Strategic Human Resource

Management

Topic-2
Learning outcomes
LO-1. Understand how the strategic management of
human resources contribute to the achievement of
organizational objectives
Assessment outcomes
1.3. Evaluate the contribution of strategic human
resource management to the achievement of an
organization’s objectives
HRM Strategy and Organizational
Performance
 D Guest’s Comparative Model
HRM strategy HRM HRM Behavior Performance Financial
practices outcomes outcomes outcomes outcome
Differentiation Selection Commitment Effort/ High: Profits
( innovation) Training Productivity ROI
Appraisal Quality motivation Quality
Focus
Rewards Flexibility Co-operation Innovation
(Quality) Job design Low:
Cost Involvement
Involvemen Absence
(Cost Organizationa
t Labor
reduction) Status and l citizenship turnover
security Conflict
Customer
Complaints

Source: Guest, (1997) as cited in ABE (2011), Strategic human

resource management: the Study Manual, UK: The Association4 of
Business Executives.
 Discussion
• How SHRM contribute to achievement of
organization’s objectives.
• Identify objectives of your selected
organization.
• How theses objectives will be achieved by
performing SHRM activities.