WHY STRATEGIC HUMAN RESOURCE MANAGEMENT IMPORTANT

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Introduction to Strategic Human Resource Management (SHRM)

In order to encourage innovation and enhance motivation, contentment, productivity, and ultimately overall performance, strategic human resource management (SHRM) is described as the alignment of the organization's strategic business goals with its human resource needs. In contrast to traditional HRM, which was only an organizational function, strategic HRM is a relatively recent concept.

  • Ensuring practices that foster flexibility and give a competitive advantage to the organization
  • Building a cultural fit for the organization
  • Ensuring superior business performance

Since SHRM is fundamentally a modern approach to human resource management, the HR division must be crucial to its success. To actively participate in developing and implementing corporate policies, HR managers need to obtain a deeper understanding of SHRM.

Hiring, training, and rewarding personnel for their success are just a few of the many tasks that can be combined with strategic HR management. The SHRM method identifies ways for HR staff to directly and positively contribute to the expansion of the business. Every employee's growth and retention must be addressed in a strategic plan that is aligned with the long-term objectives of the company.

It is difficult for all firms to handle HR difficulties in the current world, particularly in the post-pandemic era. Employers may become perplexed by the numerous elements of the HR environment, which could result in bad choices. As a result, there can also be a decline in productivity and a slowdown in the expansion of businesses.



Importance of Strategic Human Resource Management (SHRM)

There has been growing concern over HR being isolated from organizational goals and functioning as a distinct department for the past twenty years or so. The necessity for HR to play a crucial role in boosting productivity in firms to gain a competitive edge was recognized more and more across industries. Strategic HRM was born as a result. Strategic human resource management's main objective is to address corporate objectives or challenges that may not fall under the direct purview of HRM. This needs to be accomplished through efficient HRM. Therefore, it essentially involves adjusting human resource management (HRM) to meet corporate goals. Hard HRM and Soft HRM are the additional varieties of HRM.

  1. Cross-cultural issues and interaction
  2. Internationalization
  3. Changing ownership due to increased M & A
  4. Rapidly changing business environments
  5. Technological advancements


Elements of Strategic Human Resource Management (SHRM)

The pillars for SHRM are:

a) Humans are not just resources but they are an asset to an organization, which should provide a competitive edge to the organization.

b) It’s the people within the organization who actually implement such change.

c) Every change is achievable only through proper planning followed by execution with respect to the organizational needs and objectives.

d) The main aim of strategic HRM is to concentrate on the ways through which the firm can take an edge over its competitors.

e) According to Hendry and Pettigrew, SHRM has four different meanings, mainly:

  • Making use of planning.
  • Designing and managing people via a coherent approach.
  • Developing systems that are based on employment policy and workforce strategy.
  • Bringing out coordination between HR activities and other policies into developing business strategy.
  • Considering people as resources and achieving a competitive edge by making the best of them.



Objectives of Strategic Human Resource Management (SHRM)

Addressing challenges with corporate culture, structure, effectiveness, resource matching, and performance is the fundamental goal of strategic HRM. It entails enhancing process capabilities as well as successfully managing human capital. The methods employed in strategic HRM may be divided primarily into 5 categories.

  1. Resource-based Strategy: Addresses issues wherein the strategic capabilities of the firm can be increased.
  2. High Commitment Management: By enhancing the mutual commitment between the managers and their employees.
  3. High Involvement Management: Treating employees as their partners in the business.
  4. High-Performance Management: Improves the performance of the firm by focusing on improving the productivity, growth,      and profitability rate of its people.
  5. Achieving Strategic Fit: Integration of human capital and resources is necessary for the smooth and profitable operation of the business.

Conclusion:

In organizations, strategic human resource management is becoming more crucial. It provides businesses with many advantages in terms of their competitive advantages, but there are also certain issues that the organization needs to look into. Some tactics, like employee pay and training for those who are negatively impacted by outsourcing, support the organization in reducing difficulties. Thus, there will be certain difficulties when organizations use SHRM.


References:

Aline Sampras, 2020. Strategic Human Resource Management (SHRM) Definition, Importance, Example, Elements & Overview [Online]
[Accessed on: 09 Dec 2022]

 

Emeritus, 2022. What is Strategic Human Resource Management (SHRM) and Why is it Important? [Online]
[Accessed on: 09 Dec 2022]




Comments

  1. Muhammad Salahudeen Muhammad December 10, 2022 at 10:36 PM

    you blog post is very much detail on Importance of Strategic Human Resource Management (SHRM) and also video also slimily informative

    ReplyDelete
  2. Pubuduni HapuarachchiDecember 10, 2022 at 10:40 PM

    Humans are not just resources they are an asset to an organization. From Strategic Human Resource Management, can be improved satisfaction, motivation, productivity and eventually overall performance through the strategic business goals of the organization with human resources.

    ReplyDelete
  3. Chamara RanasingheDecember 10, 2022 at 10:42 PM

    very well structured article. SHRM is modern principle, developed along with the organizational goals.

    ReplyDelete

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