Strategic human resource management is a process that aligns HR practices with the strategic

objectives of organization.
Strategic human resource management (SHRM) is defined as “the pattern of planned human
resource deployments and activities intended to enable an organization to achieve its goals.” –
Wright & McMahan. Strategic HRM focuses on actions that differentiate the firm from its
competitors (Purcell, 1999)
It’s a process that helps the human resources department maximize the potential of its workforce
through strategic planning, talent management, leadership development, organizational design
and performance management. SHRM is an approach that relates to decisions about the nature of
employment relationships, recruitment, training, development, performance management,
reward, and employee relations.
SHRM is away to ensure that the organization’s human resources are used in a way that supports
the organization’s goals. its more like a bridge connecting human resources and the goals of the
company.

The goal of SHRM is to create policies and programs that align with the company’s business
strategy. The main difference between human resources and strategic human resources is that
human resources is that human resources focus on the day-to-day management of employees
while strategic human resources focus on how employees can achieve the company’s overall
goals. This means that SHRM must first understand the company’s business goals and then
create programs and policies to support those goals.
Examples of SHRM policies and programs.
 Performance management
 Training and development
 Compensation and benefits
 Employee relations
 Recruitment etc.
The programs and policies vary depending on the company’s goals and the needs of its
employees.
Why SHRM is important.
SHRM is important because it helps businesses achieve their goals.
By aligning hr. programs and policies with the company’s business strategy, SHRM can help
businesses improve employee performance.

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The goal of SHRM is to create policies and programs
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strategy. The main difference between human resources and strategic human resources is that
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human resources focus on the day-to-day management of employees, while strategic human
resources focus on how employees can achieve the company’s overall goals. This means that
SHRM must first understand the company’s business goals and then create programs and
policies that support those goals.

Some common examples of SHRM programs and policies include:

 Performance management: Creating systems to track and improve employee

performance.
 Training and development: Identifying employees’ development needs and providing
training and resources to help them improve.
 Compensation and benefits: Designing compensation and benefits programs that attract
and retain employees.
 Employee relations: Managing employee relations to create a positive work
environment.
These are just a few examples of the types of programs and policies that can be part of SHRM.
The specific programs and policies will vary depending on the company’s goals and the needs of
its employees.

Why Strategic Human Resources Is Important

SHRM is important because it helps businesses achieve their goals. By aligning HR programs
and policies with the company’s business strategy, SHRM can help businesses improve
employee performance, develop the workforce and create a positive work environment. SHRM
can also help businesses save money by reducing turnover and improving productivity.

 Improve employee performance: SHRM can help businesses improve employee

performance by creating systems to track and improve performance.
 Develop the workforce: SHRM can help businesses develop the workforce by
identifying employees’ development needs and providing training and resources to help
them improve.
 Create a positive work environment: SHRM can help businesses create a positive work
environment by managing employee relations.
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 Reduce turnover: SHRM can help businesses
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compensation and benefits programs that attract and retain employees.
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  Improve productivity: SHRM can help businesses improve productivity by improving
employee performance and creating a positive work environment.
5 Steps to Strategic Human Resources

Now that you know what SHRM is and why it’s important, you may wonder how to get started.
The process involves knowing the goals of your company, its abilities, future needs and
resources. From there, you put your plan into action, then reassess and pivot if necessary.

Here are the five steps to strategic human resources plan:

1. Know your company’s goals and abilities

The first step to SHRM is understanding your company’s goals and abilities. When you know
your company goals and can articulate them, you’ll have an easier time creating programs and
policies that support those goals. You’ll also be able to more effectively measure the success of
your SHRM programs and make changes as needed.
Consider the following questions:

 What are your company’s long-term goals?

 What are your company’s strengths and weaknesses?

 What resources does your company have now?

 What skills does your workforce currently have?

 Are there any gaps in talent or skills?

Answering these questions will help you understand your company’s goals and abilities, and how
SHRM can help you achieve those goals.

2. Forecast future needs

Now that you have an idea of your company’s goals and abilities, you need to forecast future
needs. In order to ensure your company’s future success, you need to predict how many
employees with the required skills will be necessary and measure it against your company’s
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current workforce. This will help you determine
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and how to develop those skills in your workforce.
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Consider the following questions:

 What skills will your company need in the future?

 How many employees with those skills will you need?

 How does that compare to your current workforce?

By answering these questions, you will be able to comprehend what abilities your company will
need in the future and how to cultivate a workforce with those required skills.

3. Determine the resources needed to achieve company goals

After you know your company’s goals and have forecasted future needs, you need to determine
the resources needed to achieve those goals. This includes identifying the financial resources,
human resources and physical resources required.

Consider the following questions:

 What financial resources will you need to achieve your company’s goals?

