Executive summary

Strategic human resource management plays an essential role in enabling an enterprise to

succeed and run smoothly. The rapid growth in innovation and its consequences have a
significant impact on every industry category. As a consequence, the marketplace is
constantly shifting, which affects businesses. Because it is current and practical for
organizations today, they adopt strategic human resource management to stay
competitive. Aligning the procedures of HR with company objectives is the core goal of
strategic human resource management in order to improve effectiveness, accommodate
shifts, and promote success over the long run.
The primary objective of this paper is to elaborate on all elements of strategic human
resource management, including what they mean and disparities, the reasons why they
should be used, and the outcomes and clarify the effects when utilizing strategic human
resources in the context of a business.

Introduction
Traditional HRM frequently operates separately from strategic goals and is focused on
managerial responsibilities and regulations. Managerial creativity and versatility may be
hampered by its reactive traits. While maintaining the fundamental labor operations, it
can neglect individuals' opportunities to be strategic people who contribute, which would
restrict its ability to improve the company's overall efficiency. On the other hand,
Strategic HRM fosters creativity and versatility by integrating human resource practices
with corporate objectives. It promotes a proactive attitude toward transformation by
matching staff talents to changing marketplace requirements. It improves retained staff
and fosters an environment of commitment and long-term company efficiency through
fostering this sort of atmosphere. This paper's major purpose is to expound on Traditional
HRM and Strategic HRM, their explanations and distinctions, the drives for accepting
Strategic HRM, what it has accomplished, and their repercussions. At the extremely least,
this study offers a few suggestions that can help businesses in need.
Problem statement:

Definitions and Differences:

Traditional HRM: Traditional HRM (human resource management) is the term used to
describe how firms typically control their employees. Management generally involves
handling administrative duties including hiring, paying employees, complying with
regulations, and managing interactions with workers. Individuals are seen as essential
elements not as strategically valuable assets according to traditional HRM, which
frequently functions in separateness from larger business objectives and plans. A reacting
approach, administrative decisions, and restricted involvement in shaping results at work
are some of its primary characteristics.

Strategic HRM: Strategic human resource management (SHRM) has become more
broad. In order to guarantee sustainable employee talent properly contributes to
accomplishing the corporation's objectives regardless of whether it entails coordinating
human resources operations with company objectives. The SHRM strongly emphasizes
collaborative strategy for both top-level managers and human resource specialists as well
as preparedness and long-term thinking. It acknowledges that workers are important
sources of differentiation and work to maximize their capacity, determination, and
involvement. SHRM provides an essential function in boosting broad company
productivity and flexibility in complex corporate contexts by concentrating on issues like
managing employees, organizational atmosphere, and changing circumstances.

Strategic HRM and traditional HRM differ considerably from one another of them in
terms of explanations, methods of functioning, and other factors as well. The distinctions
are:

1. Traditional Human resource management is the organized and methodical

handling of an organization's workers ("Difference between HRM and SHRM,"
2018). On the other hand, strategic human resource management is a management
 task that involves organizing HR methods to focus staff work on achieving an
organization's objectives ("Difference between HRM and SHRM," 2018).
2. A group of workers using a traditional HR strategy fails to make choices on
information but strategic human resource management relies heavily on data-
driven decisions (Jotform, 2021).
3. The traditional HRM approach is a reactive one, On the opposing present,
strategic HRM is an organizational initiative that is proactive (Jotform, 2021).
4. Traditional HRM places the role of leading the employees on the staff's
professionals, although strategic HRM places this obligation on the line
supervisors ("Difference between HRM and SHRM," 2018).
5. Strategic HRM promotes long-term corporate objectives and benefits rather than
short-term ones that are supported by traditional HRM ("Difference between
HRM and SHRM," 2018).
6. The traditional HRM serves the position of a shift companion in the field of
human resources, responding to change by pursuing a transactional leadership
technique, a human resources manager needs transformational leadership because,
in contrast to SHRM, they are leaders of change or followers("Difference between
HRM and SHRM," 2018).
7. Capital, goods, and strict staff management are the main components of
traditional HRM, However, as personnel and their skill sets are the foundation of
SHRM, none of this oversight is implemented; instead, the guidelines governing
human resources are flexible("Difference between HRM and SHRM," 2018).
8. Strategic HR administration has displaced traditional human resource
management in numerous businesses due to offers several advantages over
traditional HR(Jotform, 2021). A strategic HRM procedure can assist a company
with greater efficacy than a conventional one in achieving its intended objectives
of growing revenues, reaching new client groups, or growing its share of the
market(Jotform, 2021).

