Strategic hrm approaches

1. Strategic HRM APPROACHES Meera Mary Cherian S4 MBA MACFAST

2. SHRM DEFINITION It is the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation, flexibility and competitive advantage. 

3. Different Approaches of SHRM Traditional Approach Strategy Implementation Approach Strategy Formulation Approach Best Practices Approach Best Fit Approach

4. Traditional Approach This approach has no role in the formulation and implementation of business strategy It a ssumes that the people and job are stable. Advantages Helps in better analysis of a specific job Help in assess the person-fit recruitment & selection of Qualified person for a specific job.

5. Strategy Implementation Approach It a ligns the HR process with the organizational goals. HR strategies need to be aligned with the business strategy. Steps: Identifying the org. business strategy Deducing the organizational capabilities needed to implement the strategy

6. The recruitment & selection process that focus on candidate who can work with the org. goals Strategy Formulation Approach Focus – hiring candidate who can add value to an org. product & services. Add value- people with unique KSA Assumes that the strategy and staffing are stable& change according to the e xternal environmental factors - Political, Social, economic , demographic, technological factors, Suppliers , Customers, creditors, competitors etc.

7. Best practice approach Best practice approach believes that there is a set of best HRM practices and adopting them will lead to superior organizational performance. T he HR practices to be followed are: Employment security Selective hiring  Self-managed teams or team working  High pay contingent on company performance  Extensive training  Reduction of status differences Sharing information

8. In essence,  recruiting and retaining talented, team-oriented, highly motivated people is seen to lay a basis for superior business performance   Criticisms Disconnection from company's goals and context Disregard of national differences such as management practices difficulty arises when we go beyond these straightforward practices .

9. Best Fit Approach Best fit approach believes that there is no universal prescription for HRM practice. It emphasises the fit between HR activities and the organisation's stage of development ("external-fit ") Criticisms Lack of alignment with employee interests, compliance with prevailing social norms and legal requirements