HRM VS SHRM: Difference Between

The concept of personnel management extends to human resource management; Management principles apply to the management of organizational personnel. It is about recruiting, developing, and retaining employees with the aim of efficiency.

This is easy to understand when traditional HRM is compared to strategic HRM and SHRM. SHRM is the alignment of corporate strategy with corporate HR practices to achieve the organization’s strategic goals.

A planned approach to encouraging and assisting employees and ensuring a positive work environment is human resource management.

Their responsibilities differ depending on the business and the sector, but they often cover hiring, pay, benefits, training, development, and employee relations.

In SHRM, the company’s workforce is actively managed.

HRM Meaning And Definition

Human resource management covers compensation, performance management, organizational development, safety, social security, benefits, employee motivation, training, and more.

The strategic direction of people, culture, and the workplace includes human resource management.

Human resource management, or HR management, is simply the systematic management of human resources. It is a practice aimed at improving employee productivity, ie. They will be made more efficient and effective.

It deals with applying management principles in managing an organization’s personnel in terms of organizational policies and procedures. It hires the organization’s most skilled and least experienced employees.

Human resource management includes people-related activities such as recruitment, training, development, performance appraisal, occupational health and safety, and occupational health and safety.

HR responsibilities include planning, recruiting, retention, monitoring, relationship management, evaluation, change management, and more.

HR strategy is a process that helps business management anticipate and manage continuous organizational changes. The HR strategy aims to:

  • Offers a very competitive salary and performance bonus
  • Potential managers are evaluated based on workplace values
  • Provide strategies for healthy two-way communication

SHRM Meaning And Definition

A human resource management approach (SHRM) is a human resource management process that aligns employees with the organization’s core strategies, goals, and objectives.

The term HR strategy is used to emphasize the strategic nature of a particular talent management strategy and, ultimately, the competitive advantage of an organization. In short, it integrates an HR mindset with the business to improve performance.

Strategic Human Resource Management, or SHRM for short, is a management function that develops human resources policies, programs, and practices that then achieve the organization’s strategic goals in line with corporate strategy.

The main goal is maintaining a culture that supports innovation and seeks competitive advantage by constantly improving the company’s performance.

The purpose of SHRM is for companies to align HR strategy with overall business goals by aligning HR practices with the organization’s strategic objectives.

A clear business strategy and future vision. The key to effective human resource management is identifying and analyzing opportunities and threats outside the business unit. SHRM is guided by four focuses management;

  • Purpose-driven
  • organizational culture
  • HR behavior
  • A connection Between personnel skills-business skills-HR activities

The Objective Of Strategic Human Resource Management.

Strategic HRM addresses organizational culture, hierarchy, performance quality, resource and role alignment, and productivity. Ideally, the SHRM methodology has five main objectives:

  • Resource-Based Strategy: Focus on improving the company’s strategic competencies
  • High commitment management: Empowering employees and treating employees as stakeholders.
  • High-Performance Management: Improving business performance by improving employee productivity, growth, and efficiency.
  • Managing High Compliance: Establishing better relationships between managers and their employees.
  • It is achieving strategic alignment: Integrating human and physical resources through simplified business models and increased ROI.

The Objective Of Human Resource Management.

Human Resource Management (HRM) is based on the basic principles of employment relationship management. A management position deals with all aspects of an employee’s professional life: from hiring to promotion to leaving the organization.

One can easily define the purpose of personnel management. Therefore, every organization, big or small, should follow some common HRM goals.

Organizational structure

Defining and implementing a corporate plan is critical to achieving organizational goals.

Human resource management must align with the organizational structure, business processes, and performance goals.


This primary goal is directly related to the last purpose. Finding the right tool for this segment is critical to business success.

Before posting jobs, screening, and interviewing candidates, the HR manager tries to ensure that the managers understand their role and have a clear job description.

Learning and development

Human resource management must also train and develop employees to achieve their career goals.

Organizational follow-up planning becomes more accessible as the organization increases its capabilities. It also supports the organization’s goal of retaining talent.

