How does HRM differ from SHRM

By:

 HRM Vs SHRM


Introduction

HRM (Human Resource Management) and SHRM (Strategic Human Resource Management) are two closely related concepts that are increasingly important in today's global business environment. Both HRM and SHRM are concerned with managing human resources in an organization, but SHRM takes a broader perspective by aligning HR strategies with the overall business strategy.

HRM

HRM is the process of managing people in an organization to achieve organizational goals. It involves managing recruitment, selection, training, performance evaluation, and other aspects of the employee life cycle. HRM is primarily concerned with ensuring that the organization has the right number of people with the right skills and abilities to achieve its objectives. 

SHRM

SHRM, on the other hand, takes a more strategic approach to managing human resources. It involves aligning HR strategies with the overall business strategy to achieve competitive advantage. SHRM considers the organization's external environment, including industry trends, technological advancements, and global competition, when developing HR strategies. The goal of SHRM is to create a workforce that is flexible, adaptable, and able to respond to changing business conditions. 

How HRM differ from SHRM

HRM is focused on managing day-to-day HR activities to meet short-term organizational goals, while SHRM takes a strategic approach to align HR strategies with the overall business strategy to achieve long-term competitive advantage. SHRM considers the external environment, involves senior management in decision-making, and measures effectiveness based on the organization's overall success. However, HRM and SHRM are both important concepts in managing human resources in organizations, but they differ in several key ways.

The basis for comparison

HRM

SHRM

Meaning

Human Resource Management (HRM) is the holistic and structured control of the organization’s manpower.

SHRM is a management function which refers to the formulation of human resource strategies to direct the effects of employees towards the goals of the organization. 

The focus of activities

Employee relations (day-to-day activities)

Partnership with internal & external groups.

Nature

Reactive & transactional

Proactive & transformational, change leader. 

The responsibility lies with the Staff. 

Staff Specialist

Line manager

Approach

Fragmented

Integrated

Scope

Concerned with employee relations concerned within an organization. 

Concerned with internal and external relations. 

Time horizon

Short-term

Long-term

Basic factor 

Capital, products, technology & finance people

People and their knowledge skills & abilities

Change

Follows changes

Initiates changes

Accountability

Cost center

Investment center

Control

Stringent control over employees (Bureaucratic control)

It exhibits leniency (Organic control)

Decision-making

Implementing HR policies & practices. 

Involved in strategic decision-making and work senior management to develop and implement HR strategies that support the overall business strategies.

Measurement

Its effectiveness is based on factors such as employee satisfaction, turnover rates, and productivity. 

Its effectiveness is based on the extent to which HR strategies contribute to the organization’s overall success and competitive advantage.

Importance of SHRM

Strategic Human Resource Management (SHRM) is a vital aspect of any organization as it focuses on aligning HR practices with the overall organizational goals and objectives. The following are the key importance of SHRM: 
While strategic human resource management (SHRM) can bring a lot of benefits to an organization, it also comes with several challenges that need to be addressed. Some of the key challenges of SHRM are:

How to overcome the challenges of SHRM

Overcoming the challenges of Strategic human resource management (SHRM)requires a comprehensive approach that involves addressing each challenge proactively. Here are some strategies that organizations can use to overcome the challenges of SHRM.

Source: Strategic Human Resource Management (SHRM) (slideshare.net)

However, companies must navigate the complexities of a global market and position themselves to attract and retain their workforce. It is a formidable challenge for modern HRM/SHRM.

HR International Challenges in the Global Workforce

The global workforce presents a unique set of challenges for HR professionals in managing and developing talents. Some of the challenges faced by HR in the global workforce include:

  1. Adapting to a rapidly changing work profile.
  2. Understanding the subtleties of workers' qualifications.
  3. Retaining and engaging a changing workforce.
  4. Aligning technology best practices to global management strategy.
  5. Managing the risks of a global operation.
  6. Hiring and retaining talent while lowering labour costs.
  7. Winning the war of talent.

According to a 2013 survey of "Evaluation of the Work and the Worker "executed by the Economic Intelligence unit sponsored by The SHRM Foundation, It is no surprise that people management is cited as the most important challenge facing companies in the next 5 to 10 years.

Conclusion:

To address these challenges, HR professionals need to be globally aware, flexible, and adaptable, with strong communication and intercultural skills. they also need to stay up to date with global trends and best practices in HR management.



