In this order of ideas then, a relevant definition is the one offered by Michael Armstrong, as revealed below: "Strategic HRM is an approach to making decisions on the intentions and plans of the organization concerning the employment relationship and its recruitment, training, development, performance management, reward and employee relations policies and practices. […an] essential component of the organization's corporate or business strategy [,] strategic HRM is concerned with the relationship between human resource management and strategic management of the firm" (Armstrong, 2000)
In this order of ideas then, a relevant definition is the one offered by Michael Armstrong, as revealed below: "Strategic HRM is an approach to making decisions on the intentions and plans of the organization concerning the employment relationship and its recruitment, training, development, performance management, reward and employee relations policies and practices. […an] essential component of the organization's corporate or business strategy [,] strategic HRM is concerned with the relationship between human resource management and strategic management of the firm" (Armstrong, 2000)
Strategic human resource management (SHRM) is often perceived as similar to human resource management (HRM), yet specialists identify clear distinctions between the two and establish SHRM as an independent field. In this order of ideas, some notable differences between the two concepts refer to the following: HRM has a hard approach by perceiving the people as tools of production, whereas SHRM has a soft approach and sees people as the most valuable organizational assets HRM sets and focuses on goals at the level of human resource management, whereas the SHRM goals are business level HRM is reactive and follows the trend of the market, whereas SHRM is proactive and sets the trend HRM sets out to develop the competencies of the labor force, whereas SHRM sets out to improve the overall competencies of the firm HRM operates at relatively low levels of the organization, whereas SHRM operates at executive levels HRM does not strive to -- nor needs to -- understand the organizational dimension, whereas this is imperative for SHRM HRM focuses on the management of people, whereas SHRM focuses on the generation of competitive advantages through the management of the labor force (Pravin)
There is a maxim behind this business philosophy that when the owner is genuinely a prudent leader and will take care of his managers, in return, they will take care of their staff. Eventually, this entire chain will convert into an aura of advanced spa industry in collaboration with employee - employer - customer's satisfaction (Cohen and Bodeker, 2008)
This can be done through extensive training and development of their skills and abilities. Companies differ in their views when it comes to training; some see it as essential practice and worth investing on but others feel that it is a mere expense without substantial return (Pfeffer, 1998)
HRM Strategy vs. Organizational Strategy Strategic Human Resource Management links the human resource function with the organizational strategies to improve the organizational performance (Bratton)
Once organizational strategies and goals are determined, the human resource strategies and goals must align with organizational before financial performance and outcomes can be achieved. Research identified best practices based on business differentiation (Wright, 2008)
Through this adoption, HRPs will be capable of realizing their ethical duties within their organizations hence achieving their desired organizational outcomes, which help in increasing the organizational wealth and establishing a conducive work environment that satisfies the employees (Caldwell, Truong, Linh & Tuan, 2011). A more focused and strategic human resource management system is truly effective when aligned with organizational structure, values, purposes and mission (Huselid & Becker, 2006)
Currently, most of the economic and business studies and research on the strategic human resource management (SHRM) elicit that human resource professionals possess the greatest opportunity of playing greater roles. These roles and obligations may contribute to organizational achievements and success in developing policies, as well as systems that aim at improving the organization's values, mission and goals (Mohrman & Lawler, 2000)
Through this factor, the human resource management functions can be assessed for proper financial accountability. (iii) Merging of the human resource management functions with the strategic role: this encompasses the alignment of core organizational processes, and the key task performance, which supports the organization in utilizing people and their human resources effectively and efficiently (Solomon, 1993)
Very effective and active human resource professionals contribute to addition of organizational values and effectiveness through linkages of strategies, people, and performance. Consequently, this linkage aligns the human resource systems with a critical maximization of the organizational performance outcomes within the modern world that is highly dependent on upon creativity employees' commitment in order to succeed (Werhane, 2007)
For this reason, it is quite recommendable for the human resource professionals to adopt a framework of ethical stewardship and the transformative leadership qualities. Through this adoption, HRPs will be capable of realizing their ethical duties within their organizations hence achieving their desired organizational outcomes, which help in increasing the organizational wealth and establishing a conducive work environment that satisfies the employees (Caldwell, Truong, Linh & Tuan, 2011)
A firm is necessitated to have appropriate and legal super-structures, rules and regulations used in regulating the organizational culture and decisions made. Lawful procedures put in place have evolved and changed societal propensities in enforcing efficient conduction of strategic human resource management (Florkowski and Nath, 2000, pg 305)
There is increased completion in organizational structures in firms, hence the need in addressing and improving their management implications. Human resource management re-utilizes human capital and resources by bumping into professional, educated and industrious members (Fombrun et al
The dual theory (X and Y) of human resource management impacts on the business operations of an organization. High-profiled involvement of the HR teams to business operations has increased the market and firm value, high return rates on capital, a high growth rate of the revenue growth, organizational survival in the respective industry, improves servie quality and products to clienteles, and increased productivity levels (Lewin 2004)
They have been offered less viable positions that incidentally have less accountability. In SHRM, they are clustered as a weaker species that cannot succumb to HRM risks and criticisms (Northouse, 2009, pg 309)
Summation of Chapter 1 a) Introduction to SHRM According to Pynes, strategic human resource management concerns the effectuation and adoption of changes in business agencies. These agencies require realistic info in accordance to the talent and capability of the managing staff (Pynes, 2009, pg 31)
It is vital fro an organization to comprehend laws that regulate a corporation's human resource management actions. Managers given the HRM mandate to contribute in making strategic decisions are expected to have a familiar compliance to the legal environment and associate the experience to their professional expertise (Storey, 2009, pg 71)
These practices include strategies such as employment security, selective hiring, self-managed teams, high compensation matched with performance, training, sharing information, and so on. According to the author (Armstrong 2008: 44), some have been critical of the best practice model
Secondly, there are the media campaigns. A media campaign has the ultimate goal of enhancing the company's communications with the customers, but the particularity that only the message of the company is send throughout the campaign; nevertheless, the message sent by the organization is a strong one and appeals to the customer base through the fact that it states the company's ability to serve the particular needs of the clients (Bartels and Nelissen, 2002)