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Assignment 1 ON Strategic Human Resource Management: Submitted To: Submitted by
Assignment 1 ON Strategic Human Resource Management: Submitted To: Submitted by
ON
STRATEGIC HUMAN
RESOURCE
MANAGEMENT
SESSION: 2018-2020
Employees are the lifeline of an organization. An organization can’t survive if there are no
employees. Organization runs with the help of individuals who contribute in their own way in its
success and productivity. Employees spend maximum part of their day in offices and strive hard
to achieve the goals and objectives of the organization. Employees ought to be motivated from
time to time so that they develop a sense of attachment towards their organization and also
deliver their best.
Every employee in his/her tenure acquires some set of skills through his experience, exposure,
trainings and so on which further increase his/her productivity eventually benefitting the
organization. Knowledge and expertise which employees develop in due course of time to further
increase the productivity of organizations refer to human capital. Every employee tries his level
best to sharpen his/her skills during his stint with the organization. Human capital is defined as
the collective stock of skills, attributes, knowledge, expertise of employees which further plays
an integral role in increasing the productivity of the organization.
Every organization invests its money and resources to train new employees. Employees in turn
work hard, upgrade their existing knowledge and contribute in their own way to increase the
productivity of their organization.
The word “Human Capital” was introduced by A. W. Lewis in “Economic Development with
Unlimited Supplies of Labour”.
Human capital plays a crucial role in increasing the productivity and output of an organization.
What is Human Capital Management?
Human Capital Management is defined as the process of acquiring, training, managing, retaining
employees for them to contribute effectively in the processes of the organization.
In simpler words, upgrading the existing skills of an employee and extracting the best out of
him/her refers to human capital management.
Human Capital management has more to do with how organizations treat their employees?
Do not treat your employees as mere labours. Senior management must ensure timely growth
and development of every individual concerned for him/her to contribute efficiently when
required.
The key objective of every organization should be to train its employees so that they become
efficient resources later on. In human capital management, organizations treat their employees as
important resources that play an instrumental role in productivity of the organization.
The development and management of individuals in line with their key responsibility areas not
only make them an indispensable resource in the future but also ensure their hundred percent
contributions towards the organization.
Human Capital Management Drivers
HCM Practices
Supervision: Senior executives and management must reduce the various levels of
hierarchy between them and employees’. Management must interact and motivate the
employees from time to time for them to give their level best.
Leadership: Senior executives should support, lead and influence the workforce so that
they contribute effectively towards the organization.
HCM Practice
Evaluation: Employee engagement must be evaluated from time to time by the top
management.
3. HCM Driver 3 - Knowledge Accessibility
HCM Practice
Team Work: Employees must be motivated to work in teams rather than working alone.
Work processes: Senior management must define work processes of employees well for
maximum productivity.
Accountability: Individuals must be held accountable for their work. Get a commitment
from employees and nothing like it, if everything is in writing.
Hiring: Individuals responsible for talent acquisition must ensure that they hire the right
candidate for the right role. Design a strong induction program for all the newly joined
employees.
HCM Practice
Innovation: New ideas should be welcome. Employees must be encouraged to come out
with new and innovative ideas which might benefit the organization.
In the traditional framework, HR mainly is transactional and reactive. HR staff place job ads
based on departmental requests for additional workers, respond to employee questions about
benefits and payroll, and process terminations and resignations for employees leaving the
company. In this reactive role, HR department actions may be fragmented and even rushed in
some cases.
Strategic HRM, on the other hand, is proactive because the leaders usually are engaged
partners in formulating the long-range, strategic direction of the company. In this role, HRM
focuses on activities like assessing the availability of workers based on projections for business
growth or the labor market availability. This shift from the transactional recruitment and
selection process to a broad talent acquisition model considers the long-term organizational
goals concerning workforce planning.
Key Differences between HRM and SHRM
The differences between HRM and SHRM can be drawn clearly on the following grounds:
BASIS FOR
THRM SHRM
COMPARISON