HRM Vs SHRM

 

Traditional HRM

Traditional HR handles fundamental HR duties including managing administrative procedures associated with hiring and terminating people and enforcing company standards.

The systematic management of human resources is known as human resource management, or HRM. It is a method designed to increase employees' performance, or to make them more effective and productive. It is focused with using management concepts to manage organizational personnel while taking into account the entity's policies and processes. It involves making the greatest use of the organization's small pool of skilled workers.

Traditional HRM is lightly coupled with organizational goals. They help organizations in the form of ;

• Recruiting new resources when required, Terminate employment.
• First point of contact for basic employee questions over benefits & their limitations, payroll, culture, and work ethics.
• Broadcast messages to the entire organization on its cultural activities.

You can see it’s more toward managing employee problems, employee concerns, and managing labor relations. And basically, it means traditional HRM plays a reactive role in the organization.

Strategic HR Management

In contrast, Strategic Human Resource Management (SHRM) has a broader approach. A strategic HR manager is focused on forming a long-term strategy. For example, when they are looking to hire for a position, they are considering future growth projections and goals of the company.

SHRM is more tightly coupled with organizational goals. SHRM is focusing on how human resources help the future of the business. It aligned with long-term goals of the organization. This more proactive role in contrast to traditional HRM.

SHRM major goal is to boost company performance, sustain an innovative culture, and continuously seek out ways to obtain an edge over competitors.

Examples of strategic HR management tasks:

• Align recruitment with keeping in mind the long-term goals.
• Training employees to match with organizational goals.
• Creating the employee handbook.
• Training employees and those training help employees reach the company’s goals.

Comparison Chart

Source: Environment of Human Resource Management

Contemporary HR Management

Today's HR manager identifies as a partner or business leader of the business. As its role has been changed to cater to support the business goal. 

However, it is not uncommon for HR management to struggle with finding the time to focus on strategic functions. Since human resource managers are often managing many administrative and risk mitigation tasks that require significant time and resources, they often take precedence over strategic activities.

Human resource management practices will continue to evolve with changes in the market and with modern business practices. While HR has moved in the direction of strategic HR management, it is not uncommon for today’s HR managers to manage with a traditional approach.

Conclusion

The aforementioned details have covered the differentiation between HRM and SHRM.

In human resource management, specialization and the division of labor may be found in the job design, but flexibility, cross-training, and teams can be found in the job design in strategic human resource management.

References

Mitchell E. Daniels Jr. (June 12, 2019). School of Business, Purdue University, [online] Available from: https://business.purdue.edu/news/features/?story=5674#:~:text=A%20strategic%20HR%20manager%20is,strategic%20HR%20managers%20work%20proactively [Accessed on 17.04.2023].

Surbhi S. (January 20,2018). Key Differences [online] Available from: https://keydifferences.com/difference-between-hrm-and-shrm.html [Accessed on 17.04.2023]