HRM & SHRM|The difference between HRM and SHRM

HRM & SHRM|The difference between HRM and SHRM

Before explaining the difference between HRM and SHRM, let’s have a quick glance at the definition of these two in simple words. There may be thousands of sophisticated definitions of HRM however, it is not going to fade away its very basic nature which is – “Managing and proper utilization of Human capital of an organization”. Then again, SHRM refers to the process of developing practices, programs and policies (3 P’s) that help achieve organizational objectives. But in case of SHRM, the essence is aligning of these 3p’s with overall organizational strategies.

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When we say ‘strategy’ - it means a framework for managerial decisions, future-oriented plan to combat competition so that overall organizational goals can be accomplished. Now, be it HR or any other departments like sales, marketing or others, each can adopt their own strategies applicable or as appropriate for their own departments or areas and can align with organizational strategies.

Would you like to know - how to align HR strategy with Business Strategy?  

As we understood the meaning of Human Resource Management (HRM) &Strategic Human Resource Management (SHRM), let’s move towards our core discussion which is the difference between the two. 

The nature of strategic HRM becomes clearer when it is compared with traditional HRM as shown in the figure below, in the traditional approach to HRM, the accountability of people management program rests with staff specialist in an organization

Case study: why its important to link HR and Business strategy

But in strategic HRM, the task of managing people is assigned to the managers who interact with people line managers. In principle, strategic HRM would debate that any individual in a firm who has the responsibility for people is HRM manager, no matter in which functional area he or she works.

In the same way, the focus in conventional HRM is on employee relations, ensuring that employees are motivated and become productive and that the firm is in compliance with the necessary employment laws. HRM goes beyond and focuses on partnership with Integral internal and external groups, in strategic perspective. Furthermore, making line managers self-sufficient and self-reliant for handling their bare minimum staff issues at their level itself.

Both conventional HRM and strategic HRM differ in other dimensions as well, for instance - the role of HRM, initiatives, job design and the like. 

(Diagram 1.1) List of Difference(SHRM versus HRM)

Thus, SHRM goes beyond HR domain and many proactive roles to make the business strategies realizable and realized. Undoubtedly SHRM offers benefits to the organisation however, one of the barriers related to the disconnect between HR management and employees.