Difference Between HRM vs. SHRM

Main Difference

The main difference between HRM and SHRM is that HRM expands to Human Resource Management; it asserts the implementation of management principles for managing the workforce of an organization, and SHRM expands to Strategic HRM; is the process of aligning the business strategy with the company’s human resource practices, so as to achieve strategic goals of an organization.

HRM vs. SHRM

HRM implies the process of employing people, developing their skills/capacities, and utilizing their services. HRM process did not have any special rules for different areas like recruitment, training, and utilizing the services whereas, in SHRM, there are specific rules specified for specialized fields. In HRM, there are no distinct people for different areas whereas in SHRM there are different people who are skilled in specific areas. When HRM has only short-term goals, SHRM is for long-term goals. When HRM has staff specialists, SHRM has line managers. While the traditional HRM centers mainly on employee relations, SHRM focuses on partnerships with internal and external customers. When considering job design, there is a strong division of labor and independence specialization in HRM. On the other side, the job division in SHRM is flexible. When HRM has team specialists, SHRM has line managers.

Comparison Chart

HRMSHRM
Human resource management (HRM) includes the governance of the workforce of the organization in a complete and structured mannerSHRM is a managerial function which includes framing of HR strategies in such a way to direct employees efforts towards the goals of the organization
Control
Stringent control over employeesIt exhibits leniency
Nature
ReactiveProactive
Accountability
Cost centerInvestment center
Responsibility Lies With
Staff specialistLine manager
Change
Follows changeInitiates change
Approach
FragmentedIntegrated
Basic Factor
Capital and productsPeople and knowledge
Scope
Concerned with employee relationsConcerned with internal and external relations
Time Horizon
Short termLong term

What is HRM?

Human resource management (HRM ) states about the ways of managing people in the organization who provide to the achievements of its ultimate objectives. It is a set of interrelated policies used in managing people. Further, it expressed as a combination of four generic processes or functions (human resource cycle) that performed in all organizations:

  • Selection: Matching available human resources to jobs
  • Performance appraisal: Evaluating the current performances of individuals
  • Rewards: It is a kind of a motivational technique used to encourage the employees to develop its competencies further.
  • Development: To develop a competent workforce.

Features

  • Managers are accountable for ensuring the alignment of human resources with the strategic policies of the organization.
  • They should have the goal of establishing the policies to govern the activities that developed and implemented more effectively.

What is SHRM?

SHRM is about adjusting or align human resources with the strategic objectives of the organizations that mean that it allows integrating HRM practices into its strategic plans by incorporating an HRM perspective into the decision making. Strategic HRM states about company objectives, plans and how the business goals need to be achieved through people. Strategic HRM is a process that results in the development of HR strategies, which unifies vertically and horizontally with the business strategies. These strategies show the expectations of the overall organization which is useful for the organizational effectiveness and also in control people by resourcing, learning and development, reward and building employee relations.

Objectives

  • Achieving a competitive advantage through human capital.
  • Applying the strategic plan through people.
  • Taking a systematic approach in defining the destination of the organization and the path that needs to be followed.

Perspectives

  • It is a way of schedule or planning.
  • It is an orderly approach to the design and management of personnel systems regarding the employment policy and workforce strategy.
  • It evens the HRM activities and policies to some explicit business strategy.
  • It controls the people of the organization as a strategic resource to achieve a competitive advantage.

Key Differences

  1. The governance of the workforce of the organization in a thorough and structured manner is called Human Resource Management or HRM. A managerial function which means framing of HR strategies in such a way to direct employees efforts towards the goals of an organization is known as SHRM.
  2. In human resource management, the responsibility of the workforce lies with the staff specialists, while in strategic human resource management, the task of managing the workforce, is attired in the line managers.
  3. Human resource management emphasizes on employee relations, ensure employees motivation, and also the firm complies to the necessary employment laws. Conversely, SHRM centers on a partnership with internal and external constituent groups.
  4. If we talk about responsibility, a conventional HRM is a cost center. In contrast with a strategic HRM which is an investment center.
  5. HRM follows a fragmented approach, which stresses on applying management principles while managing people in an organization. As against this, SHRM tracks an integrated approach, which includes lining up of business strategy with the company’s HR practices.
  6. HRM upholds short-term business goals and outcomes, but SHRM upholds long-term goals and results of a business.
  7. The basic element in HRM is the capital and products, but people and their knowledge are the construction blocks of SHRM.
  8. In human resource management, strict control over employees exercised. On the contrary, in strategic human resource management, no such control is required, rather the rules for managing workforce is lenient.

Conclusion

In conclusion, human resource management, the split of labor, specialization can be found in the job design, as long as in strategic human resource management flexibility, cross-training and teams revealed in the job design.

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