SHRM is about managing employees within an organization whereas in Strategic HRM there are different people who are skilled in specific areas. It is not that the same persons will handle recruitment, training, and employee appraisal.
As the term itself denotes, Strategic HRM deals with strategic aspects of HRM. Unlike SHRM, Strategic HRM mainly focuses on the programs with long-term objectives. Though SHRM and Strategic HRM focus on increasing employee productivity, Strategic HRM uses many strategic methods.
Unlike SHRM, Strategic HRM uses more sophisticated methods for improving overall employee motivation and productivity. Unlike the SHRM, Strategic HRM uses more systematic tools.
Strategic HRM expresses about company objectives, plans and the ways in which the business goals need to be achieved through people, Strategic HRM focuses on partnerships with internal and external customers. When HRM has only short-term goals, Strategic HRM has long-term goals.
When considering job design, Implementing the strategic plan through people in SHRM. On the other hand, the job division in Strategic HRM is flexible. When HRM has staff specialists, Strategic HRM has line managers.
| Traditional HRM | Strategic HRM | |
| Responsibility for HRM | Staff Specialists | Line Managers |
| Focus | Employee Relations | Partnerships with internal and External Customers |
| Role of HR | Transactional, Change follower | Transformational, Change leader & initiator |
| Initiatives | Slow, Reactive fragmented | Fast, Proactive & Integrated |
| Time Horizon | Short term | Short, Medium, Long Term |
| Control | Bureaucratic policies | Organic, flexible based on needs |
| Job Design | Tight division of labour, Specialization | Broad, flexible, Cross-training, teams |
| Key Investments | Capital, Products | People, Knowledge |
| Accountability | Cost centre | Investment centre |
SHRM involves the process of employing people, developing their skills/capacities, and utilizing their services. Strategic HRM can be termed as a branch of HRM.
- While SHRM focuses mainly on employee relations, Startegic HRM focuses on partnerships with internal and external customers.
- When SHRM has only short-term goals, Strategic HRM is for long-term goals.
- When SHRM has staff specialists, Strategic HTM has line managers.
- When considering job design, there is a tight division of labor and independence specialization in SHRM. On the other hand, job division in Strategic HRM is flexible.