The Main Difference Between HRM and SHRM

The difference between HRM and HRM is that HRM manages the human resources within the organization, and HRM aligns the human resources with the strategic goals of the organization. Both of these are important management concepts, and this article briefly describes the two concepts and analyzes the differences between them. Human Resources Management (HRM) represents a way to manage people within an organization that contributes to achieving their ultimate goals. 

HRM vs SHRM

The difference between HRM and SHRM is that HRM manages the human resources within the organization, and SHRM aligns the human resources with the strategic goals of the organization. Both of these are important management concepts, and this article briefly describes the two concepts and analyzes the differences between them.

What is HRM?

Human Resources Management (HRM) represents a way to manage people within an organization that contributes to achieving their ultimate goals. According to John Storey in 1989, HRM can be described as a set of interrelated policies that can be used to manage people.

Also, it is represented as a combination of four common processes or functions (human resource cycles) that are performed in all organizations. They are,

• Selection-Matching available talent and jobs

• Performance Rating – Assess an individual's current performance

• Reward – This is a type of motivational technique used to encourage employees to further develop their abilities.

• Development – ​​Develop a competent workforce.

At Harvard Business School's suggestion, HRM consists of two main features:

• Managers are responsible for ensuring that human resources are aligned with the organization's strategic policies.

• The goal should be to establish policies to manage the activities that are developed and carried out more effectively.

What is SHRM?

SHRM aims to align human resources with the strategic goals of the organization. In short, incorporating the HRM perspective into decision making provides an opportunity to integrate HRM practices into strategic planning.

Strategic HRM describes how a company's goals, plans, and business goals need to be achieved through people. It is based on three purposes:

• Gain a competitive advantage through human capital.

• Implement strategic plans through people.

• Take a systematic approach in defining the destinations of your organization and the routes you need to follow.

Strategic HRM is the process that leads to the development of an HR strategy that integrates vertically and horizontally with the business strategy. These strategies represent the expectations of the entire organization and help it be effective and managed. People by resourcing, learning, developing, rewarding, and building employee relationships.

According to Hendry and Pettigrew in 1986, strategic HRM can be expressed in four perspectives:

• It's a planning method.

• A coherent approach to the design and management of personnel systems based on employment policies and workforce strategies.

• Match HRM activities and policies with a clear business strategy.

• Oversee the people of your organization as “strategic resources” to achieve a “competitive advantage”.

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What is the difference between HRM and SHRM?

• HRM and SHRM are the management of employees within an organization.

• HRM consists of various functions such as HR planning, recruitment, and selection, performance evaluation, training, and development.

• The main difference between these two concepts is that SHRM, a human resources management strategy, needs to be aligned with the business strategy of the organization, and HRM is about how to manage human resources effectively and efficiently.