Given the increasingly significant role of human resources in an organization, HRM has become strategic. As Boxall (1996) remarks: The critical concerns of HRM, such as choice of executive leadership and formation of positive patterns of labor relations, are strategic in any firm.’ Overall, it deals with any major people issues that affect or are affected by the organization’s strategic plans. It is concerned with human capital requirements and the development of process capabilities, that is, the ability to get things done effectively.
It is suggested by Hendry and Pettigrew (1986) that has these meanings: Strategic HRM focuses on actions that differentiate the firm from its competitors (Purcell, 1999). Strategic human resource management (SHRM) is defined as “the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals.” – Wright & McMahan. “Strategic human resource management is an approach to making decisions on the intentions and plans of the organization concerning the employment relationship and the organization’s recruitment, training, development, performance management, and the organization’s strategies, policies, and practices.” – Armstrong. “Strategic human resource management means formulating and executing human resource policies and practices that produce the employee competencies and behaviors that the company needs to achieve its strategic aims.”- Gary Dessler. Some of the important definitions are listed below: Definition of Strategic Human Resource ManagementĮxperts define SHRM from a different perspective. HR strategies combine all people management activities into an organized and integrated program to meet the strategic objectives. SHRM aims to ensure that the organization’s culture, style, and structure and the quality, commitment, and motivation of its employees contribute fully to the achievement of business objectives. SHRM is a philosophy of people management based on the belief that human resources are uniquely important to sustain business success.Īn organization gains a competitive advantage by using its people effectively, drawing on their expertise and ingenuity to meet clearly defined objectives. Several commentators have argued that the concept of Strategic Human Resource Management (SHRM) has evolved as a bridge between business strategy and the management of human resources. It is designed to help companies better meet the needs of their employees while promoting company goals. Strategic human resource management is the proactive management of people to the desired value to them. So to be successful more value must be given to people. A company can develop a competitive advantage through the skills and competencies of its people.