‘Emerging Dimension to

Human Resource Management:

A Conceptual Review on

Strategic Human Resource Management’ (SHRM)

Prof. Pardeep Kumar

INTRODUCTION

Organizations are increasingly looking at human resources as a unique asset that can provide sustained competitive advantage due to• the changes in the business environment• increasing globalization • changing demographics of the workforce• increased focus on profitability through growth• technological changes • competition for intellectual capital and • the never-ending changes that organizations are going through

Global business competition is shifting from efficiency to innovation and from enlargement of scale

to creation of value, so Management needs to be oriented towards the strategic use of human resources.

Prof. Pardeep Kumar

STRATEGY

Strategy: Strategies are specific, measurable, obtainable broad statements, patterns of action, decisions, and policies carefully developed with involvement by an institution's stakeholders that guide a group to achieve the stated result, a vision or goals in a specific desired timeframe.

“It is the company's plan of how it will balance its internal strengths & weaknesses with external opportunities & threats in order to maintain a competitive advantage”

Prof. Pardeep Kumar

SHRM SHRM includes all those activities affecting the

behavior of individuals in their efforts to formulate and implement the strategic needs of business

“ I n t e g r a t i n g h u m a n r e s o u r c e c o n s i d e r a t i o n s w i th o t h e r p h y s i c a l , f i n a n c i a l , & t e c h n o l o g i c a l r e s o u r c e s i n t h e s e tt i n g o f g o a l s a n d s o l v i n g c o m p l e x o rg a n i z a t i o n a l p ro b l e m s & e m p h a s i z i n g t h e i m p l e m e n t a t i o n o f a s e t o f p o l i c i e s a n d p ra c t i c e s t h a t w i l l b u i l d e m p l o y e e p o o l o f s k i l l s , k n o w l e d g e , & a b i l i t i e s th a t a r e r e l e v a n t t o o r g a n i z a t i o n a l g o a l s ”

Prof. Pardeep Kumar

Approaches to SHRM

Human Factor Approach: links Human Resource activities with competency based

performance measures including the human resource, their performance and competency

gaining competitive advantage by using people effectively, drawing on their expertise and ingenuity to meet clearly defined objective

Surpluses Approach: links Human Resource activities with business

surpluses or profit Integration of the business surplus to the human

competency and performanceProf. Pardeep Kumar

SHRM CONCEPT One-way Vertical Fit Aligning HRM systems to the business strategy HR as strategically reactive HR where alignment is taken as

the partnering role of HR & HR is highly integrated with business processes

Align the human resources to three kinds of competitive strategies, namely innovation, quality enhancement and cost reduction strategy

Two-way Vertical Fit Aligning to the business strategy & contribute in the strategy

formulation. HR as strategically proactive HR that involves creating future

strategic alternatives. creating a culture change, identifying mergers & acquisition

possibilities, tracking the market & proactively making changeProf. Pardeep Kumar

Horizontal fit Aligning various HRM systems to each other, connections

created between and within the people processes. HR practices should be linked to organizational strategy, but

these practices also need to be strategically linked to each other to ensure that they are promoting the same goals.

Five key aspects to SHRM The external environment The business strategy that affects and is affected by the SHRM process The internal environment – the organizational context within which SHRM operatesSHRM comprising the HR strategy and individual HRM practices The outcomes of the process of SHRMProf. Pardeep Kumar

SHRM Process• SGRM process involves determining what needs to be done to

achieve corporate objectives, often over 3 - 5 years• Mission statement containing business definition and future

plan for success is made• Examining organization and competitive environment• Environmental analysis i.e. opportunities- threats analysis is

done and business prepares to meet environmental pressures• Establishing optimal fit between organization and its

environment

• Organizational self-assessment i.e. strengths-weaknesses analysis is done and the road map for attaining goals is made

• Establishing goals and objectives- Laying concrete figures that will help in benchmarking the performance is done.

• Reviewing and revising strategic plan.Prof. Pardeep Kumar

Barriers to SHRM• Lack of growth strategy or failure to implement one.

• Firms’ short-term orientation

• Insufficient general management training of managers

• Lack of appreciation & cooperation from the line managers

• Increasing focus on the quantifying results

• Feeling of risk in investing heavily on human resources

• Inability of the HR practices to change according to the business needs

• Disincentives related to changes associated with SHRM

• High resistance due to lack of cooperation from the bottom line

• Interdepartmental conflict

• Limited time, money and the resources

• Status-quo approach of employeesProf. Pardeep Kumar

SHRM Benefits 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.

Prof. Pardeep Kumar

CONCLUSION SHRM practices enhance employee productivity and the ability of

agencies to achieve their mission. Integrating the use of personnel practices into the strategic

planning process enables an organization to better achieve its goals and objectives.

Combining human resource practices, all with a focus on the achievement of organizational goals and objectives, can have a substantial affect on the ultimate success of the organization

“When the vision is one year …cultivate flowers When the vision is ten years… cultivate trees When the vision is eternity……cultivate people”

Prof. Pardeep Kumar

Prof. Pardeep Kumar