Strategic Human Resource Management

Life Partners Ltd. Since 1983

Pioneer in providing HR Consulting Services and evolving Recruitment
Solutions that help our customers become more productive and profitable

Presented by:
Nirosha Jayasuriya
HR Consultant
What is Strategic Human Resource Management?

“Strategic human resource management (strategic HRM or

SHRM) is an approach to the development and implementation
of HR strategies that are integrated with business strategies and
support their achievement” (Armstrong and Taylor, 2014,pg.16)

Simply, it can say that SHRM is a great supporter to the business

in achieving its goals (making profit), by developing and
implementing HR policies, with the integration of business
strategies.
Importance of SHRM
The following facts show the importance of SHRM in an organization
for its competitive advantage which can also be applied with the
Clubhouse on its future success:-
 Generating strategic capabilities
Getting the right people in place at the right time in order to
maintain competitive advantage (long run of the business). SHRM
will assess the organization's goals and take early steps to get the
right people in place. (Vaughan, 2019)
 Guiding to the right direction
Providing a sense of direction to positively affect how work gets
done by keeping employees focused on business goals through HR
policies and procedures. (SHRM, 2023)
 Forecasting future HR needs
In order to avoid shortage of workforce in future, SHRM can
identify the requirements so it helps organization to be consistent of
business. (Haque, n.d.)
Importance of SHRM Contd.
 Selecting and utilizing motivational tools
Offers correct benefits to correct people. Some needs salary
increment and some waits for a promotion. SHRM identifies the
actual requirement and motivates people in order to make stable the
future of organization. (Haque, n.d.)
 Building a balanced and change-ready workplace
Supports to create a balanced workplace environment (multi-
national, gender diversity, age etc.) and develops people through
training in order to transform their skills with any new environment
(change-ready). (Vaughan, 2019)
 Creating friendly integrated employee network
Provides a safe space to discuss employees’ issues and to share their
own innovative ideas which enables them to feel their value in the
organization. It also helps to protect friendly environment of the
organization in between all departments (feel like home) which
boosts the productivity. (CIPD, 2021)
Relationship between SHRM and other
Departments of an Organization
SHRM’s main duty is HR planning so it is required to have a comprehensive
knowledge on corporate goals & objectives of the organization and other
departmental goals & objectives as well. SHRM has to proceed HR
strategies (such as selection & recruitment, appraisal, rewarding, training &
development etc.) with the assistance on other departments.
Examples:
 When hire people for Sales & Marketing department, HR must recruit
them with the assistance of Head of Marketing as this department can
make a huge impact on profit/ROI of the organization. HR must have a
comprehensive knowledge of their marketing plan as well.
 When provide training, HR has to get the assistance of other department
heads to identify the real requirement in order to save time and money.
 For financial purposes (expenses on recruitment, rewarding, training
etc.) HR has to keep connection with Accounts department.
(Malak, 2022)
 SHRM Services
HR services are functions that supports employees to work satisfactorily in their role
with the possibility to take out the best out of them for the success of the business. It
helps to keep both employer and employee happy and it leads to the competitive
advantage of the business as well. (UKG, 2023)
Following are some main HR services which can also be attached to Clubhouse
as well:
 Recruitment and Selection
Finding and engaging the correct people the organization needs. (Armstrong and
Taylor, 2014, pg.226) This is a cost to an organization so the decisions must be
taken very carefully otherwise it will be wasted not only money but the time
too.
 Talent Management
Ensuring that the organization has the talented people it needs to attain its
business goals. (Armstrong and Taylor, 2014, pg.264) Increases the productivity
and is a positive impact on overall performance of the business as well.
 Knowledge Management
Storing and sharing the wisdom, understanding and expertise accumulated in an
organization about its processes, techniques and operations. (Armstrong and
Taylor, 2014, pg.78) This helps in better and faster decision making and
SHRM Services Contd.
 Compensation Management
Determining employees' appropriate pay and benefits. It’s a critical element in
talent management and employee retention and it uses financial and
nonmonetary benefits to attract recruits, reduce turnover, spur performance and
boost employee engagement. (Thibodeau, 2021)
 Performance Management
Identifying, measuring and developing the performance of individuals and teams
continuously and aligning performance with the strategic goals of the
organization. (Armstrong and Taylor, 2014, pg.334) It helps in identifying
correct people for promotions, workforce planning, increasing employee
retention etc. (naturalhr, 2021)
 Reward Management
Introducing policies and strategies that rewards every employee within the
business fairly and consistently across the board. This is a powerful motivational
tool that boosts productivity. (DavidsonMorris, 2021)
 Career Management
Enabling the employees to better understand their career skills, develop and give
direction to it and to use those skills and interests most effectively. It helps in
satisfying people which leads to the long run of the business. (MBAknol, 2021)
SHRM Services Contd.
 Training and Development
Enhancing employees’ skills, behavior and expertise by putting them into
learning new techniques of doing work. It’s an educational tool and as the end
result, it helps to increase their work efficiency and increase the productivity of
the organization accordingly. (HRHelpBoard, 2023)

 Employee Relation
Managing the employment relationship and the psychological contract which
consist of the approaches and methods adopted by employers to deal with
employees either collectively through their trade unions or individually.
(Armstrong and Taylor, 2014, pg.403) It enables employees to communicate
with the management and to share their opinions on business.

