HRM is the efficient management of employees working in any organization. It focuses on the function of utilizing employees within the organization, ensuring best work practices are in place at all times. The term HRM expands to Human Resource Management; it implies the implementation of management principles for efficient management of the employees of an organization.
But when it comes to SHRM, it’s a way broader than the HRM. STRATEGIC HUMAN RESOURCE MANAGEMENT which is also called as SHRM means coordinating the HR principles along with the business plan of action to achieve the long term goals of the organization in a productive way.
Features of SHRM:
- It is proactive in nature as it is based on aligning the strategies to the existing HR practices.
- It not only deals with the internal employees of the organization but also it involves the management of the external environment of the business like taking into account the strategies of competitors, prevailing market conditions etc and to focus
- It involves using approaches to bring innovation and strategies to achieve long term goals of company with existing human resources.
- In a human resource management, the division of labor, specialization can be found in the job design, whereas in strategic human resource management flexibility, cross-training and teams can be found in the job design.
- It helps in overall development of the organization by developing and array of skills and knowledge.
What Is Business?
According to Dicksee– “business refers to an activity conducted with an objective of earning profits for the benefit of organization.”
Business includes a set of activities according to a process to achieve some purpose depending on the type of business
HUMAN RESOURCE MANAGEMENT:
Edwin Flippo defines- Human Resource Management as “planning, organizing, directing, controlling of procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are achieved.”
Relation between HRM and Business Management:
- When it comes to SHRM, it’s a way broader than the HRM. STRATEGIC HUMAN RESOURCE MANAGEMENT which is also called as SHRM means coordinating the HR principles along with the business plan of action to achieve the long term goals of the organization in a productive way. Hence When the employees work by formulating strategies, the business can achieve its goals more easily.
- Successful business managers realize the importance of well-trained and motivated employees to achieve the company’s financial goals.
- For any business to run smoothly, employees should be motivated in a way so that it can bring a shape to the investment. Only people can use all other resources to make up a process.
- Organizations need to achieve a fit between personnel policy choice and broader strategic considerations, particularly product market conditions and business strategy.