Bonuses and prizes

Another important goal is the effective use of existing budgets to acquire talent and maintain excellence. HR contract managers who meet industry salary scale specifications for a range of skills and experience that are relevant and relevant to the organization.

If you appreciate your employees’ excellent work, it will help them to motivate. You should not recognize them in the secret room if they have done something well.

Performance Management

Personnel management also aims to create a framework for assessing performance based on organizational competence.

Human resource management is responsible for the four main stages of performance management, from planning to tracking, monitoring, and compensation.

Policy Governance

The main objective of human resource management is to ensure that the organization always acts by existing ethical, moral, and internal rules. Business rules, policies, and procedures must be defined, communicated, updated, and developed.

Human resources should also monitor compliance and facilitate investigations and sanctions for violations reported by employees.

Difference Between Hrm And Shrm

They can go through these points if they want to know the critical difference between HRM and SHRM.

Usually, one can’t find any considerable difference between HRM and SHRM as both work in employees’ favor.

  • The complex and structured management of an organization’s workforce is referred to as Human Resource Management or HRM. The management function related to forming HR strategies to align employees’ efforts with the organization’s goals is called SHRM.
  • HRM supports short-term business goals and outcomes, but SHRM supports long-term business goals and outcomes.
  • The HR process is reactive. SHRM, on the other hand, is an active management function.
  • In human resource management, HR specialists take responsibility for employees, while line managers are responsible for managing employees in strategic human resource management.
  • Human resource management is a fragmented approach that emphasizes applying management principles in managing people in an organization. SHRM, on the other hand, uses an integrated system where business strategy is aligned with the company’s human resources.
  • HR management strengthens employee relations, ensures employee motivation, and the company complies with labor laws. SHRM, on the other hand, focuses on partnerships with internal and external supporters.
  • Human resource management uses intensive personnel management. On the other hand, strategic HRM does not impose such control but instead formalizes HRM practices.
  • The key components of HRM are assets and products, while the critical elements of HRM are people and their knowledge.
  • The role of personnel in human resource management consists of adapting to changes, responding to changes, and maintaining a transactional management style.
  • Unlike SHRM, the HR manager is transformational, i.e., Imitator seeking transformational leadership.
  • Regarding accountability, HR is often a budget department in contrast to strategic human resource management, which is the investment mindset.

Conventional HRM vs. SHRM Comparison


Meaning: Human resource management (HRM) is an organization’s workforce’s comprehensive and systematic management.


Meaning: SHRM is a management process in which human resource strategies are designed to align employee efforts with organizational goals.


The motive of actions: Helps improve employee communication, productivity, and motivation.

Follow enforcement of Central and state laws.


The motive of actions – Includes external stakeholders such as customers and shareholders.

Includes internal stakeholders such as employees.


Time duration – HRM is established for short term


Time duration – SHRM is mainly set for the long term but works for short and medium terms if required in an organization.


HR role – The role of HRM is active and negotiable.


HR role – The part of SHRM is happening, change manager and moveable.


Control – HRM has complete control over rules, regulations, and procedures that employees may not have experience


Power – The flexibility of biological control, so as few restrictions on worker behavior as possible, increases productivity.

How Does HRM Work?

Human resource management works through HR professionals who have direct knowledge of the day-to-day operations of HR operations. Generally, human resource is an entire department in any organization.

HR departments in different organizations can differ in size, structure, and unique work environment. Small organizations often have several HR professionals.

Here are some job titles that HR offers to their employees at the workplace

  • HR business unit
  • HR manager
  • Immigration specialist
  • Recruitment Coordinator
  • HR hiring manager

How Does SHRM Work?

Effective employee management is critical to retaining top talent and developing human resources. This means that employees feel valued and included. But before you go any further, follow these steps to organize workers effectively.

  • Develop a deep understanding of organizational goals
  • Evaluate the capabilities of the HR team
  • Analyse existing HR strengths based on your goals
  • Evaluate your company’s staffing needs
  • Determine what technology or tools employees need to be productive
  • Include the HR strategy developed from the previous experiment
  • Evaluate performance and take corrective actions as necessary

Effective HR management has become essential for all companies regardless of the industry. It’s not just big companies or companies with hundreds of employees.

