Strategic Human Resource Management (SHRM): An Over View |
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Liberalization and indust6rialisation has paved an increasing pressure on organizations in India to change from indigenous, costly, sub-optimal levels of technology to performance based, competitive and higher technology provisions. The response to liberalization has created opportunities for technology upgrading and sophistication, resource mobilization from new sources, highly competitive input/output market, high growth and buoyant environment and HRM issues associated with strategic initiatives of diversification, mergers and acquisitions, restructuring, joint ventures, strategic alliances and for overall internationalization of the economy (Som, 2002). change from a regulated environment to a free market environment has direct implications for SHRM practices in India (Krishna and Monappa, 1994, Rao, 1999) and HRM specialists and the HRM departments are under severe pressure to bring about large-scale professionalized changes in their organizations in order to cope with the challenges brought about by economic liberalization (Rao et al., 2001; Som, 2002). Strategic Human Resource Management (SHRM) has received a great deal of attention in recent years, most notably in the fields of Human Resource Management (HRM), Organizational Behavior, and Industrial Relations. An area that demands greater understanding is that of Strategic Human Resource Management (SHRM). SHRM is concerned with top managements attention and approach to HRM as a critical strategic dimension affecting firm performance; which is the objective of this article. Strategic human resource management (SHRM) enhances productivity and the effectiveness of organizations. Their implementation in organizations has proven that when organizations employ such personnel practices (mentioned in this paper) they are more able to achieve their goals and objectives. This article first describes what the word Strategy means and shifts its focus on HRM at a strategic level highlighting its importance in the present day organizations. The paper then highlights what best practices (as a result of strategic planning) the organizations can adopt that would ensure them of success. What are Strategies? Strategy is a multi-dimensional concept going well beyond traditional competitive strategy concepts. Strategies are broad statements that set a direction. Strategies are a specific, measurable, obtainable set of plans carefully developed with involvement by an institution's stakeholders. These action statements are linked to an individual or individuals who are accountable and empowered to achieve the stated result in a specific desired timeframe. They are patterns of action, decisions, and policies that guide a group toward a vision or goals. Strategic human resource management (SHRM) Strategic
human resource management is a complex process which is constantly
evolving and being studied and discussed by academics and commentators.
Strategic Human Resource Management (SHRM) is an area that continues to
evoke a lot of debate as to what it actually embraces. Definitions range
from 'a human resource system that is tailored to the demands of the
business strategy' (Miles and Snow 1984) to 'the pattern of planned human
resource activities intended to enable an organization to achieve its
goals' (Wright and McMahan 1992).
Strategic human resource management (SHRM) is a concept
that integrates traditional human resource management activities within a
firm's overall strategic planning and implementation. SHRM
integrates human resource considerations with other physical, financial,
and technological resources in the setting of goals and solving complex
organizational problems (Legnick-Hall & Legnick-Hall, 1988) SHRM also
emphasizes the implementation of a set of policies and practices that will
build employee pool of skills, knowledge, and abilities (Jackon and
Schulerm 1995) that are relevant to organizational goals. Thus a
larger variety and more complete set of solutions for solving
organizational problems are provided and the likelihood that business
goals of the organization will be attained is increased (Mechelin, 1996).
Strategic Human Resource Management (SHRM) is an area that
continues to evoke a lot of debate as to what it actually embraces.
Definitions range from 'a human resource system that is tailored to the
demands of the business strategy' (Miles and Snow 1984) to 'the pattern of
planned human resource activities intended to enable an organization to
achieve its goals' (Wright and McMahan 1992). Although the difference
between these two seems subtle, the implications of the difference are
considerable. Where in the first definition human resource management is a
'reactive' management field in which human resource management becomes a
tool to implement strategy, in the latter definition it has a proactive
function in which human resource activities actually create and shape the
business strategy (Sanz-Valle et al. 1999).
Strategic HRM can be regarded as a general approach to the
strategic management of human resources in accordance with the intentions
of the organisation on the future direction it wants to take. It is
concerned with longer-term people issues and macro-concerns about
structure, quality, culture, values, commitment and matching resources to
future need. It has been defined as:
All those activities affecting the behaviour of
individuals in their efforts to formulate and implement the strategic
needs of business. (SCHULER, R.S., 1992)
The pattern of planned human resource deployments and
activities intended to enable the forms to achieve its goals. (WRIGHT,
P.M. and MCMAHAN, G.C. (1992) Approaches
of the SHRM,
These to approaches indicate two factors in an
organisational setting. The first one is the human factor, their
performance and competency and the later is the business surplus. An
approach of people concern is based on the belief that human resources are
uniquely important in sustained business success. An organization gains
competitive advantage by using its people effectively, drawing on their
expertise and ingenuity to meet clearly defined objectives. Integration of
the business surplus to the human competency and performance required
adequate strategies. Here the role of strategy comes into picture. The way
in which people are managed, motivated and deployed, and the availability
of skills and knowledge will all shape the business strategy. The
strategic orinetation of the business then requires the effective
orinetation of human resource to competency and performance excellance. Benefits
of SHRM Barriers of SHRM Barriers
to successful SHRM implementation are complex. The main reason is a lack
of growth strategy or failure to implement one. Other major barriers are
summarized as follows: HR Practitioners Role The HR managers have keen role in the effective planning and implementation of the policies and decisions that in tune with the business changes. They should act as strategic partners and be proactive in their role than mere reactive, passive spectators. The HT managers should understand how far their decisions contribute to business surplus incorporating human competency and performance to the organisation. Strategic HR managers need a change in their outlook from seeing themselves as relationship managers to strategic resource managers. Kossek (1987, 1989) argues that major HRM innovations occur when senior management takes the lead and adoption of innovative SHRM practices is dependent on the nature of relationship of the HR Department with the CEO and the line managers. Legge (1978) commenting on the actions of the personnel practitioner in the innovation process suggests that adoption of an innovation by an organization depends largely on HR practitioners' credibility with information and resource providers. HR Department and HR managers in these innovative organizations play a strategic role (Ulrich, 1997) linking the HR strategy with the business strategy of the organization. A crucial aspect concerning SHRM is the concepts of fit and flexibility. The degree of fit determines the human resource system's integration with organization strategy. It is the role of HR Managers to ensure this fit in between Human Resource System with the Organization Strategy. Conclusion As global business competition shifts from efficiency to innovation and from enlargement of scale to creation of value, management needs to be oriented towards the strategic use of human resources. Strategic human resources management 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. To manage future operations effectively, it is essential that companies produce "business leaders" and "innovators" through SHRM Approach. References Websites:
Internet guide to Human Resource Management |