CHAPTER 02

Traditional HRM is a traditional approach to managing employees that focuses on day-to-day activities
such as hiring, training, and employee relations. The goal of traditional HRM is to ensure that the
organization has a sufficient number of employees who are well-trained and motivated to perform their
jobs. Traditional HRM is primarily concerned with the administrative and transactional aspects of
managing human resources.
SHRM is a more strategic approach to managing human resources that focuses on aligning HR policies
and practices with the organization's overall business strategy. SHRM considers the workforce as a
valuable asset that contributes to the organization's competitive advantage. SHRM aims to create a
work environment that attracts and retains talented employees who are aligned with the organization's
mission, vision, and values. SHRM also emphasizes on developing a culture that supports innovation and
learning, and fosters employee engagement and empowerment.
Some of the key differences between traditional HRM and SHRM are:
1. Focus: Traditional HRM focuses on day-to-day activities, while SHRM focuses on aligning HR
policies and practices with the organization's overall business strategy.
2. Scope: Traditional HRM is mainly concerned with the administrative and transactional aspects of
managing human resources, while SHRM is more strategic and holistic.
3. Time horizon: Traditional HRM tends to have a short-term focus, while SHRM has a long-term
perspective.
4. Role of HR: In traditional HRM, HR is seen as a support function that provides administrative
services to the organization, while in SHRM, HR is viewed as a strategic partner that contributes
to the organization's success.
In summary, while traditional HRM focuses on the administrative and transactional aspects of managing
human resources, SHRM takes a more strategic and holistic approach that aligns HR policies and
practices with the organization's overall business strategy.