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We all know that HRM is concerned withthe "people"

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HRM helps in acquiring, developing,

stimulating & retaining the outstanding

employees as it gives botheffectiveness & efficiency to the working ofthe organization, it has been started being

used strategically & is now termed asStrategic human resource management

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The role of human resource managementis changing & is changing very fast, to helpcompanies achieve their goals.

HRM has gone through many phasesfrom hiring & firing to relationship building,

from there to legislation role, & now its role is shifting from protector &

screener to strategic partner & as achange agent.

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Organizational use of employees to gain orkeep a competitive advantage againstcompetitors.

Involves aligning initiatives involving howpeople are managed with organizationalmission and objectives.

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Miles and Snow(1984)A human resource system that is tailored

to the demands of the business strategy

Wright and McMahanThe pattern of planned human resource

activities intended to enable anorganization to achieve its goals

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In today's flattened, downsized & high-performing organizations, highly trained &committed employees not machinesare often the firm's competitive key.

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Core CompetencyMissionStatementStrategy

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Core Competencycan be defined as - Aunique capability in the organization thatcreates high value and that differentiatesthe organization from its competition

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It explains purpose and reason forexistence

it is usually very broad, but not more thana couple of sentences &

it serves as foundation for everythingorganization does.

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the company's plan of how it will balanceits internal strengths & weaknesses withexternal opportunities & threats in order tomaintain a competitive advantage

Earlier this role was performed by the line

managers, but now it is carried by the HRmanager

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Strategies increasingly depend on strengtheningorganizational competitiveness & on building committed workteams, & these put HR in a central role.

In the fast changing, globally competitive & quality orientedindustrial environment, it's often the firm's employees its

human resources who provide the competitive key. And so now it is a demand of the time to involve HR in theearlier stages of development & implementing the firm'sstrategic plan, rather than to let HR react to it.

That means now the role of HR is not just to implement thethings out but also to plan out in such a manner that the

employees can be strategically used to get edge over thecompetitors, keeping in mind the fact that this is the onlyresource (HUMANS), which cannot be duplicated by thecompetitors

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Determining what needs to be done toachieve corporate objectives, often over 3- 5 years

Examining organization and competitiveenvironment

Establishing optimal fit between

organization and its environmentReviewing and revising strategic plan

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Facilitates development of high-qualityworkforce through focus on types of peopleand skills needed

Facilitates cost-effective utilization of labor,particularly in service industries where laboris generally greatest cost

Facilitates planning and assessment ofenvironmental uncertainty, and adaptation of

organization to external forcesSuccessful SHRM efforts begin with

identification of strategic needs

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Employee participation is critical to linkingstrategy and HR practices

Strategic HR depends on systematic andanalytical mindset

Corporate HR departments can haveimpact on organization's efforts to launch

strategic initiatives

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Ideally HR & top management work togetherto formulate the company's overall businessstrategy; that strategy then provides theframework within which HR activities such asrecruiting & appraising must be crafted. If it isdone successfully, it should result out in theemployee competencies & behavior that inturn should help the business implement its

strategies & realize its goals.

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According to an expert "the human resourcesmanagement system must be tailored to thedemands of business strategy".

In order to be successful the employeesshould be developed in such a manner thatthey can be the competitive advantage, & forthis the human resource management mustbe an equal partner in both the formulation &

the implementation of the corporate &competitive strategies.

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It identifies the external opportunities anddrawbacks beneficial to organisation

Gives clear image of future planning andvision for successful business

Provides competitive knowledge forstrategic planning

With SHRM people can be reruited,Retained and also motivated

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Highly competent people can bedeveloped and retained