What is Strategic Human Resource Management?
Strategic human resource management is a complex process which is constantly evolving and being studied and discussed by academics and commentators. However, there are varieties of opinions on its definitions and relationship with other aspects of business planning and strategy. According to CIPD book, strategic HRM is the key to improved business performance, including comprehensive coverage of the various definitions and approaches to HRM, strategy. So before approaching SHRM, it is necessary to understand human resource and strategy definitions first.
Strategy of a firms is a long-term plans or frameworks guiding companies to follow specific policies and procedure which play an very important part in firm performance. This contributes to Competitive Advantage in markets
Human resource definition: In management terms, human resources refers to the traits that people bring to the workface including intelligence, aptitude, commitment, tacit knowledge and skills, ability to learn. However, human resource is variable and unpredictable and therefore difficult to control.
+ Define strategic human resource management
- Human resource strategy: “The patterns of decisions regarding human resource policies and practices used by management to design work and select, train and develop, appraise, motivate and control workers.” (Bratton & Gold: 582)
-Strategic human resource management is an approach to the management of human resources that provides a strategic framework to support long-term business goals and outcomes. The approach is concerned with longer-term people issues and macro-concerns about structure, quality, culture, values, commitment and matching resources to future need.
However, as mentioned above, HRM is a complex process due to its natural conflict in employment relationship. Employees sell their labour at a cost. To the employer, pay is a cost that likely reduces profit and therefore needs to be...