Difference Between Traditional HRM And Strategic HRM

Human Resource Management or HRM or just HR is a pretty common word that you have heard like a million times already, especially if you work in a company or in an organization. But when it comes to how HRM functions, there are actually two types in that department: one is Traditional HRM and the other one is Strategic HRM. By the looks of it, you might guess what these two actually mean but worry not, we are here to clear up your doubts about these two. And without dragging this introduction thing any further, let’s get to the actual stuff aka the differences, shall we?

Traditional HRM

Now, traditional HRM is something we shouldn’t even be explaining too much because it is pretty much the basic HR stuff. You see, under the traditional HRM, all things like hiring people, paying them alright, keeping them happy, making the most out of a team, and fixing any issues that pop up, fall under. As we told you already, this is like the basic level HR stuff that you’ll see seamlessly working or implemented in every workplace, no matter the city or the nation. But you might be wondering why is there a need for this kinda HRM, right? Do not limit your thinking here, you see, the main goal of implementing traditional HRM is to actually ensure that everything within a company or organization is happening according to the book or the rules. And it is in place to fix the issues when they arise, so yeah, no planning, no nothing.

Strategic HRM

Now, strategic HRM? That’s a whole new scene. It’s about linking HR directly with what the company wants to achieve, thinking ahead, and making smart moves. Here, people working in the company are seen as the main force driving success. Strategic HRM is about lining up everything HR does with the company’s goals, making sure the people side of things really helps the company stand out. It’s looking at the big picture, going beyond just hiring and managing benefits to coming up with HR plans that help the company do better, get the team involved, and create a work culture that supports the company’s aims, not for now, but for the long term, you know?

Aspect	Traditional HRM	Strategic HRM
Focus	Short-term and operational tasks	Long-term organizational goals and strategy
Orientation	Administrative and reactive	Proactive and forward-thinking
Role of HR	Supportive and transactional	Integral and strategic partner
Planning	Limited strategic planning, often reactionary	Comprehensive strategic planning, proactive approach
Employee Relations	Reactive response to issues	Proactive fostering of positive employee relations
Talent Management	Traditional hiring and training methods	Emphasis on talent development and retention
Performance	Primarily focused on individual performance metrics	Emphasis on aligning performance with organizational goals
Decision Making	Limited involvement in organizational strategy	Active involvement in organizational decision-making
Goal Achievement	Short-term goals often take precedence	Balance between short-term and long-term goals
Measurement	Metrics mainly focus on cost and efficiency	Metrics focus on effectiveness and contribution to strategic objectives

Key Differences Between Traditional and Strategic HRM

Alright, we have just covered the definition part of this whole HRM thing, and now’s the time for you to get to know about where and how these two actually differ from each other. Below, we have compared Traditional and Strategic HRM based on a few key points, so that it is much easier for you to understand the main differences, you know? Alright, here we go now.

1. Goals

Old-school HR aims to keep the engine running smooth and quiet, ticking off tasks, and making sure everything’s on the up and up with the law and budget. It’s the behind-the-scenes stuff, with success measured by how unseen yet efficient it is. But, Strategic HRM? It’s reaching for the stars, aiming to amp up the company vibe, get employees pumped, and make sure the company stays ahead of the curve. It’s about switching HR from being the silent support to a key player in the company’s mission.

2. How They Do Things

Traditional HR’s playing it by the rules, tackling stuff as it pops up without a master plan. It can get a bit messy, missing chances to link HR work with where the company wants to go. Meanwhile, Strategic HRM’s got the roadmap out, plotting the company’s course and making moves that match perfectly with the company’s future plans. It’s about being one step ahead, ensuring HR’s not just along for the ride but helping steer the ship, you know?

3. Looking Ahead

Traditional HR’s caught in the now, focusing on the immediate without much thought for the down-the-line. This means they’re often reacting instead of acting. But Strategic HRM? It’s got its eyes on the horizon, planning for the workforce the company will need and how to build it. It’s about prepping today for tomorrow’s win, that’s pretty much how it is when we put it in the simplest words.

4. HR’s Role

In the traditional setup, HR’s the rule enforcer, the paperwork king, not really mixing it up where the big decisions are made. But jump over to Strategic HRM, and HR’s in the mix, shaping the company’s strategy, molding the culture, and helping carve out that competitive edge. Here, HR’s not just backing up the strategy; it’s the one actually making the strategy.

5. What Counts as a Win

For traditional HR, it’s all about running a slick operation like fast hiring, staying within the law, and watching the budget. It’s looking at HR’s success through the lens of day-to-day operations. But switch gears to Strategic HRM, and it’s the big impact on the company’s performance that counts. Is the team engaged? Are we keeping and growing our talent? It’s a shift from just keeping things running to fueling the company’s success.

6. Making Decisions

Traditional HR might lean on gut feels or the tried-and-true methods. But Strategic HRM? It’s all in on the numbers game, using data to guide HR strategies, make informed decisions, and keep everything lined up with the company’s targets. It’s about swapping guesswork for game plans backed by real data, and that is what makes the most difference when it comes to growth, you know?

Conclusion

That’s pretty much it for today. Now, whenever you hear about traditional or strategic HRM in your workplace, you’ll know what impact it can have and what is about to go down, right? But most importantly, you’ll see these two actually when they are being implemented, you know?