The first part of this book deals with the concept of strategic human resource
management (SHRM) which is defined as the process of making decisions
on the intentions of the organization concerning people. SHRM focuses on
the need to ensure that the organization’s goals are achieved through its
human resources by means of the integration of HR strategies with the business strategy and with each other. It is based on the fundamental proposition that the human resources of an organization play a strategic role in its success.
SHRM is based on a number of theories supported by research that explain and justify the process of adopting a strategic approach to HRM. It is a construct in the sense of a subjective theory containing various conceptual elements. It provides an insight into the process of HR strategy formulation
in organizations and the factors that affect it. As such the concept of SHRM
is something that HR or people professionals, indeed anyone who manages
people, need to know about.
The book begins with an analysis of the two elements that combine to create
SHRM: human resource management and strategic management. This is in
line with the view expressed by Allen and Wright (2007: 88) that SHRM
‘represents an intersection of the strategic management and human resource
management (HRM) literatures’. A description of the concept of SHRM follows. In the next chapter the ways in which SHRM has evolved since its
initiation in the 1980s are reviewed. This review covers the main features of
SHRM, namely the emphasis on strategic fit, the choice between best practice
and best fit, and its underpinning concepts and theories: the resource-based
view, the human capital and behavioural perspectives and stakeholder
theory. In the final chapter of this part it is suggested that while, conceptually,
SHRM has much to offer, it is more of an academic construct than a description of what practitioners actually do and its approach needs to change