Strategic Human Resources Management (SHRM) is considered by academics and professionals to be the process of aligning and developing human capital with the long-term goals of an organization. SHRM differs from HRM in that it is involved in the framing of strategy to align employee efforts with organizational goals.
Its main purpose is to improve organizational performance. SHRM is based on the following main components:
Human Capital - SHRM is not just a resource, it is an organizational asset that provides a competitive edge.
Planning - With good planning, change can be achieved as long as it aligns with organizational needs and objectives.
Business Competition - SHRM's main objective is to focus on how a company can gain an edge over its business competitors.
SHRM is used to create a framework that connects people management and the development of practices in line with long-term goals.