7 Key Steps to Create Strategic Human Resource Management (HRM)

Strategic HRM is a method of recruiting talent and then retaining, encouraging, rewarding, and facilitating them so that both the company and the workers are clear winners at the end of the day.

In order to understand their priorities, the HR department partners with other departments in the company and then establishes viable plans that comply with both department and organisational goals and goals.

steps to create strategic human resource management

How to create efficient Strategies Human Resource Management Process?

Steps for create Strategic Human Resource Management process

To establish a strategic human resource management framework, take the following steps—

1. Identify the organisation’s priorities and objectives:

A comprehensive understanding of the organisation is the first step in the process of developing a sustainable definition of the strategic management human resource process. Look at its mission , vision, priorities, and goals and express what it aims to accomplish.

Identify both long-term and short-term growth strategies, since they will be beneficial in the implementation of an successful strategy. At the outset, the HR department should have a good vision because it would only then be able to formulate a potential strategy.

2. Measure the organisation’s HR capabilities

Any company has its employees as its backbone, and strategic HRM policies revolve around them. If you are searching for proactive measures to establish a strategic method of human resource management, then determine the organisation’s HR capabilities. You need to have a good understanding of every aspect of your company’s human resources function.

Take advantage of the inventory of expertise to consider which of the workers are specialists in their particular field and which contribute most to the achievement of organisational goals and goals. Take the assistance of a performance evaluation to test their abilities.

This phase will be a blessing for the company as it will help to recognise employees who are interested in further growth and are searching for training and development opportunities within the organisation.

3. Analyze the existing capabilities of HR

It is difficult to build a viable strategy for the future before and until the HR department is aware of the existing HR capabilities. The demand of the time is a proper evaluation as it will help to identify both opportunities and challenges on the way.

Implement a plan of action that acknowledges challenges and deals with risks. It will also lead to taking advantage of possibilities. The strategic human resource management team will recognise the best of the company’s human resources and the existing expertise they possess at this stage.

It will then provide opportunities for training and development so that employees can better fulfil organisational needs in the future.

4. Forecast the organisation’s future HR requirements

Now, the HR department has a better understanding of the company ‘s existing HR capabilities. Centered on the priorities, it is time to critically examine them.  If you are looking for proactive measures to create a strategic human resource manageent process, then now is the time to assess and project the organisation’s potential HR requirements.

Based on the number number of staff and related skills needed to meet potential organisational needs, and the number of staff and skills the company currently has to meet those needs, predict HR needs.

Forecasting will help decide if human resource skills are used at optimum potential, if the business needs to create new positions and related roles to ensure the organisation’s future and if the current HR team, its policies and practises are adequate to support future growth and development

5. Determine the required resources for fulfilling work commitments

Identify the resources necessary to accomplish job responsibilities in order to establish a SHRM process.

It is the role of the HR department to contact the relevant departments and understand how the resources are used by the workforce and have an effect on their abilities and outcomes. It is time to find gaps in instruments to promote a structured workforce so that it can be fulfilled.

6. Implement the technique of Strategic HRM

Start at the start and look for candidates with the skills defined during the strategic planning process. Organize interviews and other screening procedures to decide if the applicant is capable of managing the job position.

Employ the candidate who is the most qualified. Design an efficient curriculum for onboarding and training to direct them through the initial process.

7. Taking evaluative and remedial steps

Then take evaluative and corrective measures if you are searching for proactive steps to establish a strategic method of human resource management. Conduct a review to monitor progress and identify particular areas that require improvement.

At this time, the million-dollar question is whether the modifications allow the company to achieve its objectives. If this wasn’t the case, then it’s time to take corrective steps to address the problem.

Advantages of Strategic Human Resource Management (SHRM)

As follows, the advantages of strategic HRM are :

  • SHRM helps develop a strategic plan for the future with the company’s vision in mind.
  • The importance of strategic HRM is to improve job satisfaction, and this is good for the organisation.
  • Strategic management of human resources is considered beneficial to an enterprise as it helps to recognise, understand and evaluate potential risks and opportunities that may prove crucial to the business and prove a determining factor in its success and failure at a later date.
  • For an enterprise, SHRM is considered valuable as it offers competitive intelligence that is critical in strategic planning.
  • Recruiting, cultivating and maintaining professional talent to support the company
  • For an organisation, SHRM is considered advantageous as it helps to inspire employees
  • The strategic management method in human resources helps to resolve workforce growth issues in the most possible way
  • With the aid of competence, SHRM ensures that there is a constant market surplus.
  • Strategic management of human capital is regarded advantageous because it guarantees the organisation’s maximum levels of performance and productivity.
  • SHRM enables the company to efficiently fulfil consumer needs
  • Strategic HRM offers valuable knowledge about an organisation’s internal vulnerabilities and strengths.
  • SHRM aims to provide a safe and more efficient working community.
  • Strategic HRM takes a pragmatic approach and is thus very successful in the organisation’s management of human resources.

