Strategic Human Resource Management The Key to Core Competitiveness of Corporations

Topics: Management, Human resource management, Human resources Pages: 10 (2223 words) Published: July 17, 2014
Strategic Human Resource Management
The Key to Core Competitiveness of Corporations

1. Introduction

The human resource is fundamental to a company, but the traditional human resource management style cannot meet the global market’s demand any more. Thus, the strategic human resource management comes into being. As a key part of the strategy management, the strategic human resource management demands the company to pay attention to the human resource, and set the appropriate human resource policies to meet the competitive strategy. This essay provides two examples to prove the importance of the SHRM to modern corporations. 2. The concept of SHRM

2.1 The Concepts of Strategy and Strategic Management
The aim of strategic human resource management (SHRM) is to meet the demand of revolution of human resource management and ensure the human resource management to fit the current environment. The substance is as follows: A strategy is a discussion result of the senior executives of an organization. To ensure the fast grown up of the organization, strategy leads the way of the working group due to the change of the outstanding environment. It is the direction for final success. It addresses critical issues and success factors. Strategic management is a process to set the strategic into reality (Nag, Hambrick & Chen 2007). It plans how the organization is disposed to the high-risk outstanding environment. It rules how to realize the strategy, and how to make the members of the organization accept the strategy and carry it out. During the process of strategy management, the organization should find the appropriate strategy, which can best suit the current outside environment and help the organization to achieve the final success in the competition (Schmidt & Treichler 1998).

2.2 The Different between SHRM and HRM
Before deeply discussion, this essay has to distinguish the difference between SHRM and HRM. In chapter 4, the material tells that the HRM provides the human resource normal work to the organization, such as the hiring, documents arranging, and so on (Sheehan, et al 2007). The SHRM is quite different from HRM. SHRM can be described as a high level strategy about how to arrange the human resource work due to the fast changing outside environment (Martell & Carroll 1995). It means that the SHRM is a long-life policy of the organization, and it is fundamental to the management policy of the organization. SHRM is a part of the strategy management, and HR is the expression of the SHRM.

2.3 The Way that HRM Integrates into SHRM
The main way that integrates strategy management into human resource management has two approaches: best fit and best practice. Most models of best fit in HRM argue that prime target is to fit with the firm’s competitive, overlooking the employees’ interest. Thereby, this essay recommends that best fit is not flexible enough and should do some changes to make sure the powerful competitive in global market. Another approach is best practice. Best practice prefers to improve the quality of workers by training, education and so on. However, cultural factors are significant in this instance. Meanwhile, best practice also awards the employees who make significant contribution to improve the activity of the employees. Further, the models can provide opportunities for the employees to help them grow up and receive more profit.

2.4 The Importance of SHRM to Companies
With the development of globalization, many amazing changes attract the eyes of economic experts. They try to find the key reasons of the successful companies. Many experts finally come to the agreement that the key of a company’s success is the core competitiveness (Ngo, Lau & Foley 2008). The most directly way to improve the core competitiveness is to improve the strategic human resource management level. The strategy human resource is very important to the constancy development of company. To achieve the high quality human...
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