Strategic Human Resources Management

2.1.1.1 The concept of Strategic Human Resources management stems from the idea that the top management is strongly convinced that the human capital of their organisation requires very close nurturing and makes them partners in the organisational success. It is for the HR department to identify and mould the individual characteristics of the human capital and align them with the strategic vision and mission of the organisation. This can be achieved if the strategic HR functions are constantly, and vigorously aligned towards total quality management in all fields, which would result in High Performance Work system.

2.1.1.2 The earlier part of this century has seen various experts and researchers synergizing the functions of human resources

Successful organisations have now bought the idea that investment in human resources development eventually leads to high profits in the long run. Further it is the human resources department that has the wherewithal to handle the intricacies of human needs in their organisation. Companies like PepsiCo, GE etc. have essentially involved the HR department in all the strategic planning meetings as also in their routine administrative meetings. These successful companies have witnessed the transformation that HR has brought in their respective organisations in the form of High Performance Work system. Infosys ex chairman Mr. Narayana Murthy had once mentioned in his informal interaction during a function that his capital becomes zero when the last employee retires for the day. Various studies have been conducted to ascertain the involvement and contribution of HR department towards High Performance Work system in organisations. Published research has emphatically proved that effective human resources practices were the root cause for achieving very high employee commitment, total involvement and sense of ownership and belonging to the organisation that has eventually been an important contributor for maintaining sustained competitive advantage in their respective

HR department empowers the human resources with the requisite knowledge, training, and the attitude that is paramount for achieving a HPWS. Strategic human resource management (SHRM) activities are no longer issue and activity based. They are based on the ideologies, thinking process and the attitudes that get converted into very high quality performance at any time and all times. SHRM transforms the system into an ever correcting and continuous learning organisation which keeps striving for quality improvement so as to serve the external customer, who are the raison-d’être for their existence and growth. The change in work force attributes happens with the top management commitment in connecting with them wholeheartedly aided with strong and healthy human resource practices. Therefore to achieve a HPWS there is a strong connect with the SHRM and the work force attributes as