Barriers to Strategic HRM

The Strategic HRM obstacles are as follows—

  • SHRM is a mechanism where the HR department needs to work in coordination with every department in the company. Interdepartmental dispute is regarded as one of its main obstacles
  • If the bottom line does not cooperate, SHRM faces a great deal of opposition.
  • Lack of senior management support would prove a major barrier to SHRM
  • It will prove a strong barrier to SHRM if the company has limited capital, finance and time.


Strategic HRM is a method for gaining competitive advantage and improving profitability by using HR techniques. It takes advantage of the human resources department opportunities and uses the expertise available to make the departments as well as the company stronger and more successful than ever before.

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Human Resource Management

This article is on HRM or Human Resource Management in an Organization. Employees are the organization’s main assets. HRM or Human Resource Management focuses on hiring, training, managing, analyzing performance appraisal, dispute settlement or grievance handling, and giving direction to the employees of the organization. Human Resource Management role is to tackle grievances related to the employees such as compensation, recruiting, performance appraisal, growth of organizations, welfare, benefits, engagement of staff, communication, administration, training, and retention. HRM also helps to shape the community and climate of individuals and of the workplace.

Good or Efficient HRM

Good HRM or Human Resource Management allows employees to perform efficiently and productively for the success of the organization and to achieving the goals and objectives of the organization. It is expected that HRM will bring value to employee strategic efficiency and that employee services will affect the company in tangible ways. HRM’s new role involves strategic direction and measurements for proving value. HRM contributes to organizational development by attaining optimum efficiency.

Duties of HRM

The duties of human resources administration shall be as follows:

Human Resource Planning

Human Resource Planning is known as the method of predicting the potential demand and supply of an enterprise in the right number for the right category of people.

Job Analysis

Job Analysis is the method of researching and collecting knowledge about the activities and obligations of a specific work. Job analysis includes job specifications and job description.


Recruitment is the method of identifying and recruiting qualified job applicants. The cycle starts as new hires are found and finish as they submit their applications. The outcome is a pool of applicants who selects new employees from.


Selection is the method of distinguishing between candidates in order to classify (and hire) those who are more likely to succeed in a job.


Placement is known as allocating people to jobs. This is an employee’s promotion or reassignment to a new position or another position.

Training and development

Training is provided to enhance the current or potential performance of employees through improving the capacity of an employee to succeed by training, usually through modifying the attitude of the employee or improving knowledge, working attitude, and skills. Need for Training and Development (T&D) defined by the performance deficiency of the employee, measured as follows:

Training Need = Standard performance-Actual performance


Compensation that an employee receives for his or her work and targets achieved for the growth of the organization.


Motivation begins by appreciating employees to perform well. It can be in the form of monetary and nonmonetary benefits.

Participative management

Employees’ participation can be taken widely to include all terms of the interaction of employees and their superiors in the decision-making process, ranging from knowledge exchange, meetings, decisions, and agreements to more institutionalized ways such as the involvement of staff on management boards or supervisory boards.


Communication is the Information flow in the organization. This can be a transfer of information through HR and various departments. Communication is necessary for the effective working of the organization.

Safety and health

The company has to take measures for the safety of its employees. The company has to provide safety equipment and materials for the employees working in a risk condition.  The HRM is focused on healthier jobs and health care to ensure better health employees.


The Employee Welfare describes “efforts to provide good work-life at the workplace” “Employee welfare is a descriptive concept that encompasses different programs, incentives, and facilities that workers & employers are provided. The employer makes life worth living for workers through such generous fringe benefits.


Transfer entails a shift in an employee’s job (accompanied by a shift in the place of work) without adjusting the duties or compensation.


Employers are separated by lay-offs, resignations, and dismissals.

Employee Relations

Employee relations is concerned with the processes, rules, and procedures that trade unions and employers use to establish the compensation for contribution and other employment conditions, to safeguard the right of workers and their employers and to control how employers handle their workers.

Disputes and their settlement

Labor disputes are any disputes or discrepancies between employers and employees.

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