Strategic Human Resource Management

Strategic human resource management is the practice of attracting,

developing, rewarding, and retaining employees for the benefit of both
the employees as individuals and the organization as a whole.
HR departments that practice strategic human resource management do
not work independently within a silo; they interact with other departments
within an organization in order to understand their goals and then create
strategies that align with those objectives, as well as those of the
organization.
As a result, the goals of a human resource department reflect and
support the goals of the rest of the organization. Strategic HRM is seen
as a partner in organizational success, as opposed to a necessity for
legal compliance or compensation.
Strategic HRM utilizes the talent and opportunity within the human
resources department to make other departments stronger and more
effective.
Strategic human resource management is a proactive process of
managing employees in an organization, that includes standard human
resource components such as attracting, developing, rewarding, and
retaining employees and brings them one step further by taking in
consideration the goals and needs of other departments within the
organization, and the organization itself.

It's important to analyze organization-wide goals and needs, including all

departments, and create a strategy for managing employees that is
aligned with the overall vision, mission and values of the particular
organization. The end-goal of the strategic human resource
management is ensuring a higher chance of organizational success.

What is the Purpose of SHRM?

There are following list of benefits that help to know about the basic
purpose of SHRM. Why organizations need it? How it can help an
organization to accomplish its goals?

1. The first & at most concern of SHRM is to focus on actions that

distinguish an organization/firm from its competitors.
2. It provides idea to allocate the resources of organization to most
match & capable Employee.
3. It design the foundation of organization to achieve efficient
business benefits, structure, culture, employees values
propositions and effective communication strategic plan for HRM.
4. SHRM also keep track of down turns, down falls, risks and other
business acquirement.
5. SHRM also take part in employee recruitment, hiring, training and
assessments processes.
6. SHRM add its expression in business’s decision making task.
7. Strategic Human Resource Management give emphasis to
organizational codes of moral values and manage public crash of
business.
8. SHRM provide tactic and proposal to the director of organization.
9. SHRM take your business to the new level, integrates HR
workflow, defines new goals, aligned employee work force for
business flourishing.

Aspects of Strategic Human Resource

Management on Workplaces
There is a list of aspects that deeply affects the HRM. Strategic
Human Resource Management provides new innovations by adding
smoothness in workforce morale and capabilities. HRM activities like
hiring, firing, training, administration and performance management
got more line up because of strategic HRM. Your firm should be
competent enough to satisfy employee otherwise they will leave you.
1. Motivated Employees
As per employee’s performance graph companies need to boost their
motivation level. Annual increment, employee of the month, employee
of the years and promotions are the tactics to appreciate your loyal
employees. These little things motivate them and build strong
relationships with employees for the future as well.
2. Development of Flexible workforce
10. The HRM strategic plan should include the activities to make
flexible workforce development. Strategic HRM includes the policy
to convert your work into flexible one. Flexibility in employee’s
shifts, schedules and work location allow them to work freely.
These relaxations will generate more quality in their work &
performance.
3. Employees’ Empowerment
 Strategic HRM, developed more enthusiasm in employee behavior.
The employee’s development includes the some short courses,
training sessions and short lectures that will change employees into
more skilled assets. These skill assets will be used in future against
business competitors.
4. Positive Working Environment
11. Strategic Human Resource Management, encourage positive
work environment within theorganization. This environment will
eventually brings rise in the employee’s progressive & productive
work graph. The positive work environment ensures the favorable
benefits in organizational aspects.

Importance of Strategic Human Resource

Management
Communication of Goals and Objectives
The goals and objective are very important for an organization. These
goals are not communicated without the help of strategic human
resource. If the goals are not properly translated and communicated,
then the people who are employed for those will not be able to perform
well in the business operation. As a result, the goals may not be
achieved in the given time. In this place, strategic HR plays an important
role.

Setting Efficient People to Achieve Specific Goals

The human resource department is responsible for the recruitment of the
employees for an organization. They always hire people for different
departments of the organization. As a result, they become very
knowledgeable about the people they are hiring. So, they also know the
capabilities of the people. Specific goals are given to the capable
employees with the help of strategic human resource.

