3. DEFINITION OF STRATEGIC HUMAN
RESOURCES MANAGEMENT
(SHRM)
SHRM is defined as an approach to
managing people that deals with how
the organization’s goals will be
achieved through its human resources
by means of integrated HR strategies,
policies and practices.
4. UNPACKING THE CONCEPT OF
STRATEGY
Objective is to gain a sustainable competitive
advantage
It is future-focused
Includes an environmental analysis
Strategic fit - effective utilizes and employs matches
resources, capabilities and distinctive competencies
to opportunities to achieve a competitive advantage
Requires integration and alignment
5. PROPOSITIONS OF SHRM
The HR of an organization play a strategic role in it’s success
HR strategies and plans should be integrated with business
strategies and plans
Human capital is a major source of competitive advantage
It is people who implement business strategy
A systematic approach should be adopted to planning and
implementing HR strategies
6. LEARNING ACTIVITY
Based on the 5 propositions of SHRM,
evaluate/rate on a scale of 1-5, the degree of
strategic relevance and impact of your current
organizational HRM practices
Calculate the % of strategic relevance and
impact
Identify the gaps of SHRM
7. AIMS/OBJECTIVES OF SHRM
The fundamental aim of SHRM is to generate strategic capability by
ensuring that the organization has the skilled, committed and well-
motivated employees it needs to achieve a sustainable competitive
advantage.
SHRM has 2 objectives:
To achieve fit or integration
How? Through vertical alignment with the business strategies and
horizontally across all HR practice areas
Provide a sense of direction in an often turbulent business
environment so that the business needs and individual/collective
needs of the employees are achieved.
How? Through the development and implementation of coherent
and practical HR policies and programmes
8. LEARNING ACTIVITY
Based on the aims and objectives of SHRM,
evaluate/rate on a scale of 1-5, the degree of
strategic relevance and impact of your current
organizational HRM practices
Calculate the % of strategic relevance and
impact
Identify the gaps of SHRM
10. STRATEGIC ROLE OF HRM
Strategic Business Partner
Employee Champion
Administrative Expert
Change Agent
11. LEARNING ACTIVITY
Based on the strategic roles of HRM,
evaluate/rate on a scale of 1-5, the degree of
strategic relevance and impact of your current
organizational HRM practices
Calculate the % of strategic relevance and
impact
Identify the gaps of SHRM
12. APPROACHES IN HRM STRATEGY
FORMULATION
Inside-out approach
Outside-in approach
Which is more effective?
Which approach does your organization
adopt?
13. SHRM PROCESS
Step 1: Strategic Analysis
Step 2: Strategy Options and Choice
Step 3: Strategy Formulation
Step 4: Strategy Implementation
Step 5: Strategy Monitoring and Evaluating