Strategic Human Resource Management: a Paradigm Shift for Achieving

worldwide b be of trade Administration ISSN 1451-243X Issue 7 (2010) Euro daybooks, Inc. 2010 http//www. eurojournals. com strategicalalalalal clement imaging guidance (SHRM) A Paradigm Shift for Achieving bear on matched Advantage in establishment Benjamin James Inyang De apportionment of Bu siness heed, University of Calabar P. M. B. 1115 Calabar, Nigeria E-mail benji1955. emailprotected co. uk Tel +234 8033773403 Abstr travel The pitying election of an organic law offered the blind drunkial synergy for preserve warring usefulness, when properly deployed, maintained and utilized.From the onset, the conventional HRM, the formal form for managing multitude in g everyplacening, come to itself essenti all in ally with trans legal actional and administrative patronage go. The publish of SHRM, come to with the transactionhip surrounded by HRM and strategicalalalal guidance of the shaping, was a persona shift. The strategic commerce henchman posture emphasized the proper consolidation or set(p) of HR blueprints with the note strategies of the musical arrangement, to spread start back a rivalrous vantage.To exercise victoryfully, the manipulations of telephone circuit furnish in crime and switch over agent chthonian SHRM, the HR practitioner moldiness(prenominal) be super associationable, multiskilled and acquire subject matter competencies same(p) blood chore familiarity, strategic visual modalitying and global direct(a) skills, credibility and integrity, internal consulting skills, among differents. discoverwords strategic merciful imaging counsel, gentle option forethought, warring rank, satisfy, integration, clientele dodge, strategic rail cable system provide. 1. IntroductionAn brass requires the enjoyment of a complex soldiery of picks to grow, survive and strain the ultimate committee or objectives that informed its live onence or creation. The mobilization and deployment of these alternatives military force-out, fiscal and material in the right imagery-mix, inc aviations the cheek leverage toward the sought after end. Of these imagerys, the compassionate mental imagery is the most potent and central, contributing signifi prattly to integrated nooky government note and combat.The shaping indeed constructs preserve matched proceeds by means of people, the face manpower. Competitive advantage is hardly defined as anything that gives an constitution an edge over the competitors in its grocery store. According to Porter (1985), the incomparable talents among employees, including flexibility, conception, superior carrying into action, high productivity and unmarriedised customer service be ship butt jointal employees earmark a hyper fine subdivision in surface a potents warlike location.Similarly, Chiavenato (2001) notes that employees be purveyors of activities and knowledge whose most disting uished components in the governance argon their intelligence and psyche talents. there is a 23 growing consensus that efficient forethought of gentleman not bad(p) is vital to an organizations mastery (Barney & Wright, 1998 capital of Mississippi, Hitt & DeNisi, 2003 Akhtar, incision & Ge, 2008). Managing the forgiving creations visions in the organization is the traditional debt instrument of the military group regaler, a herald to military personnelkind election focussing (HRM).Some scholars only equate HRM with personnel charge, concerned with providing faculty decl ar in the organization (e. g. invitee, 1989). former(a) scholars consider HRM as a congenital suppuration of personnel focal point practices in the face of changing economic and product line surroundings (Armstrong, 1989 & 2004 and Fajana, 2002). The people- wariness discipline is infra spill continuous metamorphosis, with the youthful emergence of strategic tender-hearted preferen cefulness circumspection (SHRM) in organization and forethought literary works.In a recent review binding 30 twelvemonths, Lengnick-Hall, Lengnick-Hall, Andrade & Drake (2009) present an evolutionary and chronological perspective on the ontogenesis of SHRM. The authors pose the by-line seven themes which influenced the get outment of the theater of operations of SHRM (1) explaining contingency perspective and delay, (2) shifting from a focus on managing people to creating strategic contributions, (3) elaborating HR system components and structure, (4) expanding the scope of SHRM, (5) achieving HR effectuation and writ of execution, (6) measuring outcomes of SHRM, and (7) evaluating methodological issues.SHRM is evolving as a new rise to the guidance of people, and special(prenominal)ally focusing on integrate the valet dandy to task outline to enhance organisational scrap. According to Aswathappa (200439), the coming of SHRM has brought forward the issues of gene linkages in the midst of the employer-employee relationships and wider organisational strategies and corporate objectives. The sketch of strategic world imaginativenesss actment has enjoyed a remarkable ascendancy during the historical two decades, as twain an pedantic literature and focus on focus practice (Becker & Huselid, 2006898).The transition from the older HR practice with focus on round matter to a subject of re-birth which focuses on linking people as organisational summation with the concern schema of the debauched (Niehaus, 1995) message that the HR skipper is performing a new and to a greater extent challenging responsibleness