Strategic HRM (SHRM)

Posted in Human Resources Terms, Total Reads: 2427

Definition: Strategic HRM (SHRM)

Strategic Human Resource Management aims to align the business goals of an organization with the HR activities such that the firm leverages human capital to attain the business goals.

The Human resource activities are integrated horizontally and vertically with the firm’s business strategies in such a way that organizational effectiveness is achieved. With the advent of service sector, human capital is viewed as a source of competitive advantage, and hence, capitalizing on the intellectual capital is one of the prime agendas for any organization



Infosys Chairman Mr. Narayan Murthy has emphasized on human capital as one of Infosys’ critical factors for growth. Thus, there has been a strategic Human resource dimension added to the organization in the form of ‘People managers’, whose function is to look after the needs of employees. The company aims to treats its employees as assets rather than just as resources. Nurturing and nourishing the resources ensures competitive advantage for Infosys. Thus, a dedicated human resource department including people managers in every group serves as a SHRM practice which fulfills the business objectives of the organization.

Hence, this concludes the definition of Strategic HRM (SHRM) along with its overview.


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