Strategic Human Resource

Management
By Saniya Mujawar
Intro
Strategic Human Resource Management (SHRM) is a process of managing
human resources that links the workforce with the core strategies, objectives,
and goals of an organization. It focuses on the following aspects of HR
operations:

Ensuring practices that foster flexibility and give a competitive advantage to the
organization

Building a cultural fit for the organization

Ensuring superior business performance

Strategic HR management can be integrated Since it is essentially a contemporary approach
into various functions including hiring, training, to human resource management, the HR
and rewarding the workforce for their department has to play a key role in making
performance. The SHRM approach finds ways SHRM successful. HR managers need to gain a
for the HR personnel to make a positive and deeper understanding of SHRM in order to be an
direct contribution to the company’s growth. active partners in creating company policies and
There has to be a strategic plan related to every implementing them.
employee’s development and retention in sync
with the long-term business goals.
 Unlike a conventional system, companies that apply
strategic human resource management principles, don’t
have HR as a department that is separate from other
verticals such as IT, operations, or marketing. Rather, they
work in tandem with other departments to create an
Strategic Human understanding of their goals. This helps in building
Resource strategies that are well aligned with those goals and
overall objectives of the company. Through such an
Management: An integrated HR management, the human resource
Integrated department becomes a key enabler of the business
growth, and not just a mandatory service that is limited to
Approach hiring and paying the employees. Further, the strategic
human resource management also focuses on better
utilization of talent and opportunities available within the
department to benefit other departments.
Importance of Strategic Human Resource
Management (SHRM)

Businesses that ensure collaboration amongst all teams, and synchronized

working towards common objectives, succeed faster. By applying strategic HR
practices, employees can be analysed and the actions that will lead to value
addition for the company, can be identified. If a company’s HR personnel don’t
know much about strategic human resource management, they can enrol for
HR courses online to understand the concepts thoroughly and implement the
same in the organization. There are various benefits of applying strategic
human resource management for any business. These include:
Increased job satisfaction

Better work culture

Improved rates of customer satisfaction

Efficient resource management

A proactive approach to managing employees

Productivity boost

However, to effectively implement SHRM, the business leader(s) and the HR

head should be on the same page, or else there could be several challenges
faced, such as:
● Cross-cultural issues and lack of engagement between stakeholders
● Global operations leading to disconnect
● Changing business leadership in companies that undergo M & A
● Changes in the business environment such as the pandemic
outbreak
● Changes in technology used
How Does SHRM Work?
Strategic Human Resource Management is essential for retaining the best
talent and developing human resources. It focuses on making employees feel
valued and engaged so that they are motivated to stay with the company.
However, before moving forward, you will need to create a strategic HR
planning process following these steps.

● Cultivate an in-depth understanding of the organization’s objectives

● Assess the capabilities of the HR team
● Analyse the existing HR strength in view of your objectives
● Assess the HR needs for the business as it grows
● Find out what technology or resources employees need to perform well
● Deploy the human resource management strategy devised on basis of
above evaluation
● Check for effectiveness and take corrective actions wherever needed

Irrespective of the field or industry you talk about, strategic human resource
management has become essential for every business. It is not something only
for large enterprises or companies with hundreds of employees. In fact, right
from the outset when a business focuses on scaling, SHRM principles can
enhance the speed of growth. Having said that, let’s take a look at what are the
objectives of this modern approach to HR.
Objectives of Strategic Human Resource
Management
Strategic HRM primarily focuses on resolving matters such as organizational
culture, hierarchy structure, effectiveness of operations, resource-role
matching, and performance challenges. Ideally, there are 5 primary objectives
of SHRM approaches:

● Resource-based Strategy: Focuses on enhancing the strategic capabilities

of the company
● High Commitment Management: Establishing better commitment between
managers and their employees.
● Achieving Strategic Fit: Integration of workforce and material resources
through a streamlined and high ROI oriented operational model
● High Involvement Management: Empowering and treating employees as
stakeholders.
● High-Performance Management: Enhancing company performance
through superior productivity, growth, and profitability rate of the
workforce.
Thankyou