For a normal human being like you and me HR would sound as the primary purpose is to handle policy and payroll that is not the case for company leaders who understand the strategic value that HR contributes. It is crucial to set up a framework that ensures HR functions are executed consistently, effectively and efficiently. At a fundamental level an HR’s responsibility includes functions like compensation, recruitment, development and management. HR and company’s vision can go long way together and this is what one needs to understand; HR can provide strategic guidance required to align objectives with personnel. HR performance indicators shifted from manpower and man-hours supplied to brainpower and brain hours delivered. HR is also involved in the replacement, termination and retirement process of unusable people assets, much like the handling of depreciated equipment. In short, most HR systems exist only for replenishment and maintenance of a resource called people. Strategic HR managers do not wait for instructions, requisition or complaints It is preventive rather than corrective or punitive. It is developmental in orientation.
Strategic HR is output driven rather than input oriented. Strategic HR personnel are concerned with these results as much as the operating departments it serves. In spite of the fact that output results are more difficult to measure than input deployed, strategic HR aims to find ways and means to directly and indirectly measure these more accurate metrics of its success and effectiveness. HR is no longer a backroom or support function. It is in the forefront of corporate strategy, much like sales and marketing. It provides and determines competitiveness to an ever increasing degree. All other things being equal – financial, physical, and product assets – people will make the difference between two competing companies. Strategic HR can make this difference happen.
HR & top management work together to formulate the company's overall business strategy; that strategy then provides the framework within which HR activities such as recruiting & appraising must be crafted. If it is done successfully, it should result out in the employee competencies & behavior that in turn should help the business implement its strategies & realize its goals. In order to be successful the employees should be developed in such a manner that they can be the competitive advantage, & for this the human resource management must be an equal partner in both the formulation & the implementation of the corporate & competitive strategies.