1.0 INTRODUCTION

What is Strategic Human Resource Management (SHRM)? According to the Chartered Institute of Personnel and Development (2015), strategic human resource management (strategic HRM, or SHRM) is an approach to managing human resources that supports long-term business goals and outcomes with a strategic framework. The approach emphases on longer-term people issues, matching resources to future needs as well as macro-concerns about structure, quality, culture, values and commitment. It is necessarily dependent on the evolving nature of work itself.

As mentioned by Stone (2013), because human resource management (HRM) seeks to strategically integrate the interests of an organisation and its employees, it is much more than a set of activities relating to the coordination of an organisation’s human resources. HRM is a major contributor to the success of an enterprise because it is in a key position ‘to affect customers, business results and ultimately shareholder value’. Stated by Gratton (2000), ‘The new sources of sustainable competitive advantage available to organisations have people at the centre – their creativity and talent, their inspirations and hopes, their dreams and excitement. The companies that flourish in this decade will do so because they are able to provide meaning and purpose, a context and frame that encourages individual potential to flourish and grow’.

Stone (2013) mentioned that HRM is either part of the problem or part of the solution in gaining the productive contribution of people. Leading companies such as Blackmores, Coca-Cola Amatil, Google, General Electric, Johnson & Johnson and Microsoft recognise that human capital is their most important resource as well as take action to maximise it by: focusing on selecting, developing and rewarding top talent; encouraging open communication, teamwork and collaboration; and