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Strategic Human Resource Management signifies a direct linkage of strategic business plans with the human resource objective towards the deployment and development of human resources for enriching performance. In the management context, this term has eventually replaced the use of the traditional phrase – long-term planning, in order to indicate a specific range of decisions and actions taken by the top level of managers in an organization to achieve organization objectives.
Strategic human resource management is, in essence, a continual activity based on continuous adjustment of three key interdependent aspects: the values of top management, the environment, and existing resources. Today, many companies understand the input of the Human Resource Department to be a critical tool to take a calculative decision in the event of a need for an organizational change.
In the contemporary world of business, there are a number of challenges being faced by multinational corporations on account of rising and aggressive competition. This seeks changes to be made in the human resource processes as well as traditional human resource management models. There is an alarming concern over bringing the shift in paradigm from traditional human resource management to strategic. The latter primarily aims to improve the productivity of employees by emphasizing business objectives. Each strategic human resource manager is held responsible for meeting the Key Performance Indicators (KPIs) of the organization by identifying important HR areas whereby strategies are executed in the long term that enhances the overall motivation and productivity of the employee. This cannot be implemented without the involvement and support of top level management in any organization.
Introduction and Definition
Strategic Human Resource Management (SHRM) is the process of aligning an organization’s human resource policies and practices with its overall strategic goals and objectives. The goal of SHRM is to ensure that the organization’s human resources are used effectively and efficiently in order to achieve its strategic goals.
SHRM involves a number of key activities, including:
- Analyzing the organization’s strategic goals and objectives
- Identifying the human resource implications of those goals and objectives
- Developing human resource policies and practices that align with the organization’s strategic goals
- Implementing those policies and practices
- Monitoring and evaluating the effectiveness of those policies and practices
SHRM is important because an organization’s human resources are its most valuable asset, and aligning those resources with the organization’s strategic goals can lead to improved performance and competitive advantage. By aligning human resource policies and practices with the organization’s strategic goals, SHRM can help ensure that the organization has the right people with the right skills in the right positions at the right time.
Some key areas of SHRM include talent acquisition and management, performance management, training and development, compensation and benefits, and employee relations. SHRM requires collaboration between the HR department and other areas of the organization, including senior management, finance, operations, and marketing, among others.
Overall, SHRM is an important process for organizations to ensure that their human resources are aligned with their strategic goals and objectives, and that they are using those resources effectively and efficiently to achieve their desired outcomes.
The module include:
Practice Questions
Q1. Which of the following is the primary goal of strategic human resource management?
A) To improve employee satisfaction
B) To align HR policies with organizational strategy
C) To increase employee retention
D) To reduce employee turnover
Correct Answer: B) To align HR policies with organizational strategy
Q2. Which of the following is NOT a key area of strategic human resource management?
A) Talent acquisition and management
B) Performance management
C) Marketing
D) Compensation and benefits
Correct Answer: C) Marketing
Q3. Which of the following is NOT a step in the strategic human resource management process?
A) Analyzing the organization’s strategic goals
B) Developing HR policies and practices
C) Implementing HR policies and practices
D) Measuring employee productivity
Correct Answer: D) Measuring employee productivity
Q4. Which of the following is an example of a strategic HR practice?
A) Offering flexible work hours to employees
B) Providing employee training programs
C) Establishing a performance review process
D) Implementing a succession planning program
Correct Answer: D) Implementing a succession planning program
Q5. Which of the following is a potential benefit of effective strategic human resource management?
A) Increased employee absenteeism
B) Decreased employee turnover
C) Reduced productivity
D) Increased employee burnout
Answer: B) Decreased employee turnover
