STRATEGIC HRM /

SHRM
 Strategic human resource management

WHAT IS may be defined as the linking of human

resource management with strategic

STRATEGIC goals and objectives in order to improve

business performance and develop

HRM ? organisational culture that fosters

innovation and flexibility.
FOCUSES OF THE SHRM :

SHRM focuses on the following three selection procedures :

1. HRM PRE-SELECTION

1. HRM SELECTION

1. HRM POST-SELECTION
1. HRM PRE-SELECTION

HRM pre-selection practices includes human resource planning and

job analysis.
2. HRM SELECTION

HRM selection practices meant for staff various positions in the

organisation. Both recruitment and selection policies and procedures
should be designed keeping in view the mission and purpose of the
organisation.
3. HRM POST-SELECTION

HRM post-selection is to maintain and improve the worker’s job

performance levels. HR decisions related to training and
development, performance appraisal, compensation and motivation
should be based on corporate strategy of the organisation.
PROMINENT AREAS
WHERE HR MANAGERS
PLAY STRATEGIC
ROLES:
1. PROVIDING PURPOSEFUL DIRECTION
2. BUILDING CORE COMPETENCY
3. CREATING COMPETITIVE ADVANTAGE
4. FACILITATION OF CHANGE
5. MANAGING WORKFORCE DIVERSITY
6. DEVELOPMENT OF WORK ETHICS AND CULTURE
7. EMPOWERMENT OF HUMAN RESOURCE
8. TOTAL QUALITY MANAGEMENT
1. PROVIDING
PURPOSEFUL
DIRECTION :
The human resource manager must be able to lead people and the
organisation towards the desired direction involving the people right
from the beginning. One of the most important task of a professional
manager is to ensure that the mission of an organisation has been
internalised by each individual working in the organisation and all the
actions of each person must be consistent with the objective defined.
2. BUILDING CORE
COMPETENCY :

The human resource manager has great role to play in developing

core competency by the firms. A core competency is a unique
strength of an organisation which may not be shared by others. This
may be in the form of human resources, marketing capability, or
technological capability. If the business is organised on the basis of
core competency, it is likely to generate competitive advantage.
3. CREATING
COMPETITIVE
ADVANTAGE :

In today’s globalised marketplace, maintaining a competitive

advantage is the foremost goal of any business organisation. Only a
highly committed and competent workforce would enable the
organisation to compete on the basis of market responsiveness,
product and service quality, different product and technological
innovation.
4. FACILITATION OF
CHANGE:

The HR manager will be required to act as change agents through

greater involvement in environmental scanning and development
planning. The HR function will become more creative and less
mechanistic. HR managers will have to devote more time to promote
changes than to maintain the status quo.
5. MANAGING
WORKFORCE
DIVERSITY :
Workforce diversity can be observed in terms of male and female
workers, young and old workers, educated and uneducated workers,
unskilled, skilled and professional employees, different castes,
religions, and nationalities. The workforce in future will comprise
more of educated and self-conscious workers. They will ask for
higher degree of participation and avenues for self-fulfillment.
Moreover the proportion of professionals and technical employees
will increases in relation to blue collar workers. The ratio of female
employees in the total workforce will also rise. Integration of women
within managerials ranks will itself be a problem. Money will no
longer be the sole motivation force for majority of workers.
6. DEVELOPMENT OF
WORK ETHICS AND
CULTURE :

The future HR or personal managers will have to mobilise a new work

ethics so as to assist the line managers in setting up and enforcing
good quality standards. Greater focus will be on project and team
form of organisation. Greater effort will be needed to achieve group
cohesiveness because workers will have transient commitment to
groups. As changing work ethic requires increasing emphasis on
individual, job will have to be redesigned to provide challenge.
Flexible starting and quitting time for employees may be necessary.
Focus will shift from extrinsic to intrinsic motivation.
7. EMPOWERMENT OF
HUMAN RESOURCE :

The basic goals of empowerment are that all people should:

Understand and feel good about themselves; relate to each other
with empathy and respect; give voluntary agreement to the rules and
structures that govern their lives and have sufficient to resource (of
knowledge, training, authority, time, tools, support, money, etc ) to be
able to contribute all the value they can to their chosen rules.
8. TOTAL QUALITY
MANAGEMENT :

TQM is a dynamic process involving all levels in the organisation to

promote never ending improvement in the efficiency and
effectiveness of all elements of a business. The goal of TQM is to
mobilise the entire workforce in pursuit of specific company goals
with the primary aim of achieving customer satisfaction with regards
to quality, price and delivery and after sales services .