Strategic human resource management (HRM) involves aligning human resource policies and practices with organizational strategy to help achieve strategic goals. It focuses on effectively managing employees to maximize organizational performance. Key aspects of strategic HRM include linking recruitment, training, career paths and other HR practices to competitive strategy, implementing high-performance and high-commitment practices, and ensuring the HR function provides the right number of qualified employees with appropriate skills, knowledge and behaviors to meet organizational needs and objectives.

1. Strategic HRM
Dr. G C Mohanta, BE(Mech), MSc(Engg), MBA, PhD(Mgt)
Professor
Al-Qurmoshi Institute of Business Management,
Hyderabad - 500005

2. What is Human Resource
Management (HRM)?
 HRM is the effective use of human resources in order to
enhance organizational performance
 HRM is the art of procuring, developing & maintaining
competent workforce to achieve the organisational goals in
an effective & efficient manner

3. What is Strategy?
 The determination of the basic long-term goals and
objectives of an enterprise and the adoption of courses
of action and the allocation of resources necessary for
carrying out these goals.

4. Hierarchy of Strategy
 Corporate: organization’s overall direction and
general philosophy. Key question: What business
are we in?
 Business: Make each business unit more
competitive in market-place. Key question: How
do we compete?
 Functional: major functional operations to
maximize resource productivity. Key question:How
do we support the business-level competitive
strategy?

5. What is Strategic HRM?
 Strategic HRM is developing and implementing HR
policies and practices that will enable the organization
to achieve its strategic objectives.
 It is about how the employment relationships for all
employees can be managed in such a way as to
contribute optimally to the organization’s goal
achievement.

6. HR Practices Linked With
Competitive Strategy
 Recruitment
 Training
 Career Path
 Promotions
 Socialization
 Openness

7. High Performance Practices
 Features
 Comprehensive selection/recruitment procedures
 Incentive based compensation
 Extensive employee involvement/training
 Expected Results
 Improved knowledge, skills, and abilities of employees
 Increased motivation
 Reduced absenteeism
 Enhance retention of quality employees

8. High Commitment Practices
 Sophisticated selection and training
 Emphasis on values, human relations skills, and
knowledge skills
 Behavior-based appraisal
 Single status policies
 Contingent pay systems

9. Core responsibilities of the HR
function in Strategic HRM
 Right number of qualified employees.
 Right skills and knowledge.
 Appropriate behaviours
 Meet organization’s motivational needs.

10. Strategic HRM - Matching
Model
 Integration or ‘external fit’ of business
strategy with HR strategy
1. Link HR policies/practices with strategic
management.
2. Line managers internalize importance of HR.
3. Integration of the workforce to foster
commitment to strategic goals.

11. Strategic HRM - Matching Model
 Link between corporate strategy and HR strategy.
 ‘HR strategies’: patterns of decisions regarding HR
policies and practices that are used by management to
design work and select, train, develop, appraise,
motivate and control workers.