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Lecture 2

Strategic Human Resource Management (SHRM) aligns HR practices with organizational goals to enhance business performance and competitive advantage. Key components include workforce planning, performance management, and HR metrics, which support strategy execution and drive innovation. Future trends in SHRM focus on AI, employee experience, and sustainability.

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6 views

Lecture 2

Strategic Human Resource Management (SHRM) aligns HR practices with organizational goals to enhance business performance and competitive advantage. Key components include workforce planning, performance management, and HR metrics, which support strategy execution and drive innovation. Future trends in SHRM focus on AI, employee experience, and sustainability.

Uploaded by

mohammadahmedkashif7
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 PPT, PDF, TXT or read online on Scribd
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Chapter # 2

Strategic Human Resource Management

By:
Saba Gulzar
Introduction to SHRM

 Definition: SHRM aligns HR practices with


organizational goals to achieve long-term
success.
 Importance: Enhances business performance,
competitive advantage, and workforce
effectiveness.
 Difference from Traditional HRM: Proactive,
strategic, and integrated vs. administrative and
reactive.
The Role of HR in
Strategy Execution
 HR supports corporate strategy
through workforce planning,
talent management, and culture
building.
 AlignsHR policies with business
objectives.
 HR’srole in mergers, acquisitions,
and global expansion.
Key Components of
SHRM (SHRM Model)
 Workforce Planning & Talent Acquisition –
Hiring the right people for strategic goals.
 Performance Management – Aligning employee
performance with organizational strategy.
 Learning & Development – Continuous skill
enhancement for competitive advantage.
 Compensation & Benefits – Reward systems that
drive performance and engagement.
 HR Metrics & Analytics – Data-driven decision-
making.
SHRM and Competitive
Advantage
 Createsdifferentiation through
unique talent management.
 Supportsinnovation and
organizational agility.
 Strengthens
employer branding
and employee retention.
HR Strategies and
Business Success (Porter’s
strategies and HR Alignment)
 Cost Leadership Strategy: Focus on
efficiency, low-cost labor, and high
productivity.
 Differentiation Strategy: Unique HR
practices for innovation and superior
customer service.
 Focus Strategy: Specialized HR
policies targeting niche markets.
HR Scorecard (Balanced
Scorecard Approach)
Definition: A strategic tool that measures HR’s impact on business
success.
Key Components:
Financial Perspective: HR costs, ROI on training, and labor
productivity.
Customer Perspective: Employee satisfaction, employer branding,
and customer service impact.
Internal Processes: HR efficiency, talent acquisition speed, and
policy effectiveness.
Learning & Growth: Employee training, leadership development,
and innovation capacity.

Benefits:
Aligns HR practices with business goals.
Provides measurable HR performance indicators.
Enhances decision-making through HR analytics.
High-Performance
Work Systems (HPWS)
 Combination of HR practices that maximize
workforce potential.
 Elements: Selective hiring, extensive training,
employee involvement, performance-based
rewards.
 Benefits: Higher productivity, innovation, and
job satisfaction.
Future Trends in
SHRM
 Use of AI and HR analytics for decision-
making.
 Emphasis on employee experience and
well-being.
 Agile HR models for a dynamic work
environment.
 Sustainability and corporate social
responsibility (CSR) in HR practices.

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