Mr Jannie Joop established and founded the manufacturing company, Build It (Pty) Ltd, in 1952.
The company manufactures various industrial abrasives for the automotive industry.
Mr Joop runs the business with a very effective team 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
perform most of the daily tasks required.
Mr Joop 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 Human Resources
Management. You must use examples to demonstrate your understanding.

Question

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# Step 1: Define Both Approaches

- **Traditional Human Resources Management (HRM):**  
  This approach focuses primarily on administrative functions and day-to-day HR tasks such as payroll, record keeping, recruitment, and compliance with employment laws. It is often concerned with transactional activities rather than being integrated into the broader business strategy.

- **Strategic Human Resources Management (SHRM):**  
  In contrast, SHRM sees human resources as a key component of the organization's overall strategy. It involves aligning HR policies and practices with the company’s long-term business goals and making proactive decisions regarding staffing, development, and succession planning. This approach supports competitive advantage and organizational effectiveness.

# Step 2: Key Differences Between Traditional HRM and SHRM

1. **Focus and Objectives:**

- **Traditional HRM:**  
     Focuses on managing routine administrative tasks. Its main objective is to ensure that HR functions are executed efficiently and in compliance with regulations.  
     *Example:* Ensuring that employee salaries are processed on time and that statutory deductions are calculated correctly.

- **SHRM:**  
     Focuses on aligning HR initiatives with the company’s strategic goals. Its objective is to contribute to organizational performance through workforce planning, talent development, and by fostering a culture that supports the business strategy.  
     *Example:* Designing leadership development programs that prepare high-potential employees for future management roles, thereby ensuring leadership continuity as the company grows.

2. **Time Horizon and Proactivity:**

- **Traditional HRM:**  
     Operates on a short-term, often reactive basis. It deals with immediate HR issues such as filling vacancies or addressing employee grievances as they arise.  
     *Example:* Reactively recruiting new staff to replace an unexpected employee resignation without considering long-term talent needs.

- **SHRM:**  
     Takes a long-term and proactive approach. It involves planning for future challenges and opportunities related to the workforce, such as anticipating skill gaps and aligning recruitment with strategic business development.  
     *Example:* Implementing a comprehensive succession planning process to ensure that critical roles are filled with competent talent when current leaders retire.

3. **Role in Organizational Planning:**

- **Traditional HRM:**  
     Often considered a support function that executes policies developed by other departments. HR’s input in organizational strategy is limited.  
     *Example:* Processing routine training sessions based on mandatory compliance requirements without assessing their impact on overall business performance.

- **SHRM:**  
     Positioned as a partner in strategic decision-making, influencing organizational direction through workforce analytics, talent management, and aligning HR strategies with business priorities.  
     *Example:* Using data-driven analysis to forecast future workforce needs in the manufacturing sector and advising on recruitment and training strategies that support the company’s shift towards advanced industrial abrasives production techniques.

4. **Measurement of Success:**

- **Traditional HRM:**  
     Success is typically measured by the efficiency of procedural tasks (e.g., fast payroll processing, error-free record keeping).  
     *Example:* Tracking the average time taken to process payroll or the number of compliance issues recorded.

- **SHRM:**  
     Success is measured by the impact of HR practices on overall business performance, including factors like employee engagement, retention, and contribution to innovation and growth.  
     *Example:* Evaluating the return on investment (ROI) of employee development programs by linking them to improvements in productivity or reductions in turnover rates.

# Step 3: Applying the Concepts to Mr. Joop’s Situation

- **For a Traditional HRM perspective:**  
  Mr. Joop might hire a Human Resources Manager to efficiently manage day-to-day tasks such as handling payroll, maintaining employee records, and ensuring compliance with labor regulations. The HR Manager would focus on maintaining smooth administrative operations within Build It (Pty) Ltd.

- **For a Strategic HRM perspective:**  
  Mr. Joop should look for an HR Manager who not only manages administrative functions but also contributes to the strategic direction of the company. This manager would participate in long-term planning such as workforce planning for expanding production, developing talent pipelines, and aligning HR initiatives with the company’s vision for future growth, especially in a competitive industrial abrasives market.

# Step 4: Conclusion

The key differences between Traditional HRM and SHRM lie in their objectives, scope, and time horizon. Traditional HRM focuses on day-to-day administrative tasks, while SHRM integrates HR activities with the overall strategic goals of the organization. In the context of Build It (Pty) Ltd, adopting a Strategic HRM approach when hiring a Human Resources Manager can help the company not only maintain efficient operations but also drive long-term growth and competitive advantage in the automotive industrial abrasives market.
Traditional HRM focuses on routine tasks like payroll and compliance, while Strategic HRM aligns HR practices with the company's long-term goals. For Mr. Joop, hiring a Strategic HR Manager would help integrate HR strategies with Build It's business objectives, supporting growth and competitiveness in the automotive industry.

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