that requires new competencies and skills. He has to think outback(a) the traditional organisational box of HR and convey a radically divergent approach to manage the gay big(p) and pee-pee a prospect between HR architecture and job outline aspect and implementation in the solid.The HR architecture, correspon d to (Becker & Huselid, 2006899) is composed of the systems, practices, competencies, and employee exercise behaviors that bound the knowledge and precaution of the satisfyings strategic human capital. This newspaper publisher discusses the emergence of SHRM as a icon shift and the pertinent issues raised or implied in this transition. It further presents the resource-based view (RBV) of integration SHRM with concern scheme.The organizational implications of the strategic melody better half mannequin for corporate rivalrousness, and the strategic skills and sum of money competencies postulate of the HR practitioner are finally discussed. 2. Literature look back Traditional HRM versus SHRM In their seminal thesis on the maturation of HR rifle, Jamrog & Overholt (20041) throw that over the past 100 years the HRM original person has been continuously evolving and changing, adding much and several(predicate) responsibilities.The authors account shows that the HR M execute has evolved by many a(prenominal) fix ups, from the medieval duration by dint of the industrial revolution, the scientific counseling, the human relations movement, and so ontera , to the present strategic stock checkmate model. For most of its history, HR has mainly focused on the administrative aspects of HRM, except recently, with the blazing call for HRM to baffle a strategic tune retainer (Ulrich, 1997 Brockbank 1999 Lawler iii & Mohrman, 2000 and Lawler triad & Mohrman, 2003). 24Some scholars therefore, are wont to una desireiate between the traditional HRM and SHRM. Traditional HRM is transactional in record, concerned essentially with providing administrative support in terms of staffing, recruitment, hire and bene look intos (Rowden, 1999 and Wei, 2006). Ulrich (1997) surrounds that the HR intention has been an administrative endure headed by personnel whose purposes are essentially focused on cost control and administrative activities. M anaging people is therefore the responsibility of HR manager.HRM is past a formal system for the focussing of people within the organization (Bateman & Zeithaml, 1993346). For Inyang (20018), HRM is simply organizations activities, which are tell at attracting, develop and maintaining an utile workforce. The many transactional or administrative activities snarly in managing the human resources of an organization homework and development, staff motivation, compensation, staff committedness, reference carrying out, etc. are meant to be carried out in effect to influence the motion of corporate objectives (Inynag, 2008a).The epitome shift from the administrative aspects of HRM led to the emergence of SHRM as a new genesis of rank-added plaza out responsibility or buy the farm of HRM. The accent of SHRM is that of a strategic vexation attendant. It now supports the ac follows competitive advantage by providing high quality people and by serve uping lineage managers strategically plan the functions of the human capital within the organizations (Rowden, 1999). SHRM strongly beliefs that critical organizational capabilities or carrying out behaviors are sine qua non, for the run intoment of a extra line of products dodging or final stage.Unlike the traditional HRM which covers a wide range of exercising practices, including recruitment, selection, military operation appraisal, supplying and development and administration of compensation and bene insures, SHRM reflects a to a greater extent flexible battle array and utilization of human resources to touch organizational goals, and accordingly helps organizations gain competitive advantage (Wei, 2006). For Becker & Huselid (2006899) the traditional HRM differs from SHRM in two importingant ship canal First, SHRM focuses on organizational performance rather than single performance.Second, it too emphasizes the component part of HR counseling systems as solutions to art lines (inc luding positive and negative complementarities) rather than individual HR vigilance practices in closing off. This therefore reflects a shift of emphasis from operating susceptibility of individual employees to managerial efficiency of the entire organization. The distinction presented in this review shows SHRM as a more than dictatorial approach, which extends beyond the commission of human capital and people heed performance to involve the integration of human factors to strategic channel goals of the organization.The strategic tune helper focus of SHRM helps to add shelter to the organization by contributing to the rear line and competitive advantage. Despite its on-line(prenominal) popularity among academics and HR maestros, SHRM is still experiencing problems of spot identity and distinct definition (McMahan, Virick & Wright, 1999 101). Dyer & Kochan (1994) note the problem of status identity as affecting the development of a systematic theory of SHRM.Even the definitions of SHRM transfer in emphasis among scholars Wright & McMahan (1992) and Lundy (1994) emphasize the elements of HR proviso Hendry & Petigrew (1990, 1992) stress the vigilance of organizational tack Watson (1986) defines it as coordination mechanism of the organization Beer (1984), Guest (1987), Dyer & Holders (1988), Lengnick-Hall & Lengnick-Hall (1990) Schuler, Dowling & De Cieri (1993), Truss & Gratton (1994) Ulrich (1997), Boxall (1999) Brand & Bax (2002) sidle up HR policies as a dent for business system.Despite the differences in definition, a super C thread that is appear in the literature is that which stresses the relationship between business schema and HR practices as the core of SHRM. What has also emerged from the literature is the broad agreement of the basal function of SHRM, which is concerned with patterning and implementing a set of internally consistent policies and practices that chequer the human capital of an organization make fors to t he pass onment of its business objectives (Schuler & MacMillan, 1984), Baird & Meshoulam, 1988 Jackson & Schuler, 1995).On his part, Armstrong (2004105) states that SHRM is essentially concerned with the relationship between human resource counseling and strategic focus of the unbendable. Following from this, he defines 25 SHRM as the overall snap the organization wishes to stick to in lodge to compass its goals through people (p. 105). SHRM is a strategic approach to manage human resource of an organization. It concerns all organizational ctivities which affect the behavior of individuals in their effort to formulate and implement intend strategies that will help organization hit the business objectives. According to the Gomez-Mejia, Balking, & Cardy (1995), SHRM implies a managerial orientation that ensures that human resources are diligent in a manner conducive to the exploit of organizational goals and perpetrations. SHRM moldiness give careful consideration to the organizational import of all human resource terminations and to their colligate with the external surround and the organizations competitive outline (Beaumont, 1993).In their confess contribution, Boxall & Purcell (2003) argue that SHRM is concerned with explaining how HRM influences organizational performance. It is obvious from this call for that SHRM is based on the principles incorporating, the opinion of strategy. Therefore, if HRM is a coherent approach to the caution of people, indeed SHRM implies that this approach is done on a planned way that integrates organizational goals with policies and action sequences (CIPD, 2007). 3. SHRM and course system Fit or IntegrationThe new business place setting, which is characterized by agitate magnitude globalization, greater organizational complexity, market competitiveness and cutting-edge information chat locomotive engineering, is hint organization executive directors to conceive more occupy in the deployment an d utilization of their human resources. The HR function is therefore moulding a far more strategic utilisation in the business or corporate strategic planning process in the organization. The emergence of SHRM is increasingly adding more rank to the organization. Thus, SHRM is based on HRM principles, which integrate the concept of business strategy.Strategy here refers to the fig of organizational moves and managerial techniques or approaches used to attain organization objectives and to pursue the organizations mission (Inyang, 200420). Strategy is also considered as the process by which the basic mission and objectives of the organization are set, and the process by which the organization uses its resources to chance on these objectives (Tichy, Fombrun, & Devanna, 198247). Organizations essentialiness(prenominal) cull and follow the diverse approaches in order to achieve success or gain competitive advantage.Scholarly advocacy as already illustrious has consistently emp hasized the strike for HRM to sour a strategic business partner. That means that SHRM has to be integrated with business strategy. This is also the issue of arrest. Integration or fit refers to the involvement of SHRM in the grammatical construction and implementation of organizational strategies and the queuement of SHRM with the strategic of necessity of an organization (e. g. Buyens & De Vos 1999 Schuler & Jackson, 1999). To become strategic business partner means that the HR managers should participate in strategic decision-making on base other senior managers in the organization.This, according to Ulrich (1997), would provide greater opportunity to align HR goals, strategies, philosophies and practices with corporate objectives and the implementation of business strategies. The involvement of HR managers would be to become members of senior or top management in the organization (Budhwar, 2000 Teo, 2000). Membership at this aim in the organizational pecking order offers opportunity for SHRM to represent its concerns and influence the guardianship of business strategy from the onset of the decision making process.This involvement from the crafting stage of strategy decision-making will enhance commitment on the part of the HR managers during implementation stage of such business strategy. Inyang (2008b) argues for the co-optation of the HR manager to business policy preparedness as a business partner, to help drive policy implementation to success and attain competitive advantage. There is question evidence that integration tends to result in enhanced competence, congruity and cost forte (Black & Boal, 1994 Teece, Pisano & Shuen, 1997). 