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                              Chapter 16
                Strategic Human Resource Management
                       Figure 16.1
                      Strategic human resource management ensures that the organization’s human resources are in the right place at
                      the right time to secure competitive advantage.
                      © 2010 Jupiterimages Corporation
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          Chapter 16 Strategic Human Resource Management
                                                                             WHAT’S IN IT FOR ME?
                                                   Reading this chapter will help you do the following:
                                                    1.  Understand the scope and changing role of strategic human resource
                                                        management (SHRM) in principles of management.
                                                    2.  Visualize the battlefield in the war for talent.
                                                    3.  Engage in effective selection and placement strategies.
                                                    4.  Understand the roles of pay structure and pay for performance.
                                                    5.  Design a high-performance work system.
                                                    6.  Use the human resources Balanced Scorecard to gauge and proactively
                                                        manage human capital, including your own.
                                                You have probably heard the saying, people make the place. In today’s fast-changing
                                                environment, organizations need employees who understand the organization’s
                                                strategy and are empowered to execute it. To achieve this, organizations need to
                                                follow a strategic human resource management (SHRM) approach. SHRM ensures
                                                that people are a key factor in a firm’s competitive advantage. Thus, as summarized
                                                in the following figure, SHRM is an integral part of the control portion of the
                                                planning-organizing-leading-controlling (P-O-L-C) framework.
                                                 Figure 16.2 The P-O-L-C Framework
                                                Organizations need human resources (HR) to be a partner in identifying, attracting,
                                                and hiring the type of employees who will be most qualified to help the company
                                                achieve its goals. SHRM requires attracting the right employees to the company,
                                                identifying metrics to help employees stay on target to meet the company’s goals,
                                                and rewarding them appropriately for their efforts so that they stay engaged and
                                                motivated. Having all these components in place—designing a high-performance
                                                work system—improves organizational performance and unleashes employee
                                                talent.
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     Chapter 16 Strategic Human Resource Management
                                                      Figure 16.3
                                                     Strategic human resource
                                                     management is concerned with
                                                     the “people” factor as a source of
                                                     competitive advantage.
                                                     © 2010 Jupiterimages
                                                     Corporation
                                                                 674