Considering the aforementioned justification, it should be understood that

traditional HRM and strategic human resources management are different in
 several regards (Jotform, 2021). Traditional human resource management places
an emphasis on expertise and the segregation of staffing, although strategic
human resource management places an emphasis on adaptability, collaborative
training, and teamwork when designing jobs(Jotform, 2021).

The problem associated with Traditional HRM practices:

Absence of Strategic Alignment: Traditional HRM can frequently run counter to the
overall company mission. This divergence prevents the effective use of employees by
creating a distance between HR procedures and corporate objectives.

1. Reactive Approach: Traditional HRM often utilizes a reactive strategy, dealing

with problems as soon as they come up as opposed to proactively preparing and
anticipating them. Such a reactive approach may make it more difficult for the
business to adjust to alterations and seize potential.

2. Inadequate Engagement among Workers: Individual growth and engagement may

not be prioritized in traditional HRM, which results in an unhappy workforce that
impedes productivity, creative thinking, and ultimately satisfaction among staff
members.

3. Lack of Independence: Traditional HRM procedures may not be adaptable

sufficiently to meet the changing requirements of a contemporary labor force,
encompassing remote employment, flexible scheduling, and a range of
competencies
4. Undervaluing Human Capital: Traditional HRM tends to view workers as
expendable materials without appreciating their ability to serve as strategic
investments. This perspective points of view may lead to the insufficient use of
abilities and wasted chances for creativity.
 5. Lack of Diversity and Integration: Traditional HRM may fail to recognize the
crucial role of diversity as well as inclusion, and this may discourage a company
from using a variety of viewpoints and skills.

Ultimately, past concentrations on managerial duties, reactive methods, and a lack of

coordination with organizational goals are the core causes of difficulties with traditional
HRM. To successfully handle such problems as well as completely utilize the immense
value of human assets, firms must make the switch to strategic HRM.

Result and Discussion

How Traditional Human Resource Management Affects Human Resource

Management Functions:
Implementation of creative ideas plays a bigger part in the strategy management of
personnel, according to both corporate and research in academia (Som, 2007). The
perspective for strategic growth of the HRM department is frequently constrained by
traditional HRM's concentration on interactions that involve transactions and
administration chores. However, this approach may lead to fixed job descriptions, a
hierarchy-based system for making choices, and other issues. Traditional HRM can
inhibit creativity and the capability of the company to adapt to changing corporate needs
by placing a higher priority on productivity in administration than on worker participation
and growth. The HRM function's capabilities to offer information-driven advice and
actively support the objectives of the business can also be hampered by an aversion to
modification and a lack of adoption of technologies.
Factors/ Roles that Influence Organizations to Shift Towards Strategic Human
Resources Management:

Businesses utilize strategic human resource management in order to sustain their

competitiveness, adaptability, and productivity over a long time in the face of
complicated and changing commercial circumstances. The factors are:

