SHRM

CHAPTER 1
 Definition of SHRM

 Cheng (2005) defines that strategic HRM is the collection

of actions and decisions resulting in the implementation
and formulation of strategies configured to gain the
organizational objectives.
 Dessler(2011) argues that strategic HRM means making
and implementing practices and policies of human
resource that generates the behaviours and competencies
of employee that the organization requires to gain its
strategic goals.
 Aim/Objectives of SHRM

 To ensure the availability of a skilled, committed and highly

motivated workforce in the organization to achieve sustainable
competitive advantage.
 To provide direction to the organization so that both the
business needs of the organization & individual & collective
needs of its workforce met.
 Identifying and analyzing external opportunities and threats
that may be crucial to the company's success.
 Provides a clear business strategy and vision for the future.
 To supply competitive intelligence that may be useful in the
strategic planning process.
 Aim/Objectives of SHRM (Contd.)

 To recruit, retain and motivate people.

 To develop and retain of highly competent people.
 To ensure that people development issues are addressed
systematically.
 To supply information regarding the company's internal
strengths and weaknesses.
 To meet the expectations of the customers effectively.
 To ensure high productivity.
 To ensure business surplus thorough competency
 Challenges in SHRM

 Supporting The Entire Strategy: The first challenge in the list is the inability
of the top most management of the company to communicate the strategy of
the company to its employees. Secondly, is the disagreement in the selection of
SHRM strategy for the development of the organization. The third challenge in
the list is there are different strategies formulated in the different units of the
organization, where every unit wants to formulate the SHRM strategy.
 Securing The Commitment Of The Management: The formulation of
SHRM strategies does not only take place in the HRM department of the
organization. For the HRM strategies to be successful in developing the
organization, it is very important that the other managers and executives of the
company including the top most management support the strategy. In order to
ensure that the strategy will be supported by the top most management of the
company, the HRM strategy developers must work in close contact with them,
while the strategy is formulated. But in reality it is difficult for the HRM
personnel to work in close association with the management since they get
stuck with the functions of their department.
 Challenges in SHRM (Contd.)
 Organizations Strategic Plan Needs To Be Integrated: The HRM plans
need to be derived from the plans of the organization. It has often been found
that a plan looks very strong and promising on the paper but because of poor
implementation, it fails to produce desired results. A strategic plan can be
tested by identifying that whether the plan is able to create any difference in
the practice. If the plan doesn’t lead to any changes in the practice, it is
considered to be a failed plan by the managers and the employees of
the organization. Therefore the biggest challenge in SHRM is in the fact of
program development for the working of the plan.
 Structure: The success of the company depends a lot on whether there is a
proper management structure in place.
 Team-working: By withdrawing old traditional hierarchies a background of
creating a team building is created. In a lot of cases, the less layers there are
between the workers and director there are, the more harmonized is the
working environment. Also the communication between staff is easier and
more effective. In addition to that, it could have far-reaching effects on
flexibility and performance and to achieving a better coordination of business.
 Challenges in SHRM (Contd.)

 Performance: This strategy is based on an analysis of the critical success

factors and the performance levels reached in relation to them. The
performance can be improved by taking the steps to improve training,
development, reorganization, the development of performance
management processes, business process re-engineering, etc. A lot of
companies have already adopted performance management processes in
which the emphasis is on performance improvement and development and
not reward. This scheme brings new priorities of involvement, teamwork
and self-development.
 Quality and customer care: The aim of most companies is to achieve the
competitive advantage. The competitive advantage is often measured
by customer satisfaction and hence loyalty and
retention. Innovation and cost reduction is still important but the main
focus of attention should be the customers because if they reject the
product due to it not meeting their expectations then everything else looses
the sense. Therefore the strategy for quality should be built into the
business strategy.