Conceptual Framework &
Context of Strategic Human Resource
Management
Concept of SHRM
• Integration of HRM strategies into overall Business strategies
of the firm
• Essence of SHRM- Focus on alignment of organisation’s HR
practices, policies, and programmes with corporate and
business unit plans
• Human resource treated as ‘Asset’ rather than ‘cost’
Model of Basic SHRM Concepts
Definitions
In the words of David A. De Cenzo and Stephen P. Robbins,
“Strategic human resource management creates a clear connection between the
goals of the organisation and the activities of the people who work there. All
employees should see the link between their daily tasks and achievement of a
purpose or goal.”
In the words of Gary Dessler and Biju Varkkey,
“Strategic human resource management means formulating and executing human
resource policies and practices that produce employee competencies and
behaviours the company needs to achieve its strategic aims.”
SHRM Foundations
Objectives
The main objectives of SHRM are the following:
(a) Plan for manpower requirements for its business located in national and international
markets.
(b) Conduct scientific selection and appointment of employees for business operation of
right type and right in number.
(c) Train the employees on technology in use and working procedure for developing their
skills and knowledge.
(d) Place the employees at jobs according to their areas of specialization.
(e) Provide opportunities for the employees deserving on the scientific basis.
(f) Compensate employees according to their skills, experience and contributions.
(g) Maintain employees motivated, satisfied and cooperative in
organisation.
(h) Improve industrial relations, industrial peace and harmony at
workplace.
(i) Encourage employees for their cooperation, commitments and higher
performance at work.
(j) Contribute through manpower in improvement of organizational
performance and organizational effectiveness in business.
(k) Contribute in profitability, progress and image of the organisation.
(l) Stay competitive and effective in business for growth and excellence in
global market.
Significance of SHRM
• Strategic management of human resource represents the extension of the traditional
requirements for managing personnel effectively. An understanding of human behavior
and skill in applying that understanding are still required.
• An awareness of existing economic, social, and legal constraints upon the performance of
these functions is also essential.
• It recognizes the dynamic interaction of personnel functions with each other and with the
strategic and planning objectives of the organization.
• SHRM recognizes the dynamic interaction of personnel functions with each other and
with the objectives of the organization. HR planning must be coordinated closely with the
organizations strategic and related planning functions. Efforts in HRM are being directed
toward providing more support for the achievement of the organization’s goals, whether it
is a profit, not for profit, or governmental organization.
Scope
of
SHRM
Roles Assumed by Strategic HR
Advantages of SHRM:
• SHRM has the following advantages, namely:
1. Identifying and analyzing external opportunities and threats that may be crucial to the
company’s success.
2. Provides a clear business strategy and vision for the future.
3. To supply competitive intelligence that may be useful in the strategic planning process.
4. To recruit, retain and motivate people.
5. To develop and retain of highly competent people.
6. To ensure that people development issues are addressed systematically.
7. To supply information regarding the company’s internal strengths and weaknesses.
8. To meet the expectations of the customers effectively.
9. To ensure high productivity.
10. To ensure business surplus thorough competency
Disadvantages of SHRM/ Barriers to Successful SHRM
The main reason is the lack of growth strategy or failure to
implement one. Other major barriers are summarized as follows:
1. Inducing the vision and mission of the change effort.
2. High resistance due to lack of cooperation from the bottom line.
3. Interdepartmental conflict.
4. Lack of commitment of the entire senior management team.
5. Ineffective plans that integrate internal resource with external
requirements.
6. Limited time, money and the resources.
7. Resistance of employees.
Barriers to Successful SHRM
8. Resistance of senior level managers to take up strategic steps.
9. Diverse work-force with competitive skill sets.
10. Fear towards victimization in the wake of failures.
11. Improper strategic assignments and leadership conflict over authority.
12. Ramifications for power relations.
13. Vulnerability to legislative changes.
14. Resistance that comes through the legitimate labour institutions.
15. Presence of an active labour union.
16. Economic and market pressures influencing the adoption of strategic HRM.
