Strategic Human Resources Management
The strategic HR Management should not be confused with the HR Strategy. The SHRM is about the proper execution of the business and HR strategies. The aim of strategic management is a long-term sustainable performance both of employees and the organisation. Additionally it is about gaining the competitive advantage. It involves strategic thinking and planning. Having a strategic plan is a condition for a successful, smooth and well-managed implementation of any HR Strategy (even if it does not support the growth of the organization). The strategic Human Resources Management combines both strategies, measures knowledge, skills and abilities of employees, and sets the strategic plan to be executed and implemented.
The HR Strategy is not just a document. It is a philosophy owned by the top management. Without the ownership of the top management, it is nothing. The HR Strategy is an explicit attempt to manage organization’s human resources to gain a competitive advantage. However, the SHRM can exist without the HR Strategy in place. It is difficult, but SHRM can implement the people management piece of the general business strategy. Just to be fair, the strategic HR Management works best if the strategy for Human Resources is designed, approved and being an alive document.
Strategic thinking and planning are essential components of SHRM. SHRM should always follow a very particular process. It should work with the strategic imperatives, and it should breakdown them into actionable and manageable items. The strategic thinking is about the translation of key imperatives into long term HR initiatives. The decomposition of the strategy is an essential step in the process, because it sets the basis for the following actions. The decomposition helps others to understand the entire strategic plan. The plan is about putting actionable items into smaller steps and making them in the right order.
SHRM takes into account the current shape of the organization. It works with the current status and identifies all gaps that HR Department has to cross. The top management usually know about gaps in the organization; the top executives just do not like to talk about weaknesses in the company. SHRM has to identify gaps, name them and adjust the strategic plan to mitigate potential risks in advance.
SHRM changes the way how HR Business Partners and HR Managers work. They have to change their focus from daily operation to strategic imperatives for the organization. The real business partnership HR Model needs to be introduced so that SHRM becomes a part of the daily agenda. The entire HR Team needs to leverage skills and competencies to become a facilitator of changes.
SHRM incorporates and influences the strategic workforce planning process. This kind of workforce planning is based on the business strategy, requirements of line managers and available resources. It works with gaps in the organization. It includes talent acquisition and training and development. The strategic workforce planning involves HR Business Partners into planning procedures, and they have to set up an excellent development and succession plan for internal clients.
The strategic Human Resources Management can be present without the HR Strategy. It does not work the other way. SHRM defines the strategic pathway for the organization and designs right action plans for all departments and all groups of employees.