What is Strategic Human Resource Management(SHRM)?

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

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.

The Strategic Human Resource Management (SHRM) is an approach that defines how the organization’s goals will be achieved through people by means of HR strategies and integrated HR policies and practices. Thus human resource is considered as important asset to organizations to achieve sustained competitive advantage (SCA) and optimize organizational performance. The Resource Based View (RBV) or approach, best explains the human resource as a source of competitive advantage that culminates to superior performance. Therefore, the RBV approach to SHRM in this essay is argued and established as a better alternative from other approaches such as Best practice approach and Contingency approach. Down the line, its managerial implications in terms of HR actions

Strategic human resource management on the other hand involves the process of developing a consistent and accurately aligned collection of corporate practices, strategies as well as policies aimed at facilitating the achievement of a given organization's strategic objectives as indicated in the work of Mello (2002). Some of the Strategic human resource management (SHRM) practices include the activities, actions and decisions related with

Jules and Holzer (2001) noted that Strategic Human Resource Management enhances employee productivity and the ability of government agencies to achieve their mission. One can conclude that it is the same for all other institutions as SHRM focuses on the issues and goals of the organisation and strive to implement plans collectively to achieve those goals. In contrast to traditional Human resource management, SHRM focuses on

Strategic HRM stresses in the importance of people development through culture awareness of organisations environmental factors, politics and legal issue and achieving the organisational goals and desires to implement changes to support the business. The main task in strategic formulation is to implement internal and external factors shaped by the business and undertake a direction to assess forces to act upon and influence changes.

To ensure a high probability of success in the implementation of strategic human resource management, the HRM function needs to be truly strategic in its orientation.

There has been much debate on the term strategic human resource management (SHRM) and until now, there is no fixed definition for SHRM. According to Wright and McMahan (1992), SHRM can be defined as “the pattern of planned HR deployments and activities intended to enable a firm to achieve its goals”. Similarly, Wright and Snell (1991) regard SHRM as “organisational systems designed to achieve sustainable competitive advantage through people”. Ulrich and Lake (1991) on the other hand, has described SHRM as a process of linking HR practices to business strategy. SHRM can also be defined as the linkage of HR functions with strategic goals and organisational objectives to improve business performance and cultivate an

A review of the literature linking HR practices to business strategy shows two conflicting perspectives in SHRM. The universalistic perspective suggests that there is a universal set of best practices that any business can adopt to improve organisational

As human resource (HR) management started to replace personnel management to become one of the important inter-functions of the organization, some people may question what make this subcategory of management has important impact on the operation of organisation. Then started to research the strategic value of human resources. Hendry and Pettgrew (1986, cited in Storey, 2007) define that strategic human resource management (SHRM) is a usage of planning consistent HR practices or policies that align with strategy of the organisations to create sustainable competitive advantages (SCA). There are three main approaches in SHRM, which are the best practice (universalist), the best-fit (contingency) and the resource-based. Below this article will briefly introduces theses three approaches, and critically analyse the limitation of these approaches.

The HRM policies are so designed that it should align with the overall business strategies of the organizations. In short, the focus is shifted from the traditional HRM pattern to the Strategic Human Resources Management (SHRM) irrespective of the industrial segments.

Within this essay an in depth analysis will be conducted on the difference between Human Resource Management and Strategic Human Resource Management using contemporary perspectives. Human Resource Management (HRM) is the process of managing human resources in a systematic way. It is a practice devised to maximise the performance of employees and is concerned with the application of management principles to manage organisational personnel while paying attention to the policies and systems of the entity (Delaney & Huselid, 1996). Strategic Human Resource Management (SHRM) is a function of management which entails development of policies, programmes and practices related to human resources, which are aligned with business strategy so as to achieve the strategic objectives of the organisation (Patrick M. Wright, 1992). Its primary purpose is to improve the performance of the business and maintain a culture that encourages innovation and works continuously to gain competitive advantage. In this essay the Resource-Based View, High Performance Management and High Commitment Management perspectives of Strategic Human Resource Management and Traditional and Collaborative