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Strategic Human Resource Management: Mba Iv Sem

Strategic human resource management links human resource functions with an organization's strategic goals and objectives. It aims to improve business performance and develop organizational cultures that foster innovation and flexibility. SHRM ensures that HR policies are integrated with business strategy and adjusted to meet strategic needs. It also aims to align HR practices with strategic goals across hierarchies. SHRM is important as it identifies external opportunities and threats, provides a strategic vision, supplies competitive intelligence, plays a vital role in recruiting and motivating employees, addresses people development, analyzes strengths and weaknesses, meets customer expectations, and ensures high productivity and profits through competency.

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Madhukar Saxena
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255 views6 pages

Strategic Human Resource Management: Mba Iv Sem

Strategic human resource management links human resource functions with an organization's strategic goals and objectives. It aims to improve business performance and develop organizational cultures that foster innovation and flexibility. SHRM ensures that HR policies are integrated with business strategy and adjusted to meet strategic needs. It also aims to align HR practices with strategic goals across hierarchies. SHRM is important as it identifies external opportunities and threats, provides a strategic vision, supplies competitive intelligence, plays a vital role in recruiting and motivating employees, addresses people development, analyzes strengths and weaknesses, meets customer expectations, and ensures high productivity and profits through competency.

Uploaded by

Madhukar Saxena
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Strategic

Human Resource
Management

MBA IV SEM

By
Madhukar Saxena
Defining the term Strategy
The term strategy is derived from Greek word strategus, which means
commander+–in-chief‟, was first used in the English language in 1656.
Strategy is a plan that you use in order to achieve something
लक्ष् य प्राप्ति कराने वाली योजना, रणनीति, रण योजना
Strategy is a general plan to achieve one or more long-term or overall goals under
conditions of uncertainty.
In management context, the word “strategy‟ has now replaced the more traditional
term-long-term planning- to denote a specific pattern of decisions and actions
undertaken by the top level of organization in order to accomplish performance
goals.
Strategy is a plan or course of action or a set of decisions and rules that make a
pattern of organization’s activities which move an organization from its current
position to desired future state.
Strategy operates at several levels. Mainly, strategies are formulated at the
Corporate level, SBU (or business) level, and Functional level. Besides these,
societal strategies on the top and operational strategies at the bottom are also
sometimes specified.
Strategic Human Resource Management
In today‟s flattened, downsized and responsive organizations, highly trained and
committed employees –not machines- are often a firm‟s best competitive key.
People are the key‟ to their success.
Most companies believe that HR rather than financial or technological resources
can offer a competitive advantage. Thus sources of competitive advantage have
shifted from financial resources to technological resources and now to human
capital. To gain a competitive advantage from the human capital, there is a growing
importance to think HRM from strategic point of view and to relate HR strategy
with the overall corporate and business strategy.
Therefore Strategic HRM has been defined as the linking of HRM with strategic
goals and objectives in order to improve business performance and develop
organizational cultures that foster innovation and flexibility.
According to Jeffery A. Mello, “The development of a consistent, aligned
collection of practices, program and policies to facilitate the achievement of the
organizational strategic objectives.”
Strategic Human Resource Management
According to Schuler, “Strategic human resources management is largely about
integration and adaptation. Its concern is to ensure that:
(1) human resources(HR)management is fully integrated with strategy and the
strategic needs of the firm;
(2) HR policies cohere both across policy areas and across hierarchies; and
(3) HR practices are adjusted , accepted and used by line managers and employees
as part of their everyday work.”

According to Truss &Graton, “SHRM is defined as the linking of HRM with


strategic goals and objectives in order to improve business performance and
develop organizational cultures that foster innovation and flexibility.”

Thus, SHRM, in general can be defined as the process of linking the human
resource functions with the strategic objectives of the organization in order to
improve performance
Importance of SHRM
Identifies & analyzes external opportunities and threats that may be
crucial to the company‟s success.
Provides a clear business strategy and vision for the future.
Supplies competitive intelligence that may be useful in the strategic
planning process.
Plays vital role in recruiting, retaining and motivating manpower.
Ensures that people development issues are addressed systematically.
Supplies information regarding the company‟s internal strengths and
weaknesses.
Meets the expectations of the customers effectively.
Ensures high productivity. Ensures business surplus through competency
Difference Between Traditional and Strategic Human Resources

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