Strategic Human Resource Management HRM

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Strategic Human Resource Management
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Strategic human resource management SHRM as the name suggests is a strategic approach in human resource management that emphasizes the development of the employees for long-term goal attainment. It aligns the HR goals with the business strategy for achieving long-term accomplishments.


The strategic human resource management SHRM has a wider scope than the goal accomplishments of business. It also focuses on developing the company’s workforce to adapt efficiently to fast-evolving market trends.


In this blog, we will give you a comprehensive insight into what is strategic human resource management SHRM, how is strategic human resource SHRM different from HRM, its significance, benefits, etc.


What is Strategic Human Resource Management?

Strategic human resource management (SHRM) is an approach to managing the human resources of an organization that includes aligning HR functions with long-term business goals and strategies. It emphasizes designing and implementing HR plans and strategies to enhance organizational productivity and foster workforce advancements.


It also includes anticipation of future needs and changes that might arise and preparing the workforce in accordance to efficiently adapt to the alterations.


Strategic human resource management aims to align the individual’s interests with organizational goals to achieve success and enhance the retention of top talents in the organization.


The business adaption to changes and flexibility is significantly dependent on strategic human resource management as it focuses on the training and development of its workforce to build a robust work environment inclusive of business goal attainment as well as career advancements.


Many confuse human resource management (HRM) with strategic human resource management (SHRM) but both are varied in terms, aspects, and alignments which we will understand in the later part of the blog.


Difference between HRM and SHRM

HRM and SHRM have the same function of managing human resources but the perspective of both varies as per the business strategy, goals, objectives, alignments and so.


Let us understand each of the different parameters as this can help you and your company to choose the right HR support to achieve your desired business objective efficiently.


The difference between strategic human resource management and human resource management is as follows:





Definition Human resource management is the management of human resources in an organization to ensure the smooth functioning of the business. It includes processes such as recruitment, hiring, training, management, etc. It aims to comply with company policies and improve the efficiency of HR processes. Strategic human resource management is a process of managing the workforce and aligning their advancements with long-term business goals. It aims to enhance the efficiency of the workforce to achieve the business goals and objectives. It creates strategies that support the overall direction of improving employees’ proficiency and organizational productivity.
Scope It focuses on the day-to-day management of human resources. Strategic HRM is a wider concept and aligns HR processes with strategic human goals of the organization.
Approach The human resource management HRM focuses on short-term needs and immediate needs and issues that are related to employees’ well-being and management. Strategic HR management focuses on long-term HR need and business strategies of the organization. It prepares the organization to adapt to future challenges.


Objective Human resource management aims to improve the efficiency of human resources (HR) processes and compliance management. Strategic HR management aims to improve the overall productivity, advancements and culture of the organization as well as its workforce.
Alignment Human resources management is not integrated with business strategy and mostly functions as a separate objective within the organization. Strategic HR management aligns HR practices with the overall business strategies to improve productivity, achieve long-term goals, and gain competitive advantage.


Objectives of Strategic Human Resource Management

Objectives or goals are the targets that navigate the business flow and workforce efforts to achieve the desired results that benefit the business and the employees.


The objectives of strategic human resource management are as follows:

➔ Developing Succession Planning & Leadership

Succession planning is a strategy that are implemented by companies to pass the authority or leaderships down the hierarchy to other employee or group of employees (team).


The reason of transfer of power or authority can be anything including general retirement, voluntary retirement, exit of employee, termination, change of company’s possession and authority, etc.


The company should always be prepared to adapt to changes by planning the succession of the leaders or experts by training other employees or group of employees and enhancing their proficiency to maintain the business equilibrium or flow.


Strategic HRM aims in promoting healthy work culture by planning succession of priority posts and training the employees to proficiency that best serves the company’s productivity.


➔ Promoting Innovation

The strategic human resource management create a work culture inclusive of robust training and knowledge enhancement of employees.


Hence, promoting innovation and creativity in employees. When the skills of employees are nourished and updated with knowledge and latest technological advancements, they tend to innovate more in their work.


Also, it encourages their morale and enhances their cognitive abilities to accomplish tasks in new ways or experiment with new ideas.


This as a result will eliminate creativity rut and motivate employees to perform better or be more productive, hence enhancing the business productivity.


➔ Accustoming to Alterations

Strategic HR management targets to train the workforce to the extent that they become flexible in working.


Businesses are subject to uncertain changes which can have multiple effects on the workflow, for example if adverse or favorable arise depending on the circumstance.


Strategic human resource management aims to enhance the proficiency of the employees so that they can adapt to changes or uncertainties without failing to meet the requirements.


It helps them cope with unexpected circumstances efficiently and adapt to changes faster. This as a result will keep the business workflow unaffected or least affected by the changes and the management can make strategic decisions based on calculative risks.


➔ Supporting Organizational Changes

A strategic HR practice aims to create a work environment robust with scalability and which can accustom to changes.


In case of changes for example if acquisitions, mergers, tie-ups and so when the organization faces massive changes in terms of management, workplace location, etc. the strategic human resource management in the past can help you adapt to the organizational alterations with ease and proficiency.


The primary objective of SHRM is to make its workforce efficient, so that they can adapt to any organizational changes in case of business adversities and can help increase the productivity of the company even in the grey. Also, the innovation in HRMS software and so can be easily adaptable by employees in SHRM practice.


➔ Enhancing Organizational Performance

Performance enhancement of the workforce is the basic objective of SHRM. It aims to achieve efficiency and improve productivity of business by enhancing the skills and knowledge of the employees.


Infact, the future recruitment planning and staffing needs are estimated in alignment with the business needs so that it would best serve the organizational performance in the long run.


