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What Is Strategic Human Resource Management(Shrm)?

3450 words - 14 pages

Strategic Human Resource Management (SHRM) is concerned with establishing a specific and managed cause and effect relationship between an organisation's actions to survive and grow and its HRM principle and practices. It is also concerned with the mechanism through which people in an organisation gain an understanding of the purpose of the organisation, its goals and strategic objectives. As well as how the organisation related to its external environment in order to achieve these goals and objectives (SHU International MBA, Intro to SHRM unit p.1)IntroductionHuman resource management (HRM) can broadly be defined as a strategic and coherent approach to the management of an organization's ...view middle of the document...

Main features of strategic human resourse managementIt has been suggested by Hendry and Pettigrew (1986) that the main features of strategic human resource management are as follows:The use of planningA coherent approach to the design and management of personnel systems based on an employment policy and manpower strategy, often underpinned by a philosophyHRM activates and policies are matched to some explicit business strategyThe people of the organisation are seen as a strategy resource for achieving competitive advantageFormation of StrategyTo understand how the SHRM can effect the whole organisation, we need to go thought the Organisation Structure and see the how Strategy Management works. The strategic management process is typically broken down into five step:21. mission and goals2. environmental analysis3. strategic formulation4. strategy implementation5. strategy evaluationWe are not interested for Step 1 and Step 2, because at these two stages, the Strategy is not form yet. It was still in the planning process, after the Strategy had been developed, it will transfer to Step 3- Strategic Formulation.Strategic Formulation involves senior manager evaluating the interaction between strategic factors and making strategic choices that guide managers to meet their organisation goals. Some Strategies are formulated at the corporate, business and specific functional levels.Hierarchy of StrategyAnother aspect of strategic management in the multidivisional business organization concerns the level to which strategic issues apply. Conventional wisdom identifies different levels of strategy - a hierarchy of strategy1.corporate2.business3.functionalIt's because we are not interested in Corporate-Level strategy & Business-level strategy. The deeper explanations will be place in the appendix.Functional-level strategyFunctional-level strategy pertains to the major functional operations within the business unit, including research and development, marketing, manufacturing, finance and HR. This strategy level is typically primarily concerned with maximizing resource productivity and addresses the question, 'How do we support the business-level competitive strategy?' Consistent with this, at the functional level, HRM policies and practices support the business strategy goals.Developing human resource strategiesHuman resource strategy contributes top the business strategy but is also justified by, the aim should be make it imaginative, innovative, clear and actionable. It's must also be selective, focusing on priorities, and flexible, rapidly adjusting to change. HR strategy should be formulated by s continuous process of analysing what is happening to the business and where it is going.So, we do know why we need SHRM to support organisation strategy, but how can we implement the SHRM to the organisation, and what kind of tools and practice we can use to shaping the organisation strategy in the term of Human Resource Management. The answer for this is...

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