| In Human Resource (HR) and management circles | | | | Management |
| nowadays there is much talk about Strategic Human | | | | The key features of SHRM are |
| Resource Management and many expensive books | | | | - There is an explicit linkage between HR policy and |
| can be seen on the shelves of bookshops. But what | | | | practices and overall organizational strategic aims and |
| exactly is SHRM (Strategic Human Resource | | | | the organizational environment |
| Development), what are its key features and how | | | | - There is some organizing schema linking individual HR |
| does it differ from traditional human resource | | | | interventions so that they are mutually supportive |
| management? | | | | - Much of the responsibility for the management of |
| SHRM or Strategic human resource management is a | | | | human resources is devolved down the line |
| branch of Human resource management or HRM. It is | | | | |
| a fairly new field, which has emerged out of the parent | | | | Trends in Strategic Human Resource Management |
| discipline of human resource management. Much of | | | | Human Resource Management professionals are |
| the early or so called traditional HRM literature treated | | | | increasingly faced with the issues of employee |
| the notion of strategy superficially, rather as a purely | | | | participation, human resource flow, performance |
| operational matter, the results of which cascade down | | | | management, reward systems and high commitment |
| throughout the organisation. There was a kind of | | | | work systems in the context of globalization. Older |
| unsaid division of territory between people-centred | | | | solutions and recipes that worked in a local context do |
| values of HR and harder business values where | | | | not work in an international context. Cross-cultural |
| corporate strategies really belonged. HR practitioners | | | | issues play a major role here. These are some of the |
| felt uncomfortable in the war cabinet like atmosphere | | | | major issues that HR professionals and top |
| where corporate strategies were formulated. | | | | management involved in SHRM are grappling with in |
| Definition of SHRM | | | | the first decade of the 21st century: |
| Strategic human resource management can be | | | | - Internationalization of market integration. |
| defined as the linking of human resources with | | | | - Increased competition, which may not be local or |
| strategic goals and objectives in order to improve | | | | even national through free market ideology |
| business performance and develop organizational | | | | - Rapid technological change. |
| culture that foster innovation, flexibility and competitive | | | | - New concepts of line and general management. |
| advantage. In an organisation SHRM means accepting | | | | - Constantly changing ownership and resultant |
| and involving the HR function as a strategic partner in | | | | corporate climates. |
| the formulation and implementation of the company's | | | | - Cross-cultural issues |
| strategies through HR activities such as recruiting, | | | | - The economic gravity shifting from 'developed' to |
| selecting, training and rewarding personnel. | | | | 'developing' countries |
| How SHRM differs from HRM | | | | SHRM also reflects some of the main contemporary |
| In the last two decades there has been an increasing | | | | challenges faced by Human Resource Management: |
| awareness that HR functions were like an island unto | | | | Aligning HR with core business strategy, demographic |
| itself with softer people-centred values far away from | | | | trends on employment and the labour market, |
| the hard world of real business. In order to justify its | | | | integrating soft skills in HRD and finally Knowledge |
| own existence HR functions had to be seen as more | | | | Management. |
| intimately connected with the strategy and day to day | | | | |
| running of the business side of the enterprise. Many | | | | References |
| writers in the late 1980s, started clamoring for a more | | | | |
| strategic approach to the management of people than | | | | 1. Armstrong, M (ed.) 192a) Strategies for Human |
| the standard practices of traditional management of | | | | Resource Management: A Total Business Approach. |
| people or industrial relations models. Strategic human | | | | London:Kogan Page |
| resource management focuses on human resource | | | | 2. Beer, M and Spector,B (eds) (1985) Readings in |
| programs with long-term objectives. Instead of | | | | Human Resource Management. New York: Free |
| focusing on internal human resource issues, the focus | | | | Press |
| is on addressing and solving problems that effect | | | | 3. Boxall, P (1992) 'Strategic Human Resource |
| people management programs in the long run and | | | | Management: Beginnings of a New Theoretical |
| often globally. Therefore the primary goal of strategic | | | | Sophistication?' Human Resource Management Journal, |
| human resources is to increase employee productivity | | | | Vol.2 No.3 Spring. |
| by focusing on business obstacles that occur outside | | | | 4. Fombrun, C.J., Tichy, N,M, and Devanna, M.A. (1984) |
| of human resources. The primary actions of a | | | | Strategic Human Resource Management. New |
| strategic human resource manager are to identify key | | | | York:Wiley |
| HR areas where strategies can be implemented in the | | | | 5. Mintzberg, H, Quinn, J B, Ghoshal, S (198) The |
| long run to improve the overall employee motivation | | | | Strategy Process, Prentice Hall. |
| and productivity. Communication between HR and top | | | | 6. Truss, C and Gratton, L (1994) 'Strategic Human |
| management of the company is vital as without active | | | | Resource Management: A Conceptual Approach', |
| participation no cooperation is possible. | | | | International Journal of Human Resource Management, |
| Key Features of Strategic Human Resource | | | | Vol.5 No. |