Furthermore, it develops systems to measure and improve the efficiency of the workforce by providing training and development opportunities to ensure that employees possess the knowledge and skills that are required to face current as well as future organizational needs. It also surges the compensation and benefits schemes for the top talent in the organization to enhance retention.


Importance of SHRM

After getting comprehensive knowledge of what is strategic human resource management and what is strategic human resource management objectives, let us understand why it’s important to achieve long-term business goals or why is it important for your company.


The importance of strategic human resource management is its significance in the business workflow which is as follows:


1. Improves Productivity

The best significance of SHRM is it improves the productivity of the business by advancing the employees’ calibre, skill, potential, and knowledge.


This as a result serves multiple purposes of not only enhancing productivity but also strengthening the employees’ connection with the organization.


when the careers of employees are nourished with adequate training and learning opportunities, they tend to get connected with the organization and implement their knowledge by experimenting with new ideas and innovation.


This as a result not only motivates their morale and talent but also enhances the productivity of the business hence making it profitable.


Furthermore, it engages employees through effective communication, recognition, and motivation strategies that improve their professionalism and mental health.


2. Enhances Employee Retention

SHRM is an HR practice that improves the skills, knowledge, calibre, proficiency and efficiency of employees by providing robust training and development opportunities.


It encourages continuous learning and development on the latest technological advancements, market trends and so hence helping the employees to pace with the current changes efficiently.


Furthermore, in SRHM the provision for compensations and benefits are designed in a way that will attract and retain top talent and also, foster the organizational culture and work environment making it harmonious and healthy.


This as a result strengthens the employee connection with the organization and reduces the turnover rate of employees.


Employee retention is majorly dependent on the salary and benefits structure as well as the learning and career advancement opportunities which are given priority in the SHRM practices hence the retention rate surpasses the turnover rate.


3. Harmonious Work Environment

Strategic human resource management is a robust practice of fostering workplace wellness and harmony.


The significant element of a healthy work culture is engaged employees, attractive salaries and benefits, growth and development opportunities, and career advancements.


In strategic human resource management, all of the elements are taken care of and employee efficiency enhancement is prioritized and aligned with the business goals.


This as a result not only strengthens the bond of employees with the organization but also creates a harmonious workplace where employees stay engaged in productive work and learning rather than discrimination and gossip that make the workplace adverse.


4. Competitive Advantage

The best significance of strategic human resource management is it attracts, retains, and develops top talent that enhances the productivity of the organization.


Skilled and motivated employees drive innovation, efficiency, and effectiveness hence making the organization or business stand out of the crowd.


Furthermore, the harmonious work environment builds goodwill of the organization in the competitive market and enhances its reputation not only by attracting top talent but also by attracting essential client prospects for the business to grow.


5. Adapt to Changes

Strategic human resources management prepares the workforce to adapt to changes efficiently. It helps organizations to be more agile and responsive to changes by ensuring their workforce is well-trained and developed to adapt to changes irrespective of their consequences.


Changes in the business can be multiple for example it can be due to regulatory changes, market shifts, technological advancements, mergers, acquisitions, and so on.


Strategic HR prepares the workforce by providing them with training and development opportunities that nourish their skills, update their knowledge, and prepare them to accustom to changes in adversities which as a result not only enhance organizational performance but also make them future-proof to organizational changes.


How to Incorporate SHRM?

Steps to incorporate strategic HR management into the HR practices include the following:

➔ Research & Gather Facts

The first and foremost step is to research the company’s needs and workforce preferences. Learn the insight requirements of employees by seeking feedbacks, conducting surveys to find out the underlying issues and facts that will hint you which HR practice will be the best to rely on for achieving your company’s goal.


➔ Map Future Requirements

Make a checklist of all the future requirements like staffing, recruiting, etc, and keep in view the future business prospects before making the checklist to ascertain all the future needs are preferences of the business align with the strategic HR practices. This will also help you to map a clear statistics of workforce requirement hence eliminating confusion and wastage of resources due to it.


➔ Set Budget

Set a budget for staffing and recruiting needs for the future as well as the current hiring to keep a check on the finances and reduce wastage of resources. It will also help you save your valuable resources for other crucial tasks apart from hiring and staffing. Also, set the budget for the maximum benefits and compensation to the expert employees to retain them in the organization and reward their sincerity.


➔ Acquire Resources

Acquire the resources that are required to implement strategic human resource management practices in the company. Resources such as hiring the appropriate number of workforces, arranging adequate learning and training workshops and sessions to enhance their knowledge as per the business enhancement strategies and requirements, planning the compensation and benefits in accordance, etc.


➔ Implement Strategies

Implement the strategic human resources management practice in the organization and be vigilant about the changes that occur due to the implementation. notice both the positive as well as negative alterations that are happening due to the implementation and document each alteration.


➔ Regular Monitoring

Regularly monitor the effects of implementing SHRM as your HR practice in your company to check if it has positive or negative impact on your organization and business goal accomplishments. If adverse then what is the extent or frequency of adversities and is there any scope to improve it.


Bottom Line

Strategic HR management creates the best and most robust work culture that is beneficial for the business in the long run. In order to achieve a harmonious work culture filled with productivity, engagement, and advancements, the best HR practice is strategic human resource management (SHRM) as it can help you improve your business productivity and employees’ skills.


After understanding, what are the differences between HRM and strategic HR management and how you can implement it, you need to select the right HR strategy or practice for your company as it’s important to imply the right HR practice in order to attain the desired output. For example if you need to achieve internal short-term needs or meet immediate goals and objectives then your HR practices should be based on HRM.


Whereas, if you are looking at the bigger picture in long-run to align your business strategies with HR management, then you need to imply strategic human resource management (SHRM). This will enhance the efficiency of your employees to adapt to uncertain changes in the long run as well as will surge their skills to improve the productivity of your company.


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