2. MEANING OF SHRM
Strategic human resource management can be defined as the
linking of human resources with strategic goals and objectives
in order to improve business performance and develop
organizational culture that foster innovation, flexibility and
It described the planned sequence of human resource
operations and activity designed to attain oragnsational
Developing high performance human resource management
functions which are able to increase strategic value to the
business of an orgasantion is the key function Strategic
Human Resource Mangement .
1. Strategic human resource management means formulating and executing human
resource policies and practices that produce the employees' competencies and
behavior, that companies need to achieve its target games .
BY Gary Dessle
2. Strategic human resource management is concerned with all those activities that
affect the behaviour of individuals in their efforts to formulate and implement
the strategic needs of the business.
3. Strategic Human Resource Management is a pattern of planned human resource
deployments and activities intended to enable the firm to attain its goals.
BY G.C. McMahan
4. FEATURES OF
o There is an explicit linkage between HR policy and
practices and overall organizational strategic aims and the
o There is some organizing schema linking individual HR
interventions so that they are mutually supportive
o Much of the responsibility for the management of human
resources is devolved down the line
5. BENEFITS OF SHRM
o Identifying and analyzing external opportunities and threats
that may be crucial to the company's success.
o Provides a clear business strategy and vision for the future.
o To supply competitive intelligence that may be useful in the
strategic planning process.
o To recruit, retain and motivate people.
o To develop and retain of highly competent people.
6. o To ensure that people development issues are addressed
o To supply information regarding the company's internal
strengths and weaknesses.
o To meet the expectations of the customers effectively.
o To ensure high productivity.
o To ensure business surplus thorough competency
7. OBJECTIVES OF STRATEGIC HRM
1) To develop strategic competencies: SHRM aims to build up
organisational strategic competencies to make sure that the
company has desirable standards, competent and highly
motivated employees for achieving sustainable competitive
2) To give sense of direction: SHRM guide the organisations in
the right directions ,so that the business requirement of the
organisation and the individual as well as the mutual
requirement of its employee are fullfilled by the creation and
attainment of consistent and practical HR policies and
8. 3) To achieve integration: The objectives of SHRM is to form
a consolidated framework so that the organised HR system
can work harmoniously in accordance in accordance with the
strategic objectives of the organisation .
4) To formulate business strategy : SHRM is aimed at
establishment of business strategic by focuing on the measure
through which the oragnisation can use the capability of its
employee for increasing the benfits .
9. BARRIERS OF STRATEGICHRM
1) Interdepartmental conflict.
2) The commitment of the entire senior management team.
3) Plans that integrate internal resource with external
4) Limited time, money and the resources.
5) lack of growth strategy or failure to implement.
6) Absence of Measurement Technique.
7) Rigidity of HR practices .
8) Improper strategic assignments and leadership conflict
10. OVERCOMING BARRIES OF SHRM
1) Conduct a preliminary analysis of needs and requirements
2) Formulation of the strategy
3) Enlist support for the strategy
4) Assess all possible barriers
5) Prepare action plans
6) Project-manage implementation
7) Follow up and evaluate progress so that remedial action can
be taken as and when necessary.
11. Characteristics Of Strategic HRM
1) Recognition of the outside Environment: Laws ,
Economic conditions , Social and demographic change ,
Domestic and international political forces and Technology .
2) The impact of Competition: The forces of competition in
attracting, rewarding, and using employees have a major effect
on corporate human resource strategy. Labour market
dynamics of wage rates, unemployment rates, working
conditions, benefits levels minimum wages legislation and
competition reputation all have an impact on and are affected
by strategic human resource decisions.
12. 3) Consideration of all Personnel: A strategic approach to
human resources is concerned with all of the firm’s
employees, not just its hourly or operational personnel.
4) Integration with the Corporate Strategy: Human resource
strategy adopted by a firm should be integrated with the
firm’s corporate strategy.
5) Long-Range Focus: A strategic human resource
management should be long-range focus cause this is not easy
to change the strategic human resource policy.
13. HRM Vs STRATEGIC HRMBASIC HUMAN RESOURCE
STRATEGIC HUMAN RESOURCE
MEANING Human resource management (HRM)
implies the governance of manpower of
the organization in a thorough and
SHRM is a managerial function which
implies framing of HR strategies in such a
way to direct employees efforts towards the
goals of the organization.
NATURE Reactive Proactive
Approach Fragmented Integrated
Scope Concerned with employee relations Concerned with internal and external relations
Time horizon Short term Long term
Basic factor Capital and products People and knowledge
Accountability Cost center Investment center
Control Stringent control over employees It exhibits leniency.
Change Follows change Initiates change
Staff specialist Line manager