2. SHRM
DEFINITION
It is the linking of human resources with strategic
goals and objectives in order to improve business
performance and develop organizational culture that
foster innovation, flexibility and competitive
advantage.
3. Different Approaches of SHRM
Traditional Approach
Strategy Implementation Approach
Strategy Formulation Approach
Best Practices Approach
Best Fit Approach
4. Traditional Approach
This approach has no role in the formulation and
implementation of business strategy
It assumes that the people and job are stable.
Advantages
Helps in better analysis of a specific job
Help in assess the person-fit recruitment &
selection of Qualified person for a specific job.
5. Strategy Implementation Approach
It aligns the HR process with the organizational goals.
HR strategies need to be aligned with the business
strategy.
Steps:
Identifying the org. business strategy
Deducing the organizational capabilities needed to
implement the strategy
6. The recruitment & selection process that focus on
candidate who can work with the org. goals
Strategy Formulation Approach
Focus – hiring candidate who can add value
to an org. product & services.
Add value- people with unique KSA
Assumes that the strategy and staffing are stable&
change according to the external environmental
factors- Political, Social, economic, demographic,
technological factors, Suppliers, Customers, creditors,
competitors etc.
7. Best practice approach
Best practice approach believes that there is a set of best HRM
practices and adopting them will lead to superior organizational
performance. The HR practices to be followed are:
Employment security
Selective hiring
Self-managed teams or team working
High pay contingent on company performance
Extensive training
Reduction of status differences
Sharing information
8. In essence, recruiting and retaining talented, team-
oriented, highly motivated people is seen to lay a basis
for superior business performance
Criticisms
Disconnection from company's goals and context
Disregard of national differences such as management
practices
difficulty arises when we go beyond these
straightforward practices.
9. Best Fit Approach
Best fit approach believes that there is no universal
prescription for HRM practice.
It emphasises the fit between HR activities and the
organisation's stage of development ("external-fit")
Criticisms
Lack of alignment with employee interests,
compliance with prevailing social norms and legal
requirements