STRATEGIC HUMAN RESOURCE MANAGEMENT HRM604 TOPIC 2: KEY FEATURES IN SHRM

CONTENTS Introduction Key Features in SHRM 3. Trends in SHRM 4. Summary& Conclusion

INTRODUCTION Organization, particularly business entities, must succeed financially if they want to survive. This is the reason why business or strategic plans are prepared

INTRODUCTION This is one of the simple ways in understanding the important factors related to Strategic Human Resources Management (SHRM)

INTRODUCTION Your organization, too, has its strategic or business plan. The only thing left is to make it a reality

INTRODUCTION As such, Strategic HRM can be summarized as the linking of human resources with strategic goals and objectives to improve business performance

INTRODUCTION It is the use of planning A coherent approach to the design & mgt personnel systems based on employment policy & manpower strategy & often underpinned by philosophy Seeing people as a strategic resource for the achievement of competitive advantage

Features of SHRM (defined by Dyer & Holder, 1988) Organizational level – strategies involve decisions about key goals, major policies, & allocation of resources. Focus – strategies are business driven & focus on organizational effectiveness thus in this perspective people are viewed primarily as resources to be managed toward the achievement of strategic business goals. Framework: providing unified frameworks that are contingency based & interactive. Roles: strategy making generally is the responsibility of line managers, with personnel playing a supportive role.

KEY FEATURES IN SHRM The key features of SHRM are: 1. There is an explicit linkage between HR policy & practices and overall organizational strategic aims and organizational objectives

Origins of SHRM Concept: Core elements are: Mission & strategy : strategic level – policy formulation & goal setting Organizational structure: (operational level): day to day management Human Resource Mgt: managerial level – concerned with the availability & allocation of resources to carry out the strategic plan.

KEY FEATURES IN SHRM (CONT) There is some organizing scheme linking individual HR interventions so that they are mutually supportive

KEY FEATURES IN SHRM (CONT) 3. Much of the responsibility for the management of human resources is devolved down the line

TRENDS IN SHRM HRM professionals are increasingly faced with the issues of employee participation, human resource flow, performance management, reward system, and high commitment work system in the context of globalization

TRENDS IN SHRM (CONT) Older solution and recipes that worked in the local environment do not work in an international context Cross cultural issues or cultural sensitivity play a major role in the workplace

TRENDS IN SHRM (CONT) These are some of the major issues that HR professionals and top management involved in SHRM are grappling with in the first decade of the 21st century What are these major issues?

TRENDS IN SHRM (CONT) 1. Internationalization of market integration 2. Increased competition, which may not be local or even national through free market ideology

TRENDS IN SHRM (CONT) 3. Rapid technological change 4. New concepts of line and general management 5. Constantly changing ownership & resultant corporate climates. 6. Cross cultural issues

Strategic FIT defined FIT as strategic interaction: linking HR practices to the external context. FIT as contingency: approaches which ensure that internal practices should respond to particular external factors such as the nature of the market. FIT as an ideal set of practices – view that there are best practices which firms can advantageously adopt

Strategic FIT defined Fit as gestalt – approach emphasizing importance of finding an appropriate combination of practices FIT as bundles – the search for distinct configurations or bundles of complementary practices in order to determine which is likely to be most effective

SUMMARY & CONCLUSION Some commentators see SHRM as being integrated with strategy formulation on how human resources management can help accomplish the business plans for the organization

SUMMARY & CONCLUSION In sum, SHRM is concerned with long term goals in order to improve business performance

SUMMARY & CONCLUSION SHRM also reflects some of the main contemporary challenges faced by HRM: Aligning HR with core business strategy, demographic trends on employment & the labour market, integrating soft skills in HRD and finally Knowledge Management

REFERENCES Armstrong, M and Baron, A (2002) Strategic Human Resources Management: The key to improved business performance, development practice. London; Chartered Institute of personal and development

REFERENCES Schuler, R.S. Strategic Human Resources Management, Linking people with the needs of the business. Organizational dynamics. Vol 21, no 1, pp18-32

REFERENCES Wright, P.M. and Mcmahan, G.C. (1992) Theoretical perspective for SHRM. Journal of Management, March., pp 215-247