Human Resource Management
1. Executive Summary
Strategic Human Resource Management (SHRM) has established great in recent years in the fields of Human Resource Management (HRM). SHRM is the new concept for both the strategic management field and the human resource management field. The SHRM concept is based mainly on the HRM Practices, which are the main force driving organizational performance. SHRM is concerned with approaches to HRM practices as a critical strategic dimension affecting organization performance; which is the objective of this assignment. Strategic human resource management enhances organizational effectiveness and also productivity. The implementations of the HRM practices mentioned in this assignment are able to achieve their goals and objectives. This assignment on SHRM highlights its importance in TECO Electric and Machinery Pte Ltd. And it focuses on what best practices of strategic planning the organization can achieve organizational ...view middle of the document...
2.2. Strategic Human Resource Management (SHRM):
Strategic Human Resource Management (SHRM) is the process of linking the Human Resource function with the strategic objectives of the organization in order to improve the organization’s performance. Wright and McMahan (1992, p 215-217) define SHRM as the pattern of planned human resource activities intended to enable an organization to achieve its goals.
Figure.1: Strategic Human Resource Management.
2.3. Theoretical Perspectives of Strategic Human Resource Management:
Based on Torrington, Hall and Taylor (2008, pp.35-45) there are three types of theoretical perspectives of Strategic Human Resource Management to enhance business performance and to achieve organizational effectiveness are as follows:
2.3.1. Universalistic Approach: It is founded on basis of the concept that there is ‘one best way’ of managing human resources in order to improve performance of the business. This is the process of transforming HR practices into a correct set of HR procedures and policies.
2.3.2. Fit or Contingency Approach: It is based on the assumption that different types of HR strategies will be suitable for different types of business strategies. This approach focuses on the need to align employment policies and practices with the requirement of business strategy in order to achieve the latter and make business successful. It is based on two forms of fit. First is external fit (vertical integration) and second is internal fit (horizontal integration). The strength of this model is that it provides the framework for how selection, appraisal, development and reward can be mutually geared to achieve the required employee performance.
2.3.3. Resource - Based Approach: This resource - based view is concerned with the relationships between internal resources (of which human resources is one), strategy and performance. It focuses on the promotion of sustained competitive advantage through the development of human capital rather than merely aligning human resources to current strategic goals. The focus is not just on the behavior of the human resources, but on the skills, knowledge, attitude and competencies which strengthen this, and which have a more sustained impact on the long-term survival than the current behavior.