SHRM Objectives, Advantages, Disadvantages

08/12/2020 1 By indiafreenotes

Strategic HRM is the improved version of HRM over a period of time under drastically changing business environment and stiff competition. For survival, growth stabilize and excel in business performance, the need for willing cooperation was needed from employees.

To do so the approach of human resource management went under drastic changes with the interest to match the HR requirement with the business strategies so that the goals are achieved. The new concept of SHRM developed and it is nothing but HRM plus strategy.

The main objectives of SHRM are the following:

(a) Plan for manpower requirements for its business located in national and international markets.

(b) Conduct scientific selection and appointment of employees for business operation of right type and right in number.

(c) Train the employees on technology in use and working procedure for developing their skills and knowledge.

(d) Place the employees at jobs according to their areas of specialization.

(e) Provide opportunities for the employees deserving on the scientific basis.

(f) Compensate employees according to their skills, experience and contributions.

(g) Maintain employees motivated, satisfied and cooperative in organisation.

(h) Improve industrial relations, industrial peace and harmony at workplace.

(i) Encourage employees for their cooperation, commitments and higher performance at work.

(j) Contribute through manpower in improvement of organisational performance and organisational effectiveness in business.

(k) Contribute in profitability, progress and image of the organisation.

(l) Stay competitive and effective in business for growth and excellence in global market.

For effective accomplishment of the objectives the Strategic HRM should keep in mind the interests of all concerned parties or stakeholders in the organisation in designing its strategies. The main stakeholders are employees, employer and management. The focus of SHRM should be on human relations, regular development, empowerment of employees; leadership, communication, welfare and security of employees, quality of work life.

The efforts should be there and must be considered these as investment in human resources in the interest of the organisation and its business. Strategic HRM should put the efforts and achieve the proper balance between organisational requirements and employees’ requirements. Every organisation uses its resources effectively and efficiently for achieving an objective.

But management should keep always human consideration in mind. Employees should be considered as human being and must be treated accordingly. They should not be ignored for the sake of organisational gains. Generally, the problem is that in dealing the organisation comes first and it not a healthy practice.

So, for strategic dealing there should be proper balance between these two aspects. Quinn Mills supported this point and advocated that they should plan with people in mind, taking into accounts the needs and aspirations of all the members of the organisation.

Strategic HRM is concerned with the relationship between human resource management and strategic management in an organization. It caters to provide overall direction to the organization in order to achieve its goals through people.

As people or the intellectual capital is a major source of competitive advantage, and it is the people who implement the strategic plan, top management must take these key considerations fully into account for developing its corporate strategies. Strategic HRM is an integral part of such people strategies.

Strategic HRM addresses broad organizational issues relating to organizational effectiveness and performance, changes in structure and culture, matching resources to future requirements, the development of distinctive capabilities, knowledge management and the management of change.

It is concerned with both meeting human capital requirements and the development of process capabilities, that is, the ability to get things done effectively. On an overall, SHRM considers any major people issues that affect or are affected by the strategic plan of the organization. The critical concerns of HRM such as choice of executive leadership and formation of positive patterns of labour relations form the core strategic concern in any firm.

Advantages of SHRM:

  1. Identifying and analyzing external opportunities and threats that may be crucial to the company’s success.
  2. Provides a clear business strategy and vision for the future.
  3. To supply competitive intelligence that may be useful in the strategic planning process.
  4. To recruit, retain and motivate people.
  5. To develop and retain of highly competent people.
  6. To ensure that people development issues are addressed systematically.
  7. To supply information regarding the company’s internal strengths and weaknesses.
  8. To meet the expectations of the customers effectively.
  9. To ensure high productivity.
  10. To ensure business surplus thorough competency

Disadvantages of SHRM:

Barriers to successful SHRM implementation are complex. The main reason is the lack of growth strategy or failure to implement one.

  1. Inducing the vision and mission of the change effort.
  2. High resistance due to lack of cooperation from the bottom line.
  3. Interdepartmental conflict.
  4. Lack of commitment of the entire senior management team.
  5. Ineffective plans that integrate internal resource with external requirements.
  6. Limited time, money and the resources.
  7. Resistance of employees.
  8. Resistance of senior level managers to take up strategic steps.
  9. Diverse work-force with competitive skill sets.
  10. Fear towards victimization in the wake of failures.
  11. Improper strategic assignments and leadership conflict over authority.
  12. Ramifications for power relations.
  13. Vulnerability to legislative changes.
  14. Resistance that comes through the legitimate labour institutions.
  15. Presence of an active labour union.
  16. Economic and market pressures influencing the adoption of strategic HRM.