Strategic HRM is viewed as 'strategic' as it involves the managerial personnel of the organization and regards. People are the single most important asset of the organization (Poole & Jenkins, 1990). It is proactive in its approach to people. It emphasizes on teamwork, flexibility, employee involvement and organizational commitment (Beaumont, 1993). Many organizations do not assess the short term or long-term implications of their HR policies and practices, which Ulrich (1997 a) emphasizes according to him, " In the 21st century, HR roles are that of strategic partner, administrative expert, employee champion, and change agent". One of the major responsibilities of HR is to prepare itself for change and to prepare for as many of these challenges as possible in order to exploit them for competitive advantage. The HR policies and practices should be flexible in nature in order to adapt itself to these situations. Further the key to sustained competitive advantage is building and sustaining core competencies within the organization and maintaining flexibility in order to react quickly to the changing global market place. In turn, the incredible advances in technology and the primary role of HRM should be able to felicitate this process. Now on we will discuss the organization Galactic furniture company (GFC) that is part of the group of companies named as Galactic Enterprises Group on the basic of our understanding of strategic HRM and especially based on the dimension of the SHRM.
Management of Change & flexibility:- Schuler (1992) argues that HR activities can be the unifying force in helping an organization to master strategic change. Price (1997) started that effective change requires sure-footed, considerate people management who can take employees through the process with minimum anxiety and maximum enthusiasm. It requires the recognition that the people of the organization should not be Pawns of strategy but active participants in change. Companies should set performance standards for people to encourage flexibility and diversity and reward people for being innovative strategic HRM policies and all about flexible people management policies focused on multi skilling, new competencies, knowledge areas, new forms of contract and need for lower employment cost-performance systems. Now if we analyses DFC the first hand assessment of the organization is that it is the organization having problem of accommodating changes of the external environment as well as internal environment. The main problem of the GFC clearly indicates towards inability to change. The problem approach to change is the core for all other problems whether it is employee's attitude, motivation perception about management or managers inability to change with the requirement of the overall environment. In the case number of occasions conflicting views and situation arises where managers are actually not willing to change and therefore its immediate impact shows on the performance of employees and themselves also. The second most important thing is flexibility. Flexibility implies openness in thinking, adaptive ness to the environment and change action contingency, non-rigidity, variability of parameters and specifications, multiplicity of process setting freedom liberalization, informal attitude adjustment, compromise, autonomy of function, agility in action,