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For HRM specialists to be valued members of the strategic management group they must be able to offer value added expertise which will contribute to the development and implementation of the firm's strategic policies and programs. If they contribute such expertise and if it is valued by the senior management of a firm, then personnel specialists will be accepted into the strategic decision-making circle. Proving its ability to have a say in corporate strategic planning is the main challenge facing HRM function today. This task requires HRM managers to become specialists in areas that far exceed the limits of personnel management and requires the knowledge of business administration, corporate politics and strategic development. .
Such is the scale and complexity of the human resource element that the firm has to have the right kind of vision, understanding of staffing issues, organized and coordinated programs relevant to the changing objectives of the business. This is where personnel managers as members of a strategic management team can contribute to shaping how the business as a whole interprets and copes with environmental change - where this relates to employees and employee performance. Here the personnel manager must be a business person - able to relate employees to the competitive imperatives and financial demands of the business. One holding this position should be able to conduct continuing "company diagnostics", determining whether changing business circumstances demand efficient personnel improvements, re-engineering organizational procedures or corporate culture, as well as constantly maintaining company's capacity for action in ever-changing environment.
The goal of strategic analysis which is performed as a part of the company's HRM plan is to support and reinforce the department's objectives and programs and identify key challenges. Departmental strategic objectives, direction and critical success factors should be coherent with the company's vision, mission, values, corporate business plan and strategic programs.