Forecasting Future Human Needs

As per corporate, competitive, and functional needs, the strategic human
resource forecasts the future human needs for the organization. By this,
strategic HRM reduces manages the chance of shortage of future
human supply. It helps the organization to be consistent in the way of
their operation.
Selecting and Utilizing Motivational Tools
A person in an organization may not be motivated by the tool used to
motivate others. That means, different type persons required different
types of motivational tools. Some people may be motivated by
permanent salary increment and some are motivated by a small
incentive periodically. For some people, money are not motivating
factors anymore. They perhaps need promotion and social recognition to
become more motivated. Strategic HR finds out what person needs what
to remain motivated that helps organization achieve its goals.

Measuring Performance by the help of HRM

HRM is responsible to measure the performance of employees. The
employees are given rewards according to the result of output an
employee has given. Strategic human resource selects the right
methods of performance measurement. The performance is compared
with the expected performance. If any further training or education
needed, HR executes that. Without efficient strategic HR, the selection
of training or the measurement cannot be determined.

Benefits of Effective of Human Resource Management

Strategic human resource management often results in better outcomes
as a company works toward its objectives. Effective HR management
can yield:

 Exceptional corporate culture 

 Increased productivity 
 Enhanced customer loyalty
 Greater focus on corporate goals
 Better preparation for potential issues
 Effective leadership in implementing strategic initiatives

The main advantages of the Strategic Human Resources Management

introduction can be divided into six areas:

 New ways of the Valuation of Assets and Human Capital

Measurement;
 Strategic HR Planning;
 HR Processes Redesign and Rigor;
 HR Outsourcing of non-value added processes;
 Consistent Management of Functions and Skills;
 Human Resources Development in the organization;
Importance of Strategic HRM
When a human resource department strategically develops its
plans for recruitment, training, and compensation based on the
goals of the organization, it is ensuring a greater chance of
organizational success.

Let's think about this approach in relation to a basketball team,

where Player A is the strategic HR department, and Players B
through E are the other departments within the organization. The
whole team wants to win the ball game, and they all may be
phenomenal players on their own, but one great player doesn't
always win the game.

If you've watched a lot of sports, you understand that five great

players won't win the game if each one of those five great players
is focused on being the MVP. That's not how a basketball team
wins, and it's not how an organization wins either.

A team wins when its members support each other and work
together for a common goal. Player A, our strategic HR
department, must work with players B, C, D and E, our different
organizational departments.

They must run plays that they have planned out beforehand, assist
when necessary to help another player get the basket, and
compensate for the weaknesses of one in order to create a
stronger team as a whole.

When a team works together to reach that common goal, only

then can they be truly successful. You could also look at strategic
HRM as the team captain or coach, as his or her responsibilities
are a little bit different from those of the other players.

Human resources departments are charged with analyzing the

changes that need to occur with each 'player' or department and
assisting them in strengthening any weaknesses.

Strategic human resource management then is the process of

using HR techniques, like training, recruitment, compensation, and
employee relations to create a stronger organization, one
employee at a time.
 https://indiafreenotes.com/evolution-of-hrm-into-strategic-hrm/

Conceptual Framework of SHRM

Datta (2007) pointed out that SHRM is an approach of decision making
relating to the organisational objectives connecting people rather than
employees who are essential to implementing the business strategy of
the organisation.

At the same time, SHRM sets up a rapport connecting HRM with

Strategic management while SHRM aimed to clarify the whole course of
action that the organisation would like to accomplish its objectives by the
concerned people.

Wright (1998) added that as a component of the strategic management,

SHRM would consider to handling with all people linked with the
business for long-term and integrate inclusive issues of the
organisational structure, its culture, managerial effectiveness,
performance, resources, as well as changes of management that deals
with HR actions applied to support the competitive strategy of the
organisation.

Jakson and Schuler (1995) indicated SHRM as a means and approach

of supporting the management of HR connecting with the strategic
context of the business while it aimed to endow with an intellect to
directing any disorderly environment of the organisation towards an
ordered and coherent way adopting effectual actions and policies.

Becker and Huselid (2006) explained that the SHRM takes into account
those verdicts and course actions to managing the employees of all
stages in the way that rooted to the direction of generating sustaining
competitive advantage for the organisation.

Sheehan (2005) explored that SHRM should make available of

guidelines to selecting triumphant action to gaining eventual trial of the
authenticity of strategic HRM where HR is considered a strategic issue
for overall corporate function and evidence.

