Strategic HRM Strategic human resource management is a proactive process of managing employees in an organization, that includes standard human resource components such as attracting, developing, rewarding, and retaining employees and brings them one step further by taking in consideration the goals and needs of other departments within the organization, and the organization itself.“Strategic Human Resource Management (SHRM) is defined as alignment of strategic business goals of the organization with human resources, so as to foster innovation and improve motivation, satisfaction, productivity, and eventually overall performance. Strategic HRM is a relatively new term, which differentiates itself from traditional HRM which was just merely an organizational function.” Strategic human resource management refers to adopting a specific plan in regard to human resources, and revamping human resource policies and practices, and developing employee competencies to cope with the special or challenging situations.Objectives of Strategic Human Resource Management (SHRM) The main aim of strategic HRM is to address issues related to organizational culture, structure, effectiveness, resource matching, and performance. It involves developing the process capabilities as well as managing the human capital effectively.SHRM helps in: 1. Identifying and analyzing external opportunities and threats that may be crucial to the company’s success. 2. Provides a clear business strategy and vision for the future. 3. To supply competitive intelligence that may be useful in the strategic planning process. 4. To recruit, retain and motivate people. 5, To develop and retain highly competent people. 6. To ensure that people's development issues are addressed systematically. 7. To supply information regarding the company’s internal strengths and weaknesses. 8. To meet the expectations of the customers effectively. 9. To ensure high productivity. 10. To ensure business surplus through competencyFive Phases of SHRM Process Se) : r Tule euar-uiiTraditional HRM SHRM. employee motivation and productivity, compliance with laws Responsibility |Staff personnel in the HR|Line managers; all managers responsible for HR| department. for people are HR managers | programs Focus ‘of| Employee relations— ensuring] Partnerships with internal (employees) and external (customers, stakeholders, public interest groups) groups with larger issues Role of HR Reactive and transactional Proactive and transformational, change leader Initiative for|Slow, piecemeal, and|Fast, flexible, and systemic change change fragmented, not integrated | initiatives implemented in concert with other HR systemsTime horizon Short-term Consider various time frames as necessary (short, medium, or long-term) Control Bureaucratic control | Organic control through flexibility, as few through rules, procedures, |restrictions on employee behavior as and policies possible Job design Focus* on scientific|Broad job design, flexibility, teams and management _principles— | groups, and cross-training the division of _ labor, independence, and specialization Important Capital, products, [People and their knowledge, skills, and investments technology, and finance abi ‘Accountability Cost center. Investment center.