What is Strategic Human Resource Management?

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Strategic Human Resource Management is the approach of human resources practices addressing challenges of organizations and supporting to result a proper contribution for long term goals. According to Armstrong, SHRM defines intentions of an organization and develops structural plans to achieve those requirements via the deployment of a highly capable and committed workforce utilizing personal, cultural, and structural techniques (Armstrong, 2006).

Main aims of strategic human resource management

  • Encouraging innovation, flexibility, and competitive benefits.
  • Prospering a fit for motive organizational culture.
  • Enhancing oversight performance of organization.

Strategic Human Resource Management developed well by rising in popularity in early 2000s. This concept was promoted by Dave Ulrich’s challenge for profession of HR. In consonance with Ulrich, HR had to be more value adding while being more strategic to be a trendy fit along with business strategy to become more valuable.

In accordance with Weller,  there is a universal framework which is applicable to the SHRM discipline which is a bond between it and overall strategy of the business or the organization. This includes both leadership and Human resources as a combination with Business and strategic HRM (Weller, 2017 ).

 

      Image 01 : Framework of SHRM discipline towards organizational outcomes (Weller, 2017 ).


Human resources play a major role as a partner in strategies during the implementation of organizational standards and policies. Few activities which demonstrate SHRM are Recruitment, training programs and Rewarding systems.

There’s no single HRM strategy that will deliver success in all cases. Organizations must define their own unique strategy according to their specific context, culture, and objectives. People professionals are instrumental in applying their expertise to understanding organizational circumstances and designing human capital value chains that reflect stakeholder demands.

SHRM is founded on few major pillars ( Bhatnagar & Sharma, 2004), which include:

1.       1. Human Capital - SHRM recognizes that human capital is not just a resource but an organization's assets that provide a competitive edge.

2.       2. Planning - With proper planning, changes are achievable so long as they align with the needs and objectives of the organization

3.      3. Business competition - The main aim of SHRM is to focus on ways that a firm can take an edge over its business competitors.

SHRM Models

Developing a strategic HR model is important to align the strategies of the organization with the performance of human resources. Successful alignment can result in uplifted productivity and innovation, as well as improvements in job performance and similarly job satisfaction. Models strive to reduce  job turnover, which in turn reduces business costs related to orientations and training. Below diagram is a representation of a SHRM model by Society for Human Resource Management(2016).

 

Image 02 : A model of Strategic Human Resource Management (Management, 2016)

 SHRM aims to align the focus of HRM with the focus of the business. As such, strategic HRM is mainly about achieving objectives of organization through smarter Human Resource Management. In order to achieve these goals, there are few steps to be followed as presented by (Vulpen, 2022).

Steps to Make Impact to the organization using Strategic Human Resource Management

  •       Creating a Human Resource strategic plan that follows the business
  •        Aligning HR activities
  •       More emphasis on data
  •       Don’t forget HR’s other responsibilities
  •       Taking an outside-in approach

 

Image 03 : Roles of SHRM (Sampras, 2020)

 

SHRM is consisted with a number of important functions and roles. The above image depicts some of different roles of strategic human resource management which impact the organizational growth and development.

There’s a lot more to Strategic Human Resource Management than meets the eye. Not only should HR align its practices with the business strategy, to be truly strategic, HR needs to understand where the strategy comes from and connect with the various stakeholders that strategy is made for (Armstrong, 2006). When HR succeeds in doing this it will be able to add tremendous value to the organization.


 

 References

Bhatnagar, J. & Sharma, A., 2004. The Four Pillars of the Proposed Strategic HRM Dimensions Model. Indian Journal of Industrial Relations, Volume 40, pp. 95-113.

Armstrong, M., 2006. THE FRAMEWORK OF STRATEGIC HUMAN RESOURCE MANAGEMENT. In: STRATEGIC HUMAN RESOURCE MANAGEMEMTA GUIDE TO ACTION. Great Britain: s.n., pp. 29-37.

Management, S. f. H. r., 2016. The SHRM Competency Model, Alexandria, Virginia: s.n.

Sampras, A., 2020. HRMExam-Strategic Human Resource Management (SHRM) Definition, Importance, Example, Elements & Overview. [Online]
Available at: https://www.hrmexam.com/2020/01/13/strategic-human-resource-management-shrm-definition-importance-example-elements-overview/
[Accessed 10 November 2022].

