Posted by Nandun Narayana

02. An Introduction to Strategic Human Resource Management (SHRM)


Strategic Human Resource Management (Kissflow, 2018)

    Strategic Human Resource Management (SHRM) defined itself as a framework linking HR management and development practices to long-term business goals and outcomes. This strategy focused on long-term resourcing issues and other HR strategies which determine the integration into the overall business strategy (Gifford, 2021)

The difference between Business Strategy and SHRM

    SHRM is the process of aligning the business strategy with the organization's human resource practices to attain the strategic goals of an organization. (Surbhi, 2018)

The difference between HRM and SHRM

Comparison Chart (Surbhi, 2018)

The objectives of SHRM practices (Emeritus, 2022)
  • Resource-based strategy: Focused on enhancing the strategic capabilities of the organization.
  • High commitment management: Establishing better engagement between management and employees.
  • Achieving strategic fit: Engagement of the workforce and material through a streamlined and high ROI-oriented operational model.
  • High involvement management:  Empowering and treating employees as managers.
  • High-performance management: Enhancing performance through productivity, growth, and profitability rate of the workforce.
The benefit of SHRM practices (SHRM, 2022)
  • Addressing key issues in a timely manner.
  • Promoting employee productivity toward organizational success.
  • Providing a sense of directing aligned with strategic goals.
  • Keeping employees focused on organizational goals.
  • Providing strategic focus to guide training and development initiatives.
The importance of SHRM practices (Emeritus, 2022)
  • Increased job satisfaction.
  • Better work culture.
  • Efficient resource management.
  • A proactive approach to managing employees.
  • Productivity boost.
Challenges to be faced when implementing SHRM practices (Emeritus, 2022)
  • Cross-cultural issues and lack of engagement between stakeholders.
  • Changes in technology.
  • Challenges in the business environment (pandemic outbreak, macroeconomic conditions).
  • Changes in business leadership. 
   SHRM became increasingly popular in the 2000s triggered by Dave Ulrich's challenges for the HR profession emphasizing that HR needed to become value-adding and more strategically oriented aligning to the business strategy of the organization to provide value. Ulrich defined 4 HR responsibilities naming HR strategy, enabling change, efficient administration, and developing and engaging employees. Accordingly, Ulrich criticized the lack of strategic contribution of HR and the forgotten elements mentioned above that have not been focused on (Vulpen, 2022)

Vulpen (2018) published 5 steps to make an impact with SHRM;
  • Creating a Human Resource Strategic Plan that follows the business: Creating an HR strategic plan that follows the business strategy.
  • Aligning HR activities: All HR activities (including recruitment, selection, performance management, compensation, and benefits) should be aligned with the HR strategy.
  • More emphasis on data: Measuring the impact of HR policies using KPIs.
  • HR's other responsibilities: Ulrich's HR responsibilities.
  • Taking an outside-in approach: HR can become a lever for other stakeholders.
How to make an impact with SHRM (Vulpen, 2018)

    SHRM aims to achieve a competitive advantage by creating value for employees by including policies and practices designed to ensure fairness in employee relations. An organization can benefit from SHRM when it allows it to make better decisions on improving productivity, reducing costs, increasing profits, and enhancing employee satisfaction. However, it is important to make ensure that SHRM aspects revolve around the same set of objectives and goals of the organization (Fechter, 2022)

References

Emeritus (2022) What is SHRM and Why is it Important? [online] Available from https://hr.university/shrm/strategic-human-resource-management/. [Acessed on 11th November 2022] 

Fechter, J. (2022) What is Strategic Human Resource Management? [blog entry] HR University. Available from https://hr.university/shrm/strategic-human-resource-management/. [Acessed on 11th November 2022]

Gifford, J. (2021) Strategic Human Resource Management. [blog entry] 3rd June. CIPD. Available from https://www.cipd.co.uk/knowledge/strategy/hr/strategic-hrm-factsheet#gref. [Acessed on 11th November 2022] 

Kissflow (2018) Strategic Human Resource Planning Process [online] Available from https://kissflow.com/hr/strategic-human-resource-hr-planning/. [Acessed on 11th November 2022]

SHRM (2022) Practicing Strategic Human Resources [online] Available from https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/practicingstrategichumanresources.aspx. [Acessed on 11th November 2022]

Surbhi, S. (2018) Difference Between HRM and SHRM. [blog entry] 20th January. Keydifferences. Available from https://keydifferences.com/difference-between-hrm-and-shrm.html#:~:text=SHRM%20is%20the%20process%20of,the%20company%20is%20managed%20proactively. [Acessed on 11th November 2022]

Vulpen, E. V. (2022) Strategic Human Resource Management: The Basics [blog entry] Academy to Innovate HR. Available from https://www.aihr.com/blog/strategic-human-resource-management/. [Acessed on 11th November 2022]

Location: Sri Lanka

Comments

  1. Udara DilshanNovember 12, 2022 at 12:11 PM

    SHRM is the long term intergration of HR strategies with organizational goals.good article and well explained everything.

    ReplyDelete
  2. Ruvini UdayanganiNovember 12, 2022 at 10:00 PM

    Good luck. Very useful article.

    ReplyDelete
  3. ArunaNovember 12, 2022 at 10:31 PM

    Nadun.
    Completely share your point of view.
    To improve work culture, effectively manage resources, raise productivity, and increase job satisfaction, SHRM link.
    Happy to see a this type of post.

