Shrm and Strategic Fit

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Introduction
‘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



References: Armstrong, M. (1991), A Handbook of Personnel Management Practice, Kogan Page, London, U.K. Leopold, J., Harris, L. and Watson, T. (2005), The Strategic Managing of Human Resources, Prentice Hall, London, U.K. Mondy, R.W. and Noe, R.M. (2005), Human resources Management, 9th edition, Pearson, New Jersey, U.S. Nankervis, A., Compton, R. and Baird, M. (2002), Strategic Human Resource Management, 4th edition, Thomson, Australia. Noe R.A. (2005), Employees Training and Development, 3rd edition, McGraw-Hill, New York, U.S. Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M. (2006), Human Resource Management: Gaining a Competitive Advantage, 5th edition, McGraw-Hill, New York, U.S. Source: Nankervis, Campton and Baird (2002, p.43) APPENDIX 2: Why human resource strategy? Source: Nankervis, Campton and Baird (2002, p.42) APPENDIX 3: Strategic training and development initiatives and their implications Source: Noe (2005, p.46) APPENDIX 4: Strategic reward system at Southwest Airlines

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