Strategic Human Resource Management (SHRM) for a better work place and a better world
What is Strategic Human Resource Management
Strategic Human Resource Management (SHRM) was firstly discovered by Boxall (1996) as the interface between Human Resource Management (HRM) and Strategic Management (SM). Armstrong (2020) defined SHRM as the process to ensure the key resources of HRM are handled strategically to achieve the organizational goals. Solving Human Resources issues strategically means deciding what need to be done now and for the future aligned with the business strategy.
Strategic SHRM Process
Armstrong (2020) describes the SHRM process with his Strategic Process Model. It links people management and develops, strategic practices (fig,01) The main activities of SHRM are finding the exact business, forming strategies according to the vision, having a purpose with a long term direction and establishing a mission to accomplish (Thompsan and Strickland, 1996). SHRM build the resource base while focusing on the organizational strategies and the mission. Managers need to have a long term view of where the business is headed. They are responsible
for planning resource allocations, implementing strategies and managing functions. A strategy defines long term goals, recognizes organizational capability and aims to meet the strategic fit, the organizational strategy and external, internal strategies.
Fig.01, Strategic HRM Model (Armstrong, 2020)
HR Strategy criteria
- Aligned with corporate goals
- Set clear aims
- Support business needs as well as the employees
- Contains realistic plans
SHRM Guidelines
- Be precise on what needed to be achieved and why
- Ensure all the actions are fitted to the culture, circumstances, business strategy and the culture
- Aim for constant improvement
- Be unique
- Keep simple
- Take time to rethink
- Assess the resources and the cost
- Manage changes
SHRM and Organization
SHRM can influence achieving organizational goals with a focused HRM plan. It concerns activities and employee issues. Jedaiah and Albdareen (2020) state that when human resources go missing the whole organization falls behind. Their research shows organizations with SHRM trained managers reached excellence, followed by organizational development, career development and recruitment development. SHRM significantly helped the organization to understand its unique strategies and build competitive advantage and sustainable HRM (Paauwe and Farndale, 2017). Below approaches improve organizational productivity.
- Aligning Human Resource activities
- Outsourcing operations internationally
- Restructuring the organization
- Re-designing the work
SHRM and World
SHRM frameworks applied to organizations and industries influenced performance and productivity rapidly nationally and multi-nationally (Paauwe and Farndale, 2017). Patrick et al (2005) had come up with suggestions and insights to move forward with SHRM towards globalization. Sysco, Corporation, one of the largest foodservice in the world, designed and adopted A high-performance SHRM system and they could obtain a full per cent difference in their profit margin within fifteen months (Wright, 2005).
Conclusion
The aim of SHRM is to build strategic capability by ensuring well-motivated, committed and skilled employees are in the organization to reach sustained competitive advantage. The organization needs to understand where the strategies are coming from and how to connect with the stakeholders to succeed in strategic human resources. Strategic Human Resources can be used in different activities like training, recruiting, and rewarding.SHRM directly make an impact on the company's growth.
References
Armstrong, M. (2020) Armstrong's handbook of strategic human resource management. 7thed. London: Kogan Page.
Boxall, P. (1996) 'The strategic hrm debate and the resource-based view of the firm', Human Resource Management Journal, 6(3), pp. 59-75.
Jedaiah, A. and Albdareen, R.(2020) 'The effect of strategic human resource management(SHRM) on organizational excellence', Problems and perspectives in management, 18(4), pp.49-58. Available at:https://businessperspectives.org/journals/problems-and-perspectives-in-management/issue-365/the-effect-of-strategic-human-resources-management-shrm-on-organizational-excellence
Paauwe, J. and Farndale, E. (2017) Strategy, HRM and Performance: A contextual Approach, Oxford: Oxford University Press.Available at:http://0web.a.ebscohost.com.emu.londonmet.ac.uk/ehost/ebookviewer/ebook/bmxlYmtfXzE2MzA3NjlfX0FO0?sid=ddfdfd42-b470-4fdf-b5cb-0db5277c3443@sdc-v-sessmgr02&vid=0&format=EB&lpid=lp_116&rid=0
Patrick, M., Wright, Scott, A., Snell and Lee, D. (2005) 'New models of strategic HRM in a global context', International Journal of Human Resource Management, 16(6), pp.875-881.
