Introduction In the context of globalization, Human Resource Management (HRM) plays an important role in dynamic, complex, uncertain economy

environment than ever before. SHRM that focusing on the linking of all HR activities with the organizations strategic objectives (Raymond, 2010) will become a critical issue to business success. Globalization with international competitive threats due to a large number of foreign competitors entering the domestic market (D'Aveni, 1994; Hafsi, 2002) will cause three main challenges that have great impacts on companies relating to SHRM. These are profitability, work-life conflict and increasing competitiveness pressure. Accordingly, a fit SHRM can help an organization to build significant bottom line, attract labor with the conditions insuring standard work-life balance and enhance competitive advantages. I. Strategic human resource management issues HRM concentrates on the employer employee relationship to help organizations to archive their business goals or improve their performance (Raymond, 2010). We recognize that HRM is a part of management category which means HRM consists of planning, organizing, leading and control human resource. HRM is also considered as a major discipline that affect customers, business results and ultimately shareholder value and therefore this is a great contributor to business success (Gubman, 1995). Strategic Human Resource Management (SHRM) is defined as follows: The process of linking the human resource function with the strategic objectives of the organization in order to improve performance (John et al., 2003; Raymond, 2010) HRM activities are implemented following the reasonable SHRM of the organization will guarantee that employees contribute to archive its business targets (Raymond, 2010; Baird & Meshoulam, 1988; Delery & Doty, 1996; Huselid, et al., 1997; Jackson & Schuler, 1995). There are 13 activities including: (1) Job analysis defines a job in terms of specific tasks and

responsibilities and identifies core skill and essential criteria to perform it successfully (2) Human resource planning is the process by which an organization attempts to ensure that it has right number of qualified people in the right jobs at the right time (3) Recruitment (4) Selection (5) Performance appraisal accompanied with the plan for performance improvement (6) Human resource development activities focus on training employees for effective performance (7) Career planning and development (8) Employee motivation contribute to improve employees productivity (9) Remuneration (10) Benefits (11) Industrial relations (IR) deals with employee attitudes and employee organization relationship (12) Health and safety program (13) Diversity management (Raymond, 2010). II. SHRM as response to challenge of profitability, work-life balance and globalization 1. The challenge of profitability, work-life balance and increased global competitions Globalization which means, in short, developing market globally is a major trend of world economy in 21st century. Marquardt (1998) suggested 11 factors that create the global marketplace and global organizations including: (1) Global technology and telecommunications (enhance by fiber-optics) (2) Satellites and computer technology (3) Competitiveness of global corporations (4) Converging of global lifestyles and values, accelerated by global languages (5) Emergence of global market drivers (6) Lowering of cost doing business globally (7) Globalization of financial markets, resources and services (8) Emergence of the knowledge economy and era (9) Workforce mobility (10) Privatization and globalization of government services (11) Emergence of open and unrestricted (free) trade. It is apparently that globalization increases market potential, trade and investment potential and resource accessibility (i.e. the free flow of human and financial capital) of firms especially in the developed countries of EU, NAFTA, ASEAN, etc (Raymond, 2010; Contractor & Lorange, 1988; Fawcett et al., 1993; Jones, 2002; Levitt, 1983). There are also a number of external influences accompanied with globalization to firms such as multicultural workforce, foreign government policies and

economic situations, cross culture issue, increased global competitors and so on (Raymond, 2010; Marquardt, 1998; Stening et al., 1997; D'Aveni, 1994; Hafsi, 2002). Research suggests that companies which lose their competitive advantages in globalization context often consider SHRM issues as peripheral (Welch et al., 1997). As a result, HRM strategies need to developed as an essential part of an organizations overall strategy (Debrah, 1994; Briggs et al., 1999; Grundy, 1998; Poole et al., 1996) to archive competitive edge. Along with gaining competency pressure is the demand of reducing cost and reaching profitability for cost advantage of firms. At any time, profitability is always believed to be a measure of business success (Littleton, 1928; Osmond; David, 2011). A profitable company can spend a fraction of its profits on reinvesting in another segment or grow up its current business. It also can improve the livelihood of its shareholders, employees and thus encourage them to devote their time and creativity to get more profit (Osmond; Abowd, 1990; Gerhart, Milkovich, 1990). This symbiotic relationship allows the business to generate more profits from business operations and pay a fraction of these profits to employees based on their performance said Osmond. Consistent with this some researches show that companies with higher pay-for-performance initiatives retained better long-term financial objectives than did those with lower pay-for-performance initiatives (eg. Leonard, 1990; Abowd, 1990; Gerhart et al., 1990). In contrast, loss can force the company into closing underperforming manufacture, laying off employees, selling assets, the business to a competitor or even bankruptcy (Osmond). To sum up, profitability involves crucially SHRM and HR should be regarded as profit center (Ken, 2010). Under competitive pressure, workforce are more expected to work harder and even overwork but in harsh workplace norms that give employers unexpected results (Fox, 2008). This situation is called the implication of work life conflict that is out of kilter when the pressures from one role (i.e. work or life) make it difficult to comply with the demands of the

