Strategic HRM Report

This report comprehensively examines Strategic Human Resource Management (SHRM), detailing its definition, importance, purpose, processes, and various approaches. It begins by defining SHRM as the alignment of HR functions with organizational strategies, emphasizing its role in achieving business objectives. The report highlights the significance of SHRM in attracting, developing, and retaining employees, ultimately contributing to organizational success. Key activities of SHRM, such as equal opportunity/diversity initiatives, staff planning, and compensation and remuneration plans, are discussed. The report further outlines the SHRM process, including environmental scanning, identifying competitive advantages, implementing HR strategies, and monitoring and evaluation. Different approaches to SHRM are explored, including resource-based, high-commitment, high-involvement, high-performance, and strategic fit approaches. The conclusion emphasizes the crucial role of SHRM in organizational sustainability and growth, attracting talent, and fostering team learning.

Running head: Strategic HRM
Strategic HRM

Strategic HRM
Table of Contents
Introduction.................................................................................................................................................3
Strategic human resource management......................................................................................................3
Importance of SHRM..................................................................................................................................4
Purpose of SHRM activities........................................................................................................................4
Process of strategic human resource management.......................................................................................6
Approaches to strategic human resource management................................................................................8
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11
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Strategic HRM
Introduction
The report talks about the strategic human resource management and performance
management. It explains that how SHRM plays a significant role in every organization to meet
the organizational goals and objectives. It explains the importance, function, approaches, and
role of strategic HRM in the firm.
Strategic human resource management
The term “Strategic human resource management” was introduced by the Kaufman
(2012), where he explained that Strategic human resource management include the human
resource elements such as discipline, hiring, payroll and it also involves the working with
workers in a collaborative manner in order to improve the quality of work, boost and improve
retention and maximize the mutual benefits of job for the employees.
According to Tiwari & Saxena (2012), it is the process of attracting, rewarding,
developing and retaining employees for the benefits and advantages of both the workers and
organization. Thus, the goals and objectives of the human resource department affect the goals
and objectives of rest of the association.
According to Arulrajah, Opatha & Nawaratne (2016), SHRM is the integral part of
strategic planning It formulates and executes the human resource practices and policies which
produce the employee behavior and competencies in order to achieve the association strategic
aims and objectives.
“Strategic human resource management” may be defined as connecting and accepting the
human resource function as a strategic partner in the execution and formulation of the
organizational strategies through the human resource activities like recruiting, training,
rewarding and selecting the personnel. On the other hand, it may be defined as the connecting of
human resources with strategic long-term goals and objectives in order to improve the trade
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Strategic HRM
performance and develop the organizational culture to promote the innovation, competitive
advantage and flexibility (McNulty & Hutchings, 2016).
The term strategic human resource management can be defined as the pattern and outline
that designed the human resource development and activities in order to achieve the
organizational goals and objectives of the company.
After the various researches, it has been found that SHRM is focused on the issue and
problems of HRM in organization perspective rather than individual perspective context. The
role of SHRM provides support to business and trade activities of the organization. It maintains
the relationship between strategic management and human resource management in the
company. According to McNulty & Hutchings (2016), strategic HRM addresses and deals with
broad organizational issues and obstacles relating to the organizational performance,
effectiveness, changes in culture and structure, development of distinctive and unique
capabilities, matching resources to future requirements and needs, Management of changes and
knowledge management (McNulty & Hutchings, 2016)..
Importance of SHRM
A study has been conducted by the Kontoghiorghes (2016) where he analyzed that
SHRM plays a significant role in every organization. It develops the plans and process for
enlistment, training, incentive, and compensation in order to attain the organizational goals and
objectives. It ensures the chances of growth and success of the company. It is the procedure and
process to use the technique of human resources such as training, compensation, recruitment and
worker relations to build a strong association. This management provides clear direction and
guidelines to employees for doing the work effectively. It continuously monitors and analyzes
the internal and external environment of the company. It also evaluates and checks the progress
and success of the company. It creates a strategic environment which will maintain the team
spirit and teamwork in the organization. Therefore, it is the integrated part of the company
(McNulty & Hutchings, 2016).
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Strategic HRM
Purpose of SHRM activities
According to Tarique & Schuler (2010), Strategic Human response administration
assumes a vital part of the development and growth of the business association. All the
association activities are managed with effectively and efficiently. There is a connection
between's the ways and techniques in which each and every phase is addressed, the approaches,
effectiveness, organizational success, and profitability. It helps to increase the globalization in
the organization. It identifies the organizational needs and requirements and utilizes the human
resources. According to Cascio (2015), it formulates and reviews the HR policies and practices
and it develops the guidelines for the HR managers. It set the performance evaluation standards
and methods to analyze the performance of employees. It identifies the relationship among the
different department and assigns the duties and responsibilities to them (Lengnick-Hall, Beck &
Lengnick-Hall, 2011).The key exercises of SHRM are discussed below.