 What human resources will you need to achieve your company’s goals?

 What physical resources will you need to achieve your company’s goals?
To determine these, you’ve got to conduct an audit of both your internal and external resources.
This will give you a sense of what types of resources you have available to achieve your goals
and where you may need to supplement.

For example, if you’re looking to expand your workforce, you may need to invest in recruiting
programs. Or, after conducting a needs assessment, you may find that your current workforce
doesn’t have the necessary skills to achieve your company’s goals, so you’ll need to invest in
training programs.

Another example is if you’re looking to launch a new product. In this case, you’ll need to
consider the financial resources required to develop and market the product, as well as the
physical resources required to produce it. You’ve also got to consider talent and skill set when
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launching a new product. Do you have the right
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4. Execute your plan

Now that you’ve set your company’s goals, forecasted its future needs and gathered the
resources required to achieve those goals, it’s time to put your SHRM plan into action. Most
companies start by recruiting the right candidates, training and development and then
performance management. However, this will vary depending on your company’s specific needs.

If you already have a large talent pool to choose from, you may be better off cultivating skills of
current employees before recruiting outside talent. After you’ve satisfied that resource, you may
find you still need to hire. If so, you’ll need to have clear expectations and skill requirements
before recruiting.

Once you’ve hired talent, it’s imperative to have a proper onboarding process. This will help
ensure that your new hires are set up for success and understand what’s expected of them. After
you’ve brought new talent into the fold, you need to focus on development. This includes
training programs as well as opportunities for professional growth. By offering these
opportunities, you’ll be able to retain top talent and keep them engaged in their work.

Last but not least is performance management. This includes setting clear expectations,
providing feedback and conducting performance reviews. Performance management is a key part
of SHRM as it helps ensure that your workforce is meeting expectations and contributing to your
company’s bottom line.

Here are a few things to keep in mind when executing your SHRM plan:

 Set realistic goals and timelines. Trying to accomplish too much in a short period of
time can be overwhelming and lead to mistakes.
 Get buy-in from upper management. If those at the top aren’t on board with your
SHRM plan, it’s going to be difficult to get everyone else on board.
 Communicate with your employees. Employees should be aware of the goals of the
SHRM plan and how it will affect them. This will help get them on board and ensure that
they’re working towards the same goals.
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  Be prepared to adjust your plan. As with any plan, things may not go as expected. Be
prepared to make adjustments to ensure that you’re still on track to achieve your
company’s goals. We’ll discuss this in detail in the next section.
5. Assess and pivot

After you’ve executed your SHRM plan, it’s important to assess how things are going. This
includes looking at what’s working and what’s not. Based on your assessment, you may need to
make adjustments to your plan. For example, if you’re not seeing the results you want, you may
need to change your recruiting strategy. Or, if you’re finding that your training programs aren’t
effective, you may need to make changes to those as well.

It’s also important to keep in mind that your SHRM plan is not a one-time thing. As your
company grows and changes, so too will your SHRM needs. As such, it’s important to revisit
your SHRM plan on a regular basis to ensure that it’s still relevant and effective.

Bottom Line

Strategic human resource management is a process that helps companies achieve their goals by
better managing their workforce. By taking the time to develop a SHRM plan, companies can
ensure that they have the right people in place to achieve their goals. While developing a SHRM
plan can be time-consuming, the benefits outweigh the costs. Not only will a well-executed
SHRM plan help you achieve your company’s goals, but it will also help you retain top talent
and keep your employees engaged in their work.

ORGANISATIONAL STRATEGIC OBJECTIVES.

Strategic objectives are high level and measurable goals outlining what an organization wants to
achieve, with a clearly defined deadline.

Strategic objectives are purpose statements that help create an

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overall vision and set goals andntial
measurable steps for an
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organization to help achieve the desired outcome. A strategic
objective is most effective when it is quantifiable either by
statistical results or observable data.

Strategic objectives allow businesses to plan steps that help make

their vision a reality. Understanding what strategic objectives are
and why they're important can help you better take part in and
shape these objectives through your contributions to the
workplace.

Businesses create strategic objectives to further the company

vision, align company goals and drive decisions that impact daily
productivity from the highest levels of the organization to all
other employees.

Types of strategic objectives

Businesses often group strategic objectives into categories to achieve
multiple goals. You can set strategic objectives based on your specific
industry or brand strategy with each objective as part of a broader
category. Companies often set strategic objectives in the following
categories:

Financial strategic objectives

Financial strategic objectives are created to help companies make

projections for profits, shape budgets and measure costs for their
organization. They allow a company to focus on the monetary needs of
their organization with specific steps to increase or decrease costs, re-
evaluate spending, analyze revenue trends and plan for financial growth.

