Discuss the Key Issues Concerning the Effectiveness and Likely Consequences of a Shrm Approach, Including the Potential Performance Benefits and How Organisational Performance Can Be Improved Through the Shrm Approach

Introduction
There has been much debate on the term strategic human resource management (SHRM) and until now, there is no fixed definition for SHRM. According to Wright and McMahan (1992), SHRM can be defined as “the pattern of planned HR deployments and activities intended to enable a firm to achieve its goals”. Similarly, Wright and Snell (1991) regard SHRM as “organisational systems designed to achieve sustainable competitive advantage through people”. Ulrich and Lake (1991) on the other hand, has described SHRM as a process of linking HR practices to business strategy. SHRM can also be defined as the linkage of HR functions with strategic goals and organisational objectives to improve business performance and cultivate an organisational culture that fosters innovation and flexibility (Truss & Gratton, 1994). As the term remains unclear, it could be said that scholars agree on a central element of SHRM which is that SHRM involves designing and implementing a set of internally consistent policies and practices so as to ensure that the firm’s human capital contributes to achieving its business objectives (Jackson & Schuler, 1995). However, important questions remain including whether SHRM guarantees positive firm performance outcome, the effect of different levels of SHRM implementation on firm performance and the influence of the market environment in moderating the relationship between SHRM and firm performance. This report will discuss the key issues concerning the effectiveness and likely consequences of a SHRM approach, including the potential performance benefits and how organisational performance can be improved through the SHRM approach.
Two strategic concerns which HRM should take into account are sustainable competitive advantage and the viability of the firm. Accordingly, firms must consider whether the HRM approach in which they adopt is effective so as to achieve sustainable competitive advantage and viability.

Macro Analysis of SHRM (External)

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