Equal Opportunity/ Diversity: Diversity describes the people differences, in a business setting; it
regularly concentrates on a specific arrangement of attributes which are: sex, ethnicity, religion,
inability, age, sexual introduction, area, conjugal status.
Staff planning: It is the procedure of investigation an association's future needs in terms of
number, abilities, and areas. It enables the company to anticipate and plan for the future
employees. In this way, the key activities of SHRM play a vital role in the association (Festing,
2012).
Objectives of SHRM
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To set the goals and objectives
To utilize the various human resources
Compensation and remuneration plan
To analyze and identify the
relationship
To formulate and implement the HR
policies and practices
To develop and expand the guideline

Strategic HRM
The function of SHRM: According to Lengnick-Hall, Beck & Lengnick-Hall (2011), functions
of SHRM are discussed below.
Employee engagement: It is the important key success factor for the growth and success of the
company. The helps to the association to improve the efficiency of the employees and it also
helps to retain the talent and potential of employees. The high employees’ engagement has been
proved beneficial for the company to increase the productivity of the company. This
management teaches the HR managers that how to increase the employee's capabilities and
competencies.
Introduce best practices: SHRM introduces the best practices and policies to perform the tasks
and duties. It provides the best practices to help the entrepreneurs in order to meet the success of
the company. It provides the job satisfaction to workers.
Teach Tools and techniques: According to Thurston, D'Abate & Eddy (2012), the SHRM
conducts the various researchers in order to introduce the various new HR techniques and tools.
This management teaches the company to conduct needs and requirements evaluation in the
organization. The company uses these HRM techniques to resolve the various obstacles and key
challenges of the association.
Improve HR effectiveness: It is the primary function of this management and it plays a crucial
role in an organization. The strategic HRM improve the efficiency and productivity of the
workers. It encourages the employees for doing work effectively. The HR professionals teach
that how to provide realistic and rational information about the employment. The HR managers
learn that how to incorporate and integrate the job expectations and organizational culture.
Public research: The SHRM continuously publishes the external and internal scientific research.
This will help to improve the high employee turnover within the organization (Thurston, D'Abate
& Eddy, 2012).
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Strategic HRM
Process of strategic human resource management
According to Singh, Darwish, Costa & Anderson (2012), the SHRM process plays a
significant role in the company to meet the long term and short-term goals and objectives.
1: Scanning the environment: It is the first step of this process. This process starts with the
scanning and scrutiny of the environment. In this stage, the management analyzes the external
and internal factors of the association. The external factors include the political, technological,
legal, economic, and sociocultural factors which influence the business activities and operation
of the company. The internal factors encompass the organizational culture, business processes,
hierarchy, industrial relations, and SWOT analysis. All these factors play an integral role in the
company.
Therefore, the HR department collects all the important information about the competitors’
strategies, vision, strengths, weaknesses, and mission. This can be done by the scanning and
evaluation of environment. Thus, the human resource managers identify the work culture, values,
skills and abilities of the workers (Tiwari & Saxena, 2012).
2: Identify the sources of competitive advantage: It is the next step of strategic HRM process.
It identifies the competitive advantage like products, price, brand positioning, customer service
and delivery. Therefore, the HR professional helps in acquiring and obtaining the competitive
advantages by conducting the various effective and efficient training and development programs.
It will also improve the skills and abilities of the employees.
3: Identify HRM strategies and policies: The department uses the various strategies and
policies to increase the productivity and revenue of the company. These strategies help to
enhance and develop the employees’ capabilities and potentials (Liang, Marler & Cui, 2012).
 Learning as socialization: It is another part of the SHRM process and it plays a vital
role in an organization. It includes the various techniques, methods, training courses,
education programs, coaching sessions to ensure the employee's performance and
abilities.
 Engineering: This strategy focuses on developing and creating communities of practices,
policies and social networks within and outside the company. Therefore, it is very
important for the organization (Dimba & Obonyo, 2015).
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Strategic HRM
 Devolved informal learning: It increases the awareness of employees for taking the
learning opportunities and benefits. It enhances and builds the various career
development programs to maintain sustainability in the organization.
 Empowered informal learning: Through this approach, HR professionals focus on the
development of learning environment. The learning environment includes the designing
of the new processes, provision of shared spaces and designing of new work location.
4: Implementation of HR strategies: According to Liang, Marler & Cui (2012), HR strategies
plays an integral role in the success and growth of the company. The HR managers implement
the various plans, policies, practices, and actions (Martin, Farndale, Paauwe & Stiles, 2016).
5: Monitor and evaluation: It is the final step of strategic HRM process. In this stage, Human
resource department evaluates and monitors the performance of employees. It also evaluates the
outcomes and strategies of the organization.
