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Strategic Human Resource Management Essay

3340 words - 14 pages

A strategy is a way of doing something. It usually includes the formulation of a goal and a set of active plans for the accomplishment of that goal. Strategy therefore incorporates the aspects of both, planning as well as action.(Ashwathappa, 2005)The term "human resources" refers to the workforce or people that are employed to meet an organizations objective. In modern human resource management practice, it is increasingly being realized that the workforce constitutes a vital and valuable organizational asset. For an organization to achieve corporate success, it is important for it to synergize its business policies and human resource practices. The procedures adopted to achieve this are ...view middle of the document...

edu/mba/hr/The concept of Strategic Human Resource Management (SHRM) has developed in the latter half of the 20th century, when organizations started realizing that the Human Resource function was not adding to the value of the organizations. Also, most Human Resource teams were criticized for being too reactive instead of proactive, producing piecemeal initiatives and lagging behind when dealing with key issues.(Holbeche, 2002)Strategic Human Resource Management is concerned with establishing a specific managed cause and effect relationship between an organization's actions to survive and grow and its HRM principles and practices. It is also concerned with the mechanism through which people in an organization gain understanding of the purpose of the organization, its goals and strategic objectives, as well as how the organization relates to its external environment in order to achieve the set goals and objectives.Strategic Human Resource Management is concerned with those decisions which have a major and long-term effect on the employment and development of people in the organization, and on the relationship which exists between its management and staff.http://www.cheathouse.com/essay/essay_view.php?p_essay_id=49726There are many challenges in the path of Human Resource professionals who seek to apply SHRM practices in their organization. The main challenge for these Human Resource practitioners is to focus Human Resource activities on developing aspects of the organization's human resources which can be turned into sustainable competitive advantage. The main rationale for a strategic approach to HRM is that by integrating HRM with the business strategy, rather than HR strategies being a separate set of priorities, employees will be managed more effectively, organizational performance will improve, and therefore business success will follow.(Holbeche, 2002)There are some differences between technical HRM and strategic HRM. Technical HRM focuses on building a company's performance, while strategic HRM creates competitive advantage by building HR systems which cannot be imitated or copied by others. While technical HR departments focus on short term problem solving, strategic HR departments are future oriented and operate in a manner consistent with the overall business plan in their organizations. Such department's asses the knowledge, abilities and skills needed for the future staffing, appraisal and evaluation, incentives and compensation, training and development to meet those needs. Therefore, it can be said that facilitating organizational learning, both for implementing change and for developing strategy, is a key function of Strategic HR.(Holbeche, 2002)For implementing successful SHRM strategies, there are many things that HR practitioners need to know and understand. HR practitioners need to understand the business and its challenges, as well as be able to translate business strategies into their human resource implications. The need to...

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