 Welfare Management
Anything done for the comfort (intellectual or social) and improvement of the
employees, over and above the wages paid called welfare management.
Maternity benefits, Medical facilities, Social Insurance, educational facilities,
housing facilities are some of the examples on this. This also increases the
efficiency and productivity of employees. (Aaliya, n.d.)
The factors which should be considered by the
Clubhouse before making changes
The main factors that should be considered by Clubhouse before making
renovation and restructure are as follows :-
Factors to be considered Importance of Considering
• Current Organizational Helps businesses implement efficient decision-making
Structure processes. By assigning specialized roles to lower-level
employees, businesses can make better decisions faster.
(Cooks, 2022)
• Current Organizational It is a tool to help businesses structure their resources in a
Strategies way that supports their business activities. When used
effectively, it can improve your decision-making process
and help guide team members toward a common goal.
(Indeed, 2021)
• Current Organizational By building a strong culture, businesses can provide
Culture consistency and direction, guide decisions and actions, fuel
the workforce and help reach their potential. (Trinet, 2021)

Table 1: Factors to be considered before making changes

The factors which should be considered by the
Clubhouse before making changes Contd.
Factors to be considered Importance of Considering
• Competences of Staff Well-defined competencies can help foster a strong
corporate culture, build a more aligned workforce and
establish key competitive differentiators. They also help to
make sure having consistent performance standards for
employees, which can help with employee engagement and
retention. (HRGrapevine, 2012)

• Current Working Having systems in place will ensure a role is always carried
Systems out to a precise standard. Customers or Clients will receive
the same level of service. It will be able to manage your
employees more effectively and monitor that all tasks are
being performed. (Breslins, n.d.)
• Staff Complaints Grievances take the form of collective disputes when they
are not resolved. Also they will then lower the morale and
efficiency of the employees. Unattended grievances result
in frustration, dissatisfaction, low productivity, lack of
interest in work, absenteeism, etc. (Khan, 2020)
Table 1: Factors to be considered before making changes Contd.
The factors which should be considered by the
Clubhouse before making changes Contd.
Factors to be considered Importance of Considering
• Customer Complaints It is a mismatch between how customers perceive the brand
and where they fail to get the desired customer service
experience.
There could be different types of customer complaints. It
could be related to improper communication, internal
processes or poor quality of service. Realizing that a
complaint is an opportunity makes it easier to turn conflict
into positive change. Customer complaints can tell you how
to resolve issues – if you listen to them carefully. (Patel,
2022)

Table 1: Factors to be considered before making changes Contd.

Preliminary HR Requirements for Clubhouse
The identified HR issues of Clubhouse and HR requirements to overcome them are
listed below :-
HR Issues The impact on The impact on business HR
employees Requirement
• Reservation system, Unhappy due to Decreases productivity, Employee
payment system and time wasting and Decline in customer service Relation
other systems are not inefficiency. and reputation
upgraded and
modernized. (Mansys, 2020)
• Very defined Unhappy due to Decreases productivity due Talent
hierarchy and confusion in poor to demotivation Management,
staffing structure in communicating and Motivation
the departments inefficiency in
problem solving

(Mihalicz, 2014)
• Staff opinions are Unhappy and Increases employee Employee
rarely sought and not inefficient turnover due to bad culture Relation
encouraged to make of the organization
decisions by them
own (Roy, n.d.)
Table 2: Preliminary HR Requirements on Clubhouse
Preliminary HR Requirements for Clubhouse Contd.
HR Issues The impact on The impact on HR Requirement
employees business
• A small yearly Unhappy and mistrust Damages Morale Employee Relations
staff survey and spinning off in
the wrong direction
(WaldenU, 2019)
• Lack of training Unhappy, inefficient Increases employee Training &
and development and leaving the job turnover and Development and
reduces productivity Retention Plan
(Martinelli, 2018)
• Not happy with Unhappy and leaving Increases employee Performance
the management the job turnover, bad Management,
as no appraising picture on Rewarding
or rewarding organizational Management and
culture and reduces Retention Plan
productivity
(Synergita, 2018)

Table 2: Preliminary HR Requirements on Clubhouse Contd.

Preliminary HR Requirements for Clubhouse Contd.
HR Issues The impact on The impact on HR Requirement
employees business
• Running the Unhappy and Reduces Recruitment &
business for a inefficient due to productivity due to Selection and
long time unchanged lethargic low morale of Compensation
without any working environment employee Management
change (ran
under a one CEO (Stobierski, 2020)
for 30yrs)
• Losing 50% of Unhappy and leaving Reduces Training &
members over the job productivity, Development,
the past 5yrs due increases employee Career Management
to poor turnover, loss of and Retention Plan
conditions of reputation, bad
business and image on business
poor customer culture
service
(customer (Banerjee, 2014)
complaints)

Table 2: Preliminary HR Requirements on Clubhouse Contd.

Questions & Answers
Further Clarifications
List of Tables

List of Tables
Table 1 Factors to be considered before making changes
Table 2 Preliminary HR Requirements on Clubhouse
References
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6. Cooks, A., 2022. Organizational structure: Your guide to configuring and growing
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References
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8. Haque, F., n.d. Importance of Strategic Human Resource Management [online]

Available at:
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References
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13. Malak, M., 2022. An Overview of the Relationship Between Human Resources and
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References
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19. [Link], n.d. Knowledge Management and Business Growth [online]

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20. Patel, S., 2022. What are Customer Complaints? Why are They Important for
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[Accessed 06 January 2023]
References
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26. Trinet, 2021. What is Organizational Culture and Why Is It Important [online]
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References
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29. WaldenU, 2019. Employee Surveys: A Few Pros and Cons [online] Available at:
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