Why Strategic Human Resource Management (SHRM) is so important? How is human resource management (HRM) strategic to gain competitive advantage?
Nowadays, Strategic Human Resource Management becomes very important for the organizations in the business world environment. The purpose of this assignment is about what the Strategic Human Resource Management (SHRM) is and why SHRM is so important? How is human resource management (HRM) strategic to a firm's viability and how it might help to lay a basis for sustained competitive advantage? And what are the strategies for the managers to pursue their goals for labor productivity and organizational flexibility in socially acceptable ways.
HRM has existed in one form or another since the beginning of time. Certain HR functions, even though informal in nature, were performed whenever people came together for a common purpose. During this century, the processes of managing people have become more formalized and specialized.
1.1 Definition of SHRM
SHRM it can help organizations determine the best use of human resources to meet organizational goals and can facilitate the integration of HR policies and practices with each other and with the business strategy.
1.2 Understanding of SHRM
Strategic human resource management (SHRM) takes the ideas one step further by emphasizing the need for HR plans and strategies to be formulated within the context of overall organizational strategies and objectives, and to be responsive to the changing nature of the organization's external 'environment' (i.e. its competitors, the national and international arenas). A strong implication of SHRM theory is that HR plans and strategies should be developed on a long-term basis, taking into account likely changes in the society, industrial relations systems, economic conditions, legislation, global and technological issues, as well as new directions in business operations.
1.3 Competitive Advantages
People is the source of competitive edge, there are different ways of competing are significant for managing human resources because they...