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Strategic Human Resource Management: Key Objectives, Functions & Advantages

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  • 12 min read
  • May 20, 2024
Strategic Human Resource Management

Strategic Human Resource Management

In the last decade, the evolution of HRM In recent years, especially with the rise of technology, people started focusing on HR might not be seen as important earlier.

Things like new ways of working made HR leaders focus more on making employees work better to help businesses succeed.

That’s where SHRM or Strategic Human Resource Management (SHRM) comes in. It’s a modern way of managing employees that’s different from the usual HR work. It’s like a bridge connecting employees to what the company wants to achieve. With strategic HRM planning, businesses can make sure employees work well and grow, and they can create programs and rules that help the company succeed.

Before, strategic HR management was mostly about paperwork, but now its about the Human Resource Management ToolHRMS software! Now, HR managers are super important for making sure a company has the right folks to make it successful and do what it’s supposed to do. This means HR folks need to really get what the company wants to achieve, how they can help make that happen, and what they need to do to make it work.

This blog will help you to know – scope of human resource management, the strategic role of human resource management, and many more things.

What Is Strategic Human Resource Management?

Strategic HR Management

Strategic human resource management is like a strategic plan that helps HR make the most of its team by thinking ahead.

The main idea behind strategic planning is to make sure HR policies and programs match up with what the company wants to achieve. Unlike regular HR, this SHRM focuses on daily tasks like managing staff and making sure everyone’s work helps the company reach its goals.

The purpose of HR management strategically involves things like planning who to hire, helping them grow, designing the company’s structure, and keeping track of how well everyone’s doing.

With the need for human resource management, the company aims first, then creates programs and rules that support those goals.

Some examples of evaluation of strategic human resource management:

  • Keeping a positive atmosphere at work.

  • Keeping track of employee presence and HR lifecycle.

  • Keeping track of how employees are doing at work.

  • Figuring out what training or help employees need to get better.

  • Making sure employees are paid and treated well.

  • Making sure to keep them happy.

These are just a few examples of what SHRM can do. You can explore below.


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The Importance of Strategic Human Resource Management

human resource management dashboard

SHRM is super important for businesses because one of the approaches of strategic HRM is helping them reach their goals. It does this by making sure HRMS solution and rules match up with what the company wants to achieve. This way, the human resource management process can make employees work better, help them grow in your organization, and keep the workplace happy.

Here are ways the strategic HRM helps businesses:

    • Making Employees Work Better:

This management sets up systems to keep track of how well employees are doing in the company.

    • Helping Employees Grow With Proper Training:

The Strategic HRM figures out what training employee empowerment in hrm need and gives them the resources to improve.

    • Making Work Enjoyable:

Strategic planning keeps everyone happy at work by managing how employees get along.

    • Keeping Employees In Organization:

Characteristics of strategic HR management design pay and benefits plans that make employees want to stick around.

If HR folks don’t know much about the challenges of strategic HR management and planning for that, they can learn and use it in the company. There are lots of benefits to using these HR practices, like making employees happier, improving how everyone works together, making customers happier, using resources better, and making everyone work better.

5 Main Objectives Of Strategic Human Resource Management

Objectives of Strategic Human Resource Management

Strategic HRM is all about fixing things like how the company works, who does what, how well things are done, matching resources with the right jobs, and dealing with problems in performance.

There are 5 main objectives of strategic HRM:

1. Resource Management

One of the SHRM goals is – making sure the company’s skills and abilities help it succeed. This means understanding which resources are really important for the company’s success, it can be done by HR strategic planning. For example, the employee is important, but so are other things like their knowledge and skills.

2. Strong Relationship

Making sure employees and managers work well together. Making sure everyone works really well together and the company does really well.

3. High-Performance Management

The SHRM can help companies get more done. By finding ways to keep an eye on how well employees are doing and helping them do better.

4. Achieving Strategic Fit

Getting the team and the tools working smoothly together to make the most money. Making sure that the company’s plans and the HR strategies match up, helps keep employees happy and working hard.

5. Manpower Planning

This means figuring out how many people are feeling okay to work here and making sure they’re in the right place at the right time to do their best work.

It helps to make sure employees know how to use new technology by training them with online tools such as HRMS software or other methods.

Functions Of Strategic Human Resource Management

Functions Of Strategic Human Resource Management

The strategic human resource follows the below functions:

1. Best Practices

The planned hrms ess portal suggests smart ways for companies to do the best practice. This might include things like having the right job postings, fair interviews, doing exit interviews when someone leaves to learn from their experience, and offering perks like working from home or gym memberships to reduce turnover.

2. Employee Engagement

Keeping employees happy is the job of an HR manager. They should feel connected to their work is really important for any business. When employees feel engaged, they’re more likely to stay in their jobs, work well, and feel proud of what they do. This is one of the important features of strategic human resource management.

3. HR Effectiveness

By understanding the skills of the people, HR should define the goals. By using techniques, you can make your HR team work better. This might involve figuring out what skills each employee has and how they can help the company. Plus, it ensures that HR strategies are aligned with the overall business objectives.

4. Tools And Techniques

The strategic management gives companies a variety of tools and techniques to help them hire and manage employees better. With the scope of strategic human resource management, the HRM tools streamline processes and make HR tasks more efficient, saving time and resources.

With the planning, you can do research to figure out what HR methods work best. They use a methodical process to gather data, analyze it, and draw conclusions that can help businesses.

Advantages Of Strategic Human Resource Management

planning HR strategies

Strategic HR involves careful thinking, studying, and executing.

Here are some benefits of planning HR strategies for businesses:

  • It helps to encourage everyone in the office to keep getting better.
  • Find out whether the company is doing well and where it needs to improve.
  • The strategic planning comes up with plans to fix those weaknesses and build on strengths.
  • It helps to set smaller goals to track progress toward the big goal.
  • Make sure everyone in the company is working for the same goal.
  • It makes sure the HR activities fit with what the company wants to achieve.
  • It helps to keep employees happy and make them want to stay.
  • You can check the plans and rules are working well.

Additional Information About SHRM

Strategic planning

You can check there are several types of Strategic Human Resources Management, such as hiring and development, offering jobs to employees, making office policies, learning and growing, pay and perks, fixing office problems, managing exit management, and many more.

At Last,

From hiring to retiring, employee management is important, right? With the different models of strategic HR management, you can do it easily. However, you can plan your HR management strategically by just adopting automation in HR. Adopt the HR management software- Superworks, which can define strategic human resource management actually and help to manage single-employee operations at the organization.

Check the different modules of our Superworks and develop your strategy to plan human resource management. Get set go!


Alpesh Vaghasiya

The founder & CEO of Superworks, I'm on a mission to help small and medium-sized companies to grow to the next level of accomplishments. With a distinctive knowledge of authentic strategies and team-leading skills, my mission has always been to grow businesses digitally. The core mission of Superworks is Connecting people, Optimizing the process, Enhancing performance.

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