Human Resource Management IV
1. Strategic Human Resource Management (SHRM)
Definition:
SHRM is the proactive management of people. It requires HR professionals to think
ahead and plan for the future to meet the needs of the business.
Key Concepts:
• Vertical Integration: Aligning HR strategy with business strategy.
• Horizontal Integration: Aligning all HR activities (e.g. recruitment, training,
compensation).
• Models: Harvard Model, Michigan Model, Best Fit vs Best Practice.
Importance:
• Improves organisational effectiveness.
• Provides a framework for long-term workforce planning.
• Encourages sustainable competitive advantage.
Example (South Africa):
A bank like FNB may align its HR strategy to digital transformation by recruiting data
analysts and training existing staff in fintech tools.
, 2. Human Capital Management (HCM)
Definition:
HCM involves the acquisition, development, and optimisation of the workforce through
strategic investment.
Components:
• Workforce Planning
• Learning & Development
• Performance Management
• Employee Experience
Tools:
• HR Dashboards
• Learning Management Systems (LMS)
• Return on Investment (ROI) on training
South African Application:
Companies like Discovery invest in leadership academies to enhance employee value
over time.
1. Strategic Human Resource Management (SHRM)
Definition:
SHRM is the proactive management of people. It requires HR professionals to think
ahead and plan for the future to meet the needs of the business.
Key Concepts:
• Vertical Integration: Aligning HR strategy with business strategy.
• Horizontal Integration: Aligning all HR activities (e.g. recruitment, training,
compensation).
• Models: Harvard Model, Michigan Model, Best Fit vs Best Practice.
Importance:
• Improves organisational effectiveness.
• Provides a framework for long-term workforce planning.
• Encourages sustainable competitive advantage.
Example (South Africa):
A bank like FNB may align its HR strategy to digital transformation by recruiting data
analysts and training existing staff in fintech tools.
, 2. Human Capital Management (HCM)
Definition:
HCM involves the acquisition, development, and optimisation of the workforce through
strategic investment.
Components:
• Workforce Planning
• Learning & Development
• Performance Management
• Employee Experience
Tools:
• HR Dashboards
• Learning Management Systems (LMS)
• Return on Investment (ROI) on training
South African Application:
Companies like Discovery invest in leadership academies to enhance employee value
over time.
