Strategic Change and Human Resources Management
Today, each organization lives in constant change. Processes, procedures and products are redesigned, refurbished and adjusted on a daily basis. However, most organizations do not change itself significantly. The strategic change defines new foundations for the firm. It invokes alternations in the corporate culture, adjustments of the organizational structures, and recognition of other management and leadership styles.
This kind of change is always a great opportunity for HR to introduce the pure strategic HR Management.
What is the strategic change?
The strategic change is usually a need to adjust the organization, products, procedures and processes in the organization because the firm’s strategy has changed recently. It is quite common that the firm makes adjustments to its business plan when the company stagnates or requires a rapid organic growth. The strategic change starts with the decision of the organization’s top management, which identifies gaps and opportunities. The top management designs a vision of the strategically changed company and identifies opportunities and benefits of such a change.
The strategic change redefines the basic principles and components of the organization; it focuses the company on gaining the sustainable competitive advantage. The leader often formulates new firm’s vision that is elaborated into detailed business strategy. The need for a change can come internally or externally; however in reality, the leader usually reacts to mixed signals.
The request to change the organization is an active and vital signal for the strategic HR Management. SHRM becomes necessary, because HR can take over the leadership role in certain areas. It can lead and facilitate changes of the corporate culture, and it can help line managers to change their approach and behavior. As always, it is connected with the HR Role in Strategic Planning).
HR has to help to formulate and define the strategic goals in the people management area. HR facilitates the translation of the vision into actionable pieces and projects. It can help to draw the strategic pathway for the organization and identify key milestones. HR is usually good in organizing social and entertaining events in the organization; the strategic change is an excellent opportunity for a celebration party.
Finally, the strategic change often requires HR to present new and innovative approaches to Human Resources Management. As the change is usually required by the top management, it is easier to introduce new methods into talent development, compensation and performance management.
SHRM and the strategic change of the organization
Each significant change in the organization begins with the change of the management and communication style. The change is not about the change of processes, procedures and technology. It starts with the change of the vision and human behavior. HR always plays a crucial role at the beginning of dramatic changes.
HR introduces the strategic Human Resource management by reviewing its policies and processes. Each strategic change requires the adoption of new approaches in HR Management. HR Professionals have to facilitate workshops to identify the impact of changes on employees. After collecting information, they need to present and approve the change management plan.
SHRM and the strategic change are closely interconnected. In the case of the cross-functional change Human Resources has to adopt new roles into its operation. It has to redesign the HR Model and HR Roles and Responsibilities. The top management changes expectations and HR has to deliver different outcomes.
SHRM allows to HR Professionals to acquire new skills and competencies. HR Professionals focus on the execution of strategic tasks, which are not clearly defined. They need to improve their planning, negotiation and communication skills. They have to prepare a strategic plan that allows to employees swallowing changes and adapting to new circumstances in the organization.
Introduction of the strategic change usually introduces the complete change of the organizational structure. By applying basic organization design principles, HR can lead the change and make the organization efficient. It has to introduce real succession plans to place and run assessment centers to ensure the selection procedures are fair.
SHRM changes the role of HR in the organization; HR gains new responsibilities and shares the accountability with the top management. SHRM develops the HR team that gets used to using new techniques. It strategically simplifies the organizational structure and brings new leaner teams.