Professional Documents
Culture Documents
Definition
• “(S)trategic HRM is about how the
employment relationships for all employees
can be managed in such a way as to
contribute optimally to the organization’s goal
achievement.”
Strategic Human Resource
Management
Involves the development of a consistent, aligned
collection of practices, programs, and policies to
facilitate the achievement of the organization’s
strategic objectives.
Requires abandoning the mind set and practices
of “personnel management” and focusing on
strategic issues than operational issues.
Integration of all HR programs within a larger
framework, facilitating the organization’s mission
and its objectives.
• Strategic Human Resource Management
– Involves aligning initiatives involving how people
are managed with organizational mission &
objectives
• Strategic Management Process
– Determining what needs to be done to achieve
corporate objectives over 3 - 5 years
– Examining organization & competitive
environment
– Establishing optimal fit between organization & its
environment
– Reviewing & revising strategic plan
Competitive advantage through people?
Competitive advantage allows a firm to gain an
edge over its rivals when competing. It comes
from a firm’s unique ability to perform activities
more distinctively and more effectively than
rivals. HR can be a source of competitive
advantage when the talents of people working in
the firm are valuable, rare; difficult to imitate and
well organized to deliver efficient and effective
results.
• Realizing the growing importance of HR, a new
line of thinking emerged elevating the status of
HR to that of a strategic partner both in the
formulation of a firm’s strategic as well as in the
implementation of business activities. SHRM,
simply stated, is the linkage of HRM with strategic
goals and objectives with a view to improve
business performance and develop organizational
cultures that foster innovation and flexibility.
Strategic HR differs radically from traditional HR
in a number of ways:
Barriers to Strategic HR
Five Critical Business Challenges
Globalization
Technology
Intellectual Capital
Recruitment
Training
Career Path
Promotions
Socialization
Openness