Human Resource Management is the management of human resources. Traditional HRM’s are primarily concerned with the management and commitment of people within an organization through payroll, compensation, staffing, and policy policing. Traditionally the commitment to an organization was sought by attending to the social needs of employees through picnics, ice cream socials, and campaigns. Strategic HRM’s not only include the traditional aspect of human resources, but are also committed to outcomes. They are empowered by senior leaders to attain organizational excellence by focusing on quality, teamwork and ensuring that employees are fully engaged in the organization. Strategic HRM’s have set goals and are accountable for the results (Ulrich 1998).
The railroads and early oil companies were run with traditional “professional management” where a manager lead the organization, set direction and supervised the work of the employees (Bersin 2012). This was an organization where the system came before the people. In shifting from “system before the people” to “people come before the system” people have a voice in management discussions and are more engaged. “Today’s high performing organizations now move so fast that their product cycles move in months, not years. People are hired and rewarded for their deep expertise, not their ability to follow instructions (Bersin 2012). In this non-traditional work environment, people have a voice, they are able to work from home, they have flexible hours, resources available to them which in turn makes them feel committed to the organization and are fully engaged.
Traditional HRM is the underlying attribute that has been shifted from the “HR department” to a one stop shop via the internet in my company. There is no longer a need to stop by HR to file paperwork, change W4, add a dependent. Logging into our OneHR, we have the “traditional” HR at our fingertips with guidance a click away. This shift has allowed for a strategic HRM to develop and focus on outcomes of our organization. The HRM is no longer just an administrative regulatory watchdog, but offer employees opportunities for personal and professional development among other things. For this shift to happen, we had to undergo a cultural change as an organization and HR was there to help in that transition.
Ulrich, D. (2014, July 31). A New Mandate for Human Resources. Retrieved January 19, 2017, from https://hbr.org/1998/01/a-new-mandate-for-human-resources
Bersin, J. (n.d.). Have Traditional Human Resources Practices Become Out of Date? Retrieved January 19, 2017, from http://blog.bersin.com/have-traditional-human-resources-practices-become-out-of-date/
Traditional HRM is focused more on the formalities of people management, having the correct forms on file, recruitment, and payroll. Strategic HRM is about utilizing the HR professional to be a strategic player in the organization. To recruit, retain, and develop employees to meet the strategic business plan and the goals of the organization. One of the main differences between HRM and SHRM is “the fact that strategic human resources professionals are recognized as being strategic partners within the company. They work alongside top executives and other management professionals to determine how to best fit human resources initiatives within the overall strategic trajectory of the organization” (Lewis, 2017).
Government agencies use traditional HRM functionalities as it is not important to align the staff with the strategic mission of the business. Most government agencies are focused on performing a function and not growing or making money, therefor they do not need to use SHRM. Strategic HRM would be found in growing, successful companies that understand the importance of developing people and having your staff be part of the overall mission of the company. Companies that understand the importance of quality of work life understand that success requires extensive training for the staff and managers, as well as a willingness to share power and experiment with new ideas (Cascio, 2016, p. 23).
In my organization we strive to maintain the best customer service in our field and among our competition. We hire, train, and develop our employees to know and understand that THEY are constantly being judge and rated by our patients and we want them to be the best. We also emphasize that we are the best because of them. Every month our HR department gathers positive reviews from patient satisfaction surveys and online reviews and sends a companywide “Shout Out” email to all the staff and physicians naming the top employees who received several positive reviews. This recognizes their hard work and creates a positive atmosphere for them to keep trying to get positive reviews.
Lewis, J. (n.d.). The Difference Between Strategic & Traditional HR. Retrieved January 19, 2017, from http://smallbusiness.chron.com/difference-between-strategic-traditional-hr-37372.html
 Original forum question was: a) describe major differences between traditional HRM and strategic HRM,
b) explain which types of organizations (if any) will traditional HRM fit most and which types of organizations (if any) will strategic HRM fit most? Explain why.
c) provide an example of one particularly successful strategic HR function in YOUR organization. If no example like this can be provided, suggest ONE strategic change in the HR functionality that can benefit your organization.