Strategic hrm

Strategic HRM is a part of Human resource management (HRM), concept which discusses the basis, preparation and implementation of main organization resources needed for achieving its goals.

SHRM takes a long-term perspective and it is concerned with issues such as corporate culture or individual carrier development as well as the availability of people with the right skills. It incorporates redundancy and recruitment planning and is increasingly focused on the concept of the flexible workforce.

The range of activities and themes encompassed by SHRM is complex and goes beyond the responsibilities of personnel or HR managers into all aspects of managing people and focuses on management decisions and behaviour used, consciously or unconsciously, to control, influence and motivate those who work for the oganizations - the human resources.

Four perspectives

Mabey, Salaman and Storey (1998) look at the SHRM from four perspectives:

1. The social end economic context of SHRM - including the internal (corporate) and external environments that influence the development and implementation of HR strategies.
2. The relationship between SHRM and business performance, emphasizing the measurement of performance.
3. Management style and the development of new forms of organization.
4. The relationship between SHRM and the development of organizational capability including knowledge management.

Advantages of strategic HRM

Strategic human resource management (SHRM) is the process of aligning human resource (HR) policies and practices with the overall goals and objectives of an organization. There are several advantages to implementing a strategic HR management approach:

• Improved alignment: SHRM helps to align HR policies and practices with the overall goals and objectives of the organization, which can lead to improved performance and a more engaged workforce.
• Better decision-making: By considering the long-term impact of HR decisions, SHRM helps organizations to make better decisions that are aligned with their overall goals and objectives.
• Increased flexibility: SHRM allows organizations to be more adaptable and responsive to changes in the business environment, which can help them to remain competitive.
• Greater efficiency: By aligning HR policies and practices with the overall goals and objectives of the organization, SHRM can help to reduce duplication and increase efficiency in the HR function.
• Improved employee engagement: SHRM helps organizations to create a culture of engagement and to align employee goals and objectives with those of the organization, which can lead to improved employee engagement and retention.
• Better talent management: SHRM helps organizations to identify and develop the skills and talents of their employees, which can lead to improved performance and a more effective workforce.
• Cost reduction: By improving efficiency and aligning HR policies and practices with the overall goals and objectives of the organization, SHRM can help to reduce the overall costs of the HR function.
• Legal compliance: SHRM helps organizations to comply with legal and regulatory requirements, avoiding potential legal liabilities and penalties.

In summary, strategic human resource management (SHRM) is the process of aligning human resource policies and practices with the overall goals and objectives of an organization, which can lead to improved performance, increased flexibility, greater efficiency, improved employee engagement, better talent management, cost reduction and legal compliance.

Strategic hrm — recommended articles

Models of strategic personnel management — Organizational progress — Burke-Litwin model — Organization life cycle — Nature of strategic management — Organizational development — Strategic human resource management — Development and organizational balance — Management as science

References

• Armstrong, Michael, "Armstrong's Handbook of Human Resource Management Practice"
• Price, Alan), "Human Resource Management in a Business Context, 3rd edition"
• Hook, Caroline, "Introducing Human Resource Management"
• Purcell, J., "HRM"

Author: Rafał Szkaradek