December 3rd, 2012.Strategic human resource management (SHRM) means, making use of people to achieve set organization goals and at the same time satisfy workers needs. SHRM is a major contributor to organizational success, as it can affect clients, profit of a business and the worth of investors. According to Lee (2011), SHRM means setting outline and budget that assist an organisation to realize it set goals and objectives. SHRM values organisation work force as a vital asset which makes organisation remain competitive. Kelliher & Perrett (2000), discovered that human resource management (HRM) was brought about by the desire to pursue competitive advantage.
He argued that, people are different from the various factors of production like money and machinery and therefore are the sources of competitive advantage. Batch (2000), supports this view by adding that, the reason why people are the core of competitive advantage is that people skills, values and conduct enhances and maintains good performance. Caliskan (2010) says that, in order to sustain and maintain competitive advantage, HRM should set some strategic goals. Some of the goals may include, investing in educating workers to meet industrial needs and alignment of skills.
An organisation should control behaviour of employees and reward the well behaved ones. It is vital for an industry to encourage people regularly, so that they can be well committed in the running of the organisation. To meet these goals, there is the need for the practice of good approaches by organisations to make use of SHRM wisely and productively. According to Batch (2000), an organisation can use two approaches to show how a good approach to human resource can be explained into various articulate Hr practises.
There are universal and contingency approaches. Universal approach focuses on only one means in attaining the best performance while the contingency approach associates the policies implemented by an organisation to the exact environmental factors. However the two approaches play the role of ensuring that business policies work together and also indicates the needs of the external environment. Batch (2000), argues that, for HRM approach to yield profit through people it must incorporate various policies. Different approaches to SHRM are also looked upon by Kazmi & Ahmad (2001).
All HRM functions cannot be said to be strategic, some are indeed strategic while others are not. The non-strategic approaches are further said to be functional. According to Kazmi & Ahmad (2001) SHRM is a planning process. There are some strategic features in every constituent of the HRM process that are phrased as SHRM. The key purpose of SHRM is generating and supporting competitive benefit of the organization. McCourt & Ramgutty-Wong (2003) further states that SHRM and good practice is a good approach in key HR behaviour should be practiced as it boosts performance. To implement these approaches, some of the policies are required for instance; ensuring people get good employment security, thorough selection of a good personnel manager and having self supervised employment teams that decentralizes making of key decisions.
One can also compensate good performing teams and individuals with good returns. It is vital to allow workers to access an extensive training, avoiding status recognition and barriers, avoiding paying workers in same department who possesses equal skills and knowledge different wages and good coordination and communication in an organisation and sharing of financial resources.
Kelliher & Perrett(2000), suggest that policies depends on the level of stage a business can be, for instance, a business can be in the initial stage, in the development stage, peak stage or on decline. One should make a judgemental decision on the policies to be implemented according to the stage of the business.