Strategic Human Resource Management

Many companies take an ad hoc approach to HRM, treating it as a necessary function but one that has little to do with the strategic direction of the business. However research has shown that companies with strategic HR policies had higher revenue, less absenteeism and were more profitable. Strategic HRM matches the HRM activities and policies to the strategic direction of a company. "Strategic Human Resource Management" takes a resource-based view of SHRM, specifically focusing on learning organisations. The RBV theory of the firm posits that resources found in the employees of an organisation skills, expertise, experience, knowledge management, contribute to the strategic successes of the company. Learning organisations are companies that use their employees and customers proactively to maintain an atmosphere of continuous learning. Strategic HRM takes HRM beyond the functional everyday management of human resources into the realm of strategy and business policy.