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.