The people element of any business, organization, or institution is fundamental in the realization of success. Wright and McMahan (2011) noted that the understanding is responsible for the increase in research in the field of strategic human resource management. The objective is to gain deeper insights into the role of human capital as the critical link between human resource practices and employee or organizational performance. In my view, recognition of the importance of human capital in organizational competitiveness and sustainability is likely to drive many companies to implement half-baked human resource strategies. Therefore, building comprehensive understanding of the phenomena of human capital and strategic human resource management is imperative. Wright and McMahan (2011) reiterated the need for applicable definitions of human capital, clear understanding of the influencing factors, and relevant research in organizational settings.
In modern competitive global markets, I believe the phrase ‘innovate or perish’ applies to all businesses irrespective of their scale. Many companies are strategizing with focus on human resource management. Wright and McMahan (2011) argument about the necessity of a pattern for planned deployments of human capital to facilitate business activities and goals holds true. For any business to execute a successful transaction, customers need convincing that the product or service meets their needs and preferences. However, the presence of courteous customer care attendants or sales people increases the chances of customer satisfaction. The implication for organizations is that they must align human resource management practices with business strategies. A company requires a wide pool of human capital to address the variation in its customer base. Therefore, strategic human resource management becomes an indispensable approach in the selection, recruitment, management, training, compensation, and motivation of employees to deliver on business objectives.
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The future of human resource poses the challenge of volatility, which Wright and McMahan (2011) attributed to the dynamic contexts where employees operate. Companies must be apprehensive of the fact that individual, social, and job aspects of the workplace define and influence human capital, it capability, hence, the capability of the organization. The onus lies with the respective organizations to nurture skills and behaviors that keep employees motivated and function optimally. My observation is that organizations have the responsibility to integrate human capital issues identified as crucial to strategic human resource management into their frameworks. According to Wright and McMahan (2011), distinctions between individual versus collective and specific versus general aspects of human resource are to be defined with clarity. In my view, the approach is intended to recognize the fact that each individual as part of the larger group has special needs that must be met to enable them to function effectively in the collective paradigm. Overall, the article highlights the complexities of the aspects of human capital and human resource management that must be addressed to by organizations in order to succeed in an increasingly competitive business environment.
References
Wright, P. M., & McMahan, G. C. (2011). Exploring human capital: Putting ‘human’ back into strategic human resource management. Human resource management journal , 21 (2), 93-104.
