Along with financial importance for a company, the main deal comes from human capital which needs

continuous upgrade along with result inducing investment. Without investing in the human capital, the company will not be able to achieve its goals. To deal with human capital, role of HR was introduced as a supporting function. Over the time, HR role changed in organization and became strategic partner for a company to achieve organizational goals. The strategic approach means that HR would be operating beyond the administrative skills of payroll etc.

To develop the HR strategically, the concept of Strategic Human resource management was developed which has emerged out of parent discipline, Human resource. Definition of SHRM
Strategic human resource management develops the link between strategic goals and objectives of a company and human resources. This link is formed in order to improve performance of a business and develop a culture in organization to foster innovation, competitive advantage and flexibility.

In an organization, SHRM is determined to act as a strategic partner for implementation and formulation of companys strategies through a set of activities including:
Recruiting Selecting Training Rewarding personnel

SHRM is made up of explicit link between HR policy/practices and organizational strategic goals/aims along with organizational environment. SHRM is made of organizing schema which is linking individual HR interventions in order to ensure mutual support.

Key elements of HR are worked upon so as to maximize employee performance in alignment with organizational goals which is called SHRM. The key elements are:

First element of SHRM is to select and place the employees. It involves the skills and technical competencies required for the job. It also involves behavioral competencies as well. Second element involves the job design that involves a certain piece of work which is doable and challenging. Different elements are put together to form job design by keeping in mind organization and individual requirements, heath, ergonomics and safety considerations.

Evaluating people and rewarding them based on their performance is the third element of this strategy. This involves rewards for organizational performances, teamwork, collaboration etc. Fourth element is diversity management which involves appreciation and usage of different ideas brought by employees.

SHRM forms the linkage between HR and management in order to align the functions of organization with HR functions SHRM develops links between human resources horizontally and vertically for both future and present time frames Vertical links involve connection between HR practices and strategic management process of the organization

Horizontal integration involves the coordination of various HR practices based on a planned action. All the HR strategies are linked to organizational aims/plans, HR programs and anticipated HR needs. Multiple SHRM processes involve: selection./recruiting Employee and career development Performance management Succession planning Termination Retirement

 SHRM

contribute in three ways to achieve organizational objectives: Forecasting Strategy formulation Implementation

The forecast includes the future events predictions that will impact the organization along with organizational needs by analyzing the external and internal environments. Control and predictability degree must be accurate and controlled in order for better forecasting of labor requirements for an organization. For this reason, Dubai customs uses four stages in order to ensure the controlled forecasting

First stage the identification of events on which the organization has full control Second stage involves the prediction of events on which the organization has little control Third stage involves the events which are probabilistic Fourth stage includes the vents that are unknown and merely random or anticipated

HR strategy formulation is a complex process which involves decision making based on:
Forecasts Anticipated HR program effects on strategic objectives Organizational strategy

SHRM links the HR functions to other organizational process for closer relationship between HR and management

SHRM develops the integration of HR functions of the organization into larger organizational strategy. All the following factors are altered in order to integrate with organizational strategy:
Labor and employee relations Performance management Employee selection and recruitment Training and development

In order to have a successful HR strategy implementation and integration in the organizational strategy, the need is to have:
Strong relationships with business leaders Willingness to modify plans Good understanding of the business