shrm

1. 1.EXPLAIN THE CONCEPT OF SHRM?
● Strategic human resource management is designed to help companies best
meet the needs of their employees while promoting company goals.
● Human resource management deals with any aspects of a business that
affects employees, such as hiring and firing, pay, benefits, training, and
administration.
● Human resources may also provide work incentives, safety procedure
information, and sick or vacation days.
● Strategic human resource management is the proactive management of
people.
● It requires thinking ahead, and planning ways for a company to better
meet the needs of its employees, and for the employees to better meet the
needs of the company.
● In Human Resource (HR) and management circles nowadays there is
much talk about Strategic Human Resource Management and many
expensive books can be seen on the shelves of bookshops.
● But what exactly is SHRM (Strategic Human Resource Development),
what are its key features and how does it differ from traditional human
resource management.
● SHRM or Strategic human resource management is a branch of Human
resource management or HRM. It is a fairly new field, which has
emerged out of the parent discipline of human resource management.
● Much of the early or so called traditional HRM literature treated the
notion of strategy superficially, rather as a purely operational matter, the
results of which cascade down throughout the organisation.
● There was a kind of unsaid division of territory between people-centred
values of HR and harder business values where corporate strategies really
belonged.
Strategic human resource management can be defined as the linking of human
resources with strategic goals and objectives in order to improve business
performance and develop organizational culture that foster innovation,
flexibility and competitive advantage. In an organisation SHRM means
accepting and involving the HR function as a strategic partner in the
formulation and implementation of the company's strategies through HR
activities such as recruiting, selecting, training and rewarding personnel.

2. ANALYZE VARIOUS DEFINITIONS OF SHRM
1. Kaplan and Hurd (2002)define that strategic human resource
management is a collection of tasks and processes shared jointly by line
managers and human resources to solve business issues based on people.
2. Leug (2003) defined that strategic human resource management focuses
on actions that varied the organization from its competitors.
3. Michie and Sheehan (2005) define that strategic human resource
management is the pattern of scheduled HR tasks and deployment
intended to enhance an organization to gain its aims.
4. According to Henry and Pettigrew, 1986. ” Strategic HRM is
concerned with seeing the people of the organization as a strategic
resource for the achievement of competitive advantage”.
5. Armstrong defines SHRM:“Strategic human resource management is an
approach to making decisions on the intentions and plans of the
organization concerning the employment relationship and the
organization’s recruitment, training, development, performance
management, and the organization’s strategies, policies, and practices.”.
6. SHRM definition by Purcell, 1999. “Strategic HRM focuses on actions
that differentiate a firm from its competitors.”
7. Cheng (2005) defines “strategic HRM is the collection of actions and
decisions resulting in the implementation and formulation of strategies
configured to gain the organizational objectives”.

3. OBJECTIVES OF 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.
SCOPE OF SHRM
SHRM covers a wide range of topics and activities that extend beyond the
responsibilities of personnel and HR managers to all aspects of human resource
management. It focuses on "management decisions and behaviours used,
consciously or unconsciously, to control, influence, and motivate those who
work for the organisation; in other words, its human resource" (Purcell, 2001).
Mabey, Salaman, and Storey (1998) looked at the topic from four different
angles:
1. SHRM's social and economic context, which includes internal (corporate) and
external factors that influence the development and implementation of
HR strategies.

4. 2. The link between SHRM and business performance, with a focus on
performance measurement;
3. Management style and the emergence of new organisational forms; and
4. The link between SHRM and organisational capability development,
particularly knowledge management.
Before proceeding, it is necessary to fully comprehend the concept of
strategy, as it is from this that the concept of strategic human resource
management (SHRM) emerges.
Functions of Strategic Human Resource Management (SHRM)
The basic functions of strategic human resource management are given as
under:

