The fundamental significance of Strategic Human Resource management (SHRM) is its focus on the human capital component of organizational success (Mello, 2010).
Strategic HR can be contrasted to the more traditional administrative focus of HR through an examination of four different roles that HR can plan in an organization. The four roles, as defined in our textbook (Chapter 4, Part 1), assumed by the HR Function are: * Strategic Focus * Systems * People * Operational Focus
The above roles move the traditional administrative focus of human resource management into an entirely new direction which is more outcome driven. Strategic human resource management is defined by what it does rather than by deliverables and is geared toward developing strategic plans that fit within the larger structure of the company's plans; traditional human resource management is almost purely administrative in nature.
These roles are what differentiate strategic human resources from more traditional human resources. Traditional human resource management lacks focus on the overall strategic initiatives of the company, whereas these are primary in strategic human resources management. Human resources policies and procedures revolve around these strategic plans and are developed in response to these plans. The traditional human resources department may develop policies in response to such plans, but it does not necessarily play an integral role in the planning process.
The alignment with organizational objectives requires HR Management to manage personnel in a way to achieve company goals by tailoring HR Functions to reach the organizational objectives. Ideally, HR should deliver results which enrich organizational value by accomplishing four key components: (1) HR partners with senior and line managers in strategic execution, (2) HR becomes an expert in work organization and execution, (3) HR