Shrm and Strategic Fit

Topics: Human resource management, Strategic planning, Strategic management Pages: 19 (6416 words) Published: September 14, 2008
‘Strategic human resource management (SHRM) is concerned with the development and implementation of people strategies which are integrated with corporate strategies and ensure that the culture, values and structure of the organization and the quality, motivation and commitment of its members contribute fully to the achievement of its goals’ Armstrong (1991, p.81). While human resource management (HRM) focuses on the potential and actual productive value of ‘human resources’ (HR) to an organization success, SHRM takes a more long-run focus by emphasizing the need of HR plans and strategies to be formulated within the framework of overall organizational strategies and objectives, and to be responsive to the changing nature of the organizations external environment. The emphasis of SHRM is on strategic integration, which is matching HRM strategies to business strategy. Refer to Appendix 1 for the characteristics of SHRM. Figure 1: Strategic alignment between HRM and its internal and external environment.

Source: Nankervis, Campton and Baird (2002, p.41)
‘SHRM is a model of practice, which like all models, require interpretation and adaptation by HR practitioners to ensure the most suitable alignment or fit between HR and business strategies and plans’ Nankervis, Compton and Baird (2002, p. 42). Figure 1 above shows the strategic alignment of HRM and internal and external environment. Refer to Appendix 2 for the reasons for HR strategies. Figure 2: Gaining competitive advantage through SHRM

Source: Fottler, Phillips, Blair and Duran (1990)
Figure 2 provides an outline for determining and focusing on desired outcomes and anticipating essential HRM actions required for successful implementation of a company’s business strategy. This process stretch management thinking about HR and influence decisions affecting people. ‘The strategic approach to HRM includes:

Assessing the organization’s environment and mission
Formulating the organization’s business strategy
Assessing the HR requirements based on the intended strategy Comparing the current inventory of HR in terms of numbers, characteristics, and HRM practices with respect to the strategic requirements of the organization and its services or product lines Formulating the HR strategy based on the differences between the new requirements and an assessment of the current inventory Implementing the appropriate HR practices to reinforce the strategy and achieve competitive advantage’ Fottler, Phillips, Blair and Duran (1990).

Strategic staffing
Staffing is defined by Mondy and Noe (2005, p.5) as ‘the process through which an organization ensure that it always has the proper number of employees with the appropriate skills in the right job, at the right time, to achieve the organization’s objectives’. There are many different types of decisions that have to be made relating to an organization staffing requirements. Organizations need to decide upon replacing existing staff, providing training to the staff, selecting people who can adapt to the culture of the organization and continuing and inevitable change, promoting, transferring, demoting and releasing people from the workforce when making strategic staffing decisions. Strategic staffing is the process of implementing a plan of action to secure the needed talent through recruitment, selection, promotion and transfer. Strategic staffing need to be implemented for organizations to get the right people at the right time for achieving the goals and objective of the organization. Nankervis, Compton and Baird (2002, p.79) stated ‘HR planning is to try to ensure that organizational objectives are met through the effective utilization of the human resource of the organization, taking into account changing circumstances within and outside particular organizations’. The staffing function encompasses the implementation of the HR planning process....
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