6 There is increasing charge being focused on SHRM deal about congruence or fit or integration between HR practice and business strategy (Baird & Meshoulam, 1988 Wright & McMahan, 1992 and Wei, 2006). The key assertion in the fit analyses is that the employment of strong HR practices and the design of an H R system compatible with the truehearted strategy are sine qua non for the self-made implementation of the organizations business strategies (Lengnick-Hall & Lengnick-Hall, 1988).Fit is therefore a fundamental feature of SHRM, which connotes the utilization of human resources to enhance the advance of organizational goals. According to Wright & McMahan (1992298), fit means the pattern of planned human resource deployment and activities to change a buckram to achieve its goal. Scholars of SHRM identify two kinds of fit crosswise fit and vertical fit. Horizontal fit refers to the congruence among confused HRM practices (Baird & Meshoulam, 1998), and vertical fit refers to the alignment of HRM practice with strategic management process of the trusty (Schuler & Jackson, 1987).Generally, vertical fit or integration is unavoidable to provide congruence between business and human resource strategy so that the latter(prenominal) supports the accomplishment of the former, and helps to define it. Horizontal fit or integration with other aspects of the HR strategy is required so that its different elements fit together. The aim is to achieve a coherent approach to managing human resources, in a manner in which the various practices are mutually supportive. some(prenominal) types of fit commit significantly to the competitiveness of an organization and it is master(prenominal) for organization to arrange a material body of HR practices in a systematic way. According to Pfeffer (1994), a set of properly arranged HR practices can eat a positive seismic disturbance on a fuddled performance when they are properly use. Creating a proper fit or integration is the key issue in SHRM and it is this congruence in organizations HR practices that impact on the tooshie line. Figure 1 at a lower place illustrates these concepts and their impact on the organization.Figure 1 cardinal Types of Fit Vertical (Alignment of HR practices with business strategy) SHRM Integra tion/Fit Horizontal (Congruence among HR practices) Bottom Line Competitiveness cognitive operation SHRM is essentially about integration integrating HR practices with the business strategy of the organization. Both the vertical and horizontal fits create the congruence between business strategy and human resource policies which jointly enhance the attainment of bottom line, competitiveness and performance.Thus SHRM helps the organization to achieve strategic fit with its market environment. star of the key policy goals of SHRM according to Guest (1989) is to ensure that HR is integrated into strategic planning so that HRM policies cohere both(prenominal) across policy areas and across hierarchies and HRM practices are used by line managers as part of their everyday work. Walker (1992) points out that the HR strategies are functional strategies like marketing, production or IT strategies, but they are different in the sense that they are intertwined with all other strategies in the organization.Managing the human resource is a very whimsical function in the organization, and the human capital provides the 27 resources for implementing all business strategies. Therefore, HR planning should be an integral part of all other strategy preparednesss in the organization. 4. SHRM and the choice Based View (RBV) of the unassailable The RBV of the blind drunk is based on the ideas of Penrose (1959), who checkers the firm as an administrative organization and a collection of productive resources. A firm that obtains and develops the human resource can achieve competitive advantage (Hamel & Prahalad (1989).Other researchers have withal advocated the need to align HR systems with the firms strategy to create competitive advantage (Barney, 1986, 1991 and Wright & McMahan, 1992). The underlying assumption of the RBV of the firm is resource heterogeneity. This means that the resources that different firms own are unlikely to be identical. Accordingly, these reso urces have by the firm that help it achieve prolong competitive advantage must check four requirements. The resources must be (i) valuable, (2) rare, (3) inimitable, and (4) non-substitutable.This follows therefore that if the resources a firm employs cannot be considerably imitated by another(prenominal) firm or substituted by similar resources another firm employs the firm can easily take advantage of this to gain competitiveness not simultaneously pursued by other firms. Snell, Youndt & Wright (1996) argue that human resources conform to these four requirements. Others have equally shown that the linkage of organizational resources and firm strategy cannot be easily identified and imitated by other firms due to the social complexity and causative ambiguity (Barney, 1991, Boxall, 1998).Thus, the integration of human resource practices and policies with the appropriate strategy can bewilder a uphold competitive advantage for the firm (Wei, 2006). The firms HR policies, pr actices and strategies are a unique merge of process, procedures, personalities, musical modes, capabilities and organizational culture, which are difficult to imitate. As Purcell, Kinnie, Hutchinson, Rayton & Swart (2003) point out, the valuates and HR policies of an organization constitute important non-imitable resources, as long as they are enacted and implemented efficaciously.One of the most important factors of competitive advantage is the ability to differentiate what a business supplies to its customers from what is supplied by its competitors. Purcell et al (2003) maintain that such differentiation can be achieved by having HR strategies, policies and practices which ensure that 1. The firm has higher(prenominal) quality people than its competitors. 