1. Strategic Planning: The change from reactive management in response to

operational priorities and subsequent planning operations to proactive scheduling
inside the company stands at the heart of the strategy execution key aspect(Polc,
2022). The development process must be structured around the company's major
priorities, along the Human Resources Manager Section must keep to the strategic
guidance established by the highest levels of the company's management,
Although Strategic HR may think it is simple to execute, the HRM Section must
put in plenty of work(Polc, 2022).
2. Superior workplace cultures: Transferring duties from superiors onto individual
workers and encouraging personnel to operate independently while keeping the
company's financial goals paramount are two key components of a business
climate(Polc, 2022). On the reverse present, the Personnel and Training Function
must create a completely novel framework for overseeing performance that
supports the connection connecting worker effectiveness at both the personal and
corporate levels(Polc, 2022).
3. The abilities of individuals: Shifting the strategic HRM Functional serving
alongside the sources providing activity to supply the most qualified individuals
for engagement to the organizational support group assisting in pinpointing the
shortages in the company's staff with appropriate orientation and learning
activities is what the Human Resources Major Outcome Factor is all
regarding(Polc, 2022). The Talented Individuals Essential The achievement
Element separates people into many groups, but one specific set of personnel is a
 beneficiary of significant expenditures in staffing and, therefore might cause some
conflict within the corporation(Polc, 2022).
4. Supervisory leadership: Another crucial element to include in the attempt to
bring about the Strategic HR Framework in the firm is Managerial Key
Excellence(Polc, 2022). The HRM functions to cooperate with supervisors to help
them find the labor force just like the company's most important resource, one
that requires investment and growth, is the focus of the executive level's essential
achievement aspect(Polc, 2022). The managerial key to success provides the
company's strategy for dealing with its workforce and its workforce
advancement(Polc, 2022). To ensure an inflow of effective managers who can
fuel growth within the organization, SHRM places a strong emphasis on building
leadership skills and succession analysis.
5. Advances in technology: The most important components of today's business
climate are those who are correct at the correct moment in order to access the
proper KSAs, staff readiness for innovation, and innovation in technology(Saha et
al., 2016). The methodology used by SHRM plays a critical role in increasing
capacity and fostering the development of educational entities through the rise of
skills creation processes with people, groups, and organizations through modern
technology(Saha et al., 2016). In order to fulfill the demands of modern workers,
who desire valuable employment, chances for progress, and a healthy balance
between work and personal life, SHRM places a strong emphasis on personal
growth, cooperation, and fulfillment.
6. Priorities for Employees: The essential principle of strategic HR management is
that you must maintain your staff content and keep your organization
growing("Strategic Human Resource Management Guide," 2022). As the division
most frequently responsible for the oversight and growth of people, HR must be
included in the mix and given a seat at the table alongside other
departments("Strategic Human Resource Management Guide," 2022).
7. Workplace dynamics are evolving: Nowadays, it's equally important to increase
the social and personal competitive advantages of staff members it's also
important to figure out where they are able to thrive with others in this evolving,
variable world while also sustaining and growing their collective gaining
knowledge(Saha et al., 2016). The recruiting, loyalty, and development needs of a
multicultural and intergenerational population must be met by way of customized
methods from SHRM.

Consequences of Successful Strategic HRM Practice:

Real-life example
Presently, very few businesses are sincerely committed to changing their
approaches to human resources in order to improve company success, and as
previously said, personnel is necessary to break HR from its traditional cluster
and integrate it strongly along with company strategy("Just a moment..," n.d.).

