Strategic Human Resource Management

Strategic Human Resource Management

Zainab Hamid (University of Kashmir, India), Muhammad Muzamil (University of Kashmir, India) and Shawkat Ahmad Shah (University of Kashmir, India)
DOI: 10.4018/978-1-7998-0058-3.ch015


Human resource management has become an integral part of management with the basic aim of maintaining better human relations at work place through the application and evaluation of organizational policies and programs so as to utilize human resources in an optimized and effective manner. In this context, this chapter focuses keenly on the various domains centering around human resource management. Initially a detailed theoretical background regarding this construct has been presented followed by highlighting the components and objectives of strategizing human resource management. Lastly, the models and perspectives pertaining to strategic human resource management have also been discussed considering their application and relevance in modern-day organizations.
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All the activities are initiated and completed by human resource, one of the important sources of any organization that needed to be handled and managed carefully by the management professionals. In essence human resource management (HRM) is very important and a very difficult job because of the dynamic nature of human resource as people are responsive, they feel and act, therefore can’t be treated and operated like machines (Ganesan, 2014). The researcher further added that human resource management (HRM) is considered with management of the people working in an organization. It’s a process that leads the management to think about human as an important work capitals and investment. In other words it’s an approach that enables the mangers to fully utilize the human resource in a proper and appropriate way so as to ensure growth and development of organization and protect the interest of its employees. Therefore, human resource management can be defined as a system that lay emphasis on effective management and progress of human resource on the ground of human approach. The basic principle of human resource management (HRM) is treating employees with human dignity while focusing on their skills, knowledge, abilities, capabilities, potentials, achievements, satisfaction and dedication etc. Thus human resource management is very important for the success and prosperity of an organization as it helps the organizations to acquire the services of employees, develop the skills and potentials of workers, increases the motivation of workforce to work with competence, ensuring commitment and dedication of employees, encourage employees to increase their performance and efforts, resolving human conflicts and issues in a reasonable way. In simple terms it helps the organization in achieving its set objectives and goals in a very effective and efficient manner. Human resource management is associated with ‘people dimension’ in management and helps in selecting, recruiting, training, assisting and developing members of an organization. Boxall and Purcell (2000) stated that “human resource management deals with anything and everything related with management of employment relationships in the firm”. Byars and Rue (2004) defined “human resource management (HRM) as an activity designed to provide for and coordinate of human resources of an organization”. The authors further stated that human resource management is a new terminology for personnel administration or personnel management. As per Westover (2014) human resource management (HRM) is a process of selecting and employing people; training and compensating them; designing policies, programmes and strategies to retain and promote them. Besides, role of human resource management (HRM) is staffing, retention, development of work policies, training and development, compensation and benefiting administration, worker protection and deals with laws and regulations affecting workforce and performance appraisal. For Guest (1987) the key ingredients of human resource management (HRM) is to facilitate employees to remain committed in achieving organizational goals, assist employees to adjust and adapt to change prevailing within the organizational structure, focuses on quality of services of employees, staff members and management personals, and finally integrating human resource strategies into organizational goals (Osibanjo & Adeniji, 2012).

Key Terms in this Chapter

Strategic Human Resource Management (SHRM): It is the extent to which human resource management is integrated with the strategic decision-making processes that tend to direct organizational efforts to cope effectively with environmental demands.

Human resource management: Human resource management (HRM) is an activity designed to provide for and coordinate of human resources of an organization.

Strategy: A particular way of doing something, the word is derived from a Greek word strategus , means “commander in chief” or “long run direction.”

Universalistic Perspective: The universalistic perspective is a best practice within HR system and a simplest approach of strategic human resource management (SHRM) which emphasis on a single set of universally applicable human resource management system.

Contingency Perspective: Contingency perspective of strategic human resource management (SHRM) indicates that fit, interaction or alignment between human resource management (HRM) strategies and organizational strategy have a great effect on effective performance.

Contextual Perspective: It is a broader explanation of the relationship between strategic human resource management (SHRM) and its context.

Configurational Perspective: The configurational perspectives is one of the complex approach emphasis shared influence of various variables and deals with patterns or configure of human resource management (HRM) system that determines effective performance.

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