STRATEGIC HUMAN RESOURCE MANAGEMENT

SHRM= Strategic + HRM

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 Strategy

“The company’s long-term plan for how it will

balance its internal strengths and weaknesses with
its external opportunities and threats to maintain
a competitive advantage”
-Gary Dessler & Biju Varkkey

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 HRM

“ HRM means an integrated strategy devised for the

effective utilization of human resources for the
achievement of organizational objectives and
goals”

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 STRATEGIC HRM

“Strategic HRM refers to formulating and

executing HR systems-HR policies and practices
that produce the employee competencies and
behaviors the company needs to achieve its
organizational goals”
-Gary Dessler & Biju Varkkey

Where we are? Where we want to reach? How

we will reach there?
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 Examples

 GlaxoSmithKline:
We want GSK to be a place where the best people
do their best work.

 B&Q: (Block & Quayle)

* Enhance employee commitment and minimize
the loss of B&Q’s best people.
* Position B&Q as one of the best employers in
the UK.

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 Characteristics of SHRM

• Long termed focus

• Associated with goal setting
• Focus on both internal and external customers
• Fosters optimum utilization of human resources.
• SHRM elevates the status of human resources

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Traditional HR versus Strategic HR

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The Process of Strategic Human Resource
Management
Strategic analysis
– Environmental analysis
– Establish organizational direction
Strategy formulation
– Best fit approach
–Best practice approach
–Resource based view
– HR strategies fit with organizational strategies,
capabilities, characteristics, and enviornment
Strategy implementation
Strategic control 1–8
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Process of Strategic Management

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 Benefits of a Strategic Approach to HR

• Provide clear cut goals, direction, and future

focus.
• Facilitates development of high-quality workforce
through focus on types of people & skills needed.
• Helps in achieving competitive advantage.
• Facilitates cost-effective and optimum utilization
of labor, particularly in service industries where
labor is generally greatest cost.
• Facilitates planning & assessment of
environmental uncertainty & adaptation of
organization to external forces.
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Benefits of Strategic HRM

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 Barriers of Strategic HRM

• Absence of long-term orientation

• Lack of Strategic Reasoning
• Lack of adequate support from Top Management
• Resistance from labor unions
• Fear of failures
• Rigidity of HR practices
• Fear of attrition
• Perception of human assets as high risk
investment
• Lack of measurable techniques
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 Overcoming Challenges of SHRM:

• Conduct a rigorous initial analysis

• Gain Support
• Explicit communication of goals
• Assess and remove barriers
• Develop HPWS
• Follow-up and Measure HR practices

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