Strategic human resource management (SHRM) aligns business and HR strategies to maximize competitive advantage. SHRM involves identifying internal strengths/weaknesses, external opportunities/threats, and formulating HR strategies to help the company achieve its strategic goals. Traditional HR focuses on transactions while strategic HR acts as a transformational partner in initiating change to improve performance, satisfaction, and shareholder value through effective staffing, retention, selection, investment in human capital, and integrated policies that follow corporate strategy.
Strategic human resource management (SHRM) aligns business and HR strategies to maximize competitive advantage. SHRM involves identifying internal strengths/weaknesses, external opportunities/threats, and formulating HR strategies to help the company achieve its strategic goals. Traditional HR focuses on transactions while strategic HR acts as a transformational partner in initiating change to improve performance, satisfaction, and shareholder value through effective staffing, retention, selection, investment in human capital, and integrated policies that follow corporate strategy.
Strategic human resource management (SHRM) aligns business and HR strategies to maximize competitive advantage. SHRM involves identifying internal strengths/weaknesses, external opportunities/threats, and formulating HR strategies to help the company achieve its strategic goals. Traditional HR focuses on transactions while strategic HR acts as a transformational partner in initiating change to improve performance, satisfaction, and shareholder value through effective staffing, retention, selection, investment in human capital, and integrated policies that follow corporate strategy.
Strategic human resource management (SHRM) aligns business and HR strategies to maximize competitive advantage. SHRM involves identifying internal strengths/weaknesses, external opportunities/threats, and formulating HR strategies to help the company achieve its strategic goals. Traditional HR focuses on transactions while strategic HR acts as a transformational partner in initiating change to improve performance, satisfaction, and shareholder value through effective staffing, retention, selection, investment in human capital, and integrated policies that follow corporate strategy.
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Strategic Human Resource
Management • To deliver superior value and offer unmatched service, every firm requires committed and competent workforce.
• Employees are more productive if
They are loyal and informed Involved in teams which collectively decide Are trusted to take the right decision SHRM is built around three important propositions 1. Human Resources of a firm are a major source of competitive advantage 2. Successful organisational performance depends on a close fit between business and HR strategy 3. Individual HR strategy should cohere by being linked to each other to offer mutual support Strategic Human Resource Management • SHRM is part of strategic planning • Strategic Plan : The Company’s plan for how it will match its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage • Essence is to ask “ Where are we now as a business, where we want to be, and how should we get there” • Then formulates specific strategies (Human resources and other) to take the company from where it is now to where he or she wants it to be
• Strategy : The company’s long term plan for how it
will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage HR’s Role in Strategy Formulation Accepting HR function as strategic partner While formulation the strategic plan HR can play important role in: • Identifying and analysing external threats and opportunities • Offer competitive intelligence • Throw light on company’s internal strengths and weaknesses • SHRM means formulating and executing human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims • E.g. Ford Traditional Vs Strategic HRM Point of distinction Traditional HR Strategic HR Focus Employee Relations Partnership with internal and external customers Role of HR Transactional, change Transformational, change follower and respondent leader and initiator Initiatives Slow , reactive and Fast, proactive and integrated fragmented Time Horizon Short term Short, medium and long (as required) Control Bureaucratic roles, policies, Organic-flexible, whatever in procedures necessary to succeed Job Design Tight Division of labour ; Broad, flexible, , cross training independence , teams specialisation Key investments Capital, Products People, knowledge Accountability Cost centre Investment centre Responsibility of HR Staff specialists Line managers Need and Importance • Changing demand from customers or the market place • New technology and increasing pressure from competitors (Philip Mirvis) • Changes in the basic business environment (Randall Schuler) • High levels of uncertainty about basic business conditions • Rising costs • Rapid technological change • Changing demographics • More limited supplies of highly trained labor • Rapidly changing government legislation and regulations • Increased globalization of industries Strategic Outcomes Strategic HR offers three critical outcomes : • Increased Performance • Enhanced customer and employee satisfaction and • Increased shareholder value These outcomes are accomplished through Effective management of staffing Retention and turnover processes Selection of employees that fit with both the organisational strategy and culture Cost effective utilisation of employees through investment in identified human capital with the potential for higher return Integrated HR policies and programmes that clearly follow from corporate strategy Facilitation of change and adaptation through a flexible, more dynamic organisation and Tighter focus on customer needs, emerging markets and quality
Iles, P., Chuai, X. and Preece, D. (2010) 'Talent Management and HRM in Multinational Companies in Beijing: Definitions, Differences and Drivers', Journal of
Iles, P., Chuai, X. and Preece, D. (2010) 'Talent Management and HRM in Multinational Companies in Beijing: Definitions, Differences and Drivers', Journal of
