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QUESTION
Explain the Approaches to Strategic Human Resource Management (SHRM).
ANSWER.
Strategic Human Resource Management (SHRM) is the proactive management of people. It involves aligning HR practices and policies with the overarching goals and objectives of an organization. Several approaches to SHRM exist, each with its unique perspective on how human resources can drive organizational success. Here are some of the most prominent approaches:
1. Resource-Based View (RBV)
This approach emphasizes that an organization’s human resources can be a source of sustained competitive advantage if they are valuable, rare, inimitable, and non-substitutable. RBV focuses on developing and nurturing employee skills, knowledge, and abilities to create a workforce that is difficult for competitors to replicate.
2. Best Practice Approach
The best practice approach suggests that there are universal HR practices that, when implemented effectively, can lead to superior organizational performance. These practices include comprehensive training and development, performance-based compensation, employee involvement, and job security. The idea is that adopting these best practices will result in improved employee morale and productivity.
3. Best Fit Approach
Unlike the best practice approach, the best fit approach posits that HR strategies should align with the specific context and circumstances of the organization. This includes considering the organization’s goals, culture, industry, and external environment. The best fit approach advocates for tailoring HR practices to meet the unique needs of the organization and its employees.
4. Harvard Framework
The Harvard framework for SHRM focuses on the relationship between HR policies and overall business strategy. It emphasizes the importance of considering multiple stakeholders, including employees, managers, and the wider community. The framework identifies four key HR policy areas: employee influence, human resource flow, reward systems, and work systems. It advocates for integrating these policies with organizational strategy to achieve long-term success.
5. High-Performance Work Systems (HPWS)
HPWS is an approach that aims to create a work environment that enhances employee performance and organizational effectiveness. It involves a combination of HR practices such as selective hiring, extensive training, performance-based rewards, and participative decision-making. The goal is to foster a culture of continuous improvement and high employee engagement.
6. Contingency Approach
The contingency approach recognizes that there is no one-size-fits-all solution to SHRM. It suggests that HR strategies should be contingent upon various internal and external factors, such as organizational size, structure, technology, and market conditions. This approach advocates for flexibility and adaptability in HR practices to respond to changing circumstances.
7. Behavioral Perspective
This approach focuses on managing employee behavior to achieve organizational goals. It emphasizes the importance of aligning employee behavior with the organization’s strategic objectives through motivation, leadership, and effective communication. HR practices such as performance management, rewards, and recognition are used to influence and guide employee behavior.
8. Ulrich’s Model
Dave Ulrich’s model of SHRM identifies four key roles for HR professionals: strategic partner, administrative expert, employee champion, and change agent. This model emphasizes the need for HR to contribute to the strategic direction of the organization while also managing day-to-day administrative tasks, advocating for employees, and driving organizational change.
In summary, SHRM encompasses various approaches that highlight the importance of aligning HR practices with organizational strategy. Whether through the resource-based view, best practices, or contingency approaches, SHRM aims to optimize the management of human resources to achieve organizational success.
I hope this helps clarify the different approaches to SHRM for you!