Strategic Human Resource Management


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Much of the early or so called traditional HRM literature treated the notion of strategy superficially, rather as a purely operational matter, the results of which cascade down throughout the organisation.

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There was a kind of unsaid division of territory between people-centred values of HR and harder business values where corporate strategies really belonged. HR practitioners felt uncomfortable in the war cabinet like atmosphere where corporate strategies were formulated.

Definition of SHRM Strategic human resource management can be defined as the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation, flexibility and competitive advantage. In an organisation SHRM means accepting and involving the HR function as a strategic partner in the formulation and implementation of the company's strategies through HR activities such as recruiting, selecting, training and rewarding personnel.

How SHRM differs from HRM In the last two decades there has been an increasing awareness that HR functions were like an island unto itself with softer people-centred values far away from the hard world of real business. In order to justify its own existence HR functions had to be seen as more intimately connected with the strategy and day to day running of the business side of the enterprise. Many writers in the late s, started clamoring for a more strategic approach to the management of people than the standard practices of traditional management of people or industrial relations models.

Strategic human resource management focuses on human resource programs with long-term objectives.

Instead of focusing on internal human resource issues, the focus is on addressing and solving problems that effect people management programs in the long run and often globally. Therefore the primary goal of strategic human resources is to increase employee productivity by focusing on business obstacles that occur outside of human resources.

The primary actions of a strategic human resource manager are to identify key HR areas where strategies can be implemented in the long run to improve the overall employee motivation and productivity. Communication between HR and top management of the company is vital as without active participation no cooperation is possible. The first one is the human factor, their performance and competency and the later is the business surplus. An approach of people concern is based on the belief that human resources are uniquely important in sustained business success. An organization gains competitive advantage by using its people effectively, drawing on their expertise and ingenuity to meet clearly defined objectives.

Integration of the business surplus to the human competency and performance required adequate strategies. Here the role of strategy comes into picture.

The way in which people are managed, motivated and deployed, and the availability of skills and knowledge will all shape the business strategy. The strategic orinetation of the business then requires the effective orinetation of human resource to competency and performance excellance.

4 Steps to Strategic Human Resources Planning

Benefits of SHRM Identifying and analyzing external opportunities and threats that may be crucial to the company's success. Provides a clear business strategy and vision for the future. To supply competitive intelligence that may be useful in the strategic planning process. To recruit, retain and motivate people. To develop and retain of highly competent people. To ensure that people development issues are addressed systematically. To supply information regarding the company's internal strengths and weaknesses.

To meet the expectations of the customers effectively. To ensure high productivity. Other major barriers are summarized as follows: Inducing the vision and mission of the change effort. High resistance due to lack of cooperation from the bottom line. Interdepartmental conflict. The commitment of the entire senior management team.

Plans that integrate internal resource with external requirements. Limited time, money and the resources.


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The statusquo approach of employees. The human resources department should forecast the staffing needs of the business in the future while also recruiting, hiring, and keeping the best talent in the organization. The most successful businesses in the world pride themselves in hiring the best talent in the world.

In order to do this effectively, the HRM department needs to identify the various competencies required for each job, such as the skills, abilities, and knowledge required to perform various tasks effectively.

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This will allow them to draw detailed job descriptions that will ultimately guide them to find the best people for the job. The leadership of the organization is likened to what the head is to a body. It is through leadership that a business succeeds or fails in its endeavors. The HRM department plays a key role in the leadership of the organization because it is tasked with finding the best executives to steer the business in the right direction.

An HRM department that can boast past success in choosing the right executives will generally find it easier to convince the board of its recruits the next time an executive is required. The HRM department plays an important role in helping the business to plan for the future.

Take employees, for example: by conducting regular surveys of the employees to determine employee satisfaction, the HRM department can give important insights to business leaders on what needs to be done in the future to contribute to a happier workplace.

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An organization with well-defined performance metrics is an organization with high potential for success. The HRM department plays a role in this, as well. Through developing well-defined performance metrics, regular performance evaluations, and schemes to reward employees for high performance and creativity in accomplishing their tasks, the HRM department will create a high-performance culture where the interests of the employees are aligned with those of the business, and they are genuinely motivated to do their best. Employees who feel appreciated by their companies and receive recognition for their achievements in the workplace are likely to want to do more.

Strategic Human Resource Management Strategic Human Resource Management
Strategic Human Resource Management Strategic Human Resource Management
Strategic Human Resource Management Strategic Human Resource Management
Strategic Human Resource Management Strategic Human Resource Management
Strategic Human Resource Management Strategic Human Resource Management
Strategic Human Resource Management Strategic Human Resource Management
Strategic Human Resource Management Strategic Human Resource Management
Strategic Human Resource Management Strategic Human Resource Management

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