Strategic human resource management (SHRM) is a tool within the framework of complete human resources management, which in turn relies on human capital management (HCM). Strategies enforce a moulding of the human resource available with organisations, which prefer to use them for fulfilling a specific target within the strategic objectives. This does not mean that the HCM is the sole instrument for fulfilling a strategy, because HCM embodies a larger outlook and long term objective of being utilised for multiple strategies from time to time.
SHRM is limited in its applicability to the time period during which one particular strategy is conceptualised and fulfilled. For example, an automobile firm developing a strategy of a new car and launching it in the market requires a specific role of employees and human capital. Such a strategy may also require specific action plans of employees, and using the best employees who are endowed with specific skill who work together to meet the strategic objectives. Thus, the same employee team or human capital may not be superiorly involved in other strategies like assessing the entire marketing costs and refurbishing the entire financial plan for marketing and sales. This may require a different skill set and hence a different human capital or a group of employees (Gruman and Saks, 2011).
This explains the usage of and sustenance of the SHRM, in which only a particular set of human capital is utilised to its fullest extent after analysing the qualities and capabilities required to realise the results of the strategy conceptualised. HCM is much more than SHRM, as it involves the entire management of directing the human capital to their best roles, their best expectations, and combining the two brings about a change in the organisation. HCM pertains with the shuffling of employees from one role to another, identifying their strengths and weaknesses, and accordingly involving them into acts of superior fulfilment. This requires more than a strategy; it requires a holistic view of the assets of human capital. It is with the human capital itself that organisations grow, expand, and even perish sometimes (Stankiewicz, 2015). Handling the complex HCM is therefore a more aligned with the organisation’s vision and less with SHRM, which is employed for a specific time-bound strategic action plan.