Presented By: Suraj Parkash

Roll no. - 0209mba22

Sem: 3rd
 Strategic HRM is an area that continues to evolve a lot of debates as to what it
actually embraces

 Since the 1990s, there has been an increased focus on the strategic role of human
resource management (HRM).

 The strategic approach to HRM refers to the relationship between human resource
(HR) practices and the strategic objectives, that is the long term goals of the
organization.
 With the increasing recognition of the potential of human resources in providing
competitive advantage, organizations have begun to consider employees as valuable
‘assets’ or ‘investments’.
 This view has become more significant in today’s knowledge economy that depends
on the skill and knowledge of the workforce.
 From being a routine, administrative, and reactive function, the HR function today has
evolved to being proactive and strategic.
 Human resources – refers to the people who work in an organization

 Human Resource Management

 the person, department or section of an organization which deals with people
 it involves the process of co-ordinating all aspects of what needs to happen to
and for people in an organization – recruitment, training, monitoring and
appraisal
 HRM ensures the most effective and efficient use of human talent for
accomplishing the goals of an organization.
 Given the increasingly significant role of human resources in an organization,
HRM has become strategic in nature.

 Strategic human resource management (SHRM) is concerned with the

relationship between HRM and strategic management in an organization

 SHRM is an approach which relates to decisions about the nature of employment

relationship, recruitment, training, development, performance management,
reward and employee relations
 STRATEGIC HUMAN RESOURCE MANAGEMENT

 To be strategic is to:
 plan
 design
 scheme
 manoeuvre
 plot
 develop a game-plan
 To be strategic is to
 - be tactical
 achieve an advantage
 have a long term plan for success
 outwit your enemies (your competitors)

Strategic Human Resource Management (SHRM) aims

to ensure that you are at least one step ahead of your
competitors
o The organization aims to have a competitive
advantage
Definition of SHRM:
 The process of HRM which is driven by planning , foresight and analytical

decision making.

 SHRM involves:
 Setting standards and policies and developing a culture that aligns
with the organization's environment and objectives
 Identifying and implementing activities and policies to enact the
chosen strategy and to manage the employment relationship
 Wright and McMahan (19920 defined SHRM as ‘the pattern of planned human
resource deployment and activities intended to enable the firm to achieve its
goals’.

 ‘SHRM is a concept that integrates human resource management activities within

a firm’s overall planning and implementation’ (Dillip Kumar, 2006)
 ‘SHRM integrates human resource consideration with other physical, financial,
and technological resources in the setting of goals and solving complex
organizational problems’ (Legnick-Hall & Legnick-Hall,1988)

 ‘SHRM also emphasizes the implementation of a set of policies and practices

that will build employee pool of skills, knowledge, and abilities that are relevant
to organizational goals’ (Jackson & Schulerm, 1995)
 Strategic Human Resource Management aims to align the functions and processes of HRM with the
strategic aims and objectives and competitive advantage of an organization.

 The availability and skills, knowledge, experience and superiority of staff is as important as finance,
technology, location and innovation.

 The rationale for strategic HRM is the perceived advantage of having an agreed and understood basis for
developing approaches to people management in the longer term.

 Underlying rationale in a business is the concept of achieving competitive advantage through HRM

 The fundamental aim of strategic HRM is to generate strategic capability by ensuring that the organization
has the skilled, committed and well-motivated employees it needs to achieve sustained competitive
advantage.

 Its objective is to provide a sense of direction in an often turbulent environment so that the business needs
of the organization, and the individual and collective needs of its employees can be met by the
development and implementation of coherent and practical HR policies and programmes

 SHRM AIMS TO LINK IT ALL TOGETHER.

The major objectives of SHRM are as follows:

To ensure the availability of a skilled, committed, and highly motivated

workforce in the organization to achieve sustained competitive advantage.

 To provide direction to the organization so that both the business needs of the
organization and the individual and collective needs of its workforce are met.
This is achieved by developing and implementing HR practices that are
strategically aligned.
 What are some of the benefits of SHRM?
1. Identifying and analyzing external opportunities and threats that may be crucial to the
Company’s success
2. Provides a clear business strategy and vision for the future
3. To provide competitive intelligence that may be useful in the strategic planning process
4. To recruit, retain, and motivate people
5. To develop and retain highly competent people
6. To ensure that people development issues are addressed systematically
7. To supply information regarding the Company’s internal strengths and weaknesses
8. To meet the expectation of customer effectively
9. To ensure high productivity
10. To ensure business surplus through competency
1. Inducing the vision and mission for the change effort
2. High resistance due to lack of cooperation from the bottom line
3. Interdependent conflict
4. The commitment of entire senior management team
5. Plans that integrate internal resource with external requirements
6. Limited time, money, and resources
7. Fear of incompetency of senior level managers to take up strategic steps
8. Diverse workforce with competitive skill sets
9. Fear towards victimization in the wake of failures
10. Improper strategic assignments and leadership conflict over authority
11. Ramifications for power relations
 HR & top management to work together formulate the company’s
overall business strategic

 Strategy then provides the framework with which HR activities such as

recruiting, appraisal must be crafted

 If done successfully, it should result in employee competencies and

behavior which in turn should help the business implement its strategies
and realize it goals

 According experts, the HRM system ‘must be tailored to the demands of

business strategy’
THANK YOU