What is strategic HRM ?
With
strategic HRM, sometimes known as "people strategy," employers can
acquire, manage, and develop staff in ways that advance the organization's
long-term objectives.
A
framework connecting people management and development techniques to long-term
corporate goals and outcomes is provided by strategic human resource management
(strategic HRM). It puts a greater emphasis on long-term resource challenges in
the context of organizational objectives and the changing nature of work. Other
HR strategies, like reward or performance, are also informed by it, helping to
determine how they fit into the overarching corporate plan.
There is
no one HRM strategy that will work in every situation. Organizations must
establish their own distinctive strategies in accordance with their own
context, culture, and goals. People managers play a crucial role in using their
knowledge to comprehend organizational conditions and create value chains for
human resources that satisfy stakeholder needs.(
SHRM focuses mostly on
- Establishing procedures that promote adaptability and give the firm a competitive edge
- Establishing the organization's culture
- Ensuring outstanding performance in the workplace
Since SHRM
is fundamentally a modern approach to human resource management, the HR
division must be crucial to its success.
Strategic Human Resource Management's Value
(SHRM)
Employers
can be analyzed for activities that will add value to the business by
implementing strategic HR practices.
Applying strategic human resource management to any firm has a number of advantages. These consist of
- Increased productivity
- A Better work environment
- Increased client satisfaction rates
- efficient handling of resources
- A proactive strategy for personnel management
· However, the business leader(s) and HR head should be on the same page in order to adopt SHRM effectively; otherwise, there may be a number of obstacles, including:
- Business leadership shifts in M&A-related organizations
- Alterations in the business climate, such as the pandemic
- global business processes causing disconnect
- Utilized technology has changed.
How Does SHRM Function?
It focuses
on fostering a sense of worth and engagement among employees to encourage them
to stick with the business.
The main
goals of strategic HRM are to address issues including corporate culture,
hierarchy, operational effectiveness, resource-role matching, and performance
issues.
·
Resource-based Strategy: Emphasizes
strengthening the organization's strategic capabilities.
· Improved commitment between managers and their
staff is achieved through high commitment n management.
· Integrating human and material resources with
a lean, highly ROI-focused operational strategy to achieve strategic fit
· High Involvement Management: Treating staff
members like stakeholders and empowering them.
· High-Performance Management: Improving
business performance through increased employee productivity, growth, and
profitability.
lower rates of turnover
- decreased absences
- greater dedication from employees
Armstrong, M and
Baron, A. (2010), Handbook of Strategic HRM, Jaico Publishing House, Mumbai,
India.
CIPD, (2021),Understand how strategic HRM works, and its relationship with business strategy,, human capital management and performance, [Online], Available at https://www.cipd.co.uk/knowledge/strategy/hr/strategic-hrm-factsheet#gref Accessed on 29th November 2022
Baird, L. and
Meshoulam I. (1988). Managing Two Fits of Strategic Human Resource Management,
Academy of Management Review, 14:1308-332
SHRM focuses on longer-term resourcing issues within the context of an organization's goals and the evolving nature of work. You have pointed valuable key points in your blog.
ReplyDeleteThanks for the appreciation sanjana,People managers are vital in understanding organizational conditions and developing value chains for human resources that meet the needs of stakeholders.
DeleteStrategic human resource management (strategic HRM) provides a framework linking people management and development practices to long-term business goals and outcomes. And this blog shows it
ReplyDeleteClearly by using example
yes ,agree, Strategic human resource managers design and oversee long-term initiatives that support an organization's ongoing expansion.
DeleteOther than the results of SHRM what you have mentioned, SHRM practices directly result in increasing overall performance of any organization
ReplyDeleteAdding to this ,It should be noted that SHRM has influenced organizations' long-term performance by enhancing employee engagement, introducing best practices for the workforce, and creating organizational goals that take into account detailed market research.
DeleteThe accomplishment of corporate goals, work culture, training and development, employee motivation, employee empowerment, and team coordination are some of the goals of HRM apart from above. A deeply observed article.
ReplyDeleteyes, Hope this article would help to get an idea regarding SHRM and to apply the concept in to an organization.
DeleteStrategic human resource management is the foundation of a strong business.By applying strategic HR practices, employees can be analysed and the actions that will lead to value addition for the company.
ReplyDeletesure, it leads to value addition. and help to achieve company goals and objectives also.
DeleteWhat is the main difference between HR and SHRM ?
ReplyDeleteDoes SHRM help in organizational performance?
ReplyDeleteyes exactly. SHRM will help to Improve employee engagement, the introduction of best practices for the workforce, and the development of corporate goals .
Delete