other (Greenhaus et al., 1985). The indicators prove that employees who have to suffer stress from work life conflict and decreased perception of control over work or non-work demands will be less productive, less committed to and satisfied with their organization and more likely to be absent and leave the organization (Adams, 1996; Boles & Babin, 1996; Boles, Howard & Donofrio, 2001; Frye & Breaugh, 2004; Netemeyer et al, 1996) which means higher labour turnover. In additional, the costs of hiring and training new personnel, as well as the costs of not having departed employees working toward organisational goals are really expensive (Boles et al, 2001). Ernst & Young estimated that the costs incurred for turnover in client service roles averaged 150% of a departing employees annual salary (Abbott, De Cieri & Iverson, 1996). Therere also the link between the provision of flexible work options <HR policies and activities such as child care, telecommuting, maternity and parental leave, etc> and reduction turnover (Capelli, 2000; Nord et al, 2002). All these things point out work-life balance becomes HR policies and activities or a SHRM issue and affects directly to business success. In summary, according to these theoretical points mentioned above we can say that SHRM plays a crucially important role for firms to deal with work-life balance, profitability and increased global competitions. But the question is that how SHRM can help companies to overcome these challenges and achieve their business objectives. 2. The role of strategic human resource management Basing on theoretical SHRM presented, merging business and HRM strategies is a critical source of competitiveness for organizations (Ulrich, 1992; Galpin et al., 1997). Companies can obtain achievements by making choices about HR activities that are compatible and support the corporate strategy (Shuler et al., 1987; Pleffer, 1998). An executive survey of Professor David Ulrich of the University of Michigan, a leading expert on HR competency models, shows that competitive pressure (i.e. seeking for sales, talent and profits) in a fast changing business world

forces 60% of the executives to want the HR department to be interdependent with others departments to increase the companys core competencies and competitive advantages (cf. Ken, 2010). HR managers, in turn, have a responsibility to ensure that SHRM is totally fit in organizations strategies (Raymond, 2010). We can conclude some major points relating to HR solution for business success in the globalization context that are (1) view SHRM as integral part of an organizations strategy and intense implementing HR activities of SHRM (2) matching it with business strategy of an organization (3) the requirements and role of HR manager in insuring fit implementation of SHRM. As we mentioned before there is a variety of HR activities representing the core HRM. Research of Chang and Chen (2002) pointed out that HR activities such as training and development, human resource planning and performance appraisal had a critical impact on employee productivity. Top firms such as BHP Billiton, Coca-Cola, Fosters, General Electric, Johnson & Johnson, Macquaire Bank, Microsoft and Stockland maximize HR activities: focusing on selecting, developing and rewarding top talent; encouraging open communication, teamwork and collaboration; and refusing to tolerate poor performance or compromise their long-term objectives for short-term gains (Raymond, 2010; McNamara, 1999; Macquarie, 2003; Spreier, 2003). Guest (2002) found that job design, employee participation and open communication, equal opportunities, family-friendly practices and anti-harassment practices are with higher work and life satisfaction. In the intensely competitive global market, companies which want to gain competitive advantages will mainly follow three major business strategies such as: (1) cost reduction to gain price advantage (2) differentiation that is tailoring a product or service to meet the unique needs of a particular market (3) quality-enhancing to maintain customers. Firms attempting to compete on price will emphasize the need for significant cost reduction in any aspect of an organizations functions (including HRM) (Takeuchi, 2009). Minimizing