If a company is focused on size, SHRM practices can improve growth rates. What are the goals of this modern HRM approach?

Significance Of Human Resource Management.

Human resource management plays a vital role in an organization. The importance of HR management includes the following;

  • Promotion of career development: HR policy facilitates employees’ learning and prepares them for further development. They can use the acquired skills to develop their current role and future participating companies.

  • Management by objectives: HRM helps companies achieve their goals by creating an environment that fosters positive employee attitudes.

  • Improving and maintaining labor relations: HRM practices help organizations maintain effective labor relations.

  • Assign the job to the right person: A company can identify the right people for a particular job through proper screening and selection. This helps reduce labor turnover.

  • Effective HRM practices in economic development lead to higher profitability and better business operations and positively impact the economy. Effective HR practices help an organization foster teamwork where employees feel comfortable working as a team.

Importance of Strategic Human Resource Management.

One of the critical points of SHRM is to help connect people to organizational goals. The HR department communicates with the company’s most valuable resources and strategic direction.

SHRM is the key to creating a balanced workplace that facilitates change. It also helps improve employee engagement. Organizations benefit from HR management strategies.

The benefits of SHRM include the following: It helps to gain a competitive advantage and helps fit people into the organizational culture.

  • Sales Growth: SHRM supports sales by investing time in understanding sales strategy and gaining an in-depth understanding of the company’s products and services.

  • Organizational Development: SHRM is effective because it helps an organization achieve a healthy and engaged workforce. SHRM supports knowledge sharing among professionals involved in diversity and supports the development of business plans and strategies.

  • High-performance department: HR departments practice SHRM through inter-functional communication to understand each other’s goals and use effective strategies consistent with the overall plan.

Microfinance and legal issues are not SHRM’s forte. SHRM offers many benefits to employees and the organization as a whole.

SHRM is only effective when HR functions are correctly integrated. HRM and SHRM play an essential role in today’s world, as no organization is complete without them.

Difference Between HRM And SHRM

HRM (Human Resource Management)SHRM (Strategic Human Resource Management)
HRM is the process of managing an organization’s workforce to achieve its strategic goals and objectives.SHRM is the process of aligning HR strategies and practices with the overall strategic goals and objectives of the organization.
HRM focuses on administrative and transactional tasks such as recruitment, selection, training, performance management, and compensation.SHRM focuses on developing HR strategies and practices that support the organisation’s long-term business objectives, such as improving employee engagement and retention, enhancing productivity, and reducing costs.
HRM is typically associated with reactive and short-term approaches to managing the workforce, such as addressing employee grievances and managing employee relations.SHRM is associated with proactive and long-term approaches to developing the workforce, such as succession planning, talent management, and leadership development.
HRM is primarily concerned with managing the existing workforce to meet current organizational needs.SHRM is concerned with developing HR strategies and practices that align with the organisation’s future needs and challenges, such as changes in the market or technology.
An example of HRM would be managing the recruitment and selection process to ensure that the organization has the right people in the right positions to achieve its goals.An example of SHRM would be developing a comprehensive talent management strategy that aligns with the organisation’s long-term goals and objectives.
HRM is often viewed as a support function that is separate from the overall business strategy.SHRM is considered an integral part of the overall business strategy, as it helps ensure that HR practices and policies support the achievement of the organization’s goals and objectives.
HRM is primarily concerned with compliance with laws, regulations, and company policies related to employment.SHRM is primarily concerned with developing HR practices and policies that support the organization’s overall strategy and vision.


So with the above explanation, it is clear that HRM differs from SHRM in many ways. For these reasons, human resource strategies are essential in an organization. In general, here are the importance of SHRM from different perspectives.

Without effective HR management, an organization cannot compete in the market. Strategic HR management combines business strategy and HR management. On a competitive level, HR strategies help us to be competitive.

And at the operational level, HR management strategies, such as a communication strategy, define planned objectives and the path to achieving them. Strategic personnel management, cross-training, and team flexibility can be found in work design.

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