Growth strategic objectives

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Businesses use strategic growth goals to make actionable statements
about expanding and increasing their company influence in the market
and developing new internal processes. Strategic objectives for growth
can help a company plan for the future of the business with specific steps
on how to achieve those long-term goals.

Training/learning strategic objectives

Companies create strategic objectives for learning by planning to

increase staff knowledge and capabilities with specific actions. Strategic
objectives for training are ways that a business can plan to invest in their
employees to address overall performance goals.

Business processes/operations strategic objectives

Changing or restructuring the way a business operates is the focus of

strategic objectives for business processes and operations. To effectively
make goals for production, a business may choose to adjust and evaluate
how they create a product with the objective of implementing a more
efficient process. Other process and operational objectives might involve
business-to-business strategies or business-to-consumer tactics.

Customer strategic objectives

Some businesses want their strategic objectives to focus on the customer

experience. A business may want to work toward creating value for their
consumers based on the cost of a product or service. Or, a company may
want to set goals for outstanding customer service with actionable
objectives to help achieve this outcome.

How to create a strategic objective

To create a strategic objective, follow these steps:

1. Determine clear goals based on your vision

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Before you make a strategic objective, decide on your overall goals and
desired outcomes. Plan what areas are most important to your
devolvement strategy. Think about how many objectives you need to
achieve your overall vision. Consider discussing these ideas with
colleagues and team members to get their input before you create
specific strategic objectives.

2. Make a purposeful statement

To create a strategic objective, form a statement that shares how you will
move from point A to point B in a certain amount of time. This formula
ensures you've stated what you want to achieve and how you will make it
happen. Choosing a timeline also helps make an objective measurable
rather than something general that you are working toward.

3. Use actionable steps

Make your objective actionable, meaning your plans can be achieved

through a series of steps or specific actions. Consider how much time it
will take to complete the objective and the measured outcomes that will
prove you have met it. Use specific data figures like percentages and
years or quarters.

4. Check in on your progress

Plan to reassess your progress as you work to meet strategic objectives

on your chosen timeline. Evaluate how you are using your action steps to
make a change toward your overall goals. Adjust any objectives that need
different action steps, or create new strategic objectives based on what
you observe.

Related: How To Write Project Objectives

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Examples of strategic objectives ntial
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Below are categories and examples of strategic objectives that can
contribute to the overall goals of your organization:

Examples of financial strategic objectives

Here are examples of financial strategic objectives to help your

organization better plan your financial future:

 Increase internal revenue over the next three years

 Decrease overhead spending
 Budget additional funds for marketing initiatives
 Increase stockholder shares every year for the next five years
 Reduce waste over the next year
 Create more diverse revenue streams
 Increase market position
 Attract more sales
 Increase investment portfolio
 Create an initial public offering within two years
 Lower incurred expenses

Related: How To Write Marketing Objectives

Examples of growth strategic objectives

Here are some strategic growth objectives to plan your organization's

expansion and success in your industry:

 Increase business intelligence team by five members next year

 Enter two new overseas markets in the next two years
 Grow national sales
 Obtain more regional market shares by next year
 Acquire small competitive company within next two years
 Create online teams
 Restructure internal evaluation system
 Create feedback opportunities for staff
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 Open ten new locations in three
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  Renew company vision statement with team input
 Increase product options

Examples of training/learning strategic objectives

The following strategic objectives for training and learning can help your
organization identify ways to refine skills, gain up-to-date industry
knowledge and master job-specific tools and processes:

 Increase professional development offerings to staff

 Initiate monthly lunch-and-learn seminars
 Fund certificate training for IT employees
 Create digital learning platforms
 Offer conference travel opportunities
 Fund advanced degree studies
 Offer certificate programs
 Participate in a leadership summit
 Conduct safety training
 Implement leadership training
 Start a mentoring initiative

Examples of business processes/operations strategic objectives

These strategic objectives for business processes/operations enable your

organization to streamline and improve processes and policies:

 Use business intelligence projections to increase growth across all

markets
 Prioritize innovation
 Promote customer growth through marketing
 Increase productivity throughout the year
 Reorganize production processes
 Maintain sales partnerships
 Implement a new internal communication system
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Create new research and development structures
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 Contribute publications for expert
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  Diversify digital marketing strategies
 Reduce energy usage across facilities
 Increase brand partnerships

Examples of customer strategic objectives

Here are examples of customer strategic objectives to help your

organization attract and retain clients and consumers:

 Create excellence in customer service

 Increase five-star ratings
 Offer product replacement
 Offer competitive pricing
 Increase product value based on cost
 Start a new product offering
 Create a customer retention initiative
 Lower call center wait times for the next two quarters
 Increase repeat customers
 Initiate customer satisfaction surveys
 Shorten delivery time
 Offer more cross-sale products

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