have more talents and diversify human resources. With a talented and well-skilled workforce,
the problems which is more likely to occur if the employee is low qualification and poor skill rarely
or never occur and company does not have to spend extra time, money and laborious to mend.
In addition, the diverse human resources will bring different perspectives, experiences and rich
solutions to each problem, every employee also has more opportunities to criticize to learn from
each other and find the best way to achieve company's goals. These not only contribute to gaining
organizational performance, but also raise the quality of projects and boost competitive
advantages at a high level.
Researchers indicated that human resources are a source of sustainable competitive advantage
and the costs associated with developing human resource strategies are considered to be a good
investment and have long-term effectiveness. Therefore, SHRM will be increasingly appreciated
and become the focus of HRM as well as an effective linkage with organization performance.

References:

 https://shrm.pace.edu.vn/su-kien/shrm-cafe-loi-ich-va-cac-cong-cu-xay-dung-su-da-
dang-trong-nhan-
su?fbclid=IwAR3oJV02kdi7C3IcKrdXXfDYJelxYF8YBQ5XD3Jwcq2H1LLQzX5Lg9x4AOA
 Journal of Naval Science and Engineering, 2010, Vol. 6, No.2, pp. 100-116