Understanding Strategic Human Resource Management(SHRM)
Strategic Human Resource Management (SHRM) is an organization's approach to human resource management that aligns the HR strategy with the organization's overall business strategy.
It involves using HR practices, policies, and programs to create a competitive advantage for the organization, improve organizational performance, and support the achievement of business goals.
A number of professionals describe the SHRM as follows
"The linking of HRM with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility"(Boxall,1996).
"SHRM is fundamentally about ‘systematically linking people with the firm"(Schuler andJackson, 2006).
In essence, strategic HRM is conceptual it is a general notion of how integration or ‘fit’ between HR and business strategies is achieved, the benefits of taking a longer-term view of where HR should be going and how to get there, and how coherent and mutually supporting HR strategies should be developed and implemented. Importantly, it is also about how members of the HR function should adopt a strategic approach on a day-to-day basis. This means that they operate as part of the management team, ensure that HR activities support the achievement of business strategies on a continuous basis, and add value (Armstrong, 2014).
Under 5 key principles of how SHRM differs from Traditional HRM
01. Focus: While traditional HRM primarily focuses on administrative tasks such as payroll, benefits, and compliance with labor laws, SHRM focuses on aligning the HR strategy with the organization's overall business strategy.
02. Timeframe: Traditional HRM tends to be reactive and short-term in its approach, while SHRM takes a proactive and long-term view of human resource management.
03. Employee Relations: Traditional HRM typically emphasizes compliance with policies and procedures, while SHRM emphasizes building positive employee relations and engagement.
04. Talent Management: Traditional HRM is primarily concerned with filling vacancies, while SHRM focuses on attracting, developing, and retaining talent.
05. Performance Management: Traditional HRM tends to focus on individual performance evaluation, while SHRM emphasizes performance management as a strategic process for improving organizational performance(Wright and McMahan, 1992).
(Source: Wright and McMahan Journal of Management)
The composition of the human capital resource pool (Skills, Abilities), the necessary human resource behaviors, and the effectiveness of these choices in light of different business strategies and competitive circumstances are all shown in the above table.
Resource-based SHRM is a management approach that focuses on using human resources to gain a competitive advantage for a company. This approach emphasizes the importance of managing people strategically so that the organization can attract, retain, and develop talent that will help accomplish its strategic goals.
Human resources are regarded as valuable resources in resource-based SHRM, and they must be developed and managed in order to optimize their potential contribution to the organization's success. This means that the HR function is integrated with the overall business strategy, and HR policies and practices are designed to support the organization's goals.
In order to gain a competitive advantage in resource-based SHRM following four criteria must be attributable to the resource.
A. The Resource must add positive value to the firm
B. The resource must be unique or rare among current and potential competitors
C. The resource must be imperfectly imitable
D. The resource cannot be substituted with another resource by the competing firms.
The behavioral approach to strategic human resource management (SHRM) emphasizes the importance of understanding and managing employee behavior in order to accomplish the strategic goals of the company. This approach is based on the assumption that employees' behavior is influenced by a variety of factors, including their individual characteristics, the work environment, and the organization's culture and values.
The behavioral approach to SHRM emphasizes the following key aspects:
I. Motivation: This aspect of the behavioral approach focuses on knowing what motivates employees to perform well and how organizations can foster and sustain high levels of motivation in the workplace. Employee motivation is increased through HR policies and practices such as performance management systems, reward systems, and employee development initiatives.
II. Job Design: The behavioral method also emphasizes the significance of creating jobs that are interesting, challenging, and meaningful to employees. This includes things like task variety, autonomy, feedback, and chances for learning and development.
III. Organizational culture: This element of the behavioral approach emphasizes the impact of organizational culture on employee behavior. HR policies and practices are intended to foster and sustain a culture that supports the strategic goals and values of the company.
IV. Leadership: In addition, the behavioral approach emphasizes the importance of successful leadership in shaping employee behavior. HR policies and practices are intended to develop and support leaders who can inspire and motivate employees to achieve the strategic goals of the company(Wright and McMahan, 1992).
Why is there a greater emphasis on SHRM these days
I. Changing nature of work: The nature of work is quickly changing as a result of technological developments and other factors such as remote work and the gig economy. SHRM can assist organizations in adapting to these changes by creating human resource strategies and practices that support a flexible and agile workforce.
