10 Importance of Environment for Strategic Human Resource Management (SHRM)

For successful strategic human resource management favorable environment is very important. If all favorable environmental forces act positively strategist human resources activities may be performed smoothly without facing difficulty.

However, the points of the importance of the environment for strategic human resource management (SHRM) are discussed below:

Importance of environment for strategic human resource management

1. Successful formulation of policiesFavorable environment formulates SHRM policies regarding recruitment, selection, promotion transfer, and training and so with the help of these policies SHRM can run the organization smoothly.

2. Fair recruitment and selection: If fair recruitment and selection policies are formulated skilled efficient and committed people may be selected. Thus need for supervision is reduced.

3. Proper promotion decision: Favorable environment also helps in making promotion decisions. Very often internal & external forces may hamper the promotion procedures.

4. Fair nomination to training programs: Fair nomination of managers and employees to training programs is important to make them fit for jobs. An Independent work environment ensures a fair nomination of managers & employees.


5. Indiscriminate job & performance evaluation: Job evaluation and performance appraisal programs are undertaken for selecting people for pay & benefit purposes. Nepotism, undue privilege, or currency may hamper the objective.

6. Well-conceived pay & rewards policy: This is one of the most important SHRM activities and challenges also. If it is possible to declare any pay policy freely, it may be acceptable to the employees and untoward incidents may be avoided.

7. Proper grievance handling: In every organization, there is a grievance. It is expected to be handled successfully. A favorable environment helps the top management to handle grievances and reduce disputes.

8. hound disciplinary action: very often indiscipline is created by all types of managers and employees. Sound disciplinary action may be helpful for reducing indiscipline and making the employees disciplined.

9. Effective career development: Top managers want to develop employee careers. But some environmental constraints may hamper the intention Constraints may come from both internal forces.

10. Reasonable safety and welfare facilities: Safety ensures a smooth and stable work environment and welfare motivates and retains the employee’s wholehearted support from financial agencies and social leaden streamlines the efforts.

There may be much importance of the environment for successful SHRM. We have concentrated our discussion on ten points. In these ten areas, SHRM can contribute a lot and that can help establish a good environment.

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