Traditional Human Resources (Personnel Management) Vs.

Strat

S.No Key Issues Traditional HR

1 Fundamental Mind-set
2 View of organization
3 Education & Training
1.Transactional
2.Compliance/enforcement orientation
1.Micro
2.Narrow skill application
1.Traditional HRM (HR specialist)
2.Limited business acumen

4 Critical skills 1.Organization

2.Compliance

5 View of the employees 1.Heads, costs

2.People are exploitable resources
6 Timeframe 1.Short term, immediate needs
7 Process/outcome orientation
1.Primary concern for process
2.Process control
8 Risk 1.Low risk taking
2.Reliance on proven approaches
9 Response to change 1.Inflexible to change
10 HR systems and practices 1.Routine, established programs and
systems (e.g., traditional training programs)

11 Approach to system develop-

1.Reactive-benchmarking, best practices
ment 2.Responding to stated needs
12 Primary area of practice 1.Transactions, highly repetitive in nature
(e.g., recruitment/selection, training,
compensation, labor relations)

13 Status in organization 1.Weak

l Management) Vs. Strategic Human Resources (SHR)

Strategic HR (SHR)
1.Transformational
2.Consultative orientation
1.Macro
2.Broad skill application
1.Basic business competencies
2.HR education/training with emphasis
on the following:
*Organizational theory
*Organizational culture
*Organizational change
*Strategic management
*Job design
1.Strategic Thinking
2.Planning
3.Diagnosis and analysis
4.Consultation
5.Managing change
1.Minds, assets
2.People are critical resources
1.Mid to long-term, current & future needs
1.Primary conern for results
2.Process innovation
1.High risk taking
2.Experiment with new, promising approaches
1.Flexible to change
1.Adaptive, innovative programs and systems to
fit future nees (e.g., web-based, just-in-time
training)
1.Anticipatory-forecasting, predicting needs
2.Recognizing unstated needs
1.Transoformations, change, innovation (e.g.,
strategy, knowledge management, culture,
organizational change, talent management,
leadership development)
2.Strong
 27 point Differences between Personnel Management & Industr

S.No Beliefs & Assumptions Personnel Management & IR

1 Contract Careful delineation of written contracts
2 Rules Importance of devising clear rules or
mutuality
3 Guide to management Procedures
action
4 Behavior referrant Norms/customs and practice
5 Management task Monitoring
vis-à-vis labour
6 Nature of relations Pluralist
7 Conflict Institutionalized
Strategic Aspects
8 Key relations Labour management
9 Initiatives Priece- meal
10 Corporate plan Marginal focus
11 Speed of decision Slow
Line Management
12 Management role Transactional
13 Key managers Personnel/HR specialists
14 Communication Indirect
15 Standardization High (Parity an issue)
16 Prized management skillsNegotiation
key Levers
17 Selection Separate, marginal task
18 Pay Job evaluation (fixed)
19 Conditions Separately negotiated
20 Labour management Collective bargaining contract
21 Thrust of relations with Regularized through facilities and
stewards training
22 Job categories & grade many
23 Communication Restricted Flow
24 Job Design Division of labour
25 Training and Development Controlled access to coworkers
26 Conflict Handling Reach temporary truces
27 Focus of attention Personal procedures
nnel Management & Industrial Relations and Human Resource Management
By (Storey, 1992)

HRM
Aim to go beyond
Can-do outlook , Impatient with rules

Buisness need

Values/mission
Nurturing

Unitarist
De-emphasized

Customer
Integrated
Central focus
Fast

Transformational
General/Business Line managers
Direct
Low (Parity not relevant)
Facilitation

Integrated, key task

Performance related
Harmonized
Contract
Marginalized

Few
Increased Flow
Teamwork
Learning companies
Manage climate and culture
Wide-ranging cultural, structural and
personal strategies
e Management