BASIS FOR

HRM SHRM
COMPARISON

Meaning Human resource management (HRM) SHRM is a managerial function which

implies the governance of manpower of implies framing of HR strategies in such a
the organization in a thorough and way to direct employees efforts towards
structured manner. the goals of organization.

Nature Reactive Proactive

Responsibility Staff specialist Line manager

lies with

Approach Fragmented Integrated

Scope Concerned with employee relations Concerned with internal and external
relations

Time horizon Short term Long term

Basic factor Capital and products People and knowledge

Change Follows change Initiates change

Accountability Cost center Investment center

Control Stringent control over employees It exhibits leniency.

Key Differences Between HRM and SHRM

The differences between HRM and SHRM can be drawn clearly on the following grounds:

The governance of manpower of the organisation in a thorough and structured manner is called Human
Resource Management or HRM. A managerial function which implies framing of HR strategies in such a
way to direct employees efforts towards the goals of an organisation is known as SHRM.

The process of HRM is reactive in nature. On the other hand, SHRM is a proactive management function.
 1. In human resource management, the responsibility of manpower lies
with the staff specialists, whereas in strategic human resource
management, the task of managing the workforce, is vested in the line
managers.
2. HRM follows fragmented approach, which stresses on applying
management principles while managing people in an organisation. As
against this, SHRM follows an integrated approach, which involves
lining up of business strategy with the company’s HR practices.
3. Human resource management emphasises on employee relations,
ensuring employees motivation, and also the firm conforms to the
necessary employment laws. Conversely, SHRM focuses on a
partnership with internal and external constituent groups.
4. HRM supports short-term business goals and outcomes, but SHRM
supports long-term goals and results of business.
5. In human resource management, the human resource manager plays
the role of change follower, i.e. he/she responses to change, hence
pursues transactional leadership style. As opposed to SHRM, the human
resource manager is a change leader, i.e. an imitator, thus seeks
transformational leadership.
6. The primary element in HRM is the capital and products, but people
and their knowledge are the building blocks of SHRM.
7. If we talk about accountability, a conventional HRM is a cost centre.
Unlike a strategic HRM which is an investment centre.
8. In human resource management, stringent control over employees is
exercised. As against this, in strategic human resource management, no
such control is imposed, rather the rules for managing manpower is
lenient.

Barriers to strategic human resource management

1. Short term mentality: Short-term mentality and focus on the current performance of
SFIRM is the first barrier. Every manager act, long-term focus, because the organization
has been established with long-terms objectives/focus.
2. Strategic inability: Very often SHRM does not think strategically and he cannot think it
to due in capability. This type of inability may arise for many reasons as lack of technical
knowledge, insufficient training and the like.
3. Lack of appreciation: Sometimes top managers do not recognize the activities of
strategic human resource management. So SHR manager does not get interested in doing
any innovative venture. A few appreciations may get them a substantial mental boost up.
 4. Failure understands role:  General managerial roles may not be fully
understood by be managers. This failure is due to lack of knowledge
about the specialty of a degree of responsibility. This failure may create
distance between these managers.
5. Difficulty in quantifying outcomes: Many outcomes may not be
quantified. But SHRM   tries to enjoy the contribution. This is not always
possible. Participation, work etc. type function cannot be quantified
because of their intangibility.
6. Wong perception on human assets: Investment in human assets may
be regarded as high risk than that of technology and information.
Though these technologies are run by the human resources. This wrong
perception may inhibit the progress.
7. Resistance: SHR Managers may be resisted because of the incentives
for change that might arise. The change implemented demand some
incentives for efforts to execute the changed program. If these
incentives are not given reasonable, they may create barriers SHRM.

THEORETICAL PERSPECTIVE OF SHRM

 Fit Perspective-match its internal resources & skills with opportunities available in the
external

environment.

 Functional Perspective-An organization performs best when each departmental unit

maximizes its contributions limited to its unique area of expertise.

 Economic perspective- Human resources are a unique & distinguishable source of

competitive

advantage.

 Typological Perspective-it helps in developing systematic theories for the study of new
innovation in managerial though by the help of:

 Inducement: it focus on cost, expecting high performance, reward , loyalty to reduce

employee turnover.

Investment: it is based on differentiation and encourage and reward creativity and initiative

Involvement: it focus on their involvement because of expectation from employees.