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Introduction
Strategic human resource management (SHRM) is a practice that involves aligning the human resource policies and practices with the organizational goals and objectives. It is a strategic approach to the management of human resources that contributes to the success of an organization by enabling it to achieve its strategic goals and objectives.
This article provides an overview of strategic human resource management, its importance, and some of the key practices associated with it.
Some definitions of SHRM (Armstrong Handbook of HRM, 2014)
- Boxall (1996) defines SHRM as the interface between HRM and strategic management.
- Schuler and Jackson (2007: 5) stated that SHRM is fundamentally about ‘systematically linking people with the firm’.
- Baird and Meshoulam (1988: 116) pointed out that: ‘Business objectives are accomplished when human resource practices, procedures and systems are developed and implemented based on organizational needs, that is, when a strategic perspective to human resource management is adopted.’
- Wright and McMahan (1992: 295) explained that the field of HRM has ‘sought to become integrated with the strategic management process through the development of a new discipline referred to as strategic human resource management’.
The below figure shows the strategic HRM model. SHRM is about both HR strategies and the strategic management activities of HR professionals. (Armstrong Handbook of HRM, 2014)
The Importance of
Strategic Human Resource Management:
SHRM allows an organization to align its human resource policies and practices with its strategic goals and objectives ensuring the organization have the right people in the right positions with the right skills and abilities to achieve its goals and objectives.
SHRM helps the organization ensures that its employees are working towards the same goals and objectives as the organization leading to improved employee morale, increased job satisfaction, and higher levels of employee engagement.
SHRM helps to ensure that the organization is able to attract and retain top talent. By offering competitive compensation and benefits packages, providing opportunities for career development, and creating a positive work environment, the organization can attract and retain the best employees.
Let’s watch a video on SHRM which highlights an example of SHRM and its benefits.
Key Practices of
Strategic Human Resource Management:
Workforce Planning:
Workforce planning involves assessing the current and future human resource needs of the organization by identifying the skills and abilities required to achieve the organization's goals and objectives, and developing strategies to acquire and develop those skills and abilities.
Recruitment and
Selection:
Recruitment and selection involves identifying and attracting the best candidates for available positions within the organization by developing job descriptions, posting job advertisements, and conducting interviews to identify the best candidates.
Performance Management:
Performance management involves setting performance expectations, providing feedback on performance, and developing strategies to improve performance.
Compensation and
Benefits:
Compensation and benefits involves developing competitive compensation and benefits packages that attract and retain top talent by developing salary structures, providing bonuses and incentives, and offering benefits such as health insurance and retirement plans.
Conclusion
Strategic human resource management is an important practice that enables organizations to align their human resource policies and practices with their strategic goals and objectives. By adopting a strategic approach to human resource management, organizations can improve their overall effectiveness, attract and retain top talent, and achieve their strategic goals and objectives. Some of the key practices associated with strategic human resource management include workforce planning, recruitment and selection, performance management, and compensation and benefits.
References
Bonnie Monych (No date)
Strategic HR management. Insperity (Online)
Available at https://www.insperity.com/blog/5-critical-steps-to-future-proofing-your-human-resources-strategy/. Accessed on 06th March 2023
Joseph Htel. (no date) Armstrong’s Essential Human Resource Management Practice - Michael Armstrong & Stephen Taylor. Academia (Online)
Available at https://www.academia.edu/19545696
Accessed on 04th April 2023
Solution Dot. (March 2023)
Why you need a strategic human resource management? SolutionDot (Online)
Available at https://solutiondots.com/blog/strategic-human-resource-management/
Accessed on 06th March 2023
More detailed article .SHRM is important because it helps businesses achieve their goals. By aligning HR programs and policies with the company's business strategy, SHRM can help businesses improve employee performance, develop the workforce and create a positive work environment.
