STRATEGIC HUMAN RESOURCE MANAGEMENT

• Strategic human resource management may be

as the integration of HRM with the strategic
goals and corporate strategy so as to improve
business performance and achieve
organizational goals.
• According to Harvey, “Strategic management is
that set of managerial decisions and actions
that determine the long-term performance of a
corporation. It includes environmental
scanning, strategy formulation, strategy
 Strategic management involves the
following processes:
• Strategic management involves the following
processes:
• Defining the company’s vision, mission and purpose.
• Identifying the company’s internal strengths and
weaknesses
• Analyzing the opportunities and threats existing in the
external environment
• Formulating strategies that will match strengths and
weaknesses with the opportunities and threats
• Implementing and strategies
• Evaluation and control to ensure achievement of the
organization’s objectives.
 FUNCTION OF STRATEGIC HRM
• HR Planning:
 The process of taking effective decision to align
right resource to the right job.
 Creating the new opportunities within the
organization to attract the talents and perform
better succession planning to finally achieve
organization goal.
 It is an important operation of strategic HRM.
 HR Planning is an intermediate to the overall
strategic plan of an organization.
 It is a continuous process that works on both long-
term and short-term.
• Managing Employee Relations:
 Employee Relation is a broad concept. This is one of
the most important functions in strategic Human
Resource Management.
 The HR Manager should organize activities to engage
an employee at workplace for better productivity
and to know in persona professional level.
 It must be well-planned to maintain and promote a
healthy and balanced relation between the
employee and the employer.
 It is a key towards the organizational success.
• Recruitment and Retention (R2R):
The recruitment and selection process is
concerned with choosing the right qualified
manpower to fill those jobs.
The main objective of recruitment is to provide a
satisfactory pool of qualified manpower to fulfill
jobs in an organization.
 Recruitment is the process of attracting potential
candidates, screening and selecting qualified
candidates.
• Objective criteria for a particular job to be
performed.

 The goal of this process is to filter and acquire the

qualified applicants.

 Among all other functions of strategic HRM, recruitment

and selection process is more creative function.

 The human resource need to build up strategic policy

and regulations to reduces the costs of recruitment,
decrease the attrition rate and increase retention rate,
by engaging each employee with great self satisfaction.
• Compliance Handling:
Strategic HR Manager always put an effort to
design and implement a successful legacy system.
Handling HR Compliance is an important function
of Strategic HRM.
A sincere effort is given to define each of the HR
compliance for both individual and group
behaviors to ensure the organization’s applicable
laws and policies are adopted and followed.
The policy and procedures must be designed in
reference to the established laws and regulations
of the state and country.
• Training and Development:
The main objective of training and development is
to educate and support the employees in
developing their core competency and targets.
Training and development is an effective and
strategic instrument for resultant growth in
improving and developing new skills for achieving
organization goals.
Technology is a big challenge where industrial
workers are being replaced by knowledge
engineers.
• Health and Safety in the Workplace:
 Organization Health and Safety (OHS) initiative is part
of strategic role of HRM. Health and safety is being
strategically utilized for talent retention, organizational
objectives, and loss-time prevention.
 Employee’s better health has good impact on
productivity. Organization makes an investment in
health and safety programs which includes wellness
activities, disability management and preventative
measures that generates ensured returns.
 Organization policies and procedures must be aligned
with health and safety measures to achieve better
retention ratio and strategic success.
• Employee Compensation and Benefits:
It is to create and manage employee benefits.
Educate employees in making them understand
how the benefits can support and satisfy basic
needs and fulfill their overall expectations.
It provides the guidelines to employees to follow
the standards in order to get qualified for the
benefits.
Building up a suitable compensation and benefits
policy will add value to the organization work
culture