Introduction to Understanding strategic HRM in a New era.

Introduction.

With the rapid changes of the current business environment, the way organizations manage their human resources takes a special place. With the rise of digital transformation, globalization, technological advancement and shifting workforce dynamics, the traditional role of HRM is no longer sufficient. The Human Resource Management was once a purely an administrative function. However, currently with the rapid changes, it has become a critical strategic partner in achieving organizational success. This movement has given rise to Strategic Human Resource Management (SHRM).

SHRM is a process, which organizations use to manage their employees. Think of it as a bridge connecting human resources and the goals of the company (forbes,2024). Unlike, traditional or administrative HRM, which focuses on operational and short-term employee issues, SHRM is focusing on providing long-term solutions with systematic perspectives. Strategic human resource management aims to achieve a competitive advantage by creating value for employees, shareholders, mid level management and customers. 

Moreover, SHRM enables organizations to foster cultures of innovation, adaptability, and high performance. By embedding HR into the strategic fabric of the business, companies can navigate change more effectively and sustain growth over the long term. Strategic Human Resource Management is focusing on the bigger picture by developing workforce capabilities, fostering leadership, and driving performance over the long term (Boxall and Purcell, 2016).

Here are some key characteristics of SHRM,

• Alignment with business strategy.
• Focus on organizational performance.
• Future-Oriented.
• People as strategic assets.

The process of applying strategic human resource management to an organization.

The process of applying SHRM to an organization includes several steps. 

1. Identify the companies goals & targets. - To apply SHRM to an organization, it is important to have a thorough understanding about the company's objectives, vision and mission. Accordingly, you all need to be articulate both short term and long term plans relevantly. The success of implementing strategic human resource to an organization will depend on how well it links to the company's goals.
2. Conduct a workforce analysis. - This is about identifying the skills of existing employees and check whether they need any further assistance to level up skills. A comprehensive workforce analysis will helps to the company understands where it stands today and what it needs to be improved to achieve future goals.
3. Develop HR policies and practices. - Accordingly the HR of an organization can develop their HR policies and practices to support its strategic objectives. For example, changing the new recruitments and selection processes, establishing the training and developing programs and implementing performance management systems that encourage behaviors aligned with the company's goals.
4. Implement & communicate the strategy. - This is about training managers and employees about the new HR processes. It is important to communicate about the newly implemented processes to everyone within the organization and should ensure that they have a clear understanding on how these practices will contribute to the company's strategic objectives.
5. Monitor & adjust the strategy. - This is the final step of this process and it explains about the importance of monitoring the effectiveness of SHRM strategy and make adjustments needed. For example, the organization can track key performance indicators related to Human resource management activities to check employee engagement turn over rates. This continuous monitoring process will helps the organization to stay agile and responsiveness to changing business needs. 

References.

• Wright, P.M. & McMahan, G.C. (1992). Theoretical perspectives for strategic human resource management. Journal of Management, 18(2), pp.295-320.
• Schuler, R.S. & Jackson, S.E. (2007). Strategic Human Resource Management. 2nd ed. Oxford: Blackwell Publishing.
• https://www.facebook.com/iedunote (2019). Strategic Human Resource Management (SHRM): Definition, Principles, Objectives, Approaches - iEduNote.com. [online] iEduNote.com. Available at: https://www.iedunote.com/strategic-human-resource-management/ [Accessed 20 Jul. 2025].
• ‌Fechter, J. (2021). What is Strategic Human Resource Management? - HR University. HR University. [online] 18 Dec. Available at: https://hr.university/shrm/strategic-human-resource-management/.
• Boxall, P. & Purcell, J. (2016). Strategy and Human Resource Management. 4th ed. London: Palgrave Macmillan.
• Haan, K. (2024). Strategic Human Resource Management Guide. [online] Forbes. Available at: https://www.forbes.com/advisor/business/strategic-human-resource-management/.
• Ulrich, D. (1997). Human Resource Champions: The Next Agenda for Adding Value and Delivering Results. Boston: Harvard Business School Press.