Strategic Human Resource

Management
•
In this management system, human resource
is given due importance while planning goals
and long term strategies. The skills that are
necessary to meet the organizational goals are
developed in employees. This point is
considered during the planning phase and
included in the policies devised for meeting
goals
 Definitions
• A new and constantly evolving branch in the field of human
resource management, Strategic Human Resource
Management deals with utilizing human resources in a
manner that enables a firm to reap long term benefits, in
terms of profits, core competence and other goals. The
definitions of the term 'Strategic Human Resource
Management' as per Miles & Snow, 1984, is mentioned
below.
"A human resource system that is tailored to the demands
of the business strategy."
According to Wright & McMahan, 1992, Strategic Human
Resource Management refers to:
"The pattern of planned human resource activities intended
to enable an organization to achieve its goals."
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• The mission statements reflect the strategies,

goals and the overall approach of companies.
The values inherited and the policies devised
by firms are based on the mission statements;
which are the driving force that motivate the
employees to move ahead.
 Advantages of Strategic Human Resource
Management
• It helps analyze the opportunities and threats that are crucial,
from the point of view of the company.
• It is possible to develop strategies and have a vision for the
future.
• The need for competitive intelligence, which is of utmost
importance in strategic planning, is fulfilled by means of
implementing strategic human resource management.
• The attrition rate can be reduced, if strategic HRM is
implemented properly. It also performs the important task of
motivating employees.
• Development and maintenance of competency among
employees, is the most important benefit offered by strategic
HRM.
• It helps determine the weaknesses and strengths of the
company, thereby enabling the management to take
appropriate measures.
• It helps keep a check whether the expectations of employees
are addressed properly
 advantages

• It helps determine the weaknesses and

strengths of the company, thereby enabling the
management to take appropriate measures.
• It helps keep a check whether the expectations
of employees are addressed properly

• Business surplus is achieved by making the

employees competent enough to deliver the
goods.
 Limitations of Strategic Human Resource
Management
• The process of strategic HRM is a complicated one and
barriers in the growth of employees and in turn the
company, are created if strategic HRM is not implemented
properly. Following are some commonly observed
problems.
• Resistance to change from the bottom line workers.
• Inability of the management in communicating the vision
and mission of the company clearly to the employees.
• Interdepartmental conflict and lack of vision among the
senior management in implementing the HR policies.
• The diversity of workforce that makes it difficult for the
management to handle them accordingly.
 limitations

• Conflict among the employees over the issue of

authority and the related fear of victimization.
• The resistance from institutions such as the labor
unions.
• Changes that take place in the organizational
structure.
• The changing market scenario which in turn
creates pressure on the effective implementation
of strategic HRM.