What is SHRM?

As mentioned earlier, Human Resources Management plays an important role for the success of an organization. Human Resource Management has more roles than just doing administrative work such as recording employee’s presence and absence. 

The role of Human Resource Management has improved significantly that it now has a strategic function, which then created new subject called Strategic Human Resource Management.

What is Strategic Human Resource Management (SHRM)? It is the process of linking the human resource function with the strategic objectives of the organization in order to improve performance. It aligns your human resource function to your core business objectives. Moreover it involves more than just the administration of human resource programs or activities.  It is concerned with the “people” factor as a source of competitive advantage.

HR as a Strategic Partner

The role of people is so fundamental in organization’s competitive advantage. Considering SHRM as just a function of the HR Department is not a good idea. The role is enormously important that cannot be handled in just one department named Hr Department. SHRM must involve all top leaders, executives, managers.

Some organizations have already proved that those who value their employees are more profitable/successful in reaching their targets. Research shows that successful organizations have several things in common, such as providing employment security, engaging in selective hiring, using self-managed teams, being decentralized, paying well, training employees, reducing status differences, and sharing information.

Introduction to HRM

JC Penney clearly had a point when he said, “The five separate fingers are five independent units. Close them and the fist multiplies strength. This is organization.”

Yup, JC Penney was true. Organization indeed consists of different units or departments or divisions – whatever you want to call it – and they all create one organization.

We can also say that organization is the combinations of different units that each consists of different personnel.  They all make up one big and solid organization. Big may be yes, but solid?

The organization’s efforts in aiming its target are highly influenced by the capacity of its employees. It is true that we also have to consider other important factors such as technology, systems, environments, laws, etc. However human resources are measured to be the dominant factor in today’s organization management system.

Human resources are no longer considered as the complement division or department in a modern organization. Human resources are now the dominant factors which lead to carefully designed of Human Resources Management.

As we understand, Human Resource Management is the strategic, integrated, and coherent approach to the employment, development and well-being of the people working in organization. It is the function within the organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. The overall purpose of human resource management is to ensure that the organization is able to achieve success through people. Human Resource Management aims to increase organizational effectiveness and capability – the capacity of an organization to achieve its goals by making the best resources available to it.

From the definition mentioned above it is clearly understood that Human Resource Management plays an important role for the success of an organization. Human Resource Management has more roles than just doing administrative work such as recording employee’s presence and absence.