Google observed that traditional HR procedures had fallen behind the shifting
requirements of a fast-changing employee("Innvocon," n.d.). To handle this, the
firm adopted a new strategy that emphasized data-driven choice-making and
empowerment of employees("Innvocon," n.d.). Utilizing creative concepts with
attractive rewards, Google created an important shift from its traditional strategy
to an alternate strategy for hiring and choosing workers(Thomas & Karodia,
2014). This allows businesses to avoid the stress of legal proceedings, collective
bargaining, and revenue losses(Thomas & Karodia, 2014). The shift from the
intuition-based strategy to recruiting and hiring to a technical database-based
technique had a major impact on finding an excellent applicant(Thomas &
Karodia, 2014). The company's capacity to differentiate itself from rivals provides
appealing packaging, which acts as a draw factor for Google(Thomas & Karodia,
2014). "Several of the perks consist of time flexibility, the ability for workers to
wear clothes casually at all times, the ability for personnel to accompany their
canines to work each and every moment, on-spot appointments, on-site dental
treatments, wellness programs, free stroke and meditation, workers stock awards,
free food and beverage on campus, along with complimentary meals which
involves breakfast, noon meal, as well dinner(Thomas & Karodia, 2014)." Google
also gives its workers a full month of leisure within the initial twelve months of a
job, as well as free amusement such as gaming consoles, soccer, tennis, and so
on(Thomas & Karodia, 2014). Such a significant breakthrough was the
development of Workforce Analytics, which is a methodology based on data that
enabled HR practitioners to dynamically recognize and solve organizational
issues("Innvocon," n.d.). The use of this method aided Google to improve
optimizing its selection procedures, identifying top performers, and developing
enhanced assessments of performance structures("Innvocon," n.d.). A further
significant attempt was the creation of a psychologically secure atmosphere in
which staff members are given permission to take chances, communicate their
concepts, and acquire knowledge from their shortcomings without worrying about
criticism or retaliation("Innvocon," n.d.). Its environment encourages creativity
and ingenuity, enabling Google to recruit and maintain top talent("Innvocon,"
n.d.). A further vital component of Google's Personnel approach is the emphasis
on the well-being of staff members and Google is putting in place a number of
activities to encourage both mental and physical well-being, such as in-person
exercise centers, nutritious dining alternatives, relaxation techniques like
meditation sessions("Innvocon," n.d.). They have contributed to the development
of an organizational environment that emphasizes and encourages worker
wellness, causing increased work experience and decreased absence and
resignation rates("Innvocon," n.d.). A happy onboarding The developer assists
freshly hired workers in adjusting to what they do by developing greater
connections to: 1. Enhance job satisfaction, which in ultimately permits promote
relationships; 2. Describe transportation requirements and objectives, which
improves profitability; 3. Provide encouragement, which contributes to
minimizing unwelcome layoffs by way of suggestions and guidance(Thomas &
Karodia, 2014). Google when they follow traditional HRM practices in their
organization,
 1. Recruitment and Selection: The company's hiring procedure was not as
efficient and effective the way it would eventually grow to be. Variations
in the employment procedure are possible to have occurred.
2. Performance Management: Despite the organization possibly having an
evaluation system it may not have seemed as based on information with an
eye on continual enhancement as it eventually evolve
3. Compensation and benefits: these may not be considered developed as
strategically in correspond to the organization's objectives as objectives.

Google's approach to human resources changed significantly after the

deployment of strategic HRM standards:

1. Development of Workers: Google has made significant investments in initiatives to

promote staff development. They established programs such as the well-known "20%
moment," in which staff were given permission to devote a part of their workday to their
private hobbies.
2. Performance Management: Google turned towards yearly evaluations of productivity
and instead constant dialogues both executives and staff in terms of performance
administration. This promoted the values of openness and progress.
3. Wage and Advantages: Google's reward system evolved, adding incentives that depend
on performance and employee-centric rewards. This strategy was designed to attract and
stay with elite people.
Google's HR changes have proved a tremendous fulfillment which has created employees
that are more adaptable, willing to change, and strong. As an administrator dedicated to
superior performance, I am excited to understand greater detail about these as well as
additional new HR practices and to consider how I may implement them in their own
business("Innvocon," n.d.). Google represents an excellent illustration of how strategic
human resource management can be utilized to establish an optimal work atmosphere and
recruit the finest individuals ("What is strategic human resource management? Definition
and examples," 2023).
Conclusion:

Following are a few tips for implementing Strategic Human Resource

Management (SHRM) procedures inside businesses:

1. Integrate HR with the organization's Strategy: Assure that HR

objectives, as well as efforts, are in alignment with the broader business
objectives. In order for HR to make a real difference in the achievement of
these targets, it is important for a thorough grasp of the the business's
purpose, strategy, and desired outcomes.
2. The Human Resources Department Decision-Making Participation:
HR specialists should be included in essential decision-making procedures
in order to raise their position to that of a crucial collaborator. Their
knowledge of hiring, hiring strategy, and growth at work might boost the
level of expertise and results of decisions.
3. Performance supervision: Establish a method for managing productivity
that integrates personal goals with corporate desired outcomes. Personnel
with proper KSA who receive frequent feedback, supervision, and
appraisal reviews are better able to grasp how they fit into the overall
strategy.
4. Encourage Diversity & Inclusion: Develop a varied and accepting
workforce. Inclusion guarantees that every person feels appreciated and
does what they best, while diversity delivers a variety of opinions and
thoughts that enhance ingenuity and solutions to problems.
5. Support in Personnel Training and Enhancement: By funding training
for employees, you can create a community of perpetual growth. This not
only improves people's talents individually but also helps create an
employment force that possesses greater adaptability and flexibility.
Employers may effectively adopt strategic HRM by practicing these
recommendations, which will help their HR procedures match up with
company objectives for greater company efficiency and profitable growth.