Strategic Human Resource Management

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This paper presents an assessment of the role of strategic human resource management (SHRM) and its links with the strategic business objectives of Leeds City Council.

Task 1
AC1.2

HRM evolution
• The first wave arose with Storey’s New Perspectives on HRM (1989)
• The second wave arose in consideration of:
• Social and economic context of HR functions
• HR and organisational performance
• New organisational forms and HR
• HR and knowledge management (1990s)
• The third wave (current) looks at the strategic implications of HRM, known as Strategic Human Resource Management (SHRM) (Bratton John 2007)

SHRM Definition and Key Concepts.

According to Storey (1995) SHRM is “a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an integrated array of Cultural, structural and personal techniques” (Human Resource Management Journal)

Key Concepts:
• Distinctive approach to employment management
• Assists with Competitive advantage
• Encouraging a committed & capable workforce
• A strategic and coherent approach

The vital role of SHRM

SHRM elevates HRM from micro level (personnel) to the macro level (business strategy).
SHRM includes analysis of: -
• Business, social and political environment
• Using the internal labour market to the best advantage
• The Global and local business climate
• Internal human resource analysis against existing and future business strategies
• Organisational analysis and organisational design recommendations.
• Benchmarking against effective internal and external organisations

Some SHRM considerations are: -

• Is the organisational culture reinforcing the long-term business strate...

... middle of paper ...

... is prepared to deal with the deficit and excess of human resource in the organisation. It helps the organisation to implement human resource planning. The main activities of the action plan are: -

• Recruitment plans: outline the numbers and types of people recruited at the specific time period.
• Selection plans: outline selection of qualified, competent and experienced people.
• Training plans: outline numbers of people at all levels who will undergo training and identify the need of training.
• Retention plans: outline reasons for employee’s turnover. Incentives, rewards promotions, participation, quality of work life etc.
• Appraisal plans: stimulate the employees for enhanced performance.
• Redeployment plans: classify the employees who need to be transferred and trained.
• Downsizing plan: is the step which is taken by management to alleviate overstaffing.

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