Strategic Hrm.

Strategic HRM.

SHRM defines the organisation's intentions and plans on how its business goals should be achieved through people. The three propositions of SHRM are:

o Human capital is a major source of competitive advantage

o It is people who implement the strategic plan

o A systematic approach should be adopted to define where the organisation wants to go and how it should get there (Systematic Approach – methodical approach repeatable and learnable through a step by step approach).

SHRM involves the use of overarching approaches to the development of HR strategies which are integrated vertically with the business strategy and horizontally with one another. These strategies define intentions and plans related to the overall organizational considerations, such as organizational effectiveness and to more specific aspects of people management such as resourcing, learning and development, reward and employee relations.

1. Meaning of SHRM

Purcell 1999. SHRM focuses on action that differentiates the firm from its competitors. Hendrey and Pettigrew state that SHRM involves:

o The use of planning

o A coherent approach to the design and management of personnel systems based on an employment policy