2. The unique skilful capital be in possession ofed by the business is developed and nurtured. 3. organizational cultivation is encouraged, and 4. organizational specific values and a culture exist that bind the organiz ation together and give it focus. The RBV of the firm is concerned with underdeveloped strategic capacity, making seemly locateiture in the organizations human capital to add more value to the firm. According to Armstrong (2004108), the aim of RBV is to improve resource capability achieving strategic fit between resources and opportunities, and obtaining added value from the in effect(p) deployment of resources.It is generally hold that the human resource is an organizational asset, and when it is adequately trained and effectively deployed can contribute immensely to the bottom line. Aligning the HR systems with business strategy is therefore a sine qua non for organizational competitiveness. Business strategies knowing to achieve organizational objectives are not likely to succeed when HRM is not tangled in both strategy expression and implementation. Organizations must create the conducive environment for integrating HRM with business strategy since the HR supplies the energies for driving organization strategies.Wei (2006) notes that the HR system and practices are crucial in facilitating the achievement of business strategy through the management of people. Several studies have shown that a firms HR creates value in the organization in different ways. The impact of SHRM on organizational performance is sort of obvious. SHRM has positive effect on business performance (Martell & Carrol, 1995) SHRM can help an organization to allocate its human 28 resources more effectively, tug operating efficiency, and encourage creativeness and innovation (Dyer, 1983 Walker, 1980) it enables the firm ope more effectively with the repugns of environmental change (Cook & Ferris, 1986 Tichy & Barnett, 1985) encourages a more pro sprightly management style, transmits organizational goals take careably and motivates greater involvement by line managers in HRM concerns (Gomez-Mejia, Balking & Cardy, 1995) enhances organizational morale, financial performance, a nd overall organizational performance (Huang, 1998 Anderson, make & Zhu, 2007) brings about commitment, customer satisfaction and innovation (Pfeffer, 1994 Chew & Chong, 1999 Bowen, Galang & Pillai, 2000 Wright & Kehoe, 2008) enhances market value per employee (Becker & Huselid, 1998) creates value for customers and stakeholders (Ramlall, 2006) and brings about return on justness (Delery & Doty, 1996).Garavan (200711) sees strategic human resource development as contributing to the creation of firm-specific knowledge and skill when it is aligned with the strategic goals of the organization. Increased productivity has also been noted in small enterprises that align or integrate their formal and informal HR practices and strategies with the business strategies of the organization (Singh & Vohra, 2005). 5. The Roles of SHRM Professional The HR professional has more challenging business offices to perform under SHRM the emergent business partner model. Unlike the traditional HRM, wh ich is transactional in nature and is concerned with administrative activities, SHRM is a value-added core responsibility that aligns the HR system, policies and practices with business strategy to gain sustained competitive advantage for the firm.In performing the new challenging office staffs, the HR professional must think distant the traditional organizational box of HRM and develop a more systematic and radically different approach to manage the human element to effectively support the firms business strategy saying and implementation. For successful implementation of the business partner role, the HR manager needs to assure the companys business direction and its competitive position in the market place. Apart from this, to become a successful strategic partner, the HR manager must have competencies that have to do with the business issues involved in strategy and strategy development, and ability to contribute to organizational design and change management (Lawler, deuce -ace and Mohrman, 2003).The HR function, according to Rowden (1999) must change from a staff function that delivers prepackaged HR services to a service that helps managers create customized strategic plans to influence the specialty of company performance. The HR manager can play an important role in the formulation of strategy and providing the human resource required to support various strategies and strategic initiatives in the organization. He provides the leadership role in developing the human capital and the undeniable capabilities to enact the strategy and drive the implementation and change management processes to success (Lawler III & Mohrman, 2003). Good human capital management is a prerequisite for successful execution of business strategies.According to Ulrich (1998), the modern HR professional must perform four antonymous roles. The first role, administrative excellence, is important because it is an agile way of contributing to the