1. literature review JUST on the concept of HRM and SHRM.
Extracted text: Progress of HRM to SHRM: Human Resources as "Capital" 99 Gurhan Uysal Ondokuz Mayıs University, Samsun, Turkey Human resource management (HRM) has two aims for firms: performance and recruitment. HRM aims to increase individual performance of employees. And HRM does recruitment of human resources for firms. This paper describes strategic HRM (SHRM) as the relationship between individual performance and business performance. It is expected that this relationship between employee and business performance progresses HRM to SHRM. In addition, this paper describes SHRM practices. SHRM practices are human resource governance, interrelation of HRM practices, human capital, human resource systems, performance management, individual HRM practices, and strategic partner. Those SHRM practices are expected to increase both individual performance and business performance. Keywords: strategic human resource management (SHRM), employee/business performance, human resource management (HRM) Human resource management (HRM) is defined as employees are not cost, but employees are resource. Resource can be identified with production factors. There are four production factors. They are: raw materials, human resources, capital, and knowledge. Firms aim to increase the efficiency of four, but HRM aim to increase efficiency of one: human resources. Therefore, HRM departments apply several HRM practices to increase the efficiency of employees. Human resource practices are human resource planning, staffing, training, performance appraisal, reward, career planning, compensation, job health and security, industrial relations and personnel management (PM). Therefore, first definition of HRM is "to increase efficiency of human resources through HRM practices". The Signal of efficiency is individual performance. So, HRM practices enable firms to increase individual performance. Secondly, HRM can be identified with the term "performance". HRM aims to increase the individual performance of employees. If employee's individual performance increases, performance of firm increases. This relation defines strategic HRM (SHRM) in this study. SHRM can be defined as the relationship between employee performance and business performance. Therefore, this paper aims to argue the transition from HRM to SHRM with SHRM practices. Secondly, this paper argues SHRM practices for SHRM managers. HRM Practices to Business Performance: Targets of HRM HRM has four targets: (1) individual performance; (2) positive organizational attitudes and behaviours; (3) Corresponding author: Gurhan Uysal, Ph.D., associate professor, School of Business, Ondokuz Mayıs University; research field: human resource management. E-mail:
[email protected]; gurhanuy
[email protected].
Extracted text: 332 PROGRESS OF HRM TO SHRM: HUMAN RESOURCES AS “CAPITAL" human resource governance; and (4) employee satisfaction. HRM aims to increase individual performance via HRM practices. HRM aims to achieve positive organizational attitudes and behaviours. HRM is to manage relationship between firm and employees. And HRM aims to increase employee satisfaction. Human resource governance can be defined with management relationship between firm and employees. Therefore, human resource governance can be identified as SHRM practices. So, HRM practices are important to achieve those targets above. They are: human resource planning, staffing, training, performance evaluation, compensation, career planning, job analyses, job health and security, industrial relations, and PM. HRM departments of firms apply those HRM practices to increase employee performance. Because employee's individual performance is expected to increase firm performance. The second target of HRM departments is to achieve positive organizational attitudes and behaviours. HRM departments implement HRM practices to obtain positive attitudes and behaviours. These attitudes and behaviours are commitment, motivation, satisfaction, individual performance, organizational citizenship and organizational support. It is expected that those attitudes and behaviours increase individual performance. For example, commitment behaviour is important to SHRM. Because HRM does the investment on employees, and HRM can obtain return on investment (ROI) with long-time employees, employee commitment is the key to obtain benefits from training practices. This study describes SHRM as employee performance/business performance relationship. Because positive attitudes and behaviours are expected to increase employee performance, to achieve positive organizational attitudes and behaviours is critical to strategic HRM. The third target of HRM is to manage relationship between employees and firm. This is exchange relationship between firm and employee. For example, training or career planning is the relation between employee and firm. Training is firm's investment to employees to increase their individual performance. Because employee learns occupational knowledge in training, and career planning is succession planning made by the firm for employee's future, training and career planning establish the relation between firm and employees. Therefore, human resource governance is to manage exchange relationship between firm and employees. The fourth target of HRM is to obtain employee satisfaction, because employee satisfaction is one of positive organizational attitudes and behaviours. And it is important to individual performance. To conclude, what is the future of HRM? The future of HRM is to develop positive organizational attitudes and behaviours in organizations to achieve individual performance. Therefore, positive attitudes and behaviours are important for SHRM in employee/business performance relationship. Literature studies demonstrate that individual HRM practices develop positive organizational attitudes and behaviours in organizations. In addition, interrelated HRM practices also develop employee performance. Therefore, both individual HRM practices and interrelated HRM practices can be considered as SHRM practices by SHRM managers.