Title

Strategic Human Resources Management.

A Research Proposal
By
Tamanna
Application No.- 22047
To be submitted in part fullfillment of the
requirement for the
interview in PHD Admission .
At
Bhagat Phool Singh Mahila
Vishwavidyalaya

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Topic: - Strategic Human Resources
Management

Title: -
The Key aim of strategic Human resource management is to give an
organization a competitive edge.

Aim: -
By doing this research we shall try to understand the resultant
competitive edge to an organization through strategic human resource
management and how it is different and a better approach to Human
Resource Management traditionally known as Personnel Management.

Objective: -
1. To explain how traditional HRM is more about transactional
activities.
2. To analyze the proactive approach of strategic HRM.
3. To explain the benefits of SHRM to the organization over HRM.

Introduction: -
By conducting the research, I shall make an attempt to find how the
effectiveness of SHRM and develop the relationship between SHRM and
competitive edge of an organization.

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 I shall also include in my research the emergence of SHRM from
traditional personnel management approach prior used in organization.

Definition: -
“The liking of human resource with strategic goals and objectives in
order to improve business performance and develop organizational culture
that foster innovation, flexibility and competitive advantage.”

For an organization SHRM means viewing HR function and accepting

it as a strategic partner of the business, partner in formation and
implementation of business strategies through HR activities like
recruitment and selection, training performance appraisal etc. (Armstrong,
Michael 2006)

Recently Human Resource Management is no more an

administrative activity. Today an HR Manager has more responsibilities
that the older days HR department works as a strategic partner of the
organization and adds to the competitiveness advantage of the company
because of Globalization we have to make sure that HRM is handled
smartly. Globalization has resulted into mix demographics of workforce,
sudden changes in business and technological changes and many other
changes that company goes through it.

In today’s time for any company to succeed and to achieve a

competitive edge over the other, it is important for the HR department to
not only look into administrative aspect and transactional activities related

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to the job but also to formulate the strategic for business to achieve the
goals and if this will not be done then the company will lose its relevance.

Two Way Vertical Fit: -

According to approach the HR has to align its activities such that it
results in the achievement of goals of the business. Not only this, but HR
plays a vital role in formulating and implementing such strategic goals and
activities.

A role of a strategic partner to the business is played by the Human

Resource department.

Now a day a proactive role is played by the Human Resource

Department. HR is now expected to make changes in the organization by
forecasting the changes in the external environment. HR is also expected
to change with the changing trends and make the required changes in the
culture also to make suggestions for the mergers and acquisition by
studying the market scenarios, stay updated with the changing market also
the HR should not restrict itself to the routine activities of the recruitment
and selection, pay rolls and other administrative activities unlike before,
the HR is becoming expected to make policy decisions based on the global
perspective and to make suggestions for formulating strategies.

Literature Review: -
Strategic Human Resource Management is considered to be a
broader approach to the traditional Human Resource Management. Now

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days the HR formulates a performance appraisal system for identifying the
level of performance of each employee based on the competencies for that
job and whether that performance is resulting in the achievement of the
business goals or not. Earlier the HR used to just identify the competencies
of the job which were in turn determined by the requirements of the
company and also the performance is appraised by giving the reward.
Rewards are distributed to the employees who are outstanding performer
and have helped in increasing the efficiency of an organization. This reward
acts as a motivational force to work more for an organization. To attract
the right talent of the employees the organization should have a proper
and best reward plan for the employees.

There are many factors that influences the strategy formulation of a

company, factors are internal and external. These factors are named as
PEST

P- Political

E – Economical

S – Social

T – Technological

The organization must have proper knowledge from time to time about
the changes in these factors. An organizations functioning is influenced by
the economic growth, changes in demographics of workforce, political
changes etc. these affects the business.

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 Human Resource strategy is mainly affected by the factors i.e. labour
market, labour laws, skills of the labour changes in economic conditions or
change in any culture. Human Resource strategies are formed for long term
as well as short term the main focus of the organization to achieve the goal
is on the formulation of the short term strategies.

But in long run, HR has to develop the long term strategies to achieve
the business goals and for the HR has to make the good decision on
recruitment, training, career paths, design the reward system. Strategy
formulation would require the HR to take a close look on factors like style
of leadership by the CEO and current conditions of business factors like
history of organization vision and mission, financial investment
technological investment, rules and regulations etc. will determine the
culture and leadership style.

To attain a competitive edge through HR it is important for HR, it is

important for HR to add many competencies to raise its level form the
current role. HR must have other competencies apart from its general role
like handling payrolls, requirement, grievance handling.

Some obstacles reviewed by (Tony Ruccci) that hinders the

proactive role of HR are: -

● Lack of ability of the HR professional to study the market.

● Risk aversive nature of the HR professionals.
● Low confidence in implementing an innovative approach.

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Difference in role of SHRM from Traditional role
of HR: -
● Difference in scope:

Role of HR is limited in comparison to the broader role of

strategic human Resource Management. Earlier HR was expected to play a
role to support the managers to carry out the activities to achieve the goals
of the organization. So, HR was involved in the transactional activities like
recruitment and selection man power planning, preparing job description,
appraisal of employees etc.

SHRM has a border role to play, they help the employees to

understand their potential and develop it, growth of employees, provide
strong leadership and guidance etc. this does not stop them from
concentrating on the transactional activities which were earlier taken by
them.

● Difference in Approach:

Earlier HR used to give more importance on policies and

procedures, rules and regulations, all these are made by the HR and then
these are followed throughout the organization.

But in SHRM the more importance is given to the fulfillment of

organization goals by these policies and procedures and the rules are bend
to see that whether the goals are achieved or not.

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 •Difference in Nature :-

Nature of Management followed by HR is reactive in nature and SHRM

is proactive in nature. Earlier the functioning of the business was not the
area of HR, also HR had no contact with the departments. HR always
worked independently, there was just a minimal contact with the
departmental staff.

In SHRM there is proactive approach that means now it is in contact

with the whole organization. HR used to reward the employees based on
their performance. Whereas SHRM first establishes the standard of
performance and then matches the standard with performance and after
that employee is rewarded, punished, promoted or demoted according to
their performance.

● Difference in Application:

Earlier HR used to do the administrative activities and

had no involvement in the core business, also HR had no knowledge of
business functioning and can’t expect the market scenario and trends.

But SHRM do the core business strategies but also help in

formulating the strategies for the future.

Research Methodology: -
Here the quantitative method can’t be used as it is a source of
collecting the information in depth and also helps in comparison of data.

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 Questionnaires would be designed which would be presented to
Managers or various organizations for collecting the data, so such data will
help in the determining the effectiveness of strategic Human Resource
Management.

Data Collection: -
1. Sampling:

It is important to make a best choice of our sample; a wrong choice

of sample would lead to incorrect results of our research sample must
include the inputs from various organizations where they have proper HR
department.

2. Sample Size:

It has been decided to conduct a research of more than 20 industries

where the employee’s strength is more than 500. So, it will help us to justify
the effectiveness of SHRM over traditional HRM.

3. Data Analysis:

Once the data is collected by the way of interview or questionnaires then

the such data is to be analyzed to come to the conclusion of the
effectiveness of the strategic Human Resource Management.

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