Strategic HRM: Optimizing Employee Performance Management

This report provides an overview of Human Resource Management (HRM) and Strategic Human Resource Management (SHRM), highlighting their importance in enhancing employee performance within organizations. It discusses HRM activities such as recruitment, training, and compensation, contrasting them with SHRM's focus on aligning human resource practices with organizational goals and strategies. The report emphasizes the interconnectivity between HRM and SHRM in improving performance management activities, leading to better employee engagement, motivation, and overall organizational growth. It also touches on the role of performance appraisals and training in optimizing employee contributions and achieving business objectives. The document concludes that effective integration of HRM and SHRM is crucial for sustainable enterprise growth.

Strategic HRM

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
HRM or Human Resource Management................................................................................1
SHRM or Strategic Human Resource Management...............................................................1
HRM and SHRM....................................................................................................................2
HRM and SHRM for employee performance management...................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The human resource management refers to the management of the workforce for enhancing
their performance within the organisation by performing HRM activities like organising,
recruitment, directing, providing wages etc. on the other hand, strategic HRM refers to the
unification of efforts of the people working within an organisation with the organisational goals,
objectives and aims. The following report will be describing HRM and strategic HRM within an
organisation for improving the performance management within an organisation to enhance
employee performance. Moreover, it will also discuss and illustrate the connection within HRM
and SHRM for enhancing the performance management activities.
MAIN BODY
HRM or Human Resource Management
Human resource management can be explained as planning, organising, staffing, directing,
controlling, coordinating, reviewing and paying activities concerned with the human resource,
working within an organisation. The main activities of HRM within an organisation are to hire,
retain, and provide training and development to the staff or employees (Bouaziz and Hachicha,
2018). HRM is a practiced device to increase the productivity of employees for making them
more efficient and effective by applying the principles of management to manage the employees.
The main focus of HRM is to recruit, provide training, appraise, organise, safety and growth,
industrial relations, training etc. to the employees of the entity. The main functions of an HR
manager includes planning, staffing, directing, controlling, monitoring, evaluating and managing
relations with the employees within an organisation.
SHRM or Strategic Human Resource Management
Strategic human resource management refers to the activity are the strategy of the business
to combine or align the strategies of the business with the human resource practices within an
organisation. In simple words it can be stated as the strategy of an organisation to align the
business objectives, mission, vision, aims and goals with the human resource practices within an
organisation. The primary objective of strategic HRM is to raise the performance of business and
maintain a work culture that encourages the performance of employees towards improvement of
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the organisation by continuous innovation and higher competitiveness. Strategic HRM focuses
on adjusting the human resource strategies according to the business objectives and ensuring that
the human resource activities are in liaison with the organisational strategy and its future goals,
mission, vision and objectives. The main aim of strategic HRM is to analyse the internal strength
and weaknesses of the organisation and external opportunities and threats to the business
organisation (Knezović and et. al., 2020).
HRM and SHRM
The comparison between HRM and strategic HRM and their interconnectivity is elaborated
below.
HRM (Human Resource
Management)
SHRM (Strategic Human
Resource Management)
Meaning Human resource management
refers to the activities of
governing the manpower and
their activities within an
organisation with the help of a
structured definition.
Strategic HRM refers to the
function of managers to frame
human resource strategies that
align with the organisational
objectives and goals.
Nature Human resource activities are
reactive because they include
the complete involvement of
human resources.
Strategic HRM is productive
in nature and does not require
the managers to indulge with
the human resource.
Responsibilities and
authority
Human resource authority is in
hand of the human resource
managers.
Strategic HRM is controlled
by the line managers (Memon
and et. al., 2020).
Approaches The human resource
management is very divided
and fragmented for different
groups of people.
The strategic HRM is
integrated to the
organizational objectives and
goals.
Scope The human resource
management mainly focuses
Strategic HRM focusing on
connecting with the internal
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on developing employee
relations and their
performance.
and external relations.
Time horizon HRM is a short term activity
that is done for a specific time
frame (Emeagwal and
Ogbonmwan, 2018).
Strategic HRM is a very long
process because it takes time
to align the objectives of the
organisation with the human
activities.
Level of control HRM have stringent controls
over the manpower and their
activities within the
organisation.
Strategic HRM exhibit
leniency of control over the
people in external and internal
contexts.
HRM and SHRM for employee performance management
Performance management refers to an integrated approach for helping the organisation to
achieve its objectives and goes by examination, analysing and enhancing the performance of the
workforce within the organisation. HRM and strategic HRM are responsible for effective
performance management within an organisation. HRM and strategic HRM activities are
important for managing employee performance so that overall business communication can be
improved. Effective performance management activities help the organisation to develop a
culture of leadership, employee motivation, employee engagement and higher level of
responsibilities of the employees towards their goals and responsibilities for the organisation.
The performance appraisal that is the part of HRM can be helpful to appraise the performance of
employees towards their contribution for organisational growth. With the help of performance
appraisals the feedback can be provided for improving the organisation's process for better
employee retention, employee engagement and employee motivation for enhancing their
performance. The managers are responsible for providing clear direction and guidance to the
employees for improving their best practices within the organisation (Bayo-Moriones and et. al.,
2020). Moreover, the HR provides training and development to the employees for improving
their current practices and enhancing their performance at the work. With the help of human
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resource management and strategic HRM the performance management within an organisation
can become actionable and measurable for improving the overall organisational growth.
CONCLUSION
It has been concluded from the above report that human resource management and strategic
HRM are very important activities within an organisation that has to improve the performance of
the employees to achieve the organisational goals effectively and efficiently. Finally it can be
said that human resource management activities and strategic HRM provides greater support for
improving the performance of employees for enhancing overall growth of the enterprise.
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REFERENCES
Books and Journals
Bayo-Moriones, A. and et. al., 2020. Performance appraisal: dimensions and determinants. The
International Journal of Human Resource Management, 31(15). pp.1984-2015.
Bouaziz, F. and Hachicha, Z. S., 2018. Strategic human resource management practices and
organizational resilience. Journal of Management Development.
Emeagwal, L. and Ogbonmwan, K.O., 2018. Mapping the perceived role of strategic human
resource management practices in sustainable competitive advantage. Academy of
Strategic Management Journal, 17(2). pp.1-19.
Knezović, E. and et. al., 2020. Strategic human resource management in small and medium
enterprises. International Journal of Human Resources Development and
Management, 20(2). pp.114-139.
Memon, M. A. and et. al., 2020. Satisfaction matters: the relationships between HRM practices,
work engagement and turnover intention. International Journal of Manpower.
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