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Strategic HRM

Strategic Human Resource Management (SHRM) aligns human resources with business goals to enhance innovation, motivation, and overall performance, distinguishing itself from traditional HRM. Walmart exemplifies SHRM by leveraging its market position to negotiate low prices while maintaining low profit margins to outperform competitors. Key objectives of SHRM include identifying opportunities, developing talent, and ensuring customer satisfaction to achieve a competitive edge.

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2 views

Strategic HRM

Strategic Human Resource Management (SHRM) aligns human resources with business goals to enhance innovation, motivation, and overall performance, distinguishing itself from traditional HRM. Walmart exemplifies SHRM by leveraging its market position to negotiate low prices while maintaining low profit margins to outperform competitors. Key objectives of SHRM include identifying opportunities, developing talent, and ensuring customer satisfaction to achieve a competitive edge.

Uploaded by

todov56405
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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STRATEGIC HRM

What are Strategies?


Strategy is an action that managers take to attain one or more of the organization’s
goals.

Strategy can also be defined as “A general direction set for the company and its
various components to achieve a desired state in the future. Strategy results from
the detailed strategic planning process”.

Strategy is a well-defined roadmap of an organization. It defines the overall mission,


vision and direction of an organization. The objective of a strategy is to maximize an
organization’s strengths and to minimize the strengths of the competitors.

Strategy, in short, bridges the gap between “where we are” and “where we want to
be”.

WALMART STRATEGY
Walmart uses its position as the largest retailer in the world to bargain
for low prices with suppliers and manufacturers. At the same time,
Walmart keeps its profit margins very low, selling in volume instead.
This enables the company to price its products far below competitors
which ultimately helps it sell more.

WHERE THE COMPANY IS AN AMERICAN RETAIL


CORPORATION
WHERE THE COMPANY TO BECOME WORLD LARGEST
WANTS TO BE RETAIL CHAIN

Strategic human resource management


Strategic Human Resource Management (SHRM) is defined as alignment of
strategic business goals of the organization with human resources, so as to foster
innovation and improve motivation, satisfaction, productivity, and eventually overall
performance. Strategic HRM is a relatively new term, which differentiates itself from
traditional HRM which was just merely an organizational function.

Pillars of Strategic HRM

a. Humans are not just resources but they are an asset to an organization,
which should provide a competitive edge to the organization.

b. It’s the people within the organization who actually implement such
change.
c. Every change is achievable only through a proper planning followed by
execution with respect to the organizational needs and objectives.

d. The main aim of strategic HRM is to concentrate on the ways through


which the firm can take an edge over its competitors.
OBJECTIVES OF STRATEGIC HRM

Identifying and analysing external opportunities and threats that


may be crucial to the company's success.

Provides a clear business strategy and vision for the future.

To supply competitive intelligence that may be useful in the


strategic planning process.

To recruit, retain and motivate people.

To develop and retain of highly competent people.

To meet the expectations of the customers effectively.

To ensure business surplus thorough competency


Examples of Strategic Human Resource Management (SHRM
Infosys Chairman Mr. Narayan Murthy has emphasized on human capital as
one of Infosys’ critical factors for growth. Thus, there has been a strategic
Human resource dimension added to the organization in the form of
‘People managers’, whose function is to look after the needs of employees.
The company aims to treats its employees as assets rather than just as
resources. Nurturing and nourishing the resources ensures competitive
advantage for Infosys. Thus, a dedicated human resource department
including people managers in every group serves as a SHRM practice which
fulfills the business objectives of the organization.

Difference between strategic HRM AND Traditional HRM

BASIS HRM SHRM


Meaning Human Resource SHRM is a managerial
management implies the function which implies
governance of manpower in framing of HR Strategies in
the organisation in a such a way to direct
thorough and structured employees efforts towards
manner. the organisation.
Nature Reactive Proactive

Approach Fragmented Integrated

Scope Concerned with employees Concerned with internal and


relations external relations.

Change Follows change Initiate change

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