• Skip to main content
  • Skip to primary sidebar
  • Accounting
  • Banking
  • Business
  • Statistics
  • Economics
  • Finance
  • HR
  • Law
  • Marketing
business-jargons-site-logo

Business Jargons

A Business Encyclopedia

Strategic Human Resource Management Process

Definition: The Strategic Human Resource Management is concerned with the development of HR strategies intended to direct the employees’ efforts towards the business goals.

Strategic Human Resource Management Process

SHRM Process

  1. Scanning the Environment: The process begins with the scanning of the environment, i.e. both the external and internal factors of the organization. The external environment encompasses the political, legal, technological, economic, social and cultural forces that have a great impact on the functioning of the business. The internal factors include the organizational culture, hierarchy, business processes, SWOT analysis, industrial relations, etc. that play a crucial role in performing the business operations.

    The role of the HR department is to collect all the information about the immediate competitors – their strategies, vision, mission, strengths, and weaknesses. This can be done through the resumes being sent by the candidates working with the other rivalry firm. Through these, HR professionals can identify the workforce, work culture, skills of the staff, compensation levels, reasons for exit and other relevant information about the competing firm.

  2. Identify Sources of Competitive Advantage: The next step in the strategic human resource management process is to identify the parameters of competitive advantage that could stem from diverse sources as product quality, price, customer service, brand positioning, delivery, etc.

    The HR department can help in gaining the competitive advantage by conducting the efficient training programmes designed to enrich the skills of the staff.

  3. Identify HRM Strategies: There are major four strategies undertaken by an organization to enrich the employees capabilities:

    a) Learning as Socialization: This strategy includes the techniques as training courses, coaching sessions, education programmes to ensure that the employees abide by the rules, value and beliefs of an organization and are able to meet the performance targets.

    b) Devolved Informal Learning: This strategy helps in making the employees aware of the learning opportunities and the career development.

    c) Engineering: This strategy focuses on creating and developing communities of practice and social networks within and outside the organization.

    d) Empowered Informal Learning: Through this strategy, the HR department focuses on developing the learning environment such as knowledge about the new processes, designing of new work areas and the provision of shared spaces.

  4. Implementing HR Strategies: Once the strategy has been decided the next step is to put it into the action. The HR strategy can be implemented by considering the HR policies, plans, actions and practices.
  5. Monitor and Evaluation: The final step in the strategic human resource management process is to compare the performance of the HR strategy against the pre-established standards.

    At this stage, certain activities are performed to evaluate the outcomes of the strategic decision: establishing the performance targets and tolerance levels, analyzing the deviations, executing the modifications.

Thus, to have an effective HR strategy the firm follow these steps systematically and ensures that the purpose for which it is designed is fulfilled.

Related terms:

  1. Strategic Human Resource Management
  2. Human Resource Planning Process
  3. Human Resource Planning
  4. Benefits of Human Resource Planning
  5. Limitations of Human Resource Planning

Reader Interactions

Comments

  1. Selma Nenkono says

    August 7, 2017 at 5:14 pm

    This article is really helpful.

    Reply
  2. Linus Odoemene says

    September 2, 2019 at 7:37 am

    All articles of “Business Jargons” are rewarding in clarifying and simplifying the meaning of business terms

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Top Searches

  • Communication Process
  • Planning
  • 7 C’s of Communication
  • Management
  • International Marketing
  • Business Strategy
  • Effective Communication
  • Insurance
  • Strategic Management
  • Selection Process

Trending Now

  • Group
  • Business
  • Accounting
  • Budget
  • Entrepreneurship
  • Journal
  • Leadership
  • Motivation
  • Communication
  • Stress

New Business Terms

  • Corporate Governance
  • Logistics Management
  • Dividend
  • Quorum
  • Corporate Veil
  • Trade Union
  • Warehouse
  • Mistake
  • Ratification
  • Void Agreement

Categories

  • Accounting
  • Banking
  • Business
  • Business Law
  • Business Statistics
  • Economics
  • Finance
  • HR
  • Marketing

Copyright © 2025 · Business Jargons · Contact Us · About Us · Privacy