Typically, Strategic Human Resource Management (SHRM) bridges business strategy and HRM, and focuses on the integration of HR with business and its environment. SHRM has become topical in recent years but the definitions, reason of integrating business strategy and HRM, and the process of integration widely vary. Keeping this as the background, this paper tries to contribute to the debate by understanding the genesis, concept, approaches and features of SHRM.
Realizing the importance of Human Resource (HR) in today's competitive world, there is a growing approchement of integrating corporate strategy with Human Resource Management (HRM). A successful strategy is based upon the allocation of an organization's resources to create a unique and viable long-term position in its environment. HRM assumes strategic importance when there is a need for employee commitment to strategic goals concerning efficiency, quality and innovation.
American firms in the early 1980s had to face stiff competition from foreign companies, who began to export their products to the USA at lower prices than American companies could offer. The cost advantage stemmed from lower labor costs and made it nearly impossible for American companies to survive. They had to look for more efficient and effective ways to use the resources available to them and stay afloat.
SHRM is an "elusive target, characterized by a diversity of meanings and ambiguous conceptual status" (Hales, 1994). Therefore, an attempt has been made here to look at why, what and how SHRM is. SHRM can be considered as an approach to deal with longer term people issues as part of the strategic management thrust of the business. |