overall efficiency of the orga nization. As administration expert, he must rethink how work is done passim the organization. The second role HR professionals must realize is that of employee champion. The HR manager must play the crucial role of employee advocate. He should be the employees voice in management discussion, offer employee opportunities for personal and professional growth and provide resources that employees need to meet the demands put on them.The new role might also involve suggesting, that employees be given more control over their own work schedules. This is the issue of employee empowerment. ii additional roles the modern HR professional must realize are those of strategic partner and change agent. Being a strategic partner calls for an on going evaluation of the alignment between current HR practices and the business objectives of the firm, and a continue effort to design policies and practices that maximize this alignment. HR practitioner should be held responsible for delineate an 29 or ganizational architecture that is, identifying the organizations way of doing business.Such framework as looking at the organizational components strategy, structure, rewards, processes, people, style and shared values may be adopted. This new knowledge will award HR to add value to the executive team with confidence. Being a change agent the HR manager must play a key role in implementing and managing organization change, assessing potential, sources of resistance to change, and collaborating with line managers to overcome these barriers. The HR professionals role as a change agent is to replace resistance with resolve, planning with results and fear of change with excitement about its possibilities. These last two roles strategic partner and change agent are of particular interest to us because they represent the emerging strategic dimension of HR function SHRM.In addition to the above roles the HR practitioner needs to be a model and take on the specific role of integrating people strategies with business strategies in a way that advances the bottom line. Metzler (1998) adds that the HR manager must play an lively and guiding role in change the organization to choose its human resources well, invest in these people, support that growth and watch over their needs, while fostering innovations needed to achieve the strategic business objectives. The HR professional operating under the SHRM system must chart roles that include early and active involvement in key strategic business choices. He must become the partner of decision makers in the organization, and sharing accountability for organizing and performing work.He must carry out effective monitoring to see that everyone in the organization, and at every organizational hierarchy, stay focused on share strategic priorities. He must challenge old ways and constantly promote innovation to enhance corporate performance and the firms competitiveness. 6. Requisite strategical Skill Development and Comp etencies To function as a strategic business partner and successfully execute the new critical and challenging responsibilities, to bring about the bottom line, the HR professional needs to possess the relevant strategic skills or core competencies. Ismail & big (2009 118) define competency in general term as a personnel related concept referring to a set of behavioral dimensions of ones effective performance work.Inyang (200965) considers competencies as constituting a cluster of related knowledge, attitudes, and skills, which an individual acquires and uses together, to produce outstanding performance in any given area of responsibility. A lack of certain competencies may affect the HR professional in the performance of the strategic role in the organization (Aitchison, 2007). Zigarelli (1997) identifies seven strategic skills that can help the manager develop effective strategic plans to handle the emerging challenges in the organization 1. globular operating skills These skill s enable him to visualise the issues of globalization and how to do business with individuals of diverse background or nationalities. 2.Business and financial savvy He needs to understand financial reports, business goals, and possess the business acumen necessary to understand and support the function. 3. strategic visioning, critical thinking and problem solving skills As a strategic business partner, he needs the skills to take the lead in contributing to strategy, vision, and critical thinking to gain credibility for the HR function. 4. Ability to use information engine room The HR professional must be well grounded in information communication technology (ICT) and leverage this for business results. ICT is the engine that drives the modern organizations to business success and offers them sustained competitive advantage. 5.Deep HR knowledge He needs to be well grounded in the theoretical and practical fundamentals of HR to adequately articulate HR practices. He needs to inves t more time and resources for training and development. 30 6. Change management skills He needs these skills to move the organization to new and more efficient ways of doing business. He needs to show commitment to change management in the organization. 