STRATEGIC HRM- Strategic hrm is an approach that defines how the organizational goals can be

achieved through people by the means of Hr strategies and integrated Hr policies and practices.
AIMS OF SHRM.
Ensuring that the company has skilled, committed and well-motivated employees.
Integrate with the organizational strategy
Strategic Hrm
Different organizational strategies call for tailor-made HR strategies.
Cost differentiation strategy- Provide great value at low cost.
Emphasizes on getting material at low cost and minimizing waste.
HR implications.
• Jobs & departments are structured to maximize cross training and knowledge sharing..
• Compensation programs designed to reward savings , cost savings
• Employees are selected on the basis of versatility in skills.
Product differentiation strategy- This is where a product is similar to another product but it has
something to differentiate it.
Emphasis on creativity and innovation as consumers are filled with a lot of choices.
HR implications.
• Compensation systems reward creativity, innovation.
• Need to educate employees about product/ service differentiating features.
• Creation of marketing campaign to promote special product features.
Customer intimacy- Strong personal relationship between the provider of the service and the
customer.
Personalized service differentiates the product/service from competitors.
HR IMPLICATIONS
• Recruit and select job candidates with strong customer service and customer relations skills to
help fortify the provider/consumer relationship.
• Focus reward strategies on customer attraction, satisfaction and retention.
Customer/market force
Unique target market characteristics.
Emphasize the needs of a specific target market, such as generational or lifestyle (e.g., luxury cars)
• Use market research to drive recruitment and selection so employees have a strong
understanding of the target market.

 Emphasize versatility and adaptability as products and services are subject to rapid change
HR POLICIES
Hr policies provide written guidance on how to handle a range of issues in an employing organization.
Hr policies should flow from Hr strategies and complement Hr procedures.
HR procedures support and supplement HR policies where appropriate by giving a step-by-step
account of specific arrangements that apply in particular circumstances (for example, setting time
limits within which meetings must take place).
WHY HR POLICIES
Ensures that employees do their work well as they know what is expected of them.
Ensures consistency in how company interacts with the employees.
Ensuring that the company follows the law when it comes to the treatment of employees.
Assist management in training, managing and disciplining employees.
Deal with internal change.
Support business strategy.
QUALITIES OF A GOOD POLICY
Must be legal.
Clear, attainable and well written.
Distinguishable from rules and procedures.
Must be communicated to all employees who might be affected by them.
Should be based on ideas and principles which are well comprehended.
Be flexible and adaptable.
Aligned with organizational goals.
Consistent and fair.

WRITTEN POLICIES SHOULD

Be well written in English.
Avoid Jargon.
Advantages of written policies.
Ensure continuity.
Ensure uniformity and consistency in administration.
Promotes effective delegation.
Provides a basis for appeal if there is a disagreement about the policy.
Provides a yard stick by which to measure accomplishments.