2. Agile HRM vs Traditional HRM: Key Differences

 

 

The human resources function in organisations has evolved over the years, and with the rise of agile methodologies, there has been a shift from traditional HRM to Agile HRM. Agile HRM is a flexible approach to managing people and processes that emphasises collaboration, adaptability, and customer satisfaction. In contrast, Traditional HRM focuses on hierarchical structures, standardised processes, and control. This article will compare the key differences between Agile HRM and Traditional HRM.

1. Focus on employees Agile HRM focuses on employees and their needs. It emphasises employee engagement, development, and empowerment. In contrast, Traditional HRM sees employees as a resource to be managed and controlled. It focuses on processes and policies rather than people (Van der Voet, 2019).

2. Continuous feedback Agile HRM encourages continuous feedback and promotes a culture of learning and development. This allows for faster adjustments and continuous improvement. Traditional HRM, on the other hand, relies on annual performance reviews and standardised processes that need to be faster to change (LePak & Gowan, 2010).

3. Cross-functional teams Agile HRM emphasises cross-functional teams and collaboration. It encourages diverse teams to work together to achieve common goals. Traditional HRM relies on hierarchical structures that limit communication and collaboration across departments (Schramm-Nielsen & Hislop, 2019).

4. Agile mindset Agile HRM requires an agile mindset, which includes being open to change, embracing uncertainty, and taking risks. Traditional HRM tends to be risk-averse and relies on established processes and procedures (Budhwar & Debrah, 2013).

5. The customer focuses Agile HRM focuses on customer satisfaction and aims to provide customer value. Traditional HRM is focused on internal processes and often neglects the needs of customers (Collings & Mellahi, 2009).

The following table summarises the differences between Agile HRM and Traditional HRM:

 

Key Differences	Agile HRM	Traditional HRM
Focus on employees	Emphasises employee engagement, development, and empowerment	Sees employees as a resource to be managed and controlled
Continuous feedback	Encourages continuous feedback and promotes a culture of learning and development	Relies on annual performance reviews and standardised processes
Cross-functional teams	Emphasises cross-functional teams and collaboration	Relies on hierarchical structures that limit communication and collaboration
Agile mindset	Requires an agile mindset, which includes being open to change, embracing uncertainty, and taking risks	Tends to be risk-averse and relies on established processes and procedures
Customer focus	Focuses on customer satisfaction and aims to provide value to customers	Focused on internal processes and often neglects the needs of customers

 

 

In conclusion, the shift from Traditional HRM to Agile HRM represents a change in how organisations manage people and processes. Agile HRM offers a more flexible and adaptable approach that values employees, encourages continuous feedback, promotes cross-functional teams, requires an agile mindset, and focuses on customer satisfaction. These differences highlight the importance of understanding the benefits of Agile HRM for organisations to remain competitive and meet the needs of their employees and customers.

 

References:

Budhwar, P. S., & Debrah, Y. A. (2013). Human resource management in developing countries. Routledge.

Collings, D. G., & Mellahi, K. (2009). Strategic talent management: A review and research agenda. Human Resource Management Review, 19(4), 304-313.

LePak, D. P., & Gowan, M. A. (2010). Human resource management: Yesterday, today, and tomorrow. Journal of Management, 36(2), 48-68.

Schramm-Nielsen, J., & Hislop, D. (2019). HRM in the age of digital transformation: Key research questions. The International Journal of Human Resource Management, 30(8), 1183-1203.

Van der Voet, J. (2019). The effectiveness and specificity of change management in a public organization: Transformational leadership and a bureaucratic organizational structure. Public Administration, 97(4), 884-900.