The Key to Core Competitiveness of Corporations
As the advancing of technology and the improving of the society, the outstanding environment of companies changes a lot. The culture, the ethic, and the organization are all quite different as they used to be. The human resource is the fundamental of a company, but the old human resource management style cannot fit the global market’s demand any more. In this background, the strategic human resource management appears and shows the completely functions. As a key part of the strategy management, the strategic human resource management asks the company to pay enough attention to the human resource and set the appropriate human resource policies to meet the competitive strategy. This essay provides two examples to prove the importance of the SHRM to modern corporations. And then do the deeply analysis of the two examples and support the key position of SHRM.
The concept of SHRM
2.1 The Concepts of Strategy and Strategic Management
The aim of strategic human resource management (SHRM) is to make the high level management strategy to meet the demand of revolution of human resource management and ensure the human resource management can fit the current environment, such as the company’s competitive strategy, the demand of staff, and the change of culture and so on. This essay gives the strategic approach explain at first. And to make the right concept clearly, this essay uses the concept directly from chapter 3 of the prescribe text boom. The substance is as the following: A strategy is a discussion result of the senior executives of an organization. It always express itself as a formal plan or things alike, determines what the high level of the organization want the organization to become, and where the high level want to reach, and the way to reach there. To ensure the fast grown up of the organization, strategy leads the way of the working group due to the change of the outstanding environment. It is the direction to final success. It determines how the key resources of the organization to be used. It addresses critical issues and success factors. Strategic management is a process to set the strategic into reality (Nag, Hambrick & Chen 2007). It plans how the organization is disposed to the high risk outstanding environment. It rules how to realize the strategy, and how to make the members of the organization accept the strategy and then carry it out. During the process of strategy management, the organization should find the appropriate strategy, which can best suit the current outside environment and help the organization to achieve the final success in the competition (Schmidt & Treichler 1998).
2.2 The Different between SHRM and HRM
Before deeply discussed, this essay has to distinguish the different between SHRM and HRM. In chapter 4, the material tells that the HRM provides the human resource normal work to the organization, such as the hiring, documents arranging, and so on (Sheehan, et al 2007). The SHRM is quite different from HRM. SHRM can be described as a high level strategy about how to arrange the human resource work due to the fast changing outside environment (Martell & Carroll 1995). Obviously, it is one of the key parts of the strategy of the companies, and it determines the direction of the organization if the future. It means that the SHRM is a longevity policy of the organization, and it is the fundamental of the management policy of the organization. The SHRM made by the high managers determines the culture, values, quality, commitment, performance and many other things similar of the organization. Thereby, SHRM is a part of the strategy management of high level, and HR is the expression of the SHRM.
2.3 The Way that HRM Integrates into SHRM
For example, when work systems including culture, culture fit, ethics and the organizational changes, which should the firms...