This document discusses different approaches to strategic human resource management (SHRM). It defines SHRM and outlines five key approaches: traditional, strategy implementation, strategy formulation, best practices, and best fit. For each approach, it provides an overview of the focus and assumptions, as well as advantages/criticisms. The traditional approach views HR as separate from business strategy. The other four seek to align HR with organizational goals and strategy in different ways.

1. Meera Mary Cherian
S4 MBA
MACFAST

2. SHRM
DEFINITION
 It is 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.

3. Different Approaches of SHRM
 Traditional Approach
 Strategy Implementation Approach
 Strategy Formulation Approach
 Best Practices Approach
 Best Fit Approach

4. Traditional Approach
 This approach has no role in the formulation and
implementation of business strategy
 It assumes that the people and job are stable.
Advantages
 Helps in better analysis of a specific job
 Help in assess the person-fit recruitment &
selection of Qualified person for a specific job.

5. Strategy Implementation Approach
 It aligns the HR process with the organizational goals.
 HR strategies need to be aligned with the business
strategy.
Steps:
 Identifying the org. business strategy
 Deducing the organizational capabilities needed to
implement the strategy

6.  The recruitment & selection process that focus on
candidate who can work with the org. goals
Strategy Formulation Approach
 Focus – hiring candidate who can add value
to an org. product & services.
 Add value- people with unique KSA
 Assumes that the strategy and staffing are stable&
change according to the external environmental
factors- Political, Social, economic, demographic,
technological factors, Suppliers, Customers, creditors,
competitors etc.

7. Best practice approach
 Best practice approach believes that there is a set of best HRM
practices and adopting them will lead to superior organizational
performance. The HR practices to be followed are:
 Employment security
 Selective hiring
 Self-managed teams or team working
 High pay contingent on company performance
 Extensive training
 Reduction of status differences
 Sharing information

8.  In essence, recruiting and retaining talented, team-
oriented, highly motivated people is seen to lay a basis
for superior business performance
Criticisms
 Disconnection from company's goals and context
 Disregard of national differences such as management
practices
 difficulty arises when we go beyond these
straightforward practices.

9. Best Fit Approach
 Best fit approach believes that there is no universal
prescription for HRM practice.
 It emphasises the fit between HR activities and the
organisation's stage of development ("external-fit")
Criticisms
 Lack of alignment with employee interests,
compliance with prevailing social norms and legal
requirements