Need for a change from Traditional to Strategic HR management?      

Why there is a need for a change from Traditional to Strategic HR Management?

Why there is a need for a change from Traditional to Strategic

By Clara Lincy | Blog | November 3, 2021

One of the most important parts of an organization is Human Resource Management. It is the backbone of any company, as it provides employees with what they need and helps them grow in their work environment. Traditional HR management has been around for decades, but this type of management has begun to show its flaws and limitations in recent years. Strategic HR management offers a new approach that will change how companies are run forever.

The HR department’s job is to recruit, train and retain the best talent for an organization. Traditional HR management is a reactive decision-making process where many decisions are made without considering future challenges. When it comes to traditional vs strategic HR, the former approach is criticised for being outdated and not meeting the needs of employees or stakeholders anymore due to new challenges such as the current pandemic situation, innovative technology, digitization, AI, etc.  The HR trends have changed as per the top 10 US HR industry trends for 2021.

What is Traditional HR management?

HR managers have been traditionally responsible for hiring employees, managing pay reviews and meeting other regulatory requirements such as complying with the legislation such as Equal Pay Act, National Labor Relations Act, and Americans With Disabilities Act, health insurance coverage, retirement plans like 401(k)s or pensions (if possible), company stock options for long-term commitments to increase profits, among other things. Managers are not required to come up with any type of strategy that will actually help their workers grow in their positions and develop new skills.

Traditional HR Management is not strategic because it lacks a long-term view of an organization’s goals and focuses on short-term activities that help in meeting immediate needs.

What is Strategic HR Management?

Strategic HR Management has been around since the early 1980s but it is being adopted by many organizations now due to new challenges coming from outside sources such as globalization, outsourcing, and technology innovation. This strategy offers many benefits which include staff retention, training opportunities, development, lower turnover rates, competitive wages or incentives, and higher employee engagement.

Strategic HR management takes a different approach when it comes to how companies operate internally from an employee standpoint. It helps create a more enjoyable work environment for employees as well as helping them grow in their careers by maintaining an open dialogue about potential career paths they can take with the company.

Traditional vs. Strategic HR

1. Traditional HR management is focused on the employee’s needs and tries to meet them as best they can. This type of management goes by policies without considering future trends. Strategic HR Management sets up plans for the organization’s goals with an eye toward all aspects -people first, then work systems and market demands.

2. The difference between traditional vs. strategic HR management is mainly based on mindset. One being more reactive than proactive, while the other focus on anticipating changes before it even occur.

3. HR management focus on meeting employee’s benefits, however, this strategy became outdated due to globalization, technology innovation, labour laws, etc. including the current pandemic conditions. Strategic HR Management is more about anticipating change and making decisions that meet the needs of employees, business objectives, and stakeholders.

4. Strategic HR Management takes a long term view of where an organization wants to go, while Traditional HR Management focuses on short-term activities that help in meeting immediate needs.

5. Traditional approach relies heavily on administrative rules, regulations, and policies, while strategic HR develops strategies using data analysis tools such as databases or predictive models for forecasting workforce demands

6. The traditional HR approach focuses on “doing things right” while the strategic approach forces attention to “why we are doing them”.

7. Strategic HR management have a clearer idea about what type of people you need for your organization, whereas, traditional HR practices would simply prefer termination at will.

Why there is a need for a change from Traditional to Strategic HR management?

HR management has always been based on a top-down approach. This is because, historically, organizations have relied heavily on the expertise of managers and executives to make decisions for their subordinates. These were often HR managers who had experience in recruiting or training staff members at other companies or even previous employers. The scenario was that workers didn’t have the same level of expertise in these matters and therefore required supervision.

As time has gone on, it becomes increasingly clear that this traditional approach is outdated for several reasons:

  • With the advent of a new generation and their demands for higher salaries and more creative tasks, there is a need for innovative approaches in order to retain employees including performance-based incentives, training and development programs, etc.
  • There are millions of employees who already have a high degree of expertise in respective job profiles when it comes to human resources issues e.g. training or recruitment.
  • Due to rapid advancements in technology, it is necessary to be aware of these trends and stay on top of them so as not to fall behind or miss out on opportunities.
  • Many corporations are realizing that it is more efficient and cost-effective for their employees to solve problems on the front lines through improved training. This has typically been true of service firms where workers can often identify customer needs before they’re even expressed.
  • Thinking about the future challenges that will come their way and then react in order to meet these expectations.
  • The workforce has evolved to include more and more women who are balancing their responsibilities at work with an equal share of duties in the home.
  • There is a growing number of employees who are in their twenties and thirties with years of experience on the job. It is often these individuals who can provide valuable input about how best to train new staff members for positions requiring specialized knowledge.

Conclusion

The bottom line is that the traditional approach to HR management needs a change. This can be accomplished by making it possible for employees with relevant expertise to make decisions about such matters without being micromanaged or overruled by managers and executives who are not in tune with their day-to-day work environment, challenges, or needs. We have seen a lot of organizations change the way they manage human resources by switching from Traditional practices and adopting strategies like strategic HR management. There are many benefits associated with this process including higher levels of staff retention because employee engagement policies like providing training opportunities.