Strategic Human Resource Management

What is Strategic Human Resource Management?

Strategic Human Resource Management (SHRM) is a proactive approach where HR processes and practices are designed and implemented to align with the strategic objectives of an organization. This concept assumes that an organization’s human capital is a significant source of competitive advantage and involves strategically integrating HR functions to achieve the business goals.

Why is Strategic Human Resource Management Important? The importance of SHRM lies in its ability to tie together HR practices with an organization’s strategic vision. Here’s why it matters:

  • Creating Competitive Advantage: Skilled and motivated employees can give a company a competitive edge. SHRM helps organizations leverage their human capital to outperform competitors.
  • Attracting and Retaining Talent: By aligning HR policies and practices with business goals, organizations can better attract and retain the right talent needed for the achievement of these goals.
  • Driving Organizational Performance: A strategic HR approach ensures that HR practices contribute towards achieving business objectives, thereby enhancing overall organizational performance.


Strategies in Human Resource Management SHRM can be applied using various strategies, such as:

  • Talent Management: This involves identifying, recruiting, and retaining talented employees. The focus is on matching the right people with the right job roles.
  • Performance Management: Performance management strategies involve setting performance standards, evaluating employee performance, and providing feedback. The aim is to improve individual and collective performance, which ultimately drives organizational success.
  • Learning and Development: Strategic learning and development initiatives are designed to close the skills gap in an organization. By investing in employee development, organizations can prepare their workforce for future challenges.
  • Workforce Planning: This strategy involves analyzing current workforce capabilities, forecasting future workforce needs, and developing a plan to meet those needs. It ensures that the organization has the right people in the right roles at the right time.


In Conclusion Strategic Human Resource Management emphasizes the integration of HRM with the business strategy. It enhances the organization’s capacity to attract, retain, and motivate employees while fostering a culture that aligns with the organization’s goals. Through effective SHRM, organizations can ensure that their human resources contribute meaningfully towards the achievement of business objectives.