STRATEGIC HUMAN RESOURCE MANAGEMENT

Strategic HRM is a branch of HRM that gives direction

on how to build the foundation for strategic
advantage by creating an effective organization
structure and design, culture, employee value
proposition, systems thinking, an appropriate
communication strategy and preparing an
organization for a changing landscape.

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MEANING OF STRATEGIC HRM

Strategic HRM focuses on actions that differentiate the
firm from its competitors that includes
a. The use of planning
b. A coherent approach to the design and management
of personnel.
c. Systems based on an employment policy and
workforce strategy, often reinforced by a philosophy.
d. Matching HRM activities and policies to some
explicit business strategy.

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. Seeing the people of the organization as a strategic resource for the

achievement of competitive advantage.
SHRM specifies largely about integration and adaptation. Its concern is to
ensure that,
1. HRM is fully integrated with the strategy and the strategic needs of the
firm.
2. HR Policies cohere both across policy areas and across hierarchies.
3. HR practices are adjusted, accepted and used by line managers and
employees as part of their everyday work.

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DEFINITION
Strategic HRM defines the organizations intentions
and plans on how its business goals should be
achieved through people. It is based on propositions
that is human capital is a major source of competitive
advantage, it is people who implement the strategic
plan.
According to Miller, strategic HRM as the pattern of
planned human resource developments and activities
intended to enable the firm to achieve its goals.

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According to Walker, strategic HRM is the means of

aligning the management of HR with the strategic
content of the business.

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KEY ISSUES OF SHRM

1. Organizational effectiveness
2. People management
3. Resourcing
4. Learning
5. Development
6. Reward
7. Employee relations

Essential Elements of SHRM

1. Changes in structure
2. Changes in culture
3. Organizational effectiveness
4. Organizational performance
5. Matching resources to future requirements
6. The development of distinctive capabilities
7. The management of change.
8. Human capital requirements.
9. Development of process capabilities
10.The ability to get things done effectively
11.People issues that are affected by the strategic
12.Plans of the organization.

APPROACHES TO SHRM
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2.
3.
4.
5.

Universalistic approach
Configurationally approach
Decision focused approach
Content focused approach
Implementation focused approach

THEORETICAL PERSPECTIVE OF SHRM

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5.

Resource based strategy

Achieving strategic fit
High performance management
High commitment management
High involvement management

Important factors of SHRM

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4.

5.
6.

Internally transforming HR staff and structure

Enhancing administrative efficiency
Integrating HR into the strategic planning process
Linking HR practices to business strategy and to one
another vertical fit, horizontal fit, external fit,
resource flexibility, Co0ordination flexibility.
Developing a partnership with line management
Focusing on the bottom line impact of HR and
measurement of that impact.

Strategic role of HRM

Strategic role of HRM

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5.
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Strategic HRM idea is that HRM is used to gain competitive

advantage.
SHRM practice is pair with business strategy.
SHRM elevates HRM from micro level to the macro
environment.
HR professional must be aware of global business and
social trends and should be able to perform environmental
scanning.
SHRM includes internal HR analysis.
HR professional must analyze HR against current and
future business strategies and identify the gap between
them.

PLANNING AND IMPLEMENTATION OF SHR

POLICIES
1. Staffing
2. Basic workplace ethics
3. Compensation and benefits
4. Retention
5. Training and development
6. Regulatory issues and worker safety

HR STRATEGIES TO INCREASE FIRM

PERFORMANCE
Make it applicable
2. Be a strategic partner
3. Involve people
4. Understand how technology can be used
1.

ADVANTAGES OF SHRM
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9.

It helps in people management

It helps in achieving competitive advantage
It helps in dealing with critical issues or success factors
related to people.
It helps in strategic decisions.
It helps in long-term impact on the behaviour and success
of the organization.
To generate strategic capability.
It ensures that the organization has the skilled, committed
and well-motivated employees.
It provides sustained competitive advantage.
It provides direction in achieving organisation
goals.

NEEDS FOR SHRM

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 supply competitive intelligence that may be
useful in the strategic planning process.
4. To recruit, retain and motivate people.
5. To develop and retain of highly competent
people.
6. To ensure that people development issues are
addressed systematically.
7.

