HRM Define the concept of strategic human resource management (SHRM). Then discuss any three “big issues’ that a HR manager need to understand using relevant examples to reinforce your discussion. Strategic HRM Defined Strategic human resource management is defined as the overall plan or direction that an organization intends to pursue in order to achieve its objectives through the people (staff) (Michael Armstrong, 2001)…
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The main aspect of SHRM is the people and the people’s needs. Thus strategic human resource management involves aligning the goals of an organization with those of the people. This is a challenging task since in most cases the goals or the objectives of an organization and those of the people are unrelated (Samuelson and Marks, 2012). For instance, many employees are only concerned with their income and the need to propel their careers. On the other hand, an organization is concerned with productivity efficiency and cutting of production costs. These two objectives are dissimilar and have opposing orientation. However, the success of an organization is dependent on the level at which it HRM unites the goals of the organization with those of the employees. For instance, a HRM should device policies that maintains productivity or cuts down on cost while maintaining the productivity and satisfaction of individual employee. Thus for an organization to attain its strategic objective, the staff must share into the objectives and vision of the company. This aspect creates the first challenge of strategic management as described by (Henderson, 2006, p. 123). Henderson (2006) claims that integrating the people with organizational goals are the most challenging undertaking in HRM. Moreover, the integration process creates management problems. For example, it is difficult or impossible to compel employees to accept a pay cut in order to save a company from collapsing. Conflicts between organization and employees objectives are classical scenarios in most companies. For example, employees object paid leave despite knowing that their companies are not making sufficient profit. To implement strategic HRM, the HRM should understand the meaning of Strategic HRM, aims of Strategic HRM and approaches to Strategic HRM Meaning of SHRM Before embanking into any Strategic HRM practices, a HRM must understand its meaning and significance within an organization. Firstly, the managers should understand SHRM as an action of competitive advantage. With such basic definition, the HRM will be able to define other aspects of HRM and apply them effectively. Many HRM studies have the following general approaches to the meaning of HRM. Use of planning A systematic approach towards personnel management and design Strategic use of human capital Attainment of competitive advantage The points stated above can be combined to develop a practical meaning of SHRM. Ideally, strategic HRM deal with organizational issues that are concerned with changes in structure, organizational performance, culture, and aligning resources with future needs of the organization. Thus, strategic HRM is concerned with human capital development as well as building production capacity of an organization. Alternatively, SHRM deals with human capital issues that are affected by strategic plans of a company. Aims of SHRM The main aim of strategic HRM is continued relationship between the people and the organization management into the long term. Behind this rationale is the concept of defining and achieving competitive
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