Strategic Hrm

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Strategic Human Resource Management

Table of Contents


Human Resource Management3

The changing purpose of HRM4

Strategic Human Resource Management4

The Activities of Strategic Human Resources Management5

The 7S of HRM5

Benefits of a Strategic Approach to HR8

Integration of Strategic Human Resource Management into Planning and Decision Making Process9

Strategic Human Resource Management and Business Strategy10



Strategic Human Resource Management


Strategic human resource management (SHRM) is a strategic model to handle the workforce of a company. As compared to the technical HRM, Strategic HRM is believed to be somewhat a newly developed model, regardless of its constant improvement over the last twenty years. However, still there is no agreement on an precise explanation of Strategic HRM between researchers, liberal understanding has been achieved on its essential roles, which includes planning and enforcing a set of uniform internal guidelines and ways that guarantee the workforce of the organisation leads to the accomplishment of its organisational goals (Bowen and Ostroff 2004, pp: 203-221). The conventional HRM operation, or technical HRM actions, deals with a broad scope of work practices, including recruitment, selection, performance evaluation, training and improvement and the management of remuneration and reimbursement. By combining the HRM function with business strategy, SHRM reflects a more flexible arrangement and utilisation of human resources to achieve the organisational goals, and accordingly helps organisations gain a competitive advantage (Bhattacharya and Wright 2005, pp: 929-948).

Human Resource Management

The HRM which proposes to develop the dynamic input of human capital of a firm and at the same time attempts to accomplish other social and personal aims of workers have gone through drastic changes in the last few years (Huselid, Jackson and Schuler 2007, pp: 171-188).

Human Resource Management is related to the “individuals”. Considering the fact that Human Resource Management helps in attracting, training, motivating and maintaining the prominent workers because it gives both efficiency and effectiveness to the operations of the company, it is now being applied strategically. This strategic use of HRM is called Strategic human resource management (SHRM) (Huselid, Jackson and Schuler 2007, pp: 171-188).

The changing purpose of HRM

The purpose of HRM is transforming and transforming very fast. To help organisations accomplish their objectives, human resource management has undergone several stages i.e. from employing and terminating to establishing affiliation. From establishing affiliation to lawmaking purpose and now its purpose is transforming from guardian and protector to strategic co-worker and as a transformation mediator (Bhattacharya and Wright 2005, pp: 929-948).

Strategic Human Resource Management

Being strategic - means to coordinate tasks and HR initiatives with organisational objectives and strategy. The most important task of HR is to contribute to the organisation and its goals by increasing staff productivity. Role assigned to the traditional HR-department includes the pursuit of organisational objectives and operational issues (Bowen and Ostroff 2004, pp: 203-221). The strategic role requires that HR is proactive and focused on the future, contributing to the formation of business strategy of the organisation and the creation of plans and programs for workforce development in line with this strategy (Bjorkman and Fan 2002, pp: ...
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