STRATEGIC HUMAN RESOURCE MANAGEMENT

Presented By : Cathy Chirag Manish

Prachi Rattna & Suma

DEFINITION
Strategic human resource management is the proactive management of people. It requires thinking ahead, and planning ways for a company to better meet the needs of its employees, and for the employees to better meet the needs of the company. This can affect the way things are done at a business site, improving everything from hiring practices and employee training programs to assessment techniques and discipline.

 In this age of rapid technological development, the

importance of human resources still holds the key to the development and progress of a company. Strategic human resource management is a new approach, that helps in aligning the skills present in the employees with the goals to be achieved by the company.

Strategic human resource management is the process of linking the human resource function with the strategic objectives of the organization in order to improve performance.

STEPS FOR STRATEGIC MANAGEMENT

1. mission and goals
2. environmental analysis

3. strategic formulation
4. strategy implementation 5. strategy evaluation

FEATURES OF SHRM
TOP MANAGEMENT

PROCESS CAPABILITIES
INTERRELATED WITH BUSINESS STRATEGIES STRATEGY FORMULATION

STRATEGIC CAPABILITY

DIFFERENCE IN HRM & SHRM

HRM HRM involves the process of employing people, developing their skills/capacities, and utilizing their services. While traditional HRM focuses mainly on employee relations. When HRM has only short-term goals When HRM has staff specialists SHRM Strategic HRM can be termed as a branch of HRM. Strategic HRM focuses on partnerships with internal and external customers. Strategic HRM is for long-term goals. Strategic HRM has line managers.

When considering job design, there is a tight On the other hand, job division in Strategic division of labor and independence HRM is flexible. specialization in HRM

ADVANTAGES OF SHRM
It helps analyze the opportunities and threats that are

crucial, from the point of view of the company.

future.

It is possible to develop strategies and have a vision for the

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.

Business surplus is achieved by making the employees

competent enough to deliver the goods.

LIMITATIONS
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.

The changing market scenario which in turn creates

pressure on the effective implementation of strategic HRM.

The resistance from institutions such as the labor unions
Conflict among the employees over the issue of authority

and the related fear of victimization.

HIERARCHY OF STRATEGY
Another aspect of strategic management in the multidivisional business organization concerns the level to which strategic issues apply. Conventional wisdom identies different levels of strategy a hierarchy of strategy : 1. corporate 2. business 3. functional

SHRM MODELS
MATCHING MODEL HR STRATEGY MODEL
Control Based Model Resource Based Model Integrative Model

MATCHING MODEL
HR systems and organizational structure should

be managed in a way that is congruent with organizational strategy.

In the Devanna et al. model, HRMstrategy

structure follow and feed upon one another and are inuenced by environmental forces

HR STRATEGY MODELS:

1.

CONTROL BASED MODEL :

The control-based model, is grounded in the way in which management attempts to monitor and control employee role performance.

2. RESOURCE BASED MODEL

This second approach to developing typologies of HR strategy is grounded in the nature of the rewardeffort exchange and, more specically, the degree to which managers view their human resources as an asset as opposed to a variable cost.

3. INTEGRATIVE MODEL
It focusses on two main dimensions : Acquisition and development Locus of control

LATEST TREND & FORECAST IN SHRM

SHRM Executive Roundtable on Workplace

Flexibility
SHRM Workplace Forecast: The Top Workplace

Trends According to HR Professionals

Future Insights: Top Trends According to SHRM's

HR Subject Matter Expert Panels

SHRM 2009 Executive Roundtable on the Future

of Retirement Executive Summary

SHRM Executive Roundtable on Sustainability and

Human Resource Management Strategy: Summary Report

SHRM Workplace Forecast Survey Report

CONCLUSION
Ideally HR & top management work together to formulate the company's overall business strategy; that strategy then provides the framework within which HR activities such as recruiting & appraising must be crafted. If it is done successfully, it should result out in the employee competencies & behavior that in turn should help the business implement its strategies & realize its goals. According to an expert "the human resources management system must be tailored to the demands of business strategy".

In order to be successful the employees should be developed in such a manner that they can be the competitive advantage, & for this the human resource management must be an equal partner in both the formulation & the implementation of the corporate & competitive strategies.