II.Competition: Organizations confront stiff rivalry from both domestic and international players in today's globalized economy. Organizations must create a workforce that is skilled, motivated, and aligned with their strategic goals in order to remain competitive. SHRM can assist organizations in accomplishing this goal by establishing effective HR practices that attract, keep, and develop top talent.
III. Talent shortage: Many companies are struggling to fill crucial roles with skilled workers. SHRM can assist organizations in addressing this talent shortage by creating effective recruitment and retention strategies, as well as training and development programs to help existing employees develop their skills.
Finally, SHRM has grown in importance as a strategy for organizations to manage their human resources strategically and gain a competitive advantage in a rapidly changing business climate.
References
Armstrong, M. and Taylor, S. (2014). Armstrong’s Handbook of Human Resource Management Practice. 13th ed. New York: Kogan Page.
Boxall, P. (1996). The Strategic Hrm Debate and the Resource-Based View of the Firm. Human Resource Management Journal, 6(3), pp.59–75. doi:https://doi.org/10.1111/j.1748-8583.1996.tb00412.x.
Schuler, R.S. and Jackson, S.E. (2006). Human resource management : international perspectives. Mason, Ohio: Thomson South-Western.
Wright, P.M. and McMahan, G.C. (1992). Theoretical Perspectives for Strategic Human Resource Management. Journal of Management, 18(2), pp.295–320. doi:https://doi.org/10.1177/014920639201800205.
Interesting article and I also published my article which is related to SHRM. Go and visit it too friend. Also, this article provides a comprehensive explanation of strategic human resource management (SHRM), including its definition, key principles, and different approaches. It emphasizes that SHRM is a strategic approach to managing human resources, which aligns HR strategy with the organization's overall business strategy to create a competitive advantage, improve organizational performance, and support the achievement of business goals. The text also highlights the importance of human resources as valuable resources in SHRM and outlines the criteria that a resource must meet to gain a competitive advantage. Moreover, the text discusses the behavioral approach to SHRM and the reasons for the increasing emphasis on SHRM in the changing nature of work, competition, and talent shortage. Overall, the text provides a good understanding of the concept of SHRM and its significance in the modern business world.
Hi Hansika , The text you're referring to appears to provide a complete review of Strategic Human Resource Management (SHRM) and its significance in today's business world. As you noted, one important part of SHRM is seeing human resources as valuable resources that can provide a competitive edge to a company. A resource must be rare, valuable, difficult to mimic, and non-substitutable in order to achieve a competitive advantage, which is known as the VRIN criterion.
Jan Urban(2021) Said that “The HRM strategy goal is objectives in HRM and growth and also to specify main management tools require for the success. The HRM goals set trough link company strategic business goals and respond in advance to its medium term HRM necessities direct by both internal and external factors. Consistent of HRM measures and/or policies should be effective in terms of achieving HRM objectives, as well as efficient in terms of their costs and benefits relations". Therefor your blog tallying with his concept.
Yes, Urban emphasizes the need of connecting HR initiatives with the organization's broader business strategy. HR policies and practices can be designed to respond to internal and external circumstances and satisfy medium-term HR requirements by tying HR goals to the company's strategic business goals. Effective HR policies and practices should be consistent and efficient. HR policies and measures should be designed to achieve HR objectives while also being efficient in terms of their costs and benefits. This can help ensure that HR strategies contribute to the success of the organization and provide a positive return on investment.
In a corporate environment that is changing quickly, SHRM has become more significant as a strategy for firms to manage their human resources strategically and obtain a competitive edge. This essay serves as a fantastic example for understanding SHRM in its whole.
Thank you for your feedback! Yes, in today's fast-paced and constantly evolving corporate environment, SHRM has become increasingly important for firms to manage their human resources strategically and gain a competitive advantage. By aligning their HR policies and practices with the organization's overall strategy, HR professionals can help drive performance, innovation, and growth. This essay aims to provide a comprehensive overview of SHRM, including its definition, key concepts, and benefits. It also discusses the importance of aligning HR practices with the organization's overall strategy and highlights the various HR processes that can be incorporated into a GHRM approach. Additionally, the essay touches on the ethical considerations that HR professionals must adhere to, such as treating employees fairly and justly, and the importance of risk management in HRM.
