Mr Jannie Joop established and founded the manufacturing company, Build it (Pty) Ltd, in 1952 .
The company manulactures various industrial abrasives for the automotive industry.
Mr Joop runs the business with a very effective leam 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
pertorm most of the daily lasks required.
Mr Jocp 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 Hurnan Resources
Management. You must use examples to demonstrate your understanding.

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**1. Definition**

- **Traditional HRM:**  
  Focuses on administrative tasks such as payroll processing, hiring, compliance with labor laws, and day-to-day employee management. Its functions are often reactive and operate within well‐defined policies.

- **Strategic HRM:**  
  Integrates human resource management with the overall strategic goals of the organization. It proactively plans for future workforce needs and aligns HR practices with long-term business objectives.

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**2. Focus and Objectives**

- **Traditional HRM:**  
  The main objective is to ensure efficient administrative operation and adherence to existing procedures. For example, the finance manager at Build it (Pty) Ltd might ensure that payroll processing is executed flawlessly according to established rules.

- **Strategic HRM:**  
  Its aim is to create a competitive advantage by developing a workforce that adds value to the business strategy. As an instance, when hiring the new Human Resources Manager, Mr. Joop would expect a professional who can design initiatives that improve productivity aligned with the company’s growth plan. The strategic approach might involve aligning talent acquisition strategies with the goal to innovate new production methods in industrial abrasives.

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**3. Time Horizon**

- **Traditional HRM:**  
  Emphasizes short-term operational needs and day-to-day issues. Their focus is on immediate problem solving such as resolving employee grievances quickly or managing routine compliance.

- **Strategic HRM:**  
  Concentrates on long-term planning, forecasting future manpower needs, and preparing for shifts in the market. For example, if Build it (Pty) Ltd anticipates increased demands in the automotive industry, the HR manager would forecast future staffing requirements to ensure that the company can scale its production capacity over the next decade.

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**4. Role of HR Professionals**

- **Traditional HRM:**  
  HR professionals are primarily administrators who enforce policies and ensure that the company meets legal and procedural obligations.

- **Strategic HRM:**  
  HR professionals are seen as strategic partners who work closely with top management to shape business strategies. They might analyze performance metrics, such as measuring employee productivity with formulas like  
  $$
  \text{Productivity Index} = \frac{\text{Output}}{\text{Input}}
  $$  
  and then devise talent management strategies that enhance this index over time. In the context of Build it (Pty) Ltd, this could mean implementing performance management systems that link employee performance directly to the company’s production efficiency and growth objectives.

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**5. Examples in Practice**

- **Traditional HRM Example:**  
  At Build it (Pty) Ltd, a traditional HR department would focus on ensuring that the recruitment process follows a standardized checklist and that records are meticulously kept for audit purposes. Their role might involve organizing training sessions that are generic and focus on compliance issues.

- **Strategic HRM Example:**  
  A strategic HR approach would involve conducting a skills gap analysis to determine if the current workforce has the competencies needed for future innovations in the manufacturing process. For instance, the new HR Manager might work with the production manager to identify skill shortages and plan targeted training programs, thereby directly influencing the company’s competitive edge in the automotive abrasives market.

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**6. Integration with Organizational Strategy**

- **Traditional HRM:**  
  Typically operates as a separate function with limited interaction with the strategic decision-making process.

- **Strategic HRM:**  
  HR initiatives are fully integrated into the company’s strategic planning. Decisions regarding workforce planning, leadership development, and even the design of incentive systems are made in tandem with the company’s expansion and innovation goals. One might relate the investment in human capital directly to organizational success with a conceptual formula such as  
  $$
  \text{Organizational Success} = \text{Investment in HR} \times \text{Strategic Alignment Factor},
  $$  
  where increasing the strategic alignment factor magnifies the positive impact of HR investment on overall performance.

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**7. Conclusion**

While traditional HRM maintains the essential administrative functions necessary for day-to-day operations, strategic HRM elevates the role of HR to that of a key contributor to long-term business success. By aligning HR practices with strategic goals, companies like Build it (Pty) Ltd can ensure that every HR decision supports broader business objectives, thereby creating a resilient and future-ready workforce.
**Key Differences Between Traditional HRM and Strategic HRM:** 1. **Focus:** - *Traditional HRM* handles administrative tasks like payroll and compliance. - *Strategic HRM* aligns HR practices with the company's long-term goals. 2. **Objectives:** - *Traditional HRM* aims to efficiently manage day-to-day operations. - *Strategic HRM* seeks to create a competitive advantage through workforce development. 3. **Time Horizon:** - *Traditional HRM* focuses on short-term needs. - *Strategic HRM* plans for the future and long-term growth. 4. **Role of HR Professionals:** - *Traditional HRM* is primarily administrative. - *Strategic HRM* involves partnering with top management to shape business strategies. 5. **Integration:** - *Traditional HRM* operates separately from strategic planning. - *Strategic HRM* integrates HR initiatives fully into the company's strategic planning. 6. **Examples:** - *Traditional HRM* ensures compliance and standard processes. - *Strategic HRM* conducts skills gap analyses and designs targeted training programs. 7. **Impact on Organizational Success:** - *Traditional HRM* supports basic operations. - *Strategic HRM* directly contributes to long-term business success by aligning HR with company goals. In summary, while traditional HRM focuses on maintaining administrative efficiency, strategic HRM elevates HR practices to support and enhance the company's overall strategic objectives, ensuring a more aligned and competitive workforce.

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