5 Difference Between SHRM and HRM Strategies

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Unit I Difference between SHRM and HRM

strategies
Learning Objectives

 Differentiate between SHRM and HRM


Introduction
• The terms strategic human resource management and human resource
strategies are often used interchangeably, however some distinction can be
made between the two.

• The difference between SHRM and HR strategies is similar to that between


strategic management and corporate business strategies.

• SHRM deals with macro concerns such as quality, commitment, performance,


culture, and management development.
• It defines the areas in which specific HR strategies need to be developed.

• HR strategies, on the other hand, are concerned with ensuring the availability of
an efficient workforce, training, rewards, good employee relations, etc.
• are more specific and facilitate the successful achievement of the corporate objectives and
goals.
Difference between SHRM and
HRM
BASIS HRM SHRM

Responsibility for HR HR Department LINE Managers + HR


programs Department
Focus Employee Relations and Both, internal as well external
Development environment
Approach Reactive Proactive

Time Span Short-term Varies (from long term to


short term)
Centre Cost Centre Investment center
Importance Managing people to Formulation and
facilitate activities implementation of HR
strategy in alignment with
corporate strategy

Resources Capital, Products, People, knowledge, skills,


Technology, finance abilities.
Difference between SHRM and
HRM
BASIS HRM SHRM

Role of HR Reactive and transactional Proactive and transformational,


change
leader
Initiative for change Slow, piecemeal, and Fast flexible and systemic,
fragmented, not change
integrated with larger change initiatives implemented
issues in concert with
other HR systems

Job design Focus on scientific Broad job design, flexibility,


management principles— teams and groups, and cross-
division of labour, training
independence, and
specialization
Link between HR Strategy and Business Strategy

• In order to ensure that HR strategies facilitate the


achievement of business strategies,
• a strategic integration between the two is necessary.

• A key factor that influences the linkage between business


strategy and HR strategy is
• the organization’s quest to attain competitive advantage.

• Three types of business strategies that may be adopted


by an organization are cost leadership, differentiation,
and focus

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