Strategic Human Resource Management

This essay presents a critical evaluation of the concept of Strategic Human Resource Management (SHRM) with an explanation of whether SHRM contributes to organizational success. An introduction is presented and is followed by a background of HRM and SHRM. Next, models and theories of HRM are presented with an evaluation of impacts of HRM and SHRM in practice. This is followed by conclusions.

HRM is defined as a model of personnel management that is focused on the individuals that are part of an organization. HRM typically takes charge of aligning management with employees and the building of employee commitment while ensuring the quality of the goods and services produced by the organization. Strategic integration is used to reach these and other goals related to employees and the company goals. Within HRM there is a focus on cost reduction and containment with the use of strategies to further the competitive advantage of the business. There is also a focus on human relations and employee satisfaction with related objectives. These two focuses are linked (Worland and Manning 6).

Strategic management refers to use of strategy for long term planning and SHRM refers to the strategic management of the HR functions. More specifically strategic HRM focuses on the need for HRM plans and strategies to be developed that fit the organizational strategies and objectives. SHRM must ensure that there is s good fit between HR and business

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sses. Guest et al. Studied 366 companies and found that HRM and performance were linked but causality was not confirmed (Worland and Manning 12). Models and Theories of HRM Different theorists of HRM presented with unique views of HRM. For example, Guest (1997) tried to represent HRM as having two focuses within a single framework with specific links that can be tested. Guest also stated that HRM is a new way of managing people that includes more than simple personnel management since it also has a focus on the need to create a culture in the workplace that leads to employee commitment to the organization. Guest presented a normative model of HRM that defines functional areas of personnel management and goes beyond this to set an agenda regarding what HRM must achieve to include an integration of organizational business strategy, employee commitment, flexibility, and quality. Walton (1985) furthered the notion that HRM must enhance employee commitment and HRM styles must move away from control styles. Thus, Walton presented a control to Commitment Model (Consortium Research Program 12). Beer et al. (1985) listed four areas of HRM policy and practice with four key outcomes. Kochan et al. (1986) stated that HRM i

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