Benefits of SHRM

7.To supply information regarding the company's internal

strengths and weaknesses.
8. To meet the expectations of the customers effectively.
9. To ensure high productivity.
10. To ensure business surplus thorough comopetency

Barriers of SHRM

1. Inducing the vision and mission of the change effort.

2. High resistance due to lack of cooperation from the bottom
line.
3. Interdepartmental conflict.
4. The commitment of the entire senior management team.
5. Plans that integrate internal resource with external
requirements.
6. Limited time, money and the resources.
7. The statusquo approach of employees.
8. Fear of incomopetency of senior level managers to take up
strategic steps.
9. Diverse work-force with competitive skill sets.

Barriers of SHRM

10. Fear towards victimisation in the wake of failtures.

11. Improper strategic assignments and leadership conflict
over authority.
12. Ramifications for power relations.
13. Vulnerability to legislative changes.
14. Resistance that comes through the legitimate labour
institutions.
15. Presence of an active labour union.
16. Rapid structural changes.
17. Economic and market pressures influenced the adoption
of strategic HRM.
18. More diverse, outward looking approach.

NEEDS FOR SHRM

1. It gives a competitive edge over their competitors.
2. It enhances core competence of an organization.
3. It enhances organizational effectiveness.
4. It enhances organizational productivity.
5. It enhances organizational financial performance.
6. It helps in enhancing stock market value.
7. It helps in creating high value.
8. It helps in developing array of skills, knowledge and
qualities required in a position.
9. It helps the firm to respond to external threats and
opportunities.
10. It leads to overall development of organization.

Need and importance of SHRM

Developing supportive work culture in order to
encourage creativity, team work, TQM as well as
innovation and a sense of belonging.
Creation of flexible environment because in flexible
environment employees can easily adapt to
changing competitive environment.
Creation of flexible working hours/ function.
Integration of people related issues with business
issues.

Need and importance of SHRM

SHRM encourages managers to be proactive which
means to think ahead.
Attainment of organization objectives through
human capital.
It enhances individual performance by development
of commitment at all levels.
It enables development of need based personnel
policy/HR policy as a prerequisite for optimum use
of human resources.
Integration of HRM policy with business goals or
objectives.

Human Resource Environment

1. Technology and Organizational Structure

Influences of HR information systems

Redeployment of HR staff to operating units
New organizational structures
Stimulus for entrepreneurial businesses

Human Resource Environment

2. Workers values and attitudinal trends
3. Management trends
Management of diversity
Work teams
Virtual teams
HR outsourcing
Open book management
Total quality management
Integrated manufacturing
Re-engineering
Management of professionals

Human Resource Environment

3.

Demographic trends
An aging workforce
The boomer age bulge
Labour shortages
Changing occupational distributions for women
Dual-career couples

Human Resource Environment

4. Trends in the utilizaton of human resources
Telecommuting
Relocation of work
Growing us of temporary and contingent workers
Factors limiting the use of temporary or contingent
employees
Employee leasing

Human Resource Environment

5. International developments
Global competition
Global sourcing of labor
North American Free Trade Agreement
European Community

Strategic Human Resource Function

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To enhance human resource productivity.

To improve quality.
Innovations.
Contain costs.
To satisfy customers.
Integration of human resources.

Strategic roles of the HR Director

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very much part of the top management team.

Involved in business planning.
Involved in an integration of HR plans with business
plans.
Managing the staff
Professionally competent
Involved in resourcing at top and senior levels.
To improve organizational effectiveness.
To improve bottom line performance.
Involved in shaping corporate culture values.

Skills to be adopted by HR Professional

1. Information management skills
2. Knowledge planning
3. Planning methodology
4. Management skills
5. Business function
6. Integration
7. Competency
8. Change management
9. Facilitating changes

Significance of Strategic HRM

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Rapid rate of change in business.

Raising costs.
Increasing competitive pressure.
Rapid technological change.
Increasing demand for new skills.
Complex organization.
Changing demographics.
Increasing multinational competition
Collaboration
Multilateral relationship.