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Concept and Definition of Human Resource Management - Research Paper Example

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This paper, Concept and Definition of Human Resource Management, outlines that there has been a growing importance of strategic human resource management (SHRM) in the small and medium-sized enterprises (SMEs), especially in the developed countries…
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Concept and Definition of Human Resource Management
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Download file to see previous pages While SHRM has led to redefining the roles of the top management, in the SMEs the authority continues to be with the owner/managers. The SMEs are yet to leverage the benefit of adopting SHRM.
SHRM is the alignment of the business strategy with the HR policies. In other words, SHRM aims to align or integrate decisions about people with the decision about the results that the organization aims to achieve. People have gained importance because they are now considered human capital and the most valuable assets. According to the CIPD, strategic HRM is the key to business performance. It is concerned with longer-term people issues. The focus is on the structure, quality, culture, values, commitment, and matching resources to the future need. All activities that affect the behavior of individuals in attempting to formulate and implement the strategic needs of the organization, fall under the purview of SHRM. An organization may devise several HR strategies and the overall framework that determines the shape and delivery of individual strategies is SHRM. Traditional HRM focuses solely on physical skills whereas the emerging strategic HRM emphasizes the total contribution of the firm – cross-functional integration, investment in people and treating the workforce as a managing partner. Strategic human resources, like other assets, are not visible on the balance sheet. These assets can only be found in a skilled, motivate and easily adaptable workforce, and in the NRM system of an organization that strives to strategically develop it. The strategic role of the HRM system has become of significance because it allows firms to learn and capitalize on opportunities. SHRM can enhance employee commitment which is a major challenge given the job insecurity in the current scenario. ...Download file to see next pagesRead More
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