3. DEFINITION OF STRATEGIC HUMAN
RESOURCES MANAGEMENT
(SHRM)
ïSHRM is defined as an approach to
managing people that deals with how
the organizationâs goals will be
achieved through its human resources
by means of integrated HR strategies,
policies and practices.
4. UNPACKING THE CONCEPT OF
STRATEGY
ïObjective is to gain a sustainable competitive
advantage
ïIt is future-focused
ïIncludes an environmental analysis
ïStrategic fit - effective utilizes and employs matches
resources, capabilities and distinctive competencies
to opportunities to achieve a competitive advantage
ïRequires integration and alignment
5. PROPOSITIONS OF SHRM
ïThe HR of an organization play a strategic role in itâs success
ïHR strategies and plans should be integrated with business
strategies and plans
ïHuman capital is a major source of competitive advantage
ïIt is people who implement business strategy
ïA systematic approach should be adopted to planning and
implementing HR strategies
6. LEARNING ACTIVITY
ïBased on the 5 propositions of SHRM,
evaluate/rate on a scale of 1-5, the degree of
strategic relevance and impact of your current
organizational HRM practices
ïCalculate the % of strategic relevance and
impact
ïIdentify the gaps of SHRM
7. AIMS/OBJECTIVES OF SHRM
ï The fundamental aim of SHRM is to generate strategic capability by
ensuring that the organization has the skilled, committed and well-
motivated employees it needs to achieve a sustainable competitive
advantage.
ï SHRM has 2 objectives:
ï To achieve fit or integration
ï How? Through vertical alignment with the business strategies and
horizontally across all HR practice areas
ï Provide a sense of direction in an often turbulent business
environment so that the business needs and individual/collective
needs of the employees are achieved.
ï How? Through the development and implementation of coherent
and practical HR policies and programmes
ï
8. LEARNING ACTIVITY
ïBased on the aims and objectives of SHRM,
evaluate/rate on a scale of 1-5, the degree of
strategic relevance and impact of your current
organizational HRM practices
ïCalculate the % of strategic relevance and
impact
ïIdentify the gaps of SHRM
10. STRATEGIC ROLE OF HRM
ïStrategic Business Partner
ïEmployee Champion
ïAdministrative Expert
ïChange Agent
11. LEARNING ACTIVITY
ïBased on the strategic roles of HRM,
evaluate/rate on a scale of 1-5, the degree of
strategic relevance and impact of your current
organizational HRM practices
ïCalculate the % of strategic relevance and
impact
ïIdentify the gaps of SHRM
12. APPROACHES IN HRM STRATEGY
FORMULATION
ïInside-out approach
ïOutside-in approach
ïWhich is more effective?
ïWhich approach does your organization
adopt?
13. SHRM PROCESS
ïStep 1: Strategic Analysis
ïStep 2: Strategy Options and Choice
ïStep 3: Strategy Formulation
ïStep 4: Strategy Implementation
ïStep 5: Strategy Monitoring and Evaluating