Human
Resources Management vs Strategic
Human Resources Management
Difference
between HRM and Strategic HRM is that HRM is about managing the human resource
within the organizations
and
SHRM
is about aligning the human resources with the strategic objectives of the
organization.
Both
these are important concepts in People and Organizations : (Principal and
Practice in Global Contexts) and this blog briefly describes the two concepts
and analyses the difference between both and importance of SHRM.
1. What is Human Resources Management?
Human
resource management (HRM) expresses about the ways of managing people in the
organization who contribute to the achievements of its ultimate objectives.
- Utilization of individuals to achieve organizational objective. (R Wayne Mondy)
- Comprehensive set of managerial activities and tasks concern with developing and maintaining a qualified workforce. (Angelo DeNisi / Ricky Griffin)
- Set of interrelated policies that can be used in managing people. (John Storey in 1989)
Evolution
of Human Resource Management
20th
Century :- Hiring, firing & Admin work by Supervisor.
1930 :- Unions evolved – Personal
Management introduced, involved in Selection, Training.
1960-1970 :- Equal Employment Opportunity
law introduced, think how to avoid discriminative claims – HR Management
introduced.
2010 :- Helping to face new challenges.
HRM Model
Figure 1
|
2. What is Strategic Human Resources Management?
Strategic
human resource management (SHRM) is tine process of linking the human resource
function with the strategic objectives of the organization in order to improve
performance. Strategic Human Resource Management focuses on the overall HR
strategies adopted by business units and companies.
- Strategic HRM is concerned with ‘seeing the people of the organization as a strategic resource for the achievement of competitive advantage’ (Hendry and Pettigrew, 1986).
- ‘A set of processes and activities jointly shared by human resources and line managers to solve people-related business problems’ (Schuler and Walker, 1990).
- ‘The macro-organizational approach to viewing the role and function of HRM in the larger organization’ (Butler et al , 1991)
- The pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals’ (Wright and McMahan, 1992).
- ‘Strategic HRM focuses on actions that differentiate the firm from its competitors’ (Purcell, 1999).
- ‘The central premise of strategic human resource management theory is that successful organizational performance depends on a close fit or alignment between business and human resource strategy’ (Batt, 2007).
- Strategic HRM is a thought that integrates traditional human resource management activities within a firm's overall strategic planning and implementation. (John Bratton, 2009)
- Strategic HRM means formulating and executing human resource policies and practices that produce the employees' competencies and behavior, that companies need to achieve its target games. (Gary Dessle, 2009)
- Strategic HRM is concerned with all those activities that affect the behavior of individuals in their efforts to formulate and implement the strategic needs of the business. (R.S.Schuler, 2011)
- Strategic HRM is a pattern of planned human resource deployments and activities intended to enable the firm to attain its goals. (G.C. McMahan, 2011)
Objective
of SHRM
- Contributing to the goal accomplishment and the survival of the company.
- Supporting and successfully implementing business strategies of the company.
- Creating and maintaining a competitive advantage for the company.
- Improving the responsiveness and innovation potential of the company.
- Increasing the number of feasible
strategic options available to the company.
Strategic
HRM Model
 |
Figure2
|
3. Comparison between HRM and Strategic HRM
Basis for
Comparison
|
HRM
|
SHRM
|
Meaning
|
Human resource management
(HRM) implies the governance of manpower of the organization in a thorough
and structured manner.
|
SHRM is a managerial
function which implies framing of HR strategies in such a way to direct
employees efforts towards the goals of organization.
|
Nature
|
Reactive
|
Proactive
|
Responsibility lies
with
|
Staff specialist
|
Line manager,mm,mlkvvbb
|
Approach
|
Fragmented
|
Integrated
|
Scope
|
Concerned with
employee relations
|
Concerned with
internal and external relations
|
Time horizon
|
Short term
|
Long term
|
Basic factor
|
Capital and products
|
People and knowledge
|
Change
|
Follows change
|
Initiates change
|
Accountability
|
Cost center
|
Investment center
|
Control
|
Stringent control
over employees
|
It exhibits
leniency.
|
4. Conclusion
Strategic
human resource management has gained popularity over the past decade, under the
following new environmental pressures (competition, technology, clients'
demands and so on). Thus management has to develop new and appropriate strategies
to integrate HR practices with business strategy.
Although,
Strategic HRM is a more radical and systematic approach to the management of
human capital, placing more emphasis on organizational performance and
sustainability.
Finally,
this recommends firms to apply SHRM practices to increase business performance,
specifically with respect to the debate on HRM and performance, overviews of
Delery and Boselie et al., 200
5.
References
Bebate on HRM and performance,
overviews of Delery and Boselie et al., 2001
SHRM as per Nee & Khatri, 1999
Armstrong's Handbook of Strategic Human Resource Management 2011
Key elements of SHRM described by Mabey et al 1998
