Strategic Human Resource Management: Formulating and Implementing HR Strategies for a Competitive Advantage

Human resources strategic management concept has developed widely in the last couple of years, especially because of the impact that human resources have over the competitiveness of organizations. The development of human resources strategies involves taking into account their multiple mutual dependences and the fact that they must be vertically integrated with the business strategy. These strategies define intentions and plans related to overall organizational considerations, such as organizational competitiveness, effectiveness or image, and to more specific aspects of human resources management, such as resourcing, motivating, valuating, learning and development, reward and employee relations.

Human resources strategic management supplies a large perspective on the way critical issues or success factors related to people can be addressed and different concepts of strategic decisions are made, with long-term impact on the behavior and success of the organization. The fundamental objective of human resource strategic management is to generate strategic capability by ensuring that the organization has the high-qualified, committed and well-motivated employees it needs to achieve and sustain competitive advantage.

The emergence of strategic human resource management (SHRM) is influenced by the global competition, and the corresponding search for sources of sustainable competitive advantage. SHRM has achieved its prominence because it provides a means by which business firms can enhance the competitiveness and promote managerial efficiency. It facilitates the development of a human capital that meets the requirements of business competitive strategy, so that organizational goals and mission will be achieved.

HRM system is defined as "a set of distinct but interrelated activities, functions and processes that are directed at attracting, developing, and maintaining (or disposing of) a firm's human resources." Many agree that HRM is the most effective tool which contribute to the creation of human capital, and in turn, contributes to organizational performance and competitive advantage.

This book provides the emphasis on understanding HRM as the management of work and people in organizations and the analytical approach we take to this means that the boundaries between HRM, industrial/employment relations and organizational behaviour. As a management discipline, HRM draws insights, models, and theories from cognate disciplines and applies them to real world settings. Further, discussions of how current theoretical perspectives and frameworks (e.g., those related to strategic competitiveness, knowledge management, learning organization, communities of practice) can be applied by reflective practitioners to create an eco-friendly organizational culture.