overhead demand forces companies pursue retrenchment strategy that may consist of a reduction in the number of employees and/or in wage levels, enhancing use of temporary labour; maximize efficiency by using narrowly-designed jobs, close monitoring and a minimal level of training and development (Takeuchi, 2009; Chow et al. 2009). Innovative business strategy must match growth strategy in HRM which tend to depend heavily on employee skills and commitment as key components in the value creation process through careful recruitment, selection, higher performance-based compensation and remuneration, etc (Mark et al., 1996, p.836; Sanz-Valle et al., 1999). For example, the study of 194 Singaporean firms, 100 best companies to work for in the United States, Fortune 1000 companies, Taiwan and Korea firms found that companies with higher employee compensation will have higher employee commitment and higher financial success (Khatri, 2000; Robert et al., 1993; Lawler et al., 1995; Bae et al., 2000; Huang, 2000). Companies should focus on product quality regarding stability strategy in HRM. In this case, overall HRM activities including recruitment and staffing, performance appraisal, and training and development should be standardized to a large extent so that employees can be developed with the skills necessary to produce high quality products or services satisfying customer demands (Schular, Jackson, 1987). A company can also combine strategies to made a particular strategy that is best fit for the organization to achieve easily business objectives but have to ensure to adopt a particular SHRM matching with organizations strategy. Regarding the role of HR managers, there are four main roles for the HR manager can be identified: (1) strategic partner (2) administrative expert (3) employee champion (4) change agent (Raymond, 2010). Ulrich (1997) said they play a strategic partner role when they have the ability to translate business strategy into action. These HR managers must ask, Where are we now? Where we

want to be? How are we going to get there? What do we do when we get there? to contribute to business decisions (Raymond, 2010). Therefore, HR managers must develop business acumen, a customer orientation and an awareness of the competition to be able to link business strategy to HR policies and practices. There is evidence to indicate that there is a growing awareness of the need for HR managers to become actively involved at the strategic level and recognition that organizations that have a CEO who recognizes the significance of HRM have a competitive advantage (Raymond, 2010; Fisher et al., 1999; Way, 2000; Bartlett et al.). A requirement of HR managers is becoming administrative experts that is able to: reengineer HR activities through the use of technology, rethinking and redesigning work processes; see HR as creating value; and measure HR results in terms of efficiency (cost) and effectiveness (quality) (Ulrich, 1997; Way, 2000; Barlett et al., 2002). The HR professional must represent to employees voice in management decision by being fair and principled, by assuring employees that their concerns are being heard and by helping employees to find new resources that enable them to perform their jobs successfully (for example, learn how to set priorities, eliminate non-value-added work, clarify goals, simplify complex processes, become involved in decision making, increase commitment, share in economic gains and so on) (Ulrich, 1997; Yeung et al., 1994). These activities will help employees to contribute more fully because they will have the competence to do a good job and the commitment to do right (Ulrich, 1997). The HR manager needs to act as a catalyst for change within the organization by leading change in the HR function and by developing problem-solving communication and influence skills (Raymond, 2010). Yeung et al. (1994) also expressed It <HR function> has to be transformed to deal creatively and pragmatically with emerging challenges. By accomplishing new roles and acquiring new competencies, the HR function will become more critical and strategic than ever before.

Each companies can make a particular list of core business skill needed for HR manager that can help them to perform SHRM flawlessly and therefore contributes efficiently to business success. Conclusion In conclusion, strategic human resource management today becomes more important to business success than ever before especially when companies have to deal with the challenges coming from profitability pressure, work-life conflict and increased global competition. Three main factors that we have to notice for high performance companies and overcoming challenges are that (1) respecting and strong implementing HR activities following adopted SHRM (2) Matching SHRM with business strategy (3) focusing on selecting HR manager and promoting their role into organization performance. There is the fact that human capital is always the key element to advance business plan and organizations have to consider and adopt SHRM fitting with business strategy in order to obtain organizations business objectives such as growth business strategy should be combined with differentiation/innovation strategy in HRM, retrenchment business strategy supported by cost reduction strategy in HRM, stability business strategy with quality-enhancing strategy in HRM. Companies also can combine all these business strategy to attain their broad business targets and therefore, SHRM with its important role also is adjusted flexibly to meet their goals that are gaining profitable, competitive advantages with assuring work-life balance to retain employees in the tense and brutally competitive market.

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