Vulpen, E. v., 2022. Strategic Human Resource Management: The Basics. Academy to Innovate HR.

Weller, J., 2017 . Welcome to the HR Revolution: Strategic Human Resources Management. Smartsheet.

 

 


Comments

  1. Meshika DiddeniyaNovember 12, 2022 at 8:15 PM

    What is your opinion about the ability to contribute to the development of an organization through strategic management?

    ReplyDelete
    Replies
    1. Dinusha WeerasingheNovember 12, 2022 at 8:48 PM

      Dear Meshika Diddeniya,
      According to my opinion, Strategic HR management provides overall direction by developing plans and principles designed to achieve goals and then allocating resources to implement those plans. Ultimately, strategic management is for organizations to obtain a competitive grip over their competitors.

      Delete
  2. Nandun NarayanaNovember 12, 2022 at 8:34 PM

    Well explained and easily understandable article in SHRM. 100% agreed with HRM is mainly about achieving objectives of organization through smarter Human Resource Management.

    ReplyDelete
    Replies
    1. Dinusha WeerasingheNovember 12, 2022 at 8:50 PM

      Dear Nadun Narayana,
      Thank you for your feedback. Glad you gained an understanding on SHRM!

      Delete
  3. Sandunika WeerasingheNovember 13, 2022 at 6:39 AM

    A very useful article on SHRM. Looking forward to read more insightful articles like this!

    ReplyDelete
  4. Udara DilshanNovember 13, 2022 at 9:21 AM

    Taking a strategies approach to human resources management can positively impact the business.very useful article.

    ReplyDelete
    Replies
    1. Dinusha WeerasingheNovember 29, 2022 at 10:32 AM

      Thank you! Yes indeed it is much important to adhere to strategic management in order to maximize the organizational performance by overcoming obstacles at work place

      Delete
  5. ArunaNovember 28, 2022 at 9:59 PM

    The concept that HR must comprehend the strategy's origins and interact with the many stakeholders is an important one that you have covered.
    I hope you'll discuss in future articles how strategic HRM may help companies compete globally.

    ReplyDelete
    Replies
    1. Dinusha WeerasingheNovember 29, 2022 at 10:34 AM

      Thank you for your feedback. And of course, the global aspect of strategic HRM is an important aspect and will be included in depth on upcoming articles related to the organizational performance and how SHRM is at a global context.

      Delete
  6. wimalNovember 29, 2022 at 5:02 PM

    Very useful bogs about SHRM.you have planned very well this article how to develop organization performance with SHRM

    ReplyDelete
  7. Asfara BanuNovember 30, 2022 at 7:46 PM

    A very comprehensive article on SHRM and its importance.

    ReplyDelete
  8. Sanjana KarunarathnaDecember 2, 2022 at 5:48 AM

    HR managers need to gain a deeper understanding of SHRM in order to be an active partner
    in creating company policies and implementing them. Strategic HR management can be integrated into various functions including hiring, training, and rewarding the workforce for their performance. well explained article.

    ReplyDelete
    Replies
    1. Dinusha WeerasingheDecember 2, 2022 at 12:02 PM

      Exactly, It is very important that managers and leaders possessing a proper awareness about SHRM practices to develop an organization

      Delete
  9. Manoj HewawasamDecember 2, 2022 at 5:58 AM

    Focuses on enhancing the strategic capabilities of the company. High Commitment Management: Establishing better commitment between managers and their employees are valuable strategies of SHRM. Keep it up the good work.

    ReplyDelete
  10. MadushaDecember 2, 2022 at 9:25 AM

    strategic HRM is primarily concerned with accomplishing organizational goals through more intelligent Human Resource Management. How this helps in enhancing organizational performance?

    ReplyDelete
    Replies
    1. Dinusha WeerasingheDecember 2, 2022 at 12:03 PM

      Strategic HRM is the process of linking the human resource function with the organization’s strategic objectives to improve performance. Attracting and keeping talented and skilled employees is one of the most important factor in keeping up with globalizing cooperate world

      Delete
  11. shamini jayasingheDecember 3, 2022 at 5:10 AM

    The objectives and goals of an organization are crucial. Without the aid of strategic human resources, these objectives cannot be communicated. The personnel hired for such aims won't be able to work well in the business operation if the goals are not adequately translated and communicated. Therefore, the objectives might not be accomplished in the allotted time. Strategic HR is crucial in that situation.

    ReplyDelete

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