Traditional HR versus Strategic HR

SHRM realizes that people can make or break an organization because all decisions made
regarding finance, marketing, operations or technology are made by an organizations people.
So it accords highest priority to managing people and tries to integrate all HR programs and
policies with the overall corporate strategy. It compels people at all levels to focus more on
strategies issues rather than operational issues. More importantly it believes that there is no
best way to manage people in any given organization. Even within a given industry HR practices
vary extensively from one organization to another Armed with such a flexible approach. SHRM
to develop a consistent, aligned, collection of practices programs and policies to facilitate the
achievement of the organizations strategic objectives.
Strategic HR shifts attention as against the traditional HRs focus on employee relations to
partnership with internal and external groups. The focus on managing people is more systemic
with an understanding of the myriad factors that impact employees and the organizations and
how to manage multiple relationships to ensure satisfaction at all levels of the organization,
strategic HR is transformational in nature, in that it helps the people and the organization to
adopt learn and act quickly. It will make sure that change initiatives that are focused on creating
high performance teams, reducing cycle time for innovation or implementing new technology are
defined, developed and delivered in a timely way.
Strategic HR is proactive and considers various time frames in a flexible manner. Likewise it
permits employees to process work and carry out job responsibilities in a free flowing way.
Rather than being enveloped by tight controls and excessive regulations, operations are
controlled by whatever is necessary to succeed and control systems are modified as needed to
meet changing conditions. Job design is organic specialization is replaced by cross training and
independent tasks are replaced by teams, encouraging autonomy at various level. Above all
strategic HR believes that the organizations key assets are its people. It realizes that an
organization can have competitive edge over its rivals if it is able to attract and retain knowledge
workers who can optimally utilize and manage the organizations critical resources. In the final
analysis people are the organizations only sustainable competitive advantage. While running
the show strategic HR, of course argues that any individual in an organization who has
responsibility for people is an HR manager regardless of the technical areas in which he or she
works.

Strategic HR offers three critical outcomes: increased performance, enhanced customer and
employee satisfaction and increased shareholder value. These outcomes are accomplished
through effective management of staffing, retention and turnover processes, selection of
employees that fit with both the organizational strategy and culture, cost effective utilization of
employee through investment in identified human capital with the potential for higher return ;
integrated HR programs and policies that clearly follow from corporate strategy facilitation of
change and adaptation through a flexible more dynamic organization ;and tighter focus on
customer needs, emerging markets and quality .