    ReplyDelete
    Replies
    1. Nandun NarayanaNovember 13, 2022 at 10:31 AM

      Yes. Those can also be considered elements for an effective SHRM practice. I believe over time the importance of SHRM will be further increased and considered a mandatory factor for all business entities.

      Delete
  4. AnonymousNovember 13, 2022 at 8:56 PM

    Some Latest strategic Update!! Thanks for sharing

    ReplyDelete
    Replies
    1. Nandun NarayanaNovember 14, 2022 at 10:42 AM

      Thank you for the compliment. Please update your name next time.

      Delete
  5. Rajitha J weliwitigodaNovember 22, 2022 at 8:35 AM

    SHRM is timely topic. Great description. Hope you will do another comprehensive article with SHRM real time scenario.

    ReplyDelete
    Replies
    1. Nandun NarayanaNovember 26, 2022 at 8:31 PM

      Appreciate the comment Rajitha. More detailed articles to be published.

      Delete
  6. wimalNovember 27, 2022 at 10:43 AM

    This very valuable in HRM,but You could talk what are clash between SHRM and business strategic in organizations

    ReplyDelete
    Replies
    1. Nandun NarayanaNovember 28, 2022 at 11:28 PM

      One of the main objectives of the SHRM is to align the HR strategies with the overall business strategy of the organization. It is the responsibility of the HR personnel of the organization to lead the HRM strategies following the short-term and long-term goals of the organization. When both strategies drive in different directions, they affect the overall performance and ultimately affect the profit of the organization.

      Delete
  7. Dinusha KularathnaNovember 29, 2022 at 1:03 AM

    HRM & HRD & SHRM , is nowadays Companies following HRD concepts or SHRM concepts.

    what ever Theories exit in HR this is mainly vary with Owners attitude and believes. what ever concepts in Organization final decision under management.

    what f=do you think about this.

    ReplyDelete
    Replies
    1. Nandun NarayanaNovember 29, 2022 at 8:19 PM

      Agreed. However, SHRM is based on strictly alignment with the organizational goals of the company. Therefore, it is recommended for the top-level management to abide by the SHRM practices of the organizations to operate successfully despite their beliefs and attitudes.

      Delete
  8. Dinusha WeerasingheNovember 30, 2022 at 12:06 AM

    What is your opinion about the ability to contribute to the development of organizational performance through strategic HR management related with global context?

    ReplyDelete
    Replies
    1. Nandun NarayanaNovember 30, 2022 at 11:57 PM

      Training and development: HR managers play a crucial role in enhancing employer-employee relations since they make a considerable contribution to training and development programs. This helps people advance within the organization, which raises productivity and employee happiness.

      Delete
  9. Sanjana KarunarathnaDecember 2, 2022 at 6:00 AM

    SHRM provides a framework linking people management and development practices to Longterm business goals & outcomes.

    ReplyDelete
    Replies
    1. Nandun NarayanaDecember 3, 2022 at 12:10 AM

      Agreed. Main objective if the SHRM process is to align HR objectives toward organizational goals.

      Delete
  10. Asfara BanuDecember 2, 2022 at 10:52 AM

    This a very comprehensive article on SHRM. It would be much better if you explained further the theories to support your argument and validate.

    ReplyDelete
  11. MadushaDecember 3, 2022 at 12:05 AM

    how organizations gain competitive advantage through SHRM?

    ReplyDelete
    Replies
    1. Nandun NarayanaDecember 3, 2022 at 12:17 AM

      When all teams are working toward the same goals, businesses are more likely to be successful. Strategic HR analyzes personnel and decides what has to be done to maximize their value to the business. The findings of this research are also used by strategic human resource management to create HR strategies for dealing with employee deficiencies.

      Delete
  12. Meshika DiddeniyaDecember 3, 2022 at 1:07 PM

    The framework offered by SHRM connects people management and development methods to long-term corporate objectives.
    what do you think about how SHRM affects the present?

    ReplyDelete
    Replies
    1. Nandun NarayanaDecember 3, 2022 at 9:39 PM

      I believe SHRM affects very crucially for the present employee turnover rates. However, the increased rate is due to unavoidable external factors such as macroeconomic conditions. Although, SHRM should strategize and prevent to reduce employee turnover.

      Delete
  13. Meshika DiddeniyaDecember 3, 2022 at 1:12 PM

    The capacity of top management and the favorable climate in the organization are demonstrated by employee retention, which is a valuable topic.

    ReplyDelete
  14. DhanushkaDecember 3, 2022 at 1:58 PM

    Nadun, Strategic human resource management (SHRM) involves the alignment of human capital with the goals of an organization. The main benefits of SHRM include increased sales, organizational growth, and effective department. Some examples of SHRM include purposeful hiring and frequent communication. Are agreed with this

    ReplyDelete
    Replies
    1. Nandun NarayanaDecember 3, 2022 at 9:41 PM

      Agree with your comment Dhanushka and it is very insightful.

      Delete
  15. Apsara ChathuraniDecember 3, 2022 at 2:10 PM

    SHRM becomes a critical factor in modern organizational culture. Great description.

    ReplyDelete
  16. Manoj HewawasamDecember 3, 2022 at 11:23 PM

    The term employee engagement relates to the level of an employee's commitment and connection to an organization. Employee engagement has emerged as a critical driver of business success in today's competitive marketplace. High levels of engagement promote retention of talent, foster customer loyalty and improve organizational performance and stakeholder value.

    ReplyDelete

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