Difference Between HRM and SHRM


Difference between HRM and SHRM is that HRM is about managing the human resource within the organization and SHRM is about aligning the human resources with the strategic objectives of the organization. Both these are important concepts in management and this article briefly describes the two concepts and analyses the difference between both.

What is HRM?

Human resource management (HRM)expresses about the ways of managing people in the organization who contribute to the achievements of its ultimate objectives.According to John Storey in 1989 HRM can be explained as a set of interrelated policies that can be used in managing people.

 Further, it has been expressed as a combination of four generic processes or functions (human resource cycle)that are performed in all organizations. These are,

• 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.

Difference Between HRM and SHRM

 According to the suggestions of Harvard Business School, HRM consists with two main features as,

Managers are responsible for ensuring the alignment of human resources with the strategic policies of the organization.

• They should have the aim of establishing the policies to govern the activities that are developed and implemented in a more effective manner.

What is SHRM?

SHRM is about aligning human resources with the strategic objectives of the organizations that means that it provides the opportunity to integrate HRM practices into its strategic plans by incorporating a HRM perspective into the decision making.

Strategic HRM expresses about company objectives, plans and the ways in which the business goals need to be achieved through people. It is based on three objectives as,

• Gaining a competitive advantage through human capital.

• Implementing the strategic plan through people.

• Adopting a systematic approach in defining the destination of the organization and the path that needs to be followed.

Strategic HRM Model


 As indicated in the above diagram, strategic HRM isa process that result in the development of HR strategies, which integrates vertically and horizontally with the business strategies.These strategies express the expectations of the overall organization which are useful for the organizational effectiveness and also in managing people by resourcing, learning and development, reward and building employee relations.

According to Hendry and Pettigrew in 1986, Strategic HRM can be expressed in four perspectives as,

• It is a way of planning.

• It is a coherent approach to the design and management of personnel systems based on the employment policy and workforce strategy.

• It matches the HRM activities and policies to some explicit business strategy.

• It oversees the people of the organization as a ‘strategic resource’ in order to achieve a ‘competitive advantage’.

What is the difference between HRM and SHRM?

• HRM and SHRM is about managing employees within an organization.

• HRM consists of various functions as HR planning, recruitment and selection, performance appraisal, training and development, etc.

• The key difference between these two concepts is that in SHRM, the human resource management strategy, needs to be aligned with the business strategy of the organization and HRM is about ways of managing the human resource effectively and efficiently.


Further Reading:

  1. Difference Between HRM and HRD
  2. Difference Between IHRM and HRM
  3. Difference Between Hard and Soft HRM