HRM is always known as the strategic partner department in any organization. It helps to identify the changing needs of hiring, firing, training and rewarding the right employees. HRM department functions in a cordial and collaborative way with the rest of the company. HR needs to be collaborative. It must coordinate or cooperate with all other departments. Few decades back, HRM was just focused on personnel activities, later its focus moved towards managing people. The most important letter in HRM is R which tells us about resource development and management. Modern companies are in constant search for ways of managing resources. All successful companies have their own techniques in saving resources and utilizing them. The biggest challenge in many companies and in the countries in general is the wastage of resources.

Good HRD is the solution to the threats of stiff competition. Strategic HRM is the concept of managing resources while strategic HRD is its development. The focus of companies nowadays is to manage resources such as balancing the budget in various departments, finding the best training activities, adjusting technology with available technical skills, and investing in excellent projects.

Strategic partners like HR personnel and top hierarchy decision-making managers need to control the wastage of company’s resources and monitor the performance. The R element of HRM should be managed positively for smooth operations, the R element of HRD must develop the staff while the R element of TRD should be a constant cookbook for the company.

Modern companies are utilizing strategic HR activities not only to attract and retain employees but also for branding. The organizational theory is used for employees to show proper organizational behaviours. Organizational theory in Strategic HRM concept is for employers to show a fair attitude towards employees. This approach ensures the proper response to the behaviours of employees as well.

Strategic HRD also focuses on human capital involvement in job-related developments, the flow of the workforce, and identification of the required behaviours. Good companies focus on Strategic HRM elements in order to utilize employees and assign them as ERGs. This motivates employees to build confidence and maintain a sense of ownership in the company.


Acronyms used in this article:

  • HRM – Human Resource Management
  • HRD – Human Resource Development
  • TRD – Training Resource Development
  • ERG – Employee Resource Groups