Strategic human resource management has four main components: 1) Human resources which are the primary asset and can provide a competitive advantage through knowledge and skills. 2) HR activities like programs, policies and practices that help gain an edge. 3) Plans and patterns to ensure strategy fit between HR and business strategies and across HR activities. 4) Purpose which is achieving organizational goals by adhering to strategies. Portfolio models involve collections of assets managed by professionals to provide advantages like research, diversification, rebalancing support and a long-term view.

1. COMPONENTS OF STRATEGIC HUMAN
RESOURCE MANAGEMENT
& PORTFOLIO MODELS

2. COMPONENTS OF STRATEGIC HUMAN
RESOURCE MANAGEMENT

3. Components of strategic human resource management
Human Resources
These are the primary source of any organization which can provide it with a competitive advantage through its
knowledge, judgments, right skill set, and intelligence. Other resources are also required for the efficient functioning of
human resources and to accomplish the goals. This includes plants, finance, equipment and organizational capital
resources, which include the organizational culture, planning, HR system and the history of an organization. Physical
and capital resources are dependent on people for their maintenance, management, and efficient use.
Activities:
The activities include HR programs, policies, and practices which form a means of gaining a competitive edge in the
market. Despite having a huge capital and advanced machinery, a lack of motivated employees will result in low-level
performance. So, human resources, along with the right activities, form the perfect combination for reaching the targets
easily.

4. Plans and patterns:
Patterns and plans are made to ensure a proper fit between the HR strategy and the business strategy of the firm and
between various HR activities.
Purpose:
Human resources, their practices, and patterns are all geared toward a purpose, i.e. achieving the goals of an
organization by sticking to the strategies. Strategic human resource management decisions are built into the strategic
business plan, with a focus on tackling long-term issues..
Portfolio models
A model portfolio is a collection of assets owned by underlying investor and continually managed by professional
investment managers.
Advantages of model portfolio
• Investment and Fundamental Research
• Diversification
• Access to Professional Expertise for Rebalancing
• Transparency
• Risk Profile Based Investment
• Long-term View to avoid short-term volatility

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