HR Glossary

Strategic HRM

What is Strategic HRM?

Strategic HRM is the process of linking HR activities with the overall strategic plan of the organization. It involves creating a HR strategy that aligns with the organization’s strategic goals and objectives, and then implementing that strategy through the HR department. Strategic HRM is important because it ensures that the HR department is working towards the same goals as the rest of the organization, and that the employees are being recruited, trained, and managed in a way that supports those goals.

What are the benefits of Strategic HRM?

Strategic HRM is a comprehensive and proactive approach to managing human resources that is designed to align the workforce with the strategic goals of the organization. By aligning the workforce with the strategic goals of the organization, Strategic HRM can help to ensure that the organization is able to achieve its objectives and compete in the marketplace. Some of the benefits of Strategic HRM include:

  • Improved organizational performance
  • Increased competitiveness
  • Improved employee retention
  • Improved communication and coordination between HR and line managers
  • Increased employee engagement and satisfaction
  • Increased ability to attract and retain top talent.

Who uses Strategic HRM?

Strategic HRM is used by organizations of all sizes in order to align their HR practices with their overall business strategies. By using a strategic approach to HRM, organizations can ensure that their employees are well-equipped to support the company’s goals and objectives. Additionally, strategic HRM can help organizations to identify and capitalize on opportunities, and to mitigate potential risks. Ultimately, by using strategic HRM, organizations can create a competitive advantage in the marketplace.

How do you build a Strategic HRM system?

There is no one right way to build a Strategic HRM system, as the approach will vary depending on the organization’s size, culture, and business goals. However, some key steps to creating a successful system include assessing the organization’s current HRM practices and needs, designing a system that aligns with the business strategy, and then implementing and monitoring the system over time.

One important step in designing a Strategic HRM system is to assess the organization’s current HRM practices and needs. This includes evaluating the current HRM infrastructure and processes, as well as the organization’s goals and objectives. Once the organization understands its current state, it can then begin to design a system that aligns with the business strategy.

Once the system is designed, the next step is to implement and monitor it over time. This includes rolling out the new system to all employees, and tracking its effectiveness over time. The organization should also be prepared to make changes to the system as needed, in order to ensure that it continues to meet the organization’s goals and objectives.


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