What is Strategic HRM?
Strategic Human Resource Management (SHRM) is the process of linking the human resource function with the strategic objectives of an organization in order to improve performance. It involves the development and implementation of HR policies and practices that align with the organization’s overall goals and mission. This includes areas such as talent management, employee development, and compensation strategy.
The goal of SHRM is to ensure that the organization has the right people in the right roles, with the right skills, to achieve its strategic objectives.
What is the use of Strategic Human Resource Management (SHRM)?
The use of Strategic Human Resource Management (SHRM) can bring several benefits to an organization, including:
- Improved Performance: By aligning HR policies and practices with the organization’s overall goals, SHRM can help improve performance by ensuring that the right people with the right skills are in the right roles.
- Increased Competitiveness: By effectively managing talent and developing employees, SHRM can help an organization become more competitive in the marketplace.
- Better Employee Engagement: By involving employees in the strategic process and providing them with opportunities for development, SHRM can increase employee engagement and motivation.
- Improved Decision-making: By using data and analytics to inform HR decisions, SHRM can help organizations make better decisions about talent management and other HR-related issues.
- Better Alignment between HR and Business Objectives: SHRM helps to align the HR function with the overall goals of the organization, which can lead to better results for the company.
- Greater Adaptability to Change: By involving employees in the strategic process, organizations can become more adaptable to change and better able to respond to challenges in the marketplace.
What is the Process of Strategic Human Resource Management (SHRM)?
The process of Strategic Human Resource Management (SHRM) typically involves the following steps:
- Defining the Organization’s overall Goals and Mission: This is the first step in the SHRM process, as it establishes the direction for the organization and provides a framework for the development of HR policies and practices.
- Conducting a SWOT Analysis: A SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) is used to identify the organization’s current strengths, weaknesses, opportunities, and threats. This information is used to inform the development of HR policies and practices.
- Developing the HR Strategy: Based on the organization’s overall goals and mission, as well as the results of the SWOT analysis, an HR strategy is developed. This strategy should align with the organization’s overall goals and mission, and should include specific actions to be taken in areas such as talent management, employee development, and compensation strategy.
- Implementing the HR strategy: Once the HR strategy has been developed, it is then implemented across the organization. This involves putting in place policies and practices that align with the HR strategy, as well as communicating the strategy to all employees.
- Monitoring and Evaluating: The final step in the SHRM process is to monitor and evaluate the effectiveness of the HR strategy. This involves collecting and analyzing data to determine whether the strategy is achieving its intended goals, and making adjustments as necessary.
- Continual Improvement: SHRM is not a one-time process, it is a continuous one, organization should regularly review and update the strategies and policies in light of the changes in the internal and external environment.