HRM is a separate approach to employment management, according to Storey (1995), that tries to gain competitive advantage by the strategic deployment of a highly devoted and capable staff, utilising an integrated array of cultural, structural, and people strategies.
This is a lengthy and detailed definition. Human Resource Management, according to the literature, entails a variety of strategies. These are some of them:
- Hiring, promoting, and rewarding staff are examples of personnel strategies.
- Techniques of structure, such as organizational design; and
- Building and maintaining high-performance work cultures are examples of cultural pratices.
The ultimate goal, according to Storey, is to gain a competitive advantage. What sets a company apart from its competitors is its competitive edge. The definition's second portion is about "strategic deployment."
HR, according to Ulrich, needed to become more strategic and value-added. In order to create value, HR needed to become more aligned with the business strategy.
This urge to action has resulted in strategic HRM. Its goal is to connect HRM's objective with that of the company. As a result, strategic HRM focuses on attaining company goals through efficient and smart Human Resource Management.
The concept of strategic HRM appears to be a requirement in light of global corporate contexts and situations. Human resource management plans its strategy for carrying out various HR responsibilities so that it can contribute the most to the achievement of the organization's goals as outlined in the corporate strategy. The current state of the business necessitates that Strategic HRM policies and pratices have a long-term impact on employee behavior, level of commitment to the job, and performance.
The link between a company's human resources and its plans, objectives, and goals is known as strategic human resource management. Strategic human resource management's objective is to:
- Increase your flexibility, innovation, and competitiveness.
- Create a culture that is appropriate for the organization's goals.
- Boost your company's performance.
Human resources (HR) must play a critical role as a strategic partner in the creation and implementation of corporate policies in order for strategic human resource management to be effective. Strategic HR can be displayed in a variety of ways, including hiring, training, and rewarding staff.
Human resources can have a direct impact on a company's growth if it is used strategically. To satisfy the needs of the company's long-term plans, HR personnel must take a strategic approach to developing and keeping employees.
HR concerns can be a challenging hurdle for many businesses to overcome; there are numerous components that can confuse business owners and lead to inefficient decisions that slow down operations for both their staff and their company. HR departments that conduct strategic human resource management do not operate in a vacuum; they collaborate with other departments within an organization to understand their goals and then develop strategies that are aligned with their goals as well as the corporation's. As a result, a human resource department's goals reflect and complement the organization's overall objectives.
Rather than being viewed as a requirement for legal compliance or pay, strategic HRM is viewed as a partner in corporate success. Strategic HRM makes use of the human resources department's talent and potential to make other departments stronger and more effective.
In a turbulent environment, strategic HRM could manage employee recruitment, development, and motivation, as well as increase employee commitment, job participation, individual performance, organizational performance as a whole, business effectiveness, and market reputation. Due to the predicted contribution provided by proper human resource use, the business strategy goal was readily attained.
strategy goal was readily attained.
- Strategic human resource management adopts an integrated strategy to human resource development, taking into account the short, medium, and long term. Strategic human resource management, in this context, can be defined as the process of formulating, developing, and implementing appropriate HR programmes and activities, as well as certain policies and pratices, and improving HR systems while taking into account organizational strategies and goals or objectives. The HR strategy's main goal or objective is to create and nurture a dedicated, capable staff.
- Strategic human resource management addresses the implications of the company's business strategy for all HR systems and translates the HR system's role in accomplishing the company's goals and objectives. In all organizations, specific approaches, methods, actions, and programmes may differ. However, all HR systems, programmes, and policies must be incorporated into a larger framework in order to achieve an organization's goals. In strategic human resource management, 'integration' is critical.
- The core team develops organizational strategy, and HR personnel/managers are typically members of the team. As a result, they have a say in the organization's strategy. They also indicate the structure, methods, processes, and talents, among other things, that are required to properly conduct HR tasks.
- HR executives and managers are expected to take on greater strategic planning responsibilities, necessitating the acquisition of new skills. They must have a thorough awareness of their organizations' principles, policies, and other policies. HR managers/executives play a critical role in strategy formulation and execution.
SHRM Features:
- One-Stop Solution:
- When companies restructure their management styles and make changes to their business vision, goals, and targets, demand that their employees be fully accountable for the results, change their corporate culture to reward top performers, or propose a dramatic shift and change in their structure, SHRM is seen as a one-stop shop for transforming every company into an HPO through programmes that win the hearts and minds of employees.
- Managerial Tool:
- SHRM is a tool that improves the effectiveness and competitiveness of an organization. It uses creativity and innovation to change the way HR works. One method to SHRM is E-HRM. It elevates the traditional HR organization to the next level of success. It places HR in the context of the business, identifies new development prospects, implements cultural change, and aligns the employee's vision with the company's.
- Nature is proactive:
- SHRM entails treating an organization's personnel in a proactive manner. It encompasses all HR processes as well as working collaboratively with employees. It increases employee retention, enhances job quality, and maximises the mutual benefit of employment for both the business and the employee. SHRM teams work 24 hours a day, 7 days a week to ensure that everything is in order and that everyone in the company is pleased.
- The Human Potential is Unlocked:
- SHRM focuses on combining human resource strategy with business strategy and managing personnel to maximise performance to unlock human potential. It recognises human resources' strategic importance and influence. In light of the issues of managing talent globally and locally, best pratices for implementing performance management, the impact of social media, the changing meaning of work, the impact of Gen Y on the workplace, and many other modern challenges, SHRM is becoming increasingly important.
- Wide Scope:
- SHRM's scope is much broader than HRM, which primarily deals with every aspect of a business that affects employees, such as manpower planning, recruitment and selection, induction, training and development, performance management and appraisal, promotion and removal, employee retention, Compensation management, safety management, grievance redressal, union management, negotiation, and personnel administration.
- Proactive Approach:
- SHRM sprang to prominence as a result of its proactive approach to human resource management, which involves thinking forward and preparing methods for a company to better meet the requirements of its employees, as well as for employees to better meet the needs of the organization. Every HR process gets revolutionized as a result of this. If HR pratices are the bones of an organization, SHRM is the lifeblood that allows HR to function successfully and in accordance with stakeholder expectations. Companies struggle to develop a positive work environment and cultivate a culture conducive to increased productivity. SHRM holds the key to overcoming these obstacles.
- Automation:
- E-HRM or HR technology make it easier to adopt SHRM in any organization, regardless of its size or type. Improved interviewing skills, a solid training and mentorship programme, coaching, and regular assessments are just a few of SHRM's priority areas. Investing in the training and development of people can help a business provide more consistent results.
- Outcome:
- SHRM enhances employee retention while also lowering the cost of recruiting and training new personnel. It focuses on specialised on-site training and one-on-one assessment and coaching sessions to assist employees achieve peak performance rates.
