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Elements of Strategic Human Resource Management (SHRM)
Elements of Strategic Human Resource Management (SHRM)
Strategic Human Resource Management (SHRM) is defined as alignment of strategic business goals of
the organization with human resources, so as to foster innovation and improve motivation, satisfaction,
productivity, and eventually overall performance. Strategic HRM is a relatively new term, which
differentiates itself from traditional HRM which was just merely an organizational function.
Since the last twenty years or so, there was an increasing fear of HR being secluded from business goals
and as a separate part of the organizations. There was an increasing need felt across sectors of HR
playing a vital role in improving productivity in organizations to achieve a competitive edge. So, strategic
HRM came into existence.
The primary goal of strategic human resource management is to solve business objectives or obstacles
that may not occur within the direct purview of HRM. This has to be done through effective HRM itself. So
it is basically tuning of human resource management (HRM) to suit business objectives. The other types
of HRM are Hard HRM and Soft HRM.
For strategic HRM, there must be effective cooperation between the top management and the HR head.
Some of the challenges faced in modern day HRM are as follows:
1. Resource based Strategy: Addresses issues wherein the strategic capabilities of the firm can be
increased.
2. High Commitment Management: By enhancing the mutual commitment between the managers
and their employees.
3. High Involvement Management: Treating employees as their partners in the business.
4. High Performance Management: Improves the performance of the firm by focusing on improving
the productivity, growth and profitability rate of its people.
5. Achieving Strategic Fit: Integration of human capital and resources is necessary for smooth and
profitable operation of business.