This document discusses strategic human resource management (HRM), emphasizing its role in aligning HR practices with organizational goals. It outlines various HR practices, theories, and the importance of employees as strategic resources that contribute to competitive advantage. Additionally, it highlights the steps necessary to align HR strategy with business strategy and the need for effective measurement and adaptation of HR policies.

1. urmitamanna@yahoo.com

2. SHRM is the management of HR philosophies,
policies, and practices to enable the achievement of
the organizational strategy.
Generally, these philosophies, policies, practices,
develops a system to attract, develop, utilize, and
retain employees for smooth functioning of the
organization.

3. Strategic human resource
management
HR practice and policies
•Specific HR practice–
recruitment , selection ,
appraisal
•Formal HR policies
HR philosophies
that specify the values
that inform an
organization’s policies
and practices.

4. Theories or perspective of the strategic
human resource management
• Resource based theory
• Behavioral theory
• Contingency theory
• Agency theory
• Profit maximization and competition based
theory
• Survival based theory
• Human resource based theory

5. It is a process that helps your
organization identify current and future
HR needs to achieve your goals.
It should link HRM to the overall
strategic plan of an organization. It
involves developing a project plan

6. • HR should move from articulating perceived value (training
builds employee skills) to demonstrating real value(see the
economic value).
• The focus of HR must be on scoring points, not just coaching,
training or counting the number of players.
• The value of HR is seen in its ability to deliver the behaviors
needed to enable the organization’s strategy.
• The value of employees must be placed within strategic
framework.
• Value of HR must enable the organization to implement its
strategy.
• Employees must be able to demonstrate different behaviors
depending on the strategic goals.

7. Employees as Strategic Resources
 Employees can provide a firm with competitive
advantage.
 HR programs represent an investment in human
capital. This human capital is difficult to duplicate or
imitate.
 Strategic importance of human capital and intangible
assets have increased substantially. They are found in
human capital of the firm’s employees.
 The value of employees as a resource must be placed
within a strategic framework.
 An organization that manages its HR is more likely to
survive and profit.

8. 4 Steps to Align HR Strategy with the Business
Strategy
Understand the
business
strategy and
current state
challenges. ...
Identify how
people must
contribute to
organizational
growth and
success. ...
Design and
implement your
HR talent
strategy. ...
Measure your
HR strategy.

9. Linking HR Process to Strategy
Corporate strategy leads to
HR strategy
• HR programs flow
from corporate
strategy. Corporate
strategy drives HR
strategy. Personal
needs are based on
corporate plans.
HR competencies lead to
Business Strategy:
• An organization cannot
implement a strategy if it
does not have the human
resources necessary. The
‘skills determine strategy’
outlook relies heavily on
employee capabilities not
on environmental
analysis.

10. Ways to Become Involved in the
Strategic Planning Process
Membership in the executive team
Review Linkage
Integrative linkage

11. Characteristics of Effective HRM
strategy
 External Fit: It relates to programs, activities and strategies that the
organization develops to respond to the external environment.
 Internal Fit-the relationship between the different HR practices. Two types
of internal fit are-
• A fit with other functional areas
• A fit among all HR programs
 Focus on Results: the hard work of deciding on strategy is its
implementation and the tracking of results. James Harrington says,
‘Measurements are key. If you cannot measure it, you cannot control it. If
you cannot control it, then you cannot manage it.’

12. Strategic
HR
Planning
Model
Monitor,
identify, and
analyze external
environmental
Develop a
tentative
corporate or
business
strategy
Assess the
relative strength
and weaknesses
of the
organization’s
human resources
Develop
strategic plans
for each
division
Identify HR
policies and
practices
Measure
results and
modify plans
as necessary