ReplyDeleteThank you for the well-written article. You did an excellent job of explaining the concept of SHRM and its importance in today's business landscape. You have focused on the need for organizations to align their HR strategies with their overall business objectives. It is very important to have a clear understanding of the organization's goals and objectives and ensure that HR practices are designed to support these goals.
ReplyDeleteWhat are some of the potential challenges that organizations may face when implementing a new HR solution?
Thank you for sharing this insightful blog post. I completely agree with the author's perspective that managing global careers is becoming increasingly important in today's interconnected world, and requires a strategic approach that takes into account both the individual employee's needs and the organization's goals. As Dickmann and Baruch (2011) suggest, organizations need to adopt a holistic approach to managing global careers that involves career development, talent management, and cross-cultural training. Similarly, Briscoe, Schuler, and Tarique (2012) highlight the importance of aligning HR policies and practices with the organization's global strategy, and developing a cadre of global managers who can lead international operations effectively. Finally, Clegg, Courpasson, and Phillips (2006) emphasize the role of power in organizations, and how it can shape the career experiences of individuals. Overall, this blog post offers valuable insights into the complexities of managing global careers and the need for a strategic approach that aligns the interests of employees and organizations.
ReplyDeleteHi Kabilashini, your blog post provides a good introduction to SHRM and the importance of aligning human resource policies & practices with organizational goals and objectives.
ReplyDeleteIf you permit me, I would like to highlight one area that could have added further value to your blog post, which is Employee experience (EX).
EX basically how employees feel about everything they encounter throughout their employment journey which a particular employer, from the time they apply for a job until well after they leave an employer (Vulpen, 2023). Post pandemic EX is becoming an integral part of SHRM as organisations realise that they should treat their employees as customers, seeking employee satisfaction as equally as customer satisfaction (Boquen, 2023)
EX is made up of 2 key components, namely physical experience, digital experience, and cultural experience.
The physical experience includes the sensory elements of the work environment and how they affect employees' ability to focus and carry out their duties. The digital experience involves the technology employees use to find jobs, do their jobs, communicate & interact with colleagues, HR and other services. The cultural experience includes the values, symbols, and visible behaviors that are displayed in everyday practices and influence how the work environment feels. (Vulpen, 2023)
References
Boquen, A. (2023) | What is Employee Experience and Why Should It Be a Priority? (2022). Available at: https://nhglobalpartners.com/what-is-employee-experience/ (Accessed: 16 April 2023).
Vulpen, E. van (2023) ‘Employee Experience: A Complete Guide for HR’, AIHR, 31 March. Available at: https://www.aihr.com/blog/employee-experience-guide/ (Accessed: 16 April 2023).
Best Regards, Nithila
Interesting article Kabilashini. Adopting a specific plan for human resources, updating policies and procedures, and enhancing employee competencies to handle unique or difficult situations are all examples of strategic human resource management. In both large and small businesses, SHRM is crucial. As the owner or manager spends so little time each day observing, assisting, and evaluating staff and gives regular reviews, it can be a straightforward process in small businesses. Large businesses may have a separate department in charge of development and human resources. (Paul, R. n.d)
ReplyDeleteGreat knowledge-sharing post. I would like to add that Truss and Gratton (1994) posit that strategic human resource is a major concern for organisations that develop business performances and cultures that embrace innovation and flexibility.
ReplyDeleteAs explained, Strategic HRM is needed for an organization to reach its goals and objectives.HR should first try to create an environment which is open to change culture. This could be a time consuming and a costly process, but with a proper plan,the organization could reach its heights.Paauwe,(J. and Boon, C., 2018).
ReplyDeleteSHRM is an approach to managing human resources that emphasizes the strategic importance of HR in achieving organizational goals. It involves managing a diverse workforce across different cultures, languages, and countries, taking into account cultural differences, legal and regulatory environments, language barriers, talent management, performance management, and compensation and benefits. Effective SHRM can help organizations achieve their business goals and objectives by leveraging their human capital as a strategic asset.
ReplyDelete