1. literature review JUST on the concept of HRM and SHRM. Progress of HRM to SHRM: Human Resources as "Capital"99Gurhan UysalOndokuz Mayıs University, Samsun, TurkeyHuman resource management (HRM) has two aims for firms: performance and recruitment. HRM aims to increaseindividual performance of employees. And HRM does recruitment of human resources for firms. This paperdescribes strategic HRM (SHRM) as the relationship between individual performance and business performance. Itis expected that this relationship between employee and business performance progresses HRM to SHRM. Inaddition, this paper describes SHRM practices. SHRM practices are human resource governance, interrelation ofHRM practices, human capital, human resource systems, performance management, individual HRM practices, andstrategic partner. Those SHRM practices are expected to increase both individual performance and businessperformance.Keywords: strategic human resource management (SHRM), employee/business performance, human resourcemanagement (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 toincrease 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". TheSignal of efficiency is individual performance. So, HRM practices enable firms to increase individualperformance.Secondly, HRM can be identified with the term "performance". HRM aims to increase the individualperformance 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 betweenemployee 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 HRMHRM 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; researchfield: human resource management. E-mail: uysal_g@omu.edu.tr; gurhanuy sal@yahoo.com. 332PROGRESS OF HRM TO SHRM: HUMAN RESOURCES AS “CAPITAL"human resource governance; and (4) employee satisfaction. HRM aims to increase individual performance viaHRM practices. HRM aims to achieve positive organizational attitudes and behaviours. HRM is to managerelationship between firm and employees. And HRM aims to increase employee satisfaction. Human resourcegovernance can be defined with management relationship between firm and employees. Therefore, humanresource 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 employeeperformance. 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 andbehaviours are commitment, motivation, satisfaction, individual performance, organizational citizenship andorganizational support. It is expected that those attitudes and behaviours increase individual performance. Forexample, commitment behaviour is important to SHRM. Because HRM does the investment on employees, andHRM can obtain return on investment (ROI) with long-time employees, employee commitment is the key toobtain benefits from training practices.This study describes SHRM as employee performance/business performance relationship. Becausepositive attitudes and behaviours are expected to increase employee performance, to achieve positiveorganizational attitudes and behaviours is critical to strategic HRM.The third target of HRM is to manage relationship between employees and firm. This is exchangerelationship between firm and employee. For example, training or career planning is the relation betweenemployee 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 madeby the firm for employee's future, training and career planning establish the relation between firm andemployees. Therefore, human resource governance is to manage exchange relationship between firm andemployees.The fourth target of HRM is to obtain employee satisfaction, because employee satisfaction is one ofpositive 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 organizationalattitudes and behaviours in organizations to achieve individual performance. Therefore, positive attitudes andbehaviours are important for SHRM in employee/business performance relationship. Literature studiesdemonstrate that individual HRM practices develop positive organizational attitudes and behaviours inorganizations. In addition, interrelated HRM practices also develop employee performance. Therefore, bothindividual HRM practices and interrelated HRM practices can be considered as SHRM practices by SHRMmanagers.

Human resources can be defined resources which helps company to carry on with recruitment, training,…

Answered: literature review JUST on the concept…

Business

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literature review JUST on the concept of HRM and SHRM.

Understanding Business

12th Edition

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Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

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