Strategic HRM

Strategic HRM

Strategic HRM

  • Strategic human resource management may be described as the linking of human resource strategy with strategic goals and objectives in order to improve business performance and foster an organizational culture of innovation and flexibility.
  • Strategic management deals with both ends and means. As ‘end’, it gives a vision of how things are likely to shape up. As ‘mean’, it shows the path of the vision’s realization in practice.
  • Strategic management is therefore, visionary management which is concerned with creating and conceptualizing ideas about the future of the organization. It is also empirical management, in that it decides how in practice it is going to get there, bearing in mind that organizations function in an environment of change and adaptation.

 

SHRM is the pattern of planned human resources deployments and activities intended to enable an organization to achieve its goals.

 

Objectives

  1. Identifying and analyzing external opportunities and threats that may be crucial to the company’s success
  2. Provides a clear business strategy and vision for the future
  3. To recruit, retain and motivate people
  4. To develop and retain of highly competent people
  5. To meet the expectations of the customers effectively

 

Meaning

  • Strategic human resource management is designed to help companies best meet the needs of their employees while promoting company goals. Human resource management deals with any aspects of a business that affects employees, such as hiring and firing, pay, benefits, training, and administration. Human resources may also provide work incentives, safety procedure information, and sick or vacation days.

About strategy

Strategy is basically a “military” term. However, it is not in this sense that it has implications for human resource management.

It was Peter Drucker who pointed out the importance of strategic decisions in 1955 in his book, The Practice of Management, in which he defined strategic decision as “all decisions on business objectives and on the means to reach them”.

  • A strategy is a pattern or a plan that integrates an organisation’s major goals, policies and action sequences in a coherent linear of decisions. A well-formulated strategy helps allocate an organisation’s resources optimally into a unique and viable matrix based on relative internal competencies, shortcomings, anticipated changes in the environment, and contingent moves by intelligent opponents

 

  • A Vision is a statement about what your organization wants to become. It should resonate with all members of the organization and help them feel proud, excited, and part of something much bigger than themselves.

Vision should stretch the organizations capabilities and image of    itself. It gives shape and direction to the organizations future.

  • Mission or purpose is a precise description of what an organization does.
  • Core values

Values are traits or qualities that are considered worthwhile; they represent an individual’s highest priorities and deeply held driving forces.

Scope of SHRM

The range of activities and themes encompassed by SHRM is complex and goes beyond the responsibilities of personnel or HR managers into all aspects of managing people and focuses on ‘management decisions and behaviors used, consciously or unconsciously to control, influence and motivate those who work for the organisation; in other words its human resource’ (Purcell, 2001). Mabey, Solomon and Storey (1998) have studied the subject from four distinct perspectives:

  • The social and economic context of SHRM, including factors in the internal (corporate) and external environment that influence the development and implementation of HR strategies;
  • The co-relation between SHRM and business performance, emphasizing the measurement of performance
  • Management style and the development of new forms of organisation
  • The relationship between SHRM and the development of organizational capability, particularly knowledge management.

 

Aspects of SHRM

 

  • Strategic human resource management (SHRM) includes;
  1. All those activities affecting the behavior of individuals in their efforts to formulate and implement the strategic needs of business.
  2. The pattern of planned human resource deployment and activities intended to enable the organisation to achieve its goals.
  3. That part of the management process that specializes in the management of human capital. It emphasizes that employees are the primary resource for gaining sustainable competitive advantage, that human resource activities need to be integrated with corporate strategy, and that human resource specialists help management meet both efficiency and equity objectives.

 

Features of SHRM

 

Features of strategic human resource management could be inferred as mentioned below:

  • Organizational level – Because strategies involve decisions about key goals, major policies and the allocation of resources, they tend to be formulated at the top;
  • Focus – Strategies are business-driven and focus on ‘organizational effectiveness’; people are seen primarily as resources to be managed towards the achievement of strategic business goals; and
  • Framework – Strategies by their very nature provide a unifying framework that is broad, contingency-based and integrative. They incorporate a full complement of the HR goals and activities designed specifically to fit extant environments and be mutually reinforcing and synergistic.

 

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