Discuss the Key Issues Concerning the Effectiveness and Likely Consequences of a Shrm Approach, Including the Potential Performance Benefits and How Organisational Performance Can Be Improved Through the Shrm Approach

(Armstrong, 2010). According to online published data (Cipd, 2013), SHRM playing an important role in organizations as it provide a framework which support long-term business objectives and outcomes. Overall, HRM is essential for any organization as it is not just about strategic planning but also concerned with implementation of strategies which is required to meet business objectives. (Understanding and concepts of HRM and SHRM explianed in

HR must enact its own strategies which can aid the organization in meeting its goals and mission. They are referred to as strategic human resource management (SHRM). SHRM is “a pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals” (Noe et al., 2002, 55). The following are examples in which HR strategies can positively impact an organization in meeting its desired outcomes.

In response to criticisms of the ‘best fit’ and ‘best practice’ approaches, the ‘resource based view’ model focuses on leveraging competitive advantage through both tangible and intangible organisational resources. However, questions arise regarding whether there is a best way of achieving strategic HRM. Evidence suggests that firms rarely adopt a single style of management and that it is likely that they use a mix of approaches for different groups (Wilton 2011).

In simple term, strategic human resource management is concern with the ways in people is crucial to company effectiveness. According to Miller (1987) strategic

This artifact was a seminar paper written as a literature review to address topics, theories, issues, and trends in HRD in the course Seminar in Human Resource Development. This artifact considers strategic human resource management (SHRM) practices in terms of what human resource (HR) practitioners are doing and how it affects the organizations they are doing it in and the field of human resource development (HRD). Definitions of SHRM are represented as; a human resource system designed for the mandates of business strategy and a planned model of human resources activities to allow the organization to achieve its goals. It reports SHRM information found in literature and relates it to the study of HRD. I selected this artifact because it compares and contrasts SHRM approaches of HRD and analyzes each of their strengths and weaknesses. Additionally, the artifact evaluates and clarifies the importance of SHRM to HRD and its purpose and goal within an organization.

Human Resource Management (HR) is a function in an organisation aimed at maximizing employee performance in relation to the employer 's set standards and strategic objectives. The primary focus of HR is concentrated upon the management of employees, and on the policies and systems within and outside the organisation. (Boxall & Purcell, 2011). “Strategic Human Resource Management (SHRM) aims to align the functions and processes of HR with the strategic aims and objectives and competitive advantage of an organisation.” (Hartel, Fujimoto, Strybosch & Fitzpatrick, 2006). After all, the key characteristic of HR is ‘integration.’ The role of HR and HR Professionals can be linked to four main SHRM theories, namely: Jackson & Schuler (1995), Kochan & Barocci (1985), Klatt, Murdich & Schuster (1978) and Lundy & Cowling (1996).

Wright and McMahan (1994) define strategic HRM as “the pattern of planned Human Resource deployments and activities intended to enable the organisation to achieve its goals.” A HR function should impact the success of an organisation; a policy must remain current and suitable to both the internal and external environment. Ulrich and Lake (1990) affirm, ‘HRM systems can be the source of organisational capabilities that allow organisations to learn and capitalise on new opportunities.’

There is a controversy whether the Strategic Human Resources Management (SHRM) leads to ‘high performance’. A general idea of SHRM is that “the linkage of management and deployment of the individual within the firm to the business overall and its environment whereas HRM is the activities that take place under this area.” Truss and Gratton (1994). It spotlights on long-term strategy.

(Jain, 2014). Jain (2014) provides key insights on strategic HRM, its process, key features, advantages, as well as limitations. This journal analyses how strategic HRM should be used, since it improves performance and develops a culture within the company that provides innovation, flexibility, and competitive advantage (Jain, 2014). Jain’s (2014) theory explains that HR

In this new business culture of ‘strategic management’, fitting every ‘division’s’ strategy in to the overall strategy has become the norm. Human resource management has developed and ‘integrated’ its processes and activities in strategic management, ‘through the new discipline’ of strategic human resource management (Wright, McMahon, 1992: p49).

“(HRM is) a strategic approach to managing employment relations which emphasizes that leveraging people’s capabilities is critical to achieving sustained competitive advantage, this being achieved through a distinctive set of integrated employment policies, programmes and practices.”

Strategic Human Resource Management (SHRM) is identified as an effective macro-organizational tool to support the role and function of Human Resource Management according to focus on the organization’s business strategy compared with the traditional human resource management. (Ryanair. 2015).

For nearly two decades, calls have been made for Human Resources (HR) to transform into strategic partner. Scholars and practitioners, alike, have embraced this idea, yet this field of study seems to be at a bit of a crossroads. The business community no longer needs to be convinced why strategic human resources management (SHRM) is important, instead many are grappling with how is SHRM implemented and measured (Becker & Huselid, 2006). While the literature has been rich in providing arguments to support of SHRM, there is little empirical evidence of what it takes to be a strategic partner and whether HR offices are actually making the changes needed to take on this role (Lawler & Mohrmann, 2003).

The focus of this paper is on the relationship between Strategic Human Resource Management (SHRM) and organisational performance outcomes, specifically sustained competitive advantage. Using the resource-based view (RBV) of the firm as an underpinning theoretical framework, this paper examines several components of Strategic HRM including human capital (i.e. employees) capability and behaviour, human resource systems (policies and practices) and

Over the years, human resource management has attracted a vast amount of interest over different disciplines due to the effect and contribution it had on the fundamental issues within the organisation (Singh, Darwish, Coster & Anderson 2012). Arthur states, HRM practices essentially contribute to the organisations competitive advantage and the achievement of organisational performance (Arthur 1997, cited in Singh, Darwish, Coster & Anderson 2012). This not only emphasizes on the significance of human capital in achieving organisational performance and attaining competitive advantage but also recognizes the importance of developing the best human resource competencies in order to compete in the global economy (Slavic, Berber & Lekovic, 2014)