To implementing SHRM, it is essential to enlarge the existing strategy of

the organisation with clear reflection on the HR dimensions and
comprehensible guidance for the HR management regarding their
responsibility and accountability.

Datta (2007) also mentioned that a great deal of the literature endows
with the facts of strategic amalgamation, but it is necessary to address
the reasons why strategic incorporation would be advantageous to
organizations.

The wider viewpoint of modern business advocates to amplify the input

of HR reflections within the strategic planning with an outlook to caring
employees as an asset of the organisation ensuring their further
participation and apprehension through effectual communications, result
oriented procedural practices, well aliened training, reward and career
expansion opportunities concerned with performance.

Schuler and Jakson (1987) explained the necessity of SHRM arguing

that it will provide well-built visionary and captivate leadership at the top
of the organisation that dedicated to the exposed missions and values
with clear understanding to the business strategies, eager to
implementing them effectually, positive focus to the critical success
factors, and friendly to working consistent management team.

Top 10 HR Best Practices

Here are the Top Ten HR Practices that can help you achieve your
organizational goals every year.

1. Safe, healthy and happy workplace

Creating a safe, healthy and happy workplace ensures that employees
feel at home and stay with the organization for a very long time. Capture
their thoughts through frequent surveys.
2. Open book management style

Sharing information about contracts, sales, new clients, management

objectives, company policies, employee personal data, etc. ensures that
the workforce is as enthusiastic about the business as the management.
It helps in making people interested in your strategic decisions, thus
aligning them to your business objectives. Be as open as you
can. Employee self-service portal, manager on-line etc. are some tools
available today to practice this style.
3. Performance linked bonuses

Awarding bonuses or including a variable component in compensation

can be both an incentive and a disillusionment based on how it is
administered and communicated. Bonuses must be designed in such a
way that employees understand that there is no payout unless the
company hits a certain level of profitability. Additional criteria could be
the team’s success and the individuals performance. It is good for
employee retention also.

4. 360 Degree performance management feedback system

This system, which solicits feedback from seniors (including the boss),
peers, and subordinates, has been increasingly embraced as the best
available method for collecting performance feedback. Every person in
the team is responsible for giving relevant, positive and constructive
feedback.
5. Fair evaluation system

Develop an evaluation system that clearly links individual performance to

corporate business goals and priorities. Each employee should have
well-defined reporting relationships. Self-rating should be a part of
the evaluation process as it empowers employees. Evaluation becomes
fairer if it is based on achievements of the employee, tracked over the
year. For higher objectivity, besides the immediate boss, each employee
should be evaluated by the next higher level (often called a reviewer).
Cross-functional feedback, if obtained by the immediate boss from
another manager (for whom this employee’s work is also important), will
add to the fairness of the system.

6. Knowledge sharing

Adopt a systematic approach to ensure that knowledge management

supports strategy. Store knowledge in databases to provide greater
access to information posted either by the company or the employees on
the knowledge portals of the company. When an employee returns after
attending any competencies or skills development program, sharing
essential knowledge with others could be made mandatory. Innovative
ideas (implemented at the work place) should also be posted on these
knowledge sharing platforms. However, what to store and how to
maintain a knowledge base requires further and detailed plans.

7. Highlight performers

Create profiles of top performers and make these visible though

company intranet, display boards, etc. It will encourage others to put in
their best, thereby creating a competitive environment within the
company.
8. Open house discussions and feedback mechanism

Ideas rule the world. Great organizations recognize, nurture and execute
great ideas. Employees are the biggest source of ideas. The only thing
that can stop great ideas being implemented in your organization is the
lack of an appropriate mechanism to capture ideas. Open house
discussions, employee-management meets, suggestion boxes and tools
such as Critical Incidents Diaries can help identify and develop talent.
9. Rewards

Merely recognizing talent may not work, you need to couple it with public
appreciation. Getting a cash bonus is often less significant than listening
to the thunderous applause by colleagues in a public forum.

10. Delight employees with the unexpected

Last but not least, occasionally, delight your employees with unexpected
things in the form of a reward, a gift or a certificate. Reward not only the
top performers but also a few others who need to be motivated to exhibit
their potential.
Empxtrack is a composite HR solution which helps you implement most
of these best practices by utilizing software tools. We provide you with
relevant performance management system which is synchronized with
your HR processes.