Along with financial importance for a company,

the main deal comes from human capital which

needs continuous upgrade along with result
inducing investment. Without investing in the
human capital, the company will not be able to
achieve its goals.
To deal with human capital, role of HR was
introduced as a supporting function.
Over the time, HR role changed in organization
and became strategic partner for a company to
achieve organizational goals.
The strategic approach means that HR would
be operating beyond the administrative skills of
payroll etc.

To develop the HR strategically, the concept of
Strategic Human resource management was
developed which has emerged out of parent
discipline, Human resource.
Definition of SHRM
Strategic human resource management develops the
link between strategic goals and objectives of a
company and human resources. This link is formed
in order to improve performance of a business and
develop a culture in organization to foster
innovation, competitive advantage and flexibility.
In an organization, SHRM is determined to act
as a strategic partner for implementation and
formulation of companys strategies through
a set of activities including:
Recruiting
Selecting
Training
Rewarding personnel

SHRM is made up of explicit link between HR
policy/practices and organizational strategic
goals/aims along with organizational
environment.
SHRM is made of organizing schema which is
linking individual HR interventions in order to
ensure mutual support.

Key elements of HR are worked upon so as to
maximize employee performance in alignment
with organizational goals which is called SHRM.
The key elements are:
First element of SHRM is to select and place the
employees. It involves the skills and technical
competencies required for the job. It also
involves behavioral competencies as well.
Second element involves the job design that
involves a certain piece of work which is doable
and challenging. Different elements are put
together to form job design by keeping in mind
organization and individual requirements,
heath, ergonomics and safety considerations.
Evaluating people and rewarding them based
on their performance is the third element of
this strategy. This involves rewards for
organizational performances, teamwork,
collaboration etc.
Fourth element is diversity management
which involves appreciation and usage of
different ideas brought by employees.
SHRM forms the linkage between HR and
management in order to align the functions
of organization with HR functions
SHRM develops links between human
resources horizontally and vertically for
both future and present time frames
Vertical links involve connection between
HR practices and strategic management
process of the organization

Horizontal integration involves the coordination of
various HR practices based on a planned action.
All the HR strategies are linked to organizational
aims/plans, HR programs and anticipated HR
needs.
Multiple SHRM processes involve:
selection./recruiting
Employee and career development
Performance management
Succession planning
Termination
Retirement

SHRM contribute in three ways to
achieve organizational objectives:
Forecasting
Strategy formulation
Implementation

The forecast includes the future events
predictions that will impact the organization
along with organizational needs by analyzing
the external and internal environments.
Control and predictability degree must be
accurate and controlled in order for better
forecasting of labor requirements for an
organization.
For this reason, Dubai customs uses four
stages in order to ensure the controlled
forecasting
First stage the identification of events on
which the organization has full control
Second stage involves the prediction of
events on which the organization has little
control
Third stage involves the events which are
probabilistic
Fourth stage includes the vents that are
unknown and merely random or anticipated
HR strategy formulation is a complex process
which involves decision making based on:
Forecasts
Anticipated HR program effects on strategic objectives
Organizational strategy
SHRM links the HR functions to other
organizational process for closer relationship
between HR and management

SHRM develops the integration of HR functions
of the organization into larger organizational
strategy.
All the following factors are altered in order to
integrate with organizational strategy:
Labor and employee relations
Performance management
Employee selection and recruitment
Training and development

In order to have a successful HR strategy
implementation and integration in the
organizational strategy, the need is to have:
Strong relationships with business leaders
Willingness to modify plans
Good understanding of the business