This document discusses strategic human resource management (SHRM). It defines SHRM as linking human resource management with an organization's strategic objectives to improve performance. The document outlines the evolution, components, nature, objectives, and importance of SHRM. It also describes five approaches to SHRM: resource-based strategy, strategic fit, high-performance management, high-commitment management, and high-involvement management. Finally, it distinguishes between HRM and SHRM, noting that SHRM takes a more integrated and proactive approach aligned with long-term organizational goals.

1. “TRIBHUVAN UNIVERSITY”
DEPARTMENT OF PUBLIC ADMINISTRATION
PUBLIC ADMINISTRATION CAMPUS
PRESENTATION
(MPA 503) “PUBLIC SECTOR HUMAN RESOURCE MANAGEMENT”
“STRATEGIC HUMAN RESOURCE MANAGEMENT (SHRM)”

2. Content
• RECALL : Basic Knowledge and Concept
• FRAMEWORK
• EVOLUTION OF SHRM
• COMPONENTS OF SHRM
• NATURE OF SHRM
• Aims/Objectives of SHRM
• Importance
• APPROACHES TO STRATEGIC HRM
• HRM vs SHRM

3. RECALL : Basic Knowledge and Concept
STRATEGY
HUMAN
RESOURCE
MANAGEMENT
SHRM
• approach selected to achieve specified goals in the future
• The determination of the long-term goals and objectives
• adoption of courses of action
• allocation of resources necessary
• In this sense a strategy is a declaration of intent: ‘This is
what we want to do and this is how we intend to do it
• “POSDCORB” of human resource for “3E”
the process of linking the human resource
function with the strategic objectives of the
organization in order to improve performance
is the interface between HRM and
strategic management

4. FRAMEWORK:

5. EVOLUTION OF SHRM
Adapted from Itika (2011);
Kumareswaran, S. (2018)
The origin of Strategic HRM dates back to the military
system- to the Greek word “Strategos” which means
generalship, to organize lead and direct the army to the
most advantageous position

6. COMPONENTS OF SHRM

7. NATURE OF SHRM
• Long-term Focus
• Associated with Goal-Setting
• strategic fit
• directed to achieve strategic goals
• Strategy-focused
• Decision-focused
• future oriented

8. Aims/Objectives of
SHRM
• to focus on actions that distinguish an
organization/firm from its competitors.
• “3 E”: efficiency, effectiveness and economy
• Strategic fit
• Advance flexibility, innovation, and
competitive advantage.
• To set strategies for future challenges

9. Importance
• Identifying and analyzing external opportunities and threats that may
be crucial to the company’s success
• Provides a clear business strategy and vision for the future.
• To supply competitive intelligence that may be useful in the strategic
planning process.
• To recruit, retain and motivate people
• To ensure high productivity

10. APPROACHES TO STRATEGIC HRM
• There are five approaches to strategic HRM. These consist of resource-based
strategy, achieving strategic fit, high-performance management, high
commitment management and high-involvement management
• THE RESOURCE-BASED VIEW
• The resource-based view was developed by Penrose (1959) and it was further
expanded by Wernerfelt (1984)
• is to develop strategic capability – achieving strategic fit between resources and
opportunities and obtaining added value from the effective deployment of
resources.
• founded on the belief that competitive advantage is obtained if a firm can obtain
and develop human resources that enable it to learn faster and apply its learning
more effectively than its rivals (Hamel and Prahalad, 1989)
• The sustained competitive advantage of the firms depends upon the unique
capabilities and resources they maintain with them in the competitive business
environment. These resources are knowledge, wisdom, risk-taking capacity and
judgement of the human resources associated with the organisation.

11. Strategic fit Approaches
• HR strategy should be an integral part of the business strategy, contributing
to the business planning process as it happens.
• Wright & McMahan (1992) explained that strategic fit is two dimensions:
vertical fit and horizontal fit
• vertical fit: connects human resource methods with the organization's
strategic procedures
• horizontal fit: horizontal alignment or synchronization of the various
human resource management techniques.
• The HR strategy should be aligned to the business strategy (vertical fit)
• r. The aim is to achieve a coherent approach to managing people in which
the various practices are mutually supportive.

12. High-performance management
• aims to make an impact on the performance of the firm through its
people in such areas as productivity, quality, levels of customer
service, growth, profits and, ultimately, the delivery of increased
shareholder value
• High-performance management practices include rigorous
recruitment and selection procedures, extensive and relevant training
and management development activities, incentive pay systems and
performance management processes.

13. High commitment management
• It is one of the defining characteristic of HRM is its emphasis on the
importance of enhancing mutual commitment (walton,1985)
• So it is more psychological in nature .The focus is on input to achieve the
desired objectives.
• Higher Commitment management has been described by wood (1996)as;
A form of management which is aimed to obtained a commitment so that
behavior is primarily self-regulated rather than controlling by sanctions and
pressure external to the individual, and relation with the organization are
based on high levelof trust.

14. High-involvement management
• This approach involves treating employees as partners in the
enterprise whose interests are respected and who have a voice on
matters that concern them.
• It is concerned with communication and involvement.
• The aim is to create a climate in which a continuing dialogue between
managers and the members of their teams takes place in order to
define expectations and share information on the organization’s
mission, values and objectives.
• This establishes mutual understanding of what is to be achieved and a
framework for managing and developing people to ensure that it will
be achieved.

15. HRM vs SHRM
HRM
• Human resource management
(HRM) implies the governance of
manpower of the organization in
a thorough and structured
manner.
• HRM process did not have any
specific rules for different areas.
• focuses mainly on employee
relations
• Responsible for Staff personnel in
the HR department
SHRM
• SHRM is a managerial function
which implies framing of HR
strategies in such a way to direct
employees efforts towards the
goals of organization
• There are specific rules specified
for specialized fields.
• focuses on partnerships with
internal and external customers
• Responsible for line managers

16. HRM
• HRM follows fragmented
approach
• The primary element in HRM is
the capital and products,
• supports short-term
organizations goals and
outcomes
• The process of HRM is reactive
in nature
• HRM stringent control over
employees is exercised.
SHRM
• SHRM follows an integrated
approach
• The primary element in SHRM
is the people and their
knowledge
• supports long-term goals and
results of organizations
• SHRM is a proactive nature
• no such control is imposed,
rather the rules for managing
manpower is lenient