5. 1. Establishing High-Performance HR Management Practices: Strategic
human resource management makes certain that there is a coherence between
the overall business strategy and human resource strategy for exceptional
organizational performance and competitiveness.
2. Reengineering Organization: SHRM stresses the significant role of
organizational design for higher work autonomy as well as condensation of
tasks. It entails smoothened hierarchy, decentralized structure, facilitating
information technology, strategic leadership and HR practices, which enables
the work structure more conforming to the goals and culture of the
organization.
3. Developing Transformational Leadership: It involves the development
of an organization’s human ability, encourages commitment, flexibility,
innovation and change.
4. Establishing Workplace Learning: SHRM gives preference to
work-related learning, both formally and informally, so as to achieve
commitment, credibility and quality of human resources. Learning is pivotal
to reinforce an organization’s core competencies.
5. Assessing HR Effectiveness: AS SHRM takes human resources issues as
strategic issues, so, it seeks to locate the strategic human resource needs so as
to support business strategy to check whether human resource possesses the
major competencies which are required to partner strategically with both
internal and external customers.
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.

6. c) Every change is achievable only through a proper planning followed by
execution with respect to 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.

7. BARRIERS TO STRATEGIC SHRM
1. Short-term mentality/focus on current performance.
2. The inability of HR to think strategically.
3. Lack of appreciation for what HR can contribute.
4. Failure to understand the line manager’s role as an HR manager.
5. Difficulty in quantifying many HR outcomes.
6. Perception of human assets as higher-risk investments.
7. “Incentives” for changes that might arise.
8. Other Barriers:
● Inducing the vision and mission of the change effort.
● High resistance due to lack of cooperation from the bottom
line.
● Interdepartmental conflict.
● The commitment of the entire senior management team.
● Plans that integrate internal resources with external
requirements.
● Limited time, money and the resources.
● The status quo approach of employees.
● Fear of incompetency of senior level managers to take up
strategic steps.
● Diverse work-force with competitive skill sets.
● Fear towards victimization in the wake of failures.
● Improper strategic assignments and leadership conflict over
authority.
● Ramifications for power relations.
● Vulnerability to legislative changes.

8. ● Resistance that comes through the legitimate labour
institutions.
● Presence of an active labour union.
● Rapid structural changes.
● Economic and market pressures influenced the adoption of
strategic HRM.
● More diverse, outward looking approach.
HOW TO OVERCOME THE BARRIERS OF SHRM
1. Conduct a preliminary analysis of needs and requirements.
2. Proper communication which builds positive relations between labor and
management.
3. Provide leadership who direct, guide and motivate the employees.
4. Effective human resource planning so that organization achieves standard
goals.
5. Follow up and evaluate progress so that remedial action can be taken as
and when necessary.
6. Formulation of strategies and implementing them properly.
7. Reward supportive behaviors.

9. DIFFERENTIATE BETWEEN HRM/THRM AND SHRM
BASIS
FOR
COMPAR
ISON
HRM SHRM
Meaning Human resource
management
(HRM) implies the
governance of
manpower of the
organization in a
thorough and
structured
manner.
SHRM is a
managerial
function which
implies framing of
HR strategies in
such a way to
direct employees
efforts towards the
goals of
organization.
Nature Reactive Proactive
Respons
ibility
lies with
Staff specialist Line manager
Approach Fragmented Integrated

10. Scope Concerned with
employee
relations
Concerned with
internal and
external relations
Time
horizon
Short term Long term
Basic
factor
Capital and
products
People and
knowledge
Change Follows change Initiates change
Account
ability
Cost center Investment center
Control Stringent control
over employees
It exhibits
leniency.
GIVE A BRIEF ACCOUNT OF THE TRADITIONALAND
MODERN HR ROLES
Modern HR:-
HR managers in modern HRM are focused on developing a long-term plan.
When they’re looking to fill a position, for example, they consider the
company’s projected future development and long-term goals. In modern HRM
most of the functions are managed in a different way.

11. In current HRM, the majority of functions and labor are performed by various
tools and software. In a nutshell, technology has progressed in modern HRM.
Traditional HR:-
The HR professional in a traditional HR management job does not have nearly
as many software and tools to save time. Instead of teaching employees about
their responsibilities or how to handle their employment, HR believes that their
managers would go over their work with them and that the employee will learn
on the job.
They aim to handle employee problems, manage labor relations, and keep their
workers happy in general.
Technology was used less frequently in conventional HR. They try to resolve
employee issues, manage labor relations, and keep their employees satisfied in
general. In traditional HR, there was less usage of technology