References:

       Wright, P.M. (2008) SHRM Foundation’s Effective Practice Guidelines Series. rep. Alexandria, United States: The SHRM Foundation, pp. 1–38. Available at: Human Resource Strategy: Adapting to the Age of Globalization (shrm.org), (Accessed 18 April 2023)

        PwC (2013). “PwC’s NextGen: A global generation study.”  Available at: Consulting - Services - PwC Middle East, (Accessed on 19th April 2023)  

          PwC (2011). “Millennials at work: Reshaping the workplace, Available at; Consulting - Services - PwC Middle East (Accessed on 19 April 2023). 

        Allen, D. (2008). Retaining talent: A guide to analyzing and managing employee turnover, SHRM. Available at; http://www.shrm.org/about/foundation/research/Pages/RetainingTalentEPG.aspx.(Accessed on 19 April 2023).

        Autor, D. (2010). “The Polarization of Job Opportunities in the U.S. Labor Market,” The Center for American Progress and The Hamilton Project, Apr. Available at; https://www.shrm.org/foundation/ourwork/initiatives/preparing-for-future-hr-trends/publishingimages/pages/evolution-of-work/2-14%20theme%201%20paper-final%20for%20web.pdf,(Accessed on 19 April 2023).









Positive thinker & Team player.

Comments

  1. Iresha UdariApril 19, 2023 at 7:32 AM

    Interesting article on HRM and the way you have compared with SHRM. It is true that HR professionals must be globally aware, use good communication skills and must be aware of the new emerging global trends. Keep writing.

    ReplyDelete
  2. Sanduni KarunanayakeApril 19, 2023 at 10:32 AM

    SHRM and HRM are related concepts but they differ in their scope and approach. Strategic HRM more comprehensive and proactive approach to HRM that forcuses on aligning and organization's HR policies and practices with its strategic goals and objectives.
    I think you have covered most of areas related to SHRM and HRM.. Good findings.. Well done.

    ReplyDelete
  3. M.Kamal PriyashanthaApril 19, 2023 at 11:25 AM


    HRM and SHRM are important for an organization, but SHRM is considered more important in today's business environment because it helps organizations achieve their long-term objectives by aligning human resources with the organization's strategic goals. A study conducted by Huselid et al. (1997) found that firms that adopt SHRM practices tend to have higher levels of organizational performance, including financial performance, market share, and customer satisfaction. The importance of HRM and SHRM depends on the organization's goals, resources, and strategic objectives.
    Well done !!!

    ReplyDelete
    Replies
    1. Tharanga WanigasundaraApril 20, 2023 at 9:21 AM

      Thank you for your review and I really appreciate it.

      Delete
  4. Arjuna kangara April 20, 2023 at 2:19 AM

    HRM (Human Resource Management) and SHRM (Strategic Human Resource Management) are important in today's global business environment coz good start and explain it.

    ReplyDelete
  5. Anton PereraApril 20, 2023 at 3:10 AM

    HRM (Human Resource Management) and SHRM (Strategic Human Resource Management) are two concepts related to managing the human capital of an organization. While HRM is focused on the day-to-day activities related to managing employees, SHRM takes a more strategic approach to human resource management. Great Job!!!

    ReplyDelete
    Replies
    1. Tharanga WanigasundaraApril 20, 2023 at 9:22 AM

      Thank you for taking the time to share this positive comment.

      Delete
  6. Lalindu WijesingheApril 20, 2023 at 7:15 AM

    The statements in the article covers the importance of HR professionals being equipped with certain skills and knowledge to effectively address the challenges posed by the global business environment. It emphasizes the need for HR professionals to possess a global mind set, which includes being flexible, adaptable, and having strong intercultural communication skills. Nice one!!!

    ReplyDelete
  7. George BertusApril 22, 2023 at 3:59 AM

    The down side to SHRM is that it is tough to implement, time-consuming, and complicated; it needs careful preparation to prevent problems. Good Job

    ReplyDelete
  8. Tharanga JayasundaraApril 22, 2023 at 5:13 AM

    After reading your article, I can add the following summary:
    The main distinction is having an edge over others. SHRM refers to strategically establishing the pace of a company through alignment with long-term goals, whereas HRM may be characterized as HR staff keeping up with an organization.

    Well done !

    ReplyDelete
  9. Dhanushka Jayanath April 22, 2023 at 8:36 AM

    Do HRM And Strategic HRM Differ From One Another? Having a competitive advantage makes all the difference. While some may define HRM as HR staff keeping up with an organization, SHRM refers to intentionally dictating an organization's pace through alignment with long-term goals.
    Excellent Article .well done.

    ReplyDelete
  10. Asanka DevagiriApril 22, 2023 at 11:28 AM

    Another interesting article Tharanga !
    The key difference is having a competitive advantage. Some may characterize HRM as HR teams keeping pace with an organization, whereas SHRM means strategically setting the pace of an organization through alignment with long-term goals.

    ReplyDelete

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