Mr Jannie Joop established and founded the manufacturing company, Build It (Pty) Ltd, in 1952.
The company manufactures vanous industrial abrasives for the automotive industry.
Mr Joop runs the business with a very effective team consisting of a finance manager, a production manager, a marketing
manager and a sales manager. Each manager has a supervisor reporting directly to him and lower-level workers who
perform most of the daily tasks required.
Mr Joop wants to hire a Human Resources Manager and approaches you, an HR professional, for advice.
Traditional HRM (Human Resource Management) and Strategic HRM (Strategic Human Resource Management) are two
approaches to managing human resources within an organization. While both approaches are concerned with managing
people in the workplace, they differ in their focus, objectives, and methods.
2.1. Discuss the key differences between Traditional Human Resources Management and Strategic Human Resources
Management. You must use examples to demonstrate your understanding.

Question

UpStudy AI · Accepted Answer

### Step 1: Define Traditional HRM and Strategic HRM

- **Traditional HRM** is primarily administrative and operational. Its main functions include:
  - **Recruitment and selection**
  - **Payroll administration**
  - **Employee relations**
  - **Legal compliance**  
  The objective is to manage people effectively through established policies and procedures.

- **Strategic HRM** integrates human resource practices with the overall strategic goals of the organization. Its functions extend to:
  - **Talent management and succession planning**
  - **Workforce planning**
  - **Development of competitive advantage through human capital**
  - **Change management and culture shaping**  
  The focus is on aligning HR strategies with long-term business goals.

### Step 2: Discuss Key Differences

1. **Focus and Scope**  
   - *Traditional HRM:*  
     Focuses on day-to-day HR operations, such as administering benefits, managing employee records, and ensuring compliance.  
     *Example:* In Build It (Pty) Ltd, traditional HRM would handle routine tasks like processing payroll for the finance, production, marketing, and sales teams.
     
   - *Strategic HRM:*  
     Concentrates on long-term planning and linking HR strategies to the overall business strategy.  
     *Example:* At Build It (Pty) Ltd, a strategic HR approach might involve developing training programs that not only improve current performance but also build a pipeline of future leaders, supporting the company’s long-term competitiveness in the automotive industry.

2. **Time Orientation**  
   - *Traditional HRM:*  
     Is typically short-term and reactive. The emphasis is on immediate issues such as resolving conflicts or ensuring compliance with labor laws.  
     *Example:* Addressing a recent dispute between lower-level workers in the manufacturing unit by applying established policies.
     
   - *Strategic HRM:*  
     Is future-oriented and proactive. It involves forecasting future HR needs and planning initiatives that align with predicted challenges and opportunities $$e.g.,$$ anticipating shifts in the industrial abrasive market.  
     *Example:* For Build It (Pty) Ltd, forecasting the need for specialized skills in advanced manufacturing techniques and preparing by investing in targeted employee development programs.

3. **Role in Organizational Decision-Making**  
   - *Traditional HRM:*  
     Functions in a support role, primarily handling administrative tasks and ensuring that HR policies are followed.  
     *Example:* Ensuring that employee benefits are administered as per established guidelines without necessarily informing business strategy.
     
   - *Strategic HRM:*  
     Acts as a partner in decision-making, contributing to the formulation and implementation of company strategy. The HR manager is involved in high-level planning such as mergers, acquisitions, or shifts in production strategy.  
     *Example:* Advising the leadership at Build It (Pty) Ltd on how human resource investments can drive innovation in manufacturing processes to gain a competitive edge.

4. **Measurement of Success**  
   - *Traditional HRM:*  
     Success is measured by efficiency in administrative processes. Metrics might include turnover rates, compliance rates, and processing times for HR tasks.  
     *Example:* Evaluating how quickly and accurately payroll is processed for each department.
     
   - *Strategic HRM:*  
     Success is measured in terms of how well HR initiatives contribute to the organization’s long-term strategic objectives. Metrics may include:
     $$
     \text{ROI in training programs} \quad \text{or} \quad \text{employee productivity improvements over time}
     $$
     *Example:* Assessing how reduced turnover and enhanced employee performance contribute to higher production output in response to market demands.

### Step 3: Concluding Example for Build It (Pty) Ltd

- With **Traditional HRM**, the hiring of a new HR Manager at Build It (Pty) Ltd would focus on ensuring compliance with labor laws, managing employee records, and handling day-to-day conflict resolutions.
  
- With **Strategic HRM**, the HR Manager would:
  - Develop comprehensive workforce planning to support the company's goals in industrial abrasives.
  - Align training programs with upcoming technological advancements in production.
  - Engage in succession planning, ensuring that key positions in finance, production, marketing, and sales have well-prepared successors.
  - Act as an advisor on change management during process re-engineering or expansion decisions.

This strategic approach not only supports current operational needs but also builds a competitive and adaptive workforce, ensuring long-term sustainability and growth for Build It (Pty) Ltd.
**Traditional HRM** focuses on day-to-day administrative tasks like payroll and employee relations, while **Strategic HRM** aims to align HR strategies with the company's long-term goals, such as talent development and workforce planning. For Build It (Pty) Ltd, Strategic HRM would involve developing training programs to support future leadership and aligning HR initiatives with the company's competitive strategy in the automotive industry.

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