There is a lot of talk in Human Resources (HR) and management circles today about Strategic Human Resource Management and many expensive books can be seen on bookstore shelves. But what exactly is SHRM (Strategic Human Resource Development), what are its key features, and how does it differ from traditional human resource management?

SHRM or Strategic Human Resource Management is a branch of Human Resource Management or HRM. It is a fairly new field, having emerged from the parent discipline of human resource management. Much of the early or traditional HRM literature treated the notion of strategy superficially, rather as a purely operational issue, the results of which cascade throughout the organization. There was a sort of unspoken division of territory between the people-centric HR values ​​and the harder business values ​​that corporate strategies really belonged to. HR professionals were uncomfortable in the war cabinet atmosphere where corporate strategies were formulated.

Definition of SHRM

Strategic human resource management can be defined as linking human resources with strategic goals and objectives to improve business performance and develop an organizational culture that fosters innovation, flexibility, and competitive advantage. In an organization, SHRM means accepting and involving the HR function as a strategic partner in formulating and implementing company strategies through HR activities such as recruiting, selecting, training, and rewarding staff.

How SHRM differs from HRM

In the last two decades there has been a growing awareness that HR functions were like an island unto themselves with softer people-centric values, far removed from the harsh world of real business. To justify their very existence, HR functions needed to be seen as more intimately connected to the strategy and day-to-day operations of the business side of the business. Many writers in the late 1980s began to call for a more strategic approach to people management than standard traditional people management practices or industrial relations models. Strategic human resource management focuses on human resource programs with long-term goals. Instead of focusing on internal HR issues, the focus is on addressing and solving problems that affect people management programs on a long-term and often global basis. Therefore, the main objective of strategic human resources is to increase employee productivity by focusing on business obstacles that occur outside of human resources. The primary actions of a strategic HR manager are to identify key HR areas where long-term strategies can be implemented to improve employee motivation and overall productivity. Communication between HR and the company’s top management is vital since without active participation cooperation is not possible.

Key Characteristics of Strategic Human Resource Management

The key features of SHRM are

• There is an explicit link between human resources policy and practices and the overall strategic objectives of the organization and the organization’s environment.
• There is some organizational scheme that links the individual human resources interventions so that they are mutually supportive.
• Much of the responsibility for human resource management is delegated later

Trends in Strategic Human Resources Management

Human resource management professionals are increasingly confronted with the issues of employee engagement, human resource flow, performance management, reward systems, and high-commitment work systems in the context of the globalization. Older solutions and recipes that worked in a local context don’t work in an international context. Intercultural issues play an important role here. Here are some of the major issues facing HR professionals and senior management involved in SHRM in the first decade of the 21st century:

• Internationalization of market integration.
• Increased competition, which may not be local or even national through free market ideology.
• Rapid technological change.
• New concepts of general management and line.
• Constant change of ownership and resulting corporate climates.
• intercultural issues
• The shift in economic severity from ‘developed’ to ‘developing’ countries

SHRM also reflects some of the major contemporary challenges facing human resource management: aligning human resources with core business strategy, demographic trends in employment and the labor market, integrating soft skills into HRM, and finally, knowledge management.

References

1. Armstrong, M (ed.) 192a) Strategies for human resource management: a total business approach. London: Kogan Page.
2. Beer, M & Spector, B (eds) (1985) Readings in Human Resources Management. New York: Free Press
3. Boxall, P (1992)’Strategic Human Resource Management: Beginnings of a New Theoretical Sophistication?’ Human Resources Management Magazine, Vol.2 No.3 Spring.
4. Fombrun, C.J., Tichy, N, M, & Devanna, M.A. (1984) Strategic Management of Human Resources. New York: Wiley
5. Mintzberg H, Quinn JB, Ghoshal S (198) The strategy process Prentice Hall.
6. Truss, C and Gratton, L (1994)’Strategic Human Resource Management: A Conceptual Approach’International Journal of Human Resource Management, Vol.5 No.3