Scribd
Upload
307 views13 pages

Strategic Human Resource Management

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.

Uploaded by

Pallavi Pathak
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
307 views13 pages

Strategic Human Resource Management

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.

Uploaded by

Pallavi Pathak
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 13

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

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy