presented by

Group 2
Rukhsar Rafique 20-165
Maryam Shahzad 20-139
Kashaf Jamil 20-115
Eman Maqsood 20-113
Kainat Ramzan 20-191
Hafiza Amina 20-129
Presented to: Madam Ammara
Course title: HRM

Goverment College Womens University of Faisalabad

Contents
What is SHRM
Goals
Why Strategic Human Resources Is Important?
Elements of (SHRM)
Objectives of SHRM
5 Pmodel
Process of SHRM
Advantages and disadvantages
how SHRM differs from HRM
Challenges and barrieres
 Introduction
• Strategic Human Resource Management (SHRM) is defined as
alignment of strategic business goals of the organization with human
resources, so as to foster innovation and improve motivation,
satisfaction, productivity, and eventually overall performance.
Strategic HRM is a relatively new term, which differentiates itself
from traditional HRM which was just merely an organizational
function.
con....

• Strategic Human Resource Management is the process of

hiring, training, rewarding, and keeping employees for the
benefit of both the organization and its employees.
• It aims to utilize strengths and create opportunities for the
human resources and keep it aligned with the objectives of
the organization.
• Strategic human resource management (SHRM) is a process that
organizations use to manage their employees. It is a way to ensure that
the organization’s human resources are used in a way that supports the
organization’s goals. Think of it as a bridge connecting human
resources and the goals of the company. With SHRM, businesses can
more effectively manage employee performance and development, as
well as create programs and policies that support the company’s
overall strategy.
Goal of SHRM
The goal of SHRM is to create policies and programs that align with the
company’s business strategy. The main difference between human
resources and strategic human resources is that human resources focus
on the day-to-day management of employees, while strategic human
resources focus on how employees can achieve the company’s overall
goals. This means that SHRM must first understand the company’s
business goals and then create programs and policies that support those
goals.
Strategic HRM, therefore, is concerned with the following.

• Analysis the opportunities and threats existing in the external environment.

• Formulate strategies that will match the organisational's (internal) strength
and weakness with environmental (external)threats and opportunities in
other ways.
• Make a SWOT analysis of organization.
• Implement the strategies so formulated.
• Evaluate and control activities to ensure that organization's objectives are
dully achieved.
Why Strategic Human Resources Is
Important?
SHRM is important because it helps businesses achieve their goals. By
aligning HR programs and policies with the company’s business strategy,
SHRM can help businesses improve employee performance, develop the
workforce and create a positive work environment. SHRM can also help
businesses save money by reducing turnover and improving productivity.
1. Improve employee performance
2. Develop the workforce
3. Create a positive work environment
4. Reduce turnover
5. Improve productivity
Elements of Strategic Human Resource
Management (SHRM)
• The pillars for SHRM are:
• a) Humans are not just resources but they are an asset to an organization,
which should provide a competitive edge to the organization.
• b) It’s the people within the organization who actually implement such
change.
• c) Every change is achievable only through a proper planning followed by
execution with respect tpo the organizational needs and objectives.
• d) The main aim of strategic HRM is to concentrate on the ways through
which the firm can take an edge over its competitors.
• e) According to Hendry and Pettigrew, SHRM has four different
meanings, mainly:
• - Making use of planning.
• - Designing and managing people via a coherent approach.
• - Developing systems which are based on employment policy and
workforce strategy.
• - Bringing out coordination between HR activities and other policies
into developing business strategy.
• - Considering people as resources and achieving competitive edge by
making the best of them.
Objectives of Strategic Human Resource
Management (SHRM)
• The main aim of strategic HRM is to address issues related to organizational culture,
structure, effectiveness, resource matching, and performance. It involves developing the
process capabilities as well as managing the human capital effectively. The approaches
used in strategic HRM can be categorized into 5 categories mainly:
• 1. Resource based Strategy: Addresses issues wherein the strategic capabilities of the
firm can be increased.
• 2. High Commitment Management: By enhancing the mutual commitment between the
managers and their employees.
• 3. High Involvement Management: Treating employees as their partners in the business.
• 4. High Performance Management: Improves the performance of the firm by focusing
on improving the productivity, growth and profitability rate of its people.
• 5. Achieving Strategic Fit: Integration of human capital and resources is necessary for
smooth and profitable operation of business.
 1: Scanning the Environment:
• The process begins with the scanning of the environment, i.e.
both the external and internal factors of the organization. The
external environment encompasses the political, legal,
technological, economic, social and cultural forces that have a
great impact on the functioning of the business. The internal
factors include the organizational culture, hierarchy, business
processes, SWOT analysis, industrial relations, etc. that play a
crucial role in performing the business operations.
2: Identify Sources of Competitive
Advantage:
• The next step in the strategic human resource management process is
to identify the parameters of competitive advantage that could stem
from diverse sources as product quality, price, customer service, brand
positioning, delivery, etc.
• The HR department can help in gaining the competitive advantage by
conducting the efficient training programmes designed to enrich the
skills of the staff.
3: Identify HRM Strategies:
• There are major four strategies undertaken by an organization to
enrich the employees capabilities:
• a) Learning as Socialization: This strategy includes the techniques as
training courses, coaching sessions, education programmes to ensure
that the employees abide by the rules, value and beliefs of an
organization and are able to meet the performance targets.

• b) Devolved Informal Learning: This strategy helps in making the

employees aware of the learning opportunities and the career
development.
conti...
• c) Engineering: This strategy focuses on creating and developing
communities of practice and social networks within and outside the
organization.

• d) Empowered Informal Learning: Through this strategy, the HR

department focuses on developing the learning environment such as
knowledge about the new processes, designing of new work areas and
the provision of shared spaces.
4: Implementing HR Strategies:
• Once the strategy has been decided the next step is to put it into the
action. The HR strategy can be implemented by considering the HR
policies, plans, actions and practices.
5: Monitor and Evaluation:
• The final step in the strategic human resource management process is
to compare the performance of the HR strategy against the pre-
established standards.
• At this stage, certain activities are performed to evaluate the outcomes
of the strategic decision: establishing the performance targets and
tolerance levels, analyzing the deviations, executing the modifications.
• Thus, to have an effective HR strategy the firm follow these steps
systematically and ensures that the purpose for which it is designed is
fulfilled.
Advantages of SHRM
• Aligns HR with business goals: One of the biggest advantages of SHRM is that it aligns HR
practices and policies with the organization’s business strategy. By doing so, HR becomes more
strategic and contributes to the organization’s overall success.
• Attracts and retains top talent: SHRM involves developing strategies to attract, retain, and develop
top talent. This leads to a high-performing workforce that is committed to the organization’s goals
and objectives.
• Improves organizational effectiveness: SHRM involves developing and implementing HR
practices and policies that are designed to improve organizational effectiveness and efficiency.
This can lead to increased profitability and growth.
• Enhances employee engagement: SHRM involves developing strategies to increase employee
engagement and motivation. This leads to a more committed and productive workforce.
• Supports compliance: SHRM ensures that HR practices and policies are compliant with applicable
laws and regulations. This helps organizations avoid costly legal and reputational risks.
Disadvantages of SHRM:
• Time-consuming and costly: Implementing SHRM requires a significant investment of time
and resources. This can be a challenge for smaller organizations or those with limited
budgets.
• Resistance to change: SHRM often involves significant changes to HR practices and policies.
Employees may be resistant to these changes, which can lead to resistance and lower morale.
• Difficulty in measuring outcomes: It can be difficult to measure the outcomes of SHRM
initiatives, particularly in the short term. This can make it difficult to demonstrate the value of
SHRM to stakeholders.
• Lack of flexibility: SHRM requires a long-term perspective and may limit an organization’s
ability to be flexible and respond to short-term changes in the business environment.
• Overemphasis on metrics: In some cases, SHRM may lead to an overemphasis on metrics and
the use of quantitative data to measure HR outcomes. This may lead to a focus on short-term
goals and a lack of attention to qualitative factors that are important for employee well-being
and satisfaction.
Barriers
• SHRM also suffers from some barriers. These barriers are related to
mentality, strategy, and outcomes Barriers are classified into seven
main types. All these barriers to strategic resource management are
briefly discussed below
1. Short-term mentality
Short-term mentality and focus on the current performance of SFIRM is
the first barrier. Every manager act, as a long-term focus because the
organization has been established with long-term objectives/focus.
2. Strategic inability
Very often SHRM does not think strategically and he cannot think it to
due in capability. This type of inability may arise for many reasons as a
lack of technical knowledge, insufficient training, and the like.
3. Lack of appreciation
Sometimes top managers do not recognize the activities of strategic
human resource management. So SHR manager does not get interested
in doing any innovative venture. A few appreciations may get them a
substantial mental boost.
4. Failure understands the role
General managerial roles may not be fully understood by managers. This
failure is due to a lack of knowledge about the specialty of a degree of
responsibility. This failure may create distance between these managers.
5.Difficulty in quantifying outcomes
Many outcomes may not be quantified. But SHRM tries to enjoy the
contribution. This is not always possible. Participation, work, etc. type
functions cannot be quantified because of their intangibility.
6.Wong’s perception of human assets
Investment in human assets may be regarded as high risk than that of
technology and information. Though these technologies are run by
human resources. This wrong perception may inhibit progress.
7.Resistance
SHR Managers may be resisted because of the incentives for change
that might arise. The change implemented demands some incentives
for efforts to execute the changed program. If these incentives are not
given reasons, they may create barriers to SHRM.
 Challenges
• Some of the challenges faced in modern day HRM are as follows:
• 1. Cross cultural issues and interaction
• 2. Internationalization
• 3. Changing ownership due to increased M & A
• 4. Rapidly changing business environments
• 5. Technological advancements
1. Absence of long-term orientation
2. Lack of Strategic Reasoning
3. Lack of adequate support from top management
4. Resistance from Labour Unions
5. Fear of failure
6. Rigidity of HR practices
Conclusion
• In conclusion, Strategic Human Resource Management (SHRM) is a crucial aspect
of organizational management that aligns HR practices with the organization’s
strategic goals and objectives. By adopting SHRM practices, organizations can
attract and retain top talent, develop employee skills and competencies, reward
high-performing employees, and manage change effectively.

• Additionally, Strategic Human Resource Management can improve business

performance by ensuring that the organization has the necessary talent and skills to
achieve its goals, leading to increased productivity, profitability, and overall
success. While there are potential disadvantages to implementing SHRM practices,
the benefits are generally seen as outweighing the risks. As organizations face an
increasingly competitive business environment, SHRM will continue to be a key
factor in achieving sustained success.
THANK
YOU