The role of HRM has been changed from last 10 years. So much development has taken place in the field of management with regards to HRM. The debates have been going on in order to properly understand the role of HR managers. “The main issue which engaged academics in the 1980s was the evolution of HRM.

In this regard, the debate was mainly on the exploration of the salient aspects of the alteration of personnel management into HRM.” The debates started by mingling the industrial relation with HR then combine business strategies with the HR line managers “and finally seeing HRM as a source of competitive benefit for organizations”. The success of an organization is also depended on the HRM. “With these developments the nature of Human Resource (HR) function has changed from being reactive, prescriptive, and administrative to being proactive, descriptive and executive (Boxall, 1994).”

“Strategic Human Resources Management (SHRM) is the purposeful resolution of Human Resource administration and policy issues so as to enhance a public agency's effectiveness.”

Human resources Management give birth to strategic human resource management. The need of SHRM is required to fill the gap which HRM alone can’t fill it. SHRM enhances the role of manager more clearly and precisely. The factors which give birth to SHRM are:

1. Recognition that Human resources are critical. There are companies strategic planning to accomplish its goals and mission. Those mission and goals are important for managers and employees to achieve them and HRM department plays a very important role in accomplishing the company’s target. “The emergence of SHRM due to heightened concern for agency productivity and accountability means that better information systems are essential”.

2. A shift from position management to work and employees. Due to political and economic factors the mind of the manager has sifted towards work management. It also because the employee wants flexibility in their workplace and should awarded and need appraisals from his managers. “Personnel specialists have continued to demand flexibility and equitable reward allocation through such alterations to classification and pay systems as rank-in-person personnel systems, broad pay banding, and group performance assessment and reward systems (Shoop, 1991). This trend coincides with employee needs for utilization, development, and recognition.”

3. More innovation: In the emerging business world, there is an intense competition between every organization. Without innovation no company can survive longer. To bring more improvement the manager should manage it workforce in a manner that it should provide new information and try to implement new things.

4. “But long range effectiveness in cultivating innovation requires a reward system that reinforces risk-taking, and does not penalize failure -- two characteristics that are often in short supply within the culture of most public agencies.”

5. Asset development and cost control. The main function of the company is to reduce the cost of the labor and develop or hire such employees which can benefit the company in the long run. “One reason for this increased professionalism and innovation among public personnel managers has been the need to develop and apply two apparently contradictory human resourse strategies: policies for "kleenex employees" designed to control costs, and policies for "asset employees" designed to ensure loyalty, participation and development.”