What is Strategic Human Resource Management(SHRM)?

Essay by chiluntUniversity, Master's September 2004

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Strategic Human Resource Management (SHRM) is concerned with establishing a specific and managed cause and effect relationship between an organisation's actions to survive and grow and its HRM principle and practices. It is also concerned with the mechanism through which people in an organisation gain an understanding of the purpose of the organisation, its goals and strategic objectives. As well as how the organisation related to its external environment in order to achieve these goals and objectives (SHU International MBA, Intro to SHRM unit p.1)


Human resource management (HRM) can broadly be defined as a strategic and coherent approach to the management of an organization's most value asset - the people work there, who individually and collectively contribute to the achievement of its objectives for sustainable competitive advantage.

As described by beer et al (1984): Human resource management involves all management decisions and action that affect the relationship between the organization and employees - It human resource.1

The different between Strategic Human Resource management (SHRM) and Human Resource Management (HRM) can be seen as the word of "Strategy", Strategy, as it has come to be applied in business, is a market-oriented concept - it is fundamentally concerned with products and competitive advantage. The different between are integrated as follow:

Strategic human resource management is concerned with those decisions which have a major and long -term effect on the employment and development of people in the organisation, and on the relationship which exist between its management and staff.

An HR strategy will express the intention of the enterprise about how it should manage its human resources. These intentions provide the basis for plans, development and programmes for managing chance.

The aim of SHRM is to ensure that the culture, style and structure of the organization, and the quality, commitment and...