Differences in Operational HR Management vs Strategic HR Management
Strategic HR management and operational HR and closely interrelated. The operating side of HR oversees mainly the daily routines, processes and activities such as daily and weekly employee performance making sure the short-term results are in sync with the expectations.
Managing operations and the workforce is high priority in operational human resources management. In comparison to strategic HR management, the operational side is more tangible because most expectations from the employees are very specific and well defined. It is clear to both management and to the workers what needs to be done and how it needs to be accomplished.
In addition the role of HR managers here includes all the activities of recruiting and hiring new employees, ongoing training and coaching to support the overall strategic organizational development. Operational HR management typically uses daily HR reports like HR excel dashboards to report the operational key performance indicators. HR metrics that are tracked daily and weekly by management help HR professionals stay on top of all developments in the business.
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In strategic HR management the focus is on the long term future of the organization. The long term objectives are defined and long-term plans are crafted. These plans set the stage and direction for the operational short-term strategies and tactics. Strategic HR is critical to the way how the company will be organized and managed in the future when it comes to the need for employees. Based on the strategic business plans and requirements the recruitment needs are defined. Additionally the strategy includes employee retention, knowledge management and organizational learning and development. In order to develop a high performance organization the strategic HR planning is critical for success. Coaching, training and employee career planning must be defined in the most effective way.
At the highest level HR executives develop and oversee the return on investment in human capital, develop key performance indicators that drive performance for the long term and take actions to support management in organizational growth. Balanced scorecards are typically used to balance and integrate HR metrics and KPIs that are related to HR activities with other organizational functions like finance, marketing, sales, quality and production.
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