Concept of Strategic Human Resource Management
- Definition: Strategic human resource management (SHRM) is a holistic approach to assembling the best team for a business’s growth and success.
- SHRM is the process and practice of attracting, hiring, developing, rewarding, and retaining employees for their benefit and the benefit of each department and the business as a whole.
How Strategic Human Resource Management is different from Human resource management?
- Human resource management (HRM): It is the process and practice of recruiting, hiring, and onboarding the best employees for a business.
- HRM also includes providing employees with the training, development, work environment, benefits, and compensation they need to perform at their best amongst their coworkers and within the company in general.
- Strategic human resource management: It takes the above activities to the next level by hiring and training employees in alignment with the goals of the business and the vision statement, mission statement, and organizational strategies that guide them.
- It is a more integral, hands-on approach to furthering the interests and abilities of a business.
- HRM should function under the auspices of SHRM in a company: this results in the interaction of HRM with other divisions within your business in order to-
- Get to know their unique needs
- Understand their goals and how they fit in with the goals of the business
- Create hiring and retention strategies that align with those goals
- Give those departments what they need to succeed
Importance of Strategic Human Resource Management
- Ensures an Integrated approach towards achievement of the organizational goals: Strategic human resource management is the foundation of a strong business because, when properly applied, it ensures that the company as a whole is working together to reach its goals.
- A human resources department practicing SHRM analyzes the performance of each department and how they’re working together with the other parts of the business.
- They then identify ways that departments can change in order to get better and hire employees with the right mix of skills and abilities to make that possible.
- This helps in organizational growth as a business entity as well as for the group of people working together. This gives the business a better chance at succeeding in its mission.