What does mean by Green Human Resource Management (GHRM) Green HRM refers to the development, implementation, and maintenance of a system that seeks to make employees of an organization environmentally friendly. The environmental side of human resources management focuses on turning normal employees into green employees in order to achieve organizational environmental goals and ultimately make a significant contribution to environmental sustainability. These policies, practices, and systems are aimed at making employees more environmentally friendly for the benefit of themselves, society, the natural environment, and the company. Overall, green human resource management is growing in popularity as companies learn about the benefits of sustainable practices. This can help organizations improve their environmental performance while also retaining employees who value sustainability (Opatha, 2013). I n processing employment relations in Green HRM, organizations sh...
Ethics refers to the branch of philosophy concerned with moral principles, values, and conduct. It involves the study of what is right and wrong, good and bad, and how individuals and societies ought to behave. Ethics can be seen as a set of principles or guidelines that help individuals and groups determine the appropriate course of action in various situations. It also involves critical thinking and reflection on moral issues, as well as the ability to apply ethical principles to real-world problems. "Ethics deal with values, with good and bad, with right and wrong. We cannot avoid involvement in ethics for what we do and don't do is always a possible subject of ethical evaluation. Anyone Who thinks about what he or she ought to do is consciously or unconsciously involved in ethics" (Singer, 2011) (Source: https://www.tutorialspoint.com/business_ethics/business_ethics_hrm.htm) The Ethical Dimension of HRM The ethical dimension of human resource management covers thos...
Interesting article and I also published my article which is related to SHRM. Go and visit it too friend. Also, this article provides a comprehensive explanation of strategic human resource management (SHRM), including its definition, key principles, and different approaches. It emphasizes that SHRM is a strategic approach to managing human resources, which aligns HR strategy with the organization's overall business strategy to create a competitive advantage, improve organizational performance, and support the achievement of business goals. The text also highlights the importance of human resources as valuable resources in SHRM and outlines the criteria that a resource must meet to gain a competitive advantage. Moreover, the text discusses the behavioral approach to SHRM and the reasons for the increasing emphasis on SHRM in the changing nature of work, competition, and talent shortage. Overall, the text provides a good understanding of the concept of SHRM and its significance in the modern business world.
ReplyDeleteHi Hansika , The text you're referring to appears to provide a complete review of Strategic Human Resource Management (SHRM) and its significance in today's business world. As you noted, one important part of SHRM is seeing human resources as valuable resources that can provide a competitive edge to a company. A resource must be rare, valuable, difficult to mimic, and non-substitutable in order to achieve a competitive advantage, which is known as the VRIN criterion.
DeleteJan Urban(2021) Said that “The HRM strategy goal is objectives in HRM and growth and also to specify main management tools require for the success. The HRM goals set trough link company strategic business goals and respond in advance to its medium term HRM necessities direct by both internal and external factors. Consistent of HRM measures and/or policies should be effective in terms of achieving HRM objectives, as well as efficient in terms of their costs and benefits relations". Therefor your blog tallying with his concept.
ReplyDeleteYes, Urban emphasizes the need of connecting HR initiatives with the organization's broader business strategy. HR policies and practices can be designed to respond to internal and external circumstances and satisfy medium-term HR requirements by tying HR goals to the company's strategic business goals. Effective HR policies and practices should be consistent and efficient. HR policies and measures should be designed to achieve HR objectives while also being efficient in terms of their costs and benefits. This can help ensure that HR strategies contribute to the success of the organization and provide a positive return on investment.
DeleteIn a corporate environment that is changing quickly, SHRM has become more significant as a strategy for firms to manage their human resources strategically and obtain a competitive edge. This essay serves as a fantastic example for understanding SHRM in its whole.
ReplyDeleteThank you for your feedback! Yes, in today's fast-paced and constantly evolving corporate environment, SHRM has become increasingly important for firms to manage their human resources strategically and gain a competitive advantage. By aligning their HR policies and practices with the organization's overall strategy, HR professionals can help drive performance, innovation, and growth.
DeleteThis essay aims to provide a comprehensive overview of SHRM, including its definition, key concepts, and benefits. It also discusses the importance of aligning HR practices with the organization's overall strategy and highlights the various HR processes that can be incorporated into a GHRM approach.
Additionally, the essay touches on the ethical considerations that HR professionals must adhere to, such as treating employees fairly and justly, and the importance of risk management in HRM.