What is Strategic Human Resource Management?

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In Human Resource (HR) and management circles nowadays there is much talk about Strategic Human Resource Management and many expensive books can be seen on the shelves of bookshops. But what exactly is SHRM (Strategic Human Resource Development), what are its key features and how does it differ from traditional human resource management?

SHRM or Strategic human resource management is a branch of Human resource management or HRM. It is a fairly new field, which has emerged out of the parent discipline of human resource management. Much of the early or so called traditional HRM literature treated the notion of strategy superficially, rather as a purely operational matter, the results of which cascade down throughout the organisation. There was a kind of unsaid division of territory between people-centred values of HR and harder business values where corporate strategies really belonged. HR practitioners felt uncomfortable in the war cabinet like atmosphere where corporate strategies were formulated.

What Is Strategic Human Resources Management?

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“What is strategic human resource management?” is a great question for both HR professionals and business leaders. For more than a decade, HR professionals have attempted to get a “seat at the table” with their business leaders to influence how the business is run and to elevate the importance of the HR function. In most cases, the HR team is not fully integrated with the business. Often, the senior HR professional is not involved in either strategy development or key decisions on how the business is run. This is because some business leaders don’t fully appreciate the strategic importance of the HR function, or in other cases, the HR leaders have not explained how the HR function can be strategic. Both business leaders and HR professionals can benefit from having a common understanding about the basic question, “What is strategic human resource management?” The answer is for both to work together to align the key roles of the HR function to support the overall business strategy. Here is how to do it.

Define a Talent Management strategy: The success of any business regardless of its strategy is primarily dependent upon getting the right people. In his popular business book, Good to Great, business guru Jim Collins emphasizes the importance of “getting the right people on the bus.” Getting the right people on the bus and getting them productive is the realm of human resources. The senior HR leaders who wants to be “strategic” should do the following: