Difference Between HRM and SHRM

 Difference Between HRM and SHRM

Introduction

  HRM stands for Human Resource Management and refers to the application of management principles to the management of an organization's workforce. It is concerned with the hiring, development, and retention of manpower in order to improve their efficiency. It becomes clearer when traditional HRM is compared and contrasted with strategic HRM, also known as SHRM.

  SHRM is the process of aligning a company's business strategy with its human resource practices in order to achieve the organization's strategic goals. The company's workforce is managed proactively in SHRM. Take a look at this article to learn more about the differences between HRM and SHRM.

Definition of HRM

Human Resource Management or HRM is simply the process of managing human resources, in a systematic way. It is a practice devised to maximize the performance of employees, i.e. to make them more efficient and productive. It is concerned with the application of principles of management to manage organisation personnel while paying attention to the policies and systems of the entity. It entails the best possible use of limited skilled workforce of the organisation.

HRM consist of human-oriented activities like recruiting, training and development, performance appraisal, safety and health, industrial relations and so on. It facilitates adjusting human resource policies and practices with the strategies of the organization, whether corporate or functional.

The functions of a human resource manager include planning, staffing, developing, maintaining, monitoring, managing relationships, evaluating, managing change, etc.

Definition of SHRM

Strategic Human Resource Management, shortly known as SHRM is a function of management which entails development of policies, programmers and practices related to human resources, which are then aligned with business strategy, so as to achieve strategic objectives of the organisation. Its primary purpose is to improve the performance of the business and maintain a culture that encourages innovation and works continuously to gain competitive advantage.

The aim of SHRM is that companies must adjust their HR strategy within the periphery of overall business objectives, thus ensuring that HR practices are in tune with the strategic objectives of the organization. It lays down a clear corporate strategy and vision for future. A major pro of strategic human resource management is that it ascertains and analyses external opportunities and threats to the business organisation.

Comparison Chart

Conclusion

As you can see from the above explanation, HRM differs from SHRM in a number of ways. The division of labor and specialisation can be found in the job design in human resource management, whereas flexibility, cross-training, and teams can be found in the job design in strategic human resource management.

References

Buchan, J., 2004. What difference does ("good") HRM make?. Human Resource for Health.

Ichniowski, J., 2009. Human Resource Management in Business Context Employee involvement. [Online]
Available at: http://www.hrmguide.co.uk/jobmarket/turnover_cost.htm
[Accessed 28 April 2021].