(Source: Business jargons, 2017)
Approaches to strategic human resource management
The approaches of human resource management are discussed below.
 Resource-based approach: According to Dimba & Obonyo (2015), it is the best approach
of strategic HRM and plays a significant role in this management. The resource-based
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Strategic HRM
approach developed by the Barney in 1991. The approach will address the strategies and
procedures of expanding and growing the firm vital potential and capacities by the
improvement and development of supervisors and employees. This approach emphasizes
the firm resources as the primary determinants of competitive performance and
advantage. The resource-based approach includes the resource mobility and resource
diversity. The Resource diversity refers to the different resources and competencies and
the resource mobility (Nolan & Garavan, 2016).
 High commitment management approach: The High commitment administration
approach is the critical and vital approach of SHRM and it is the important part of the
human resource management. It improves and empowers the shared responsibility of
individuals. This approach depends on the abnormal state of loyalty, trust, and
confidence. It emphasizes the human duty, self-governance, power, and strengthening of
employees. The approach concentrates on the workers' relationship and their duties
towards the employment. It concentrates on the recruitment and selection of the right
people with excellent skills, abilities, and knowledge for doing the right job. The
potential employees help to maintain the trust in the organization (Chuang, Jackson &
Jiang, 2016).
 High involvement management approach: It is another approach to the strategic
human resource management. This approach gives chances to employees to make
decisions about their employment and business. In this approach, top administration
includes the employees to take an interest in the business exercises of the association. It
enhances and builds the proficiency and efficiency of workers. Through the involvement
in administration, employees learn many things from managers and top administration.
Managers share knowledge and experience with employees through the high involvement
management approach (Chuang, Jackson & Jiang, 2016).
 High-performance management: It is the primary important approach of SHRM. It
monitors and evaluates the attitudes and performance of the employees. This approach
provides the various kinds of promotion and compensation and incentive schemes to the
workers to improve the productivity of the workers.
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Strategic HRM
 Strategic fit approach: This approach plays a significant role in SHRM. This strategy
manages the performance and efficiency of the employees. In this way, the company can
meet long-term organizational goals and objectives.
Now it is assumed that Strategic HRM is very important to expand the business and
improvement of organizational learning in globally. It provides new opportunities and prospects
for the promotion of team learning in the company. According to Kooij & Van de Voorde
(2015), SHRM provides the teamwork and favorable learning aspects within the organization.
This management helps to define the collective and communal processes to identify the
efficiency and performance of the employees. It provides motivation and satisfaction to the
employees for doing the work (Martin, Farndale, Paauwe & Stiles, 2016).
Conclusion
The report is based on the strategic human resource management of the company. The strategic
HRM is the core part of the HR department and it plays a crucial role in order to maintain the
sustainability of the organization. The scope of the strategic HRM is very wide and it plays a
vital role in association growth and success. This management attracts the more candidates in the
market.
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References
Arulrajah, A.A., Opatha, H.H.D.N.P. and Nawaratne, N.N.J., 2016. Green human resource
management practices: a review. Sri Lankan Journal of Human Resource Management, 5(1).
Cascio, W.F., 2015. Strategic HRM: Too important for an insular approach. Human Resource
Management, 54(3), pp.423-426.
Chang, C.H., Ferris, D.L., Johnson, R.E., Rosen, C.C. and Tan, J.A., 2012. Core self-evaluations:
A review and evaluation of the literature. Journal of Management, 38(1), pp.81-128.
Chuang, C.H., Jackson, S.E. and Jiang, Y., 2016. Can knowledge-intensive teamwork be
managed? Examining the roles of HRM systems, leadership, and tacit knowledge. Journal of
management, 42(2), pp.524-554.
Dimba, B. and Obonyo, P.K., 2015. Influence of culture on strategic human resource
management (SHRM) practices in multinational companies (MNC) in Kenya: A critical
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Festing, M., 2012. Strategic human resource management in Germany: Evidence of convergence
to the US model, the European model, or a distinctive national model?. The Academy of
Management Perspectives, 26(2), pp.37-54.
Gupta, N. and Shaw, J.D., 2014. Employee compensation: The neglected area of HRM
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Kaufman, B.E., 2012. Strategic human resource management research in the United States: A
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Kehoe, R.R. and Wright, P.M., 2013. The impact of high-performance human resource practices
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Kontoghiorghes, C., 2016. Linking high performance organizational culture and talent
management: satisfaction/motivation and organizational commitment as mediators. The
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Liang, X., Marler, J.H. and Cui, Z., 2012. Strategic human resource management in China: east
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Thurston, P.W., D'Abate, C.P. and Eddy, E.R., 2012. Mentoring as an HRD approach: Effects on
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