Marchington
and Winkson (2002). States that, strategy a plans or goals which are design to achieve
long-time goals or over great amount of time. Strategy consist of two different
types: competitive business strategy and strategic human resources strategy. Competitive
business strategy mainly focuses on adding value to primary activities and to
provide a competitive advantage. Furthermore, strategic human resource strategy
mainly focuses on providing value to the service activities e.g. people, worker
and employers. Research suggest that the major key for long-time profitability
for organisation is to have a clear strategy better than their competitors,
also they need to have a highly effective workforce (HRM) which carries out the
strategy.  (Marchington and Wilkinson,
2008). One of the big decision for strategic human resource management (SHRM)
is that they fellow a contingency or universal approach.

 

Boxall
and Purcell, (2006) describes strategic human resource management (SHRM) as a
relationship between organisation’s strategic human management and the
management of its human resources. Strategic management emphases on the choice
and management of an organisation, and often involves dealing with doubt and
difficulty. (Johnson, 1993) states that there are 3 element terms which
strategic management uses. E.g. understanding the strategic position of an
organisation, strategic choices and translating strategy into action.

Understanding
the strategic position of an organisation is all about the notion impact of the
external environment on organisation strategy, the strategic capabilities of
organisation’ and the impact stakeholders influence and expectation. (Johnson,
1993). Strategic choices are all about understanding the competitive advantages
and the possibilities future strategies to which the organisation will win or
in either public or private sector. (Millmore, 2007). Organisation can
translate strategy into action by developing an appropriate structure,
processes and resources within the organisation and managing people (Johnson
and Scholes, 2002)

 

Strategic
planning

Strategic
planning plays a very important role on how successful and how productive the
organisation is. Planning is very assertion as in the past human resources
management (HRM) was known as personnel department. In the past, this was used
to hire people and dealt with paper work and the whole process. Most recently,
the personnel department has split into human resources management and the
human resources, as these notions have changed over the centuries. |HRM is not
only crucial to an organisation success, but it one of the most important part
of the overall company’s strategic planning. This is because so manty companies
/ businesses today depend on people to earn profit.