Difference Between HRM and SHRM

The term HRM expands to Human Resource Management; it implies the implementation of management principles for managing the workforce of an organisation. It is concerned with the process of hiring, developing and retaining the manpower, with a view to making them more efficient. When conventional HRM is compared and contrasted with the strategic HRM or SHRM, it becomes easier to understand.

SHRM is the process of aligning the business strategy with the company’s human resource practices, so as to attain strategic goals of an organization. In SHRM, the workforce of the company is managed proactively. Take a glance at the article presented here that explains the difference between HRM and SHRM.

Content: HRM Vs SHRM

1. Comparison Chart
2. Definition
3. Key Differences
4. Conclusion

Comparison Chart

Basis for Comparison	HRM	SHRM
Meaning	Human resource management (HRM) implies the governance of manpower of the organization in a thorough and structured manner.	SHRM is a managerial function which implies framing of HR strategies in such a way to direct employees efforts towards the goals of organization.
Nature	Reactive	Proactive
Responsibility lies with	Staff specialist	Line manager
Approach	Fragmented	Integrated
Scope	Concerned with employee relations	Concerned with internal and external relations
Time horizon	Short term	Long term
Basic factor	Capital and products	People and knowledge
Change	Follows change	Initiates change
Accountability	Cost center	Investment center
Control	Stringent control over employees	It exhibits leniency.

Definition of HRM

Human Resource Management or HRM is simply the process of managing human resources, in a systematic way. It is a practice devised to maximise the performance of employees, i.e. to make them more efficient and productive. It is concerned with the application of principles of management to manage organisation personnel while paying attention to the policies and systems of the entity. It entails the best possible use of limited skilled workforce of the organisation.

HRM consist of human-oriented activities like recruiting, training and development, performance appraisal, safety and health, industrial relations and so on. It facilitates adjusting human resource policies and practices with the strategies of the organization, whether corporate or functional.

The functions of a human resource manager include planning, staffing, developing, maintaining, monitoring, managing relationships, evaluating, managing change, etc.

Definition of SHRM

Strategic Human Resource Management, shortly known as SHRM is a function of management which entails development of policies, programmes and practices related to human resources, which are then aligned with business strategy, so as to achieve strategic objectives of the organisation. Its primary purpose is to improve the performance of the business and maintain a culture that encourages innovation and works continuously to gain competitive advantage.

The aim of SHRM is that companies must adjust their HR strategy within the periphery of overall business objectives, thus ensuring that HR practices are in tune with the strategic objectives of the organization. It lays down a clear corporate strategy and vision for future. A major pro of strategic human resource management is that it ascertains and analyses external opportunities and threats to the business organisation.

Conclusion

So, with the above explanation, it might be clear that HRM differs from SHRM in a number of ways. In a human resource management, the division of labour, specialisation can be found in the job design, whereas in strategic human resource management flexibility, cross-training and teams can be found in the job design.