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The main aim of human resource management is to develop and improvement of understanding of how management functions can affect the performance of a business. Human resources are one of the most significant characters of many businesses – especially in an economy where there is a growing shift towards service-based industries.

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Strategic Human Resource Management: Definition and Components Given the increasingly significant role of human resources in an organiza-tion, HRM has become strategic in nature. Strategic human resource manage-ment (SHRM) is concerned with the relationship between HRM and strategic management in an organization.

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