Definition Of Strategic Human Resource Management

1.0 Introduction

The aim of this study is to understand the basis of Strategic Human Resource Management with background knowledge from human resource management and strategic management. The study covers the definition of strategic human resource management, its importance, framework, roles and the development and implantation of human resource management and finally an assessment on HR strategies and their application in an organisation.

1.1 Definition of SHRM

Strategic human resource management (SHRM) is defined according to Millmore et al (2007) as ‘the relationship between organisation’s strategic management and the management of its human resource. It focuses on the scope and direction of an organisation and often involves dealing with

From the fig above, Beer et al (1984) outlines the function of line manager whose role is to take more obligations in ensuring that the competitive strategy and policies that governs how employees attribute are developed and implemented in a mutually compelling way. They also proposed that the long term consequence of the benefit and cost of HR policies should be assessed in Individual, organisational and societal level. This should subsequently be analysed using the four C’s (Commitment, congruence, competence and cost effectiveness). Armstrong (2008) further pointed out that the Harvard framework was established on the belief that the problems of historical employee management can only be resolved when the manager develop a view point of how they wish to see employees involved in and developed by the entity and of what HRM policies and practices may achieve these

Life Cycle Stage Staffing Compensation Training and Development Labour / Employee Relations

Introduction Attract best technical and professional talent. Meet or exceed labour market rates to attract needed talent. Define future skill requirements and begin establishing career ladders. Set basic employee-relations philosophy of organization.

Growth Recruit adequate numbers and mix of qualifying workers. Plan management succession. Manage rapid internal labour market movements. Meet external market but consider internal equity effects. Establish formal compensation structures. Most effective management team through management development and organizational development. Maintain labour peace, employee motivation, and morale.

Maturity Encourage sufficient turnover to minimize lay-offs and provide new openings. Encourage mobility as reorganizations shift jobs around. Control compensation costs. Maintain flexibility and skills of an ageing workforce. Control labour costs and maintain labour peace. Improve