Chapter 2

Difference between HRM &

SHRM

References:
•Principles of Management, Robins
•Human Resource Management, Dessler
•Strategic Human Resource Management, Charles R. Greer
 What is HRM?
■ Human resource management (HRM ) states about the ways of managing people in
the organization who provide to the achievements of its ultimate objectives. It is a set
of interrelated policies used in managing people. Further, it expressed as a
combination of four generic processes or functions (human resource cycle) that
performed in all organizations:
■ Selection: Matching available human resources to jobs
■ Performance appraisal: Evaluating the current performances of individuals
■ Rewards: It is a kind of a motivational technique used to encourage the employees to
develop its competencies further.
■ Development: To develop a competent workforce.

Features
■ Managers are accountable for ensuring the alignment of human resources with the
strategic policies of the organization.
■ They should have the goal of establishing the policies to govern the activities that
developed and implemented more effectively.
 What is SHRM?
■ SHRM is about adjusting or align human resources with the strategic objectives of the
organizations that mean that it allows integrating HRM practices into its strategic plans by
incorporating an HRM perspective into the decision making. Strategic HRM states about
company objectives, plans and how the business goals need to be achieved through people

Objectives
■ Achieving a competitive advantage through human capital.
■ Applying the strategic plan through people.
■ Taking a systematic approach in defining the destination of the organization and the path that
needs to be followed.
Perspectives
■ It is a way of schedule or planning.
■ It is an orderly approach to the design and management of personnel systems regarding the
employment policy and workforce strategy.
■ It evens the HRM activities and policies to some explicit business strategy.
■ It controls the people of the organization as a strategic resource to achieve a competitive
advantage.
 Difference between PM,
HRM,SHRM
Point of Personnel HRM SHRM
difference Management
1. Objective Procurement and Managing effective Concerned with HR
effective staffing if utilization of human effectiveness and
employees resource performance in content of
strategic business plan
2. Job design Based on skills, Based on specialization Based on integrated
knowledge and and functional level informational system with
division of work flexible job structure
3. Major Selection, Placement Employee motivation Outsourcing jobs,
Activity and maintenance of HR and performance accountabilities and
evolution strategical performance
4. Role of Maintenance of Develop skills and Develop proactive and
Manager employees learning transformation transformational skills
performance
 Difference between PM,
HRM,SHRM
Point of Personnel HRM SHRM
difference Management
5. Area of General staffing Material, technology, People and their skills,
investment function equipment and resources knowledge and abilities

6. Time Short term Short and medium term Short, medium and long
horizon term

7. Initiative No change Follow change Initiate change

for change

8. Control Democratic Bureaucratic ways to Scientific control with

control over HR follow rules, polices and flexible attitude
activates programs
9.Accountab Efficient Job Based on cost Long strained employees
-ility performance optimization relation
Traditional HR versus Strategic HR
Business strategies and supportive
HR practices and strategies
Business strategies and supportive HR
practices and strategies
Business strategies and supportive HR
practices and strategies
Outcomes of Strategic HR
Model of SHRM