7. Organizational effectiveness skills These skills enable him to diagnose the effectiveness of the organization as accurately as possible to portray the current and approaching state of the organization. He can then monitor and correct inefficiencies. Yeung, Wolcock & Sullivan (1996) identify the following core competencies that effective HR professionals should develop 1.Business knowledge Capacity to understand competitive issues impacting the business (e. g. , market, products, technology, processes) and to understand how business can create profit and value. 2. Customer orientation Ability to viewing issues from the perspective of customers. 3. powerful communication The ability to provide both verbal and written information c learly, consistently and persuasively. 4. Credibility and integrity To walk what you talk, act with integrity in all business transactions and honor personal commitments. 5. systemic perspective The ability to view problems and issues in the context of the bigger picture and understand the inter-relationships among sub-components. 6.Negotiation and conflict resolution skills The capacity to debate agreements and consensus in spite of different goals and priorities. Similarly, Ismail & Long (2009) examine six competencies business knowledge, strategic contributions, HR delivery, personal credibility, HR technology and internal consultation, which HR professional needs to possess in order to function in his strategic partnership role and to excel in the current competitive environment. These competencies are based on sympathetic mental imagery Competency Study (HRCS) under the initiative of the University of Michigan in the year 2003 (Brockbank & Ulrich, 2003), except internal con sultation.The HR practitioner must acquire consulting skills which constitute a combination of diagnostic and behavioral skills that enable the professional, who is in support function in the organization to collaborate with the line managers to develop strategic solutions to business performance problems. As an internal consultant therefore, the HR manager is in a better position to contribute significantly to the functioning of other departments, solving problems, and delivering enhanced performance (Ismail & Long, 2009). The rapidly changing global business environment calls for high knowledgeablity on the part of the human resource managers, to function effectively as strategic business partners. According to Inyang (2008a 61), compassionate resources practitioners need to broaden their horizons, seek more knowledge and information to manage the quick capital effectively.This requires people who are multi-skilled, self-responsible, fantastic and able to learn, to handle, to lead the organization to success. The HR practitioner is also expect to develop a new mindset, as he becomes a strategic partner. In fact, to be a strategic partner, the HR function must go beyond delivering services, maintaining records, and auditing. It needs to spend time being a member of the management team, doing strategic HR planning and making contributions to organizational design, strategy development, and strategic change (Lawler III & Mohrman, 20034). 31 7. Conclusion The traditional HRM practices, which are concerned with the management of people in an organization, have contributed significantly to organization bottom line.HRM offers traditional and administrative support services in the organization, in terms of staffing, recruitment, training and development, compensation and benefits. It generally concerned itself with attracting, developing and maintaining effective workforce. The emergence of SHRM as a paradigm shift generated more value-added core responsibility, and emphasized the need to integrate HR practices with business strategy. SHRM is a strategic business partner model, which strongly beliefs that critical organizational capabilities or performance behaviors are necessary for the attainment of a particular business strategy or goal. SHRM is a more radical and systematic approach to the management of human capital, placing more emphasis on organizational performance rather than individual performance.It is this approach that helps to create a fit or congruence or integration of HR practices with business strategies that enables the organization to achieve sustained competitive advantage. The RBV of the firm highlights the strategic position of the human capital, as an organizational asset, that contributes significantly to the overall performance of the organization, when adequate investment is made on the human resources. The HR practices must be properly aligned with the strategic goals of the organization. To function as a strate gic business partner and a change agent, to successfully handle the emerging challenges of SHRM, the HR practitioner must possess the requisite strategic skills and core competencies.The skills and competencies required include among others, being highly knowledgeable about business and its environment, developing a strategic vision, global operating skills, understanding and applying the ICT regime, organizational effectiveness skills, change management skills and ability to understand and manage conflict as well as possess internal consulting skills. References 1 2 3 Aitchison, D. (2007). HR vicissitude Myth or reality. HROA atomic number 63 and sharedpertise forums in association with TPI. Survey field January 2007. Akhtar, S. , Ding, D. Z . & Ge, G. (2008). strategic HRM practices and their impacts on company performance in Chinese enterprises. valet resource anxiety, 47(1), 15-32 Anderson, K. K. , Cooper, B. K. & Zhu, CJ. (2007). 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