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What is Strategic Human Resource Management?

Mariam Peyton
Latest posts by Mariam Peyton (see all)

    The concept of Human resource management is said to be strategic in its approach when managing the workforce of an organization. According to Armstrong M, 1994, Human resource management refers to the strategic approach of managing an organization’s employees who are its most important assets because they aid the organization in achieving its goals and objectives. Human resource management puts much emphasis on some key elements namely; the interests and desires of the management, attaining a strategic approach on how to conduct business activities, achieving value addition from the activities carried out, and performance management among so many others. 
    HRM primarily focuses on how to effectively manage people in order to enhance the value and competitiveness of the organization in the business environment. It involves aligning the human resources with the strategic goals and objectives of the organization, as well as developing and implementing policies and practices that foster a positive and productive work culture. HRM influences the potential of human capital and technology to create value for stakeholders and customers. However, it also aligns the policies, practices, and systems of the organization with its vision, mission, and values, and fosters a culture of excellence, innovation, and collaboration. Human resource management is not just a collection of practices or functions, but a coherent and consistent approach to managing people in an organization. 
    HRM is based on a set of principles and values that guide the design and implementation of policies and practices that aim to achieve organizational goals and enhance employee well-being. HRM reflects the beliefs and assumptions of the organization about the nature of work, the role of employees, and the relationship between employers and employees (Storey 1989).
    This paper discussed the various approaches of HRM which clearly show that it is a strategic approach. The paper goes ahead to discuss the rationale of HRM and its different models and theories. The essay answered questions like; what is a strategic approach to human resource management and why is it important?  What is strategic human resource management?

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    What is Strategic Human Resource Management? a Case Study


    Key Learning Outcomes

    By the end of the case, students should be able to:

    • Understand the concept and importance of strategic human resource management
    • Analyze the key elements and practices of Strategic Human Resource Management
    • Apply the principles and tools of SHRM to real-life organizations

     

    1.0 INTRODUCTION


    Currently, businesses have started embracing human resource policies and applications in their quest for sustainable competitive advantage and high efficiency in their business operations. According to Vardarlıer, 2015, the concept of Human resource management has mushroomed from the idea of utilizing human resources in a reasonable and efficient manner. 

    This paper will explore the concept of strategic human resource management also known as the strategic approach of Human resource management. The essay will start with analyzing critically the meaning of strategic human resource management which has its grassroots from the concept of Human resource management and strategic management. 

    What does strategic human resource management mean?

    Strategic human resource management refers to a process that helps organizations align their human resources with their business goals and outcomes. It involves formulating and employing policies and programs that support both the short and long-term vision and strategy of the organization, as well as the development and performance of its employees. Strategic human resource management primarily aims at ensuring that the organization has or employs the workforce, with the right and necessary skillset, with the right roles, at the right time, and that they are effectively motivated, satisfied, and productive. Some of the examples of SHRM policies and programs that may be implemented in an organization are; performance management, training and development, compensation and benefits, and employee relations.

    Important to note is that Strategic human resource management comes from the concept of HRM and strategic management which is a key aspect of organizational performance and success. Strategic Human Resource Management involves assimilating HR policies and practices with the external environment, such as the industry, market, customers, competitors, and stakeholders. It is established on the idea that human resources are a valuable and strategic asset for the organization and that they should be managed accordingly.

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