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UNIT 1 INTRODUCTION TO HRM

1.8 OVERVIEW OF SHRM

I II

20 MBT 202
HUMAN RESOURCE MANAGEMENT
 BUSINESS ADMINISTRATION 20MBT 202
HUMAN RESOURCES MANAGEMENT

WHAT IS STRATEGIC HUMAN RESOURCE MANAGEMENT ?

SHRM is all about the formulation of HR strategies in alignment with the overall
corporate strategy to achieve the goals of the organization. It aims at individual
performance and organizational effectiveness

Experts defined SHRM in various ways

Definition

Strategic HRM refers to HR that is co-ordinated and consistent with the overall
business objectives in order to improve business performance.

According to Purcell (1999), SHRM focuses on actions that differentiate the

business from its competitors.
 BUSINESS ADMINISTRATION 20MBT 202
HUMAN RESOURCES MANAGEMENT

FEATURES OF STRATEGIC HRM

 SHRM is closely associated with goal – setting ,policy formulation and

allocation of resources

 It aims at fulfilling the long term HR requirement of the organization

hence focus on expansion of process capability (HR Policies and
Procedures)

 It is interrelated with business strategies. It provides critical inputs in

formulation of business strategies and specific strategies (HR
strategies like recruitment training and PA)
 BUSINESS ADMINISTRATION 20MBT 202
HUMAN RESOURCES MANAGEMENT

 SHRM entrusts strategy formulations tasks with line manages while HR

professionals play a advisory role

 It views employees a the strategic capability of the organization and

attempts to differentiate the organization from its competitors in market on
that basis
BUSINESS ADMINISTRATION 20MBT 202
HUMAN RESOURCES MANAGEMENT
 BUSINESS ADMINISTRATION 20MBT 202
HUMAN RESOURCES MANAGEMENT

BARRIERS TO EFFECTIVE SHRM

 ABSENCE OF LONG TERM ORIENTATION

 LACK OF STRATEGIC REASONING

 LACK OF ADEQUATE SUPPORT FROM TOP

 RESISTANCE FROM LABOUR UNIONS

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HUMAN RESOURCES MANAGEMENT

 FEAR OF FAILURE

 RIGIDITY OF HR PRACTICES

 FEA OF ATTRITION

 ABSENCE OF MEASUREMENT TECHNIQUES

 BUSINESS ADMINISTRATION 20MBT 202
HUMAN RESOURCES MANAGEMENT

TYPES OF HR STRATEGIES

 COMMITMNET STRATGY

 COMPLIANCE STRATEGY

 PATERNALISTIC STRATEGY

 COLLABORATIVE STRAGETY