Strategic Human Resource Management

SHRM or Strategic human resource management is a branch of Human resource management or HRM. Strategic human resource management is a fairly new field, which has emerged out of the parent discipline of human resource management. Much of the early HRM literature treats the notion of strategy superficially, rather as a purely operational matter the results of which cascade down throughout the organisation.

Academic Theory

Strategic human resource management can be defined as the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation, flexibility and competitive advantage. In an organization SHRM means accepting and involving the HR function as a strategic partner in the formulation and implementation of the company’s strategies through HR activities such as recruiting, selecting, training and rewarding personnel.

Evolution and difference from earlier HRM

Many writers in the late 1980’s, started clamouring for a more strategic approach to the management of people than what the standard practices of traditional management of people or industrial relations models followed.

Strategic human resource managements focuses on human resource programmes with long-term objectives. Instead of focusing on internal human resource issues, the focus is on addressing and solving problems that effect people management programmes in the long run and often globally. Therefore the primary goal of strategic human resource is to increase employee productivity by focusing on business obstacles that occur outside of human resources. The primary actions of a strategic human resource manager are to identify key HR areas where strategies can be implemented in the long run to improve the overall employee motivation and productivity.

Key Features

The key features of SHRM are, according to Truss and Gratton (1994)

  • There is an explicit linkage of some kind between HR policy and practices and overall organisational strategic aims and the organisational environment
  • There is some organising schema linking individual HR interventions so that they are mutually supportive
  • Much of the responsibility for the management of human resources is devolved down the line

References

  • Beer, M and Spector,B (eds) (1985) Readings in Human Resource Management. New York: Free Press
  • Fombrun, C.J., Tichy, N,M, and Devanna, M.A. (1984) Strategic Human Resource Management. New York:Wiley
  • Mintzberg, H, Quinn, J B, Ghoshal, S (198) The Strategy Process, Prentice Hall.