Human Resources Management vs Strategic Human Resources Management

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 

1. Contributing to the goal accomplishment and the survival of the company. 
2. Supporting and successfully implementing business strategies of the company.
3. Creating and maintaining a competitive advantage for the company.
4. Improving the responsiveness and innovation potential of the company.
5. 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