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Strategic Management And Strategic Human Resource Management

3306 words - 13 pages

The purpose of this paper is to identify the reasons why strategic management driving strategic human resource management (HRM) and how the strategic human resource management (SHRM) makes benefits for organisation. Besides the introduction and conclusion, the body of this essay has composed by five sections which involve strategic management, strategic human resource management, role of human resource management, a discussion part, and the value of strategic human resource management to company. At beginning at this paper which is the part of introduction has talk about the structure of this essay. To be continued, the definition, and the purpose of SM will be describe in the first section of the body. The components of the strategic management process also have been covered in this section. The next section is the discussion of SHRM which will separate as two parts, the definition of SHRM and the linkage between the HR and SM process. The third section explains the four main roles of HRM. There are strategic partner, administrative expert, employee champion, change agent. Next two sections is the answer of two main questions about why strategic management driving strategic human resource management (HRM) and how the organisation gets the benefits from the SHRM. Last but not least, the conclusion of this article will be summarized as the final part.Stone (2002, p.15) states that strategy defines 'the direction that an organisation intends to move and set up the framework for action through which it intends to get there'. As the purpose of strategy, a position of advantage has maintained by capitalizing on the strengths of an organisation and minimizing its weaknesses. In order to achieve this purpose, the threats and opportunities present must have identified and analyzed in its external and internal environments. This is the reason why organisations need to develop strategies to deal with external influences and internal influences (Stone 2002).DeCieri and Kramar (2005, p53) state that '[s]trategic management is a process or an approach that addresses the competitive challenges an organisation faces'. It can be explained as managing the pattern or plan that integrates an organisation's major goals, policies and action sequences into a whole. It is the highest level of managerial activity, usually performed by the senior manager or group of company, e.g. Chief Executive Officer (CEO) and executive team. To provide overall direction to the whole enterprise, an organisation's strategy must be appropriate for its resources, circumstances, and objectives by using strategic management (Wikipedia 2005). Also, the aims of strategic management helps the organisation to achieve a competitive advantage which is the special edge that permits an organisation to manage environmental influences better than its competitors do, and to make sure long-term success for the organisation. Stone (1998) states that with economic globalization and more and more violent...

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