The performance of an enterprise is reflected by effectively providing products and services to customers. Therefore, the human resources in an enterprise can be considered as the personnel who design, produce and provide these products and services. An important goal of human resource management is to implement activities that are conducive to improving the performance of enterprises and make strategic contributions to the success of enterprises through these activities.
When enterprises make strategic plans, human resource management, as a part of strategic partners, should have its own position. Strategically speaking, human resources must be managed as resources such as capital and technology. For example, in a retail enterprise, when formulating a strategy to expand the number of retail stores by 25% and expand to new areas, the human resource manager can adjust the human resource plan by providing information on the labor situation and standard wages in each area.
In many industries today, corporate mergers or reorganizations often occur. In all these mergers and acquisitions, there are many problems in human resources, which are closely related to the corporate culture and operation after mergers and acquisitions. If human resource managers are strategic contributors to the enterprise, they will participate in the decision-making before the top management makes the final decision. For example, in an enterprise with 1000 employees, when planning to merge other companies or reorganize enterprises, it may take a week to decide whether the corporate culture of the merged or reorganized enterprises is compatible, and whether excellent employees will leave their own enterprises due to cultural conflicts. So in some cases, mergers and acquisitions that are feasible from the perspective of funds are actually not feasible.
The contribution of human resource management to enterprise performance is also reflected in the financial situation of enterprises. In the past, human resource management was based on activities, mainly considering what to do, without considering the cost and profit of human resource development. In the past, human resource managers proved their existence by counting the activities and tasks completed by employees. Now, as a strategic contributor to the enterprise, the human resource manager must regard what he produces as the achievement of the enterprise. Especially as a return on investment in human resources. The human resource management realized by high-performance work is related to the good financial situation of the enterprise. Other activities of human resource management, such as training, also help to improve the performance of enterprises. Because training will inevitably improve the ability of employees, and the improvement of employees' ability will inevitably bring greater value to the achievements of enterprises.
2. Expanding human capital
Human capital is the overall value of human resources in an enterprise, which consists of people in the enterprise and their ability to work. The strategic goal of human resource management is to continuously improve the human capital of enterprises.
One of the main tasks of expanding human capital is to use the talents of all employees inside and outside the enterprise to attract outstanding talents. As a strategic contributor of an enterprise, human resource management must ensure the supply of personnel needed for each job position of the enterprise and ensure that these personnel have the skills needed for the position. For human capital, if there is a shortage of skills in enterprises, unless investment is increased, this shortage will endanger the competitiveness of enterprises. Through internal human resource management activities, enterprises try their best to retain employees, provide them with more growth opportunities and design their careers.
As a part of enterprise's strategic role, human resource management should actively improve the ability of enterprise's human resources, especially the ability needed for enterprise's future development; Through the training and development of human resources, the gap between the skills needed by enterprises and the existing skills of employees can be shortened or even eliminated. Its main activity is to provide guidance for employees within the enterprise and design an upward career for employees; Through training and development, employees can gain the ability and knowledge to further develop in the enterprise. In addition, by establishing a performance evaluation system and salary system consistent with the strategic objectives of enterprises, the competitiveness of human capital can be enhanced and the purpose of expanding human capital can be achieved.
3. Ensure an effective cost system
As a contributor to enterprise strategy, human resource management must provide human resource services and activities in a legal and effective way. However, according to the investigation of human resource management in some enterprises, the allocation of human resource management input is incompatible with its actual value contribution to enterprises (as shown in figure 1). A lot of time and cost of human resource management are concentrated on administrative management. However, the greatest value of human resource management lies in strategic management, and the value of administrative activities to enterprises is limited.