Benefits & barriers of SHRM

Benefits of strategic management:

As opined by Ulrick and Lake, the strategic HR framework aims to leverage and/or align HR practices to build critical capabilities that enable an organization to achieve its goals. Strategic management offers both financial and non-financial benefits to an organization which practices it.
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Fred R. David’ has listed the following benefits that strategic management brings for an organization:

1. Allows identification, prioritization, and exploitation of opportunities.

2. Provides an objective view of management problems.

3. Represents a framework for improved coordination and control of activities.

4. Minimizes the effects of adverse conditions and changes.

5. Allows major decisions to better support established objectives.

6. Allows more effective allocation of time and resources to identified opportunities.

7. Allows fewer resources and lesser time to be devoted to correcting erroneous or Adhoc decisions.

8. Creates a framework for internal communication among personnel.

9. Helps to integrate the behaviors of individuals into a total effort.

10. Provides a basis for the clarification of individual responsibilities.

11. Gives encouragement to forward thinking.

12. Provides a cooperative, integrated and enthusiastic approach to tackling problems and opportunities.

13. Encourages a favorable attitude towards change.

14. Gives a degree of discipline and formality to the management of a business.

Barriers to strategic human resource management

Short term mentality: Short-term mentality and focus on the current performance of SHRM is the first barrier. Every manager act, long-term focus, because the organization has been established with long-terms objectives/focus.
Strategic inability: Very often SHRM does not think strategically and he cannot think it due to incapability. This type of inability may arise for many reasons as lack of technical knowledge, insufficient training and the like.
Lack of appreciation: Sometimes top managers do not recognize the activities of strategic human resource management. So SHR manager does not get interested in doing any innovative venture. A few appreciations may get them a substantial mental boost up.
Failure in understanding the role: General managerial roles may not be fully understood by be managers. This failure is due to lack of knowledge about the specialty of a degree of responsibility. This failure may create distance between these managers.
Difficulty in quantifying outcomes: Many outcomes may not be quantified. But SHRM tries to enjoy the contribution. This is not always possible. Participation, work etc. type function cannot be quantified because of their intangibility.
Wong perception on human assets: Investment in human assets may be regarded as high risk than that of technology and information. Though these technologies are run by the human resources. This wrong perception may inhibit the progress.
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Resistance: SHR Managers may be resisted because of the incentives for change that might arise. The change implemented demand some incentives for efforts to execute the changed program. If these incentives are not given reasonable, they may create barriers SHRM

In addition to these barriers, there may be other points also. As for example, lack of union support, government backing, and weak financial position of the company can act as barriers to SHR management.

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