Discussthe scope of strategic human resource management.

Strategic human resource management (SHRM) is concerned with the contributions human resource strategies make to organizational effectiveness, and the ways in which these contributions are achieved. There are three SHRM concepts- high performance management (high performance working), high commitment management and high involvement management.

SHRM scholars like Dyer & Shafer, 1999 had adopted a contingency perspective emphasizing on institutionalizing of the concept of domain of fit or alignment of the HR strategies with the business strategy of the organization. Here such fit is being achieved in two ways. One is vertical, or the degree of alignment between- (a) components of a firm’s human resource strategy and (b) core features of its business strategy.

The other is horizontal fit, or the degree of alignment among components of a firm’s business strategy (typically activities or programmes such as selection, training and compensation). Conceptually, the two notions of fit have been used to derive normative models to show how intuitively derived typologies of human resource strategy should be paired with similarly derived typologies of business strategy to maximize firm performance.

Strategic HRM is an approach to making decisions on the intentions and plans of the organisation concerning the employment relationship and its recruitment, training, development, performance management, record and employee relations strategies, policies and practices.

The key characteristics of strategic HRM are that it is integrated. HR strategies are generally integrated vertically with the business strategy and horizontally with one another. The HR strategies developed ______ _______ ________ ____ _____.
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