Strategic HRM

Introduction and Basic Concept

Strategic Human Resource Management involves three components 🙁 a) Recognizing the need and importance of human capital (b) Knowing that the people implement the plan (c) Knowing that where the company wants to go and developing the strategies for reaching the goals.

By adopting Strategic Human Resource Management an organization can have committed, skilled and motivated employees so that it has competitive advantages over others. Strategic HRM is a concept that aims to fulfil the needs of the employees as well the organization by the application of coherent HR policies. Hence, Strategic HRM helps in the integration of all HR programs within a larger framework thus facilitating the organization’s mission and its objectives.

Results and Strategies of Strategic HRM

It leads to:

1. Increased Performance 2.Customer and employee satisfaction 3. Enhanced Shareholder Value

Strategies are:

• Effective management of staffing by selecting the employees that fit both the culture and strategy
• Investment in human capital identified with potential for high retention.
• Integrated HR policies that follow from corporate strategy.
• Main focus on customer needs and emerging markets.
• It also involves Human Resource Planning in which first Human Resource Requirement is calculated. If there is shortage of employees then recruitment should be done. If Surplus Human Resource is available then hiring should be restricted.

Conclusion

So, from all this it looks that Strategic HRM is a rational strategy based on the business policy but in reality it doesn’t translates into cooperatively supportive set of human resource practices or initiatives. Hence, Strategic HRM is an approach of mind that demonstrates a method of doing things. It is accomplished in the form of HR strategies.

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