Thompson, A., Strickland, A., (1996) Strategic Management: Concepts and cases. New York: McGraw hill.
Wright, P. (2005) Human Resource Strategy. California: SHRM Foundation.
Many companies are dedicated to improving their HR practices for better business performance. Companies with the best HR practices use a successful human resource management strategy that includes recruiting top employees, incentive programs for staff, understanding and dealing with organizational issues, being innovative in helping the company stay ahead of the competition. Tokyo, Japan – Nissan is another top company that’s a great example of SHRM. Nissan has blended the manufacturing techniques of the Japanese with the productivity of the British. Each employee is hired based on their drive and talent and encouraged to improve their skills. At Nissan, there are no hidden salaries and the workers are well paid. Leaders build their own teams that they see as the best for what they are assigned. (Source - https://peoplemanagingpeople.com/topics/strategic-human-resource-management/)
ReplyDeleteI agree with you Hansika. Many organizations have adopted and improving Strategic HRM practices in order to gain better performance. Two more top companies benefiting from SHRM are Google and Cadbury. Google boast for its employee perks and huge facilities including wellness centres, roller hockey rinks, seven acre sport complex, subsidised massages and horseshoe pits.Cadbury supports employees and their families to the fullest. They created a worker village offering the staff and their families to live and work.
DeleteSHRM has the benefit that organization has to start measuring the value of human capital. It needs to assess its employees, and it has to compare its assets with the ideal profile of employees (more on Strategic Planning). The proper assessment of jobs, skills, and competencies is the first step to building a better business. It has to go through many fit-gap analyzes to ensure that all plans and initiatives are aligned with the primary goal of the strategic Human Resource
ReplyDeleteIf strategic management is implemented in the organisation thoroughly then there is no doubt that the organisation will survive all types of odds and competition and remain in the market for a long period of time. This is required in the present situation for all organisations. It just calls for proper planning and the right people in order to implement them in the organisation.
ReplyDeleteYou need to keep a regular check on all external and internal factors affecting your industry; besides this check all your financial resources whether they are enough to expand your business. If you could keep in mind these things, the implementation will become very easy and quick for any organisation irrespective of their sizes.
Very Good article Maduka. I think this is very better concept to all the organisations at the world and by using this method every organisation will become successful and become competitive in the world.
ReplyDeleteAll employees and organisations need to work together for achieving the strategic vision and mission statement through this.
Good article. The greatest benefit of strategic human resource management is its purpose to improve organizational performance by integrating and aligning with business strategy. When it comes to recruitment, strategic human resources management is being proactive rather than reacting to vacancies at the leadership level, Strategic HR managers will assess the organization's goals and take early steps to get the right people in place.
ReplyDeleteI agree with you Apsara. Compared to the traditional management strategic human resource management can determine which way is the best to improve its employees by analysing the employees.So the steps can be taken to increase the value and address the weaknesses.
DeleteStrategic human resource management is designed to help companies best meet the needs of their employees while promoting company goals. Human resource management deals with any aspects of a business that affects employees, such as hiring and firing, pay, benefits, training, and administration.
ReplyDeleteAll HR functions are integrated with the organization's vision and mission, HR departments are playing a vital role in the organization with the strategic role. In recent years, strategic human resource management was identified as more important to the organization for gaining competitiveness.
ReplyDeleteThe strategic combination of HR wants the strategic planning method and the reflection of HR managers in that method. The development of a strategic plan includes top management, with the help of outside consultants, going through and analyze the current and future condition of the organization.
ReplyDeleteAttracting and keeping talented and skilled employees is one of the most important challenges organizations face in today’s dynamic business world.
ReplyDelete