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Traditional Vs Modern Human Resource Management Software

Difference Between Traditional HRM and Strategic HRM

Technology has made things look and function differently over time. In simple words, it has made many things easier for humans, and for humans,  it’s the core motivation to keep developing new technology, right? 

One such evolution in the technology has come in the form of HRM. Human Resource Management, one of the most important parts of any business, requires too many management skills and resources. 

There are many tools that have come to the rescue, like spreadsheets, but they are still counted in the traditional HRM. The reason is that automation was still absent. However, with modern HR software, things are changing. To discuss this change, we will do a traditional hrms vs modern hrms comparison in this blog.

Traditional Human Resource Management 

Traditional human resource management uses tools that have existed for a significant time. While the tools are not meant to be particularly used in human resource management, their functions have made the management easier. In traditional HR management, most processes are done manually without any automation. Let’s look at some important traditional HR processes below. 

1) Hiring 

When you opt for traditional HR management, the hiring process remains manual. Everything involves a human who manages all these tasks, from posting a job to hiring the candidate and onboarding. The process starts with job posting on job portals like LinkedIn and Indeed. 

Next, the applications are analysed manually, and the hiring managers review each resume individually. After that, candidates are selected based on their experiences and education. Moreover, these candidates are then sent for interview rounds for further evaluation. 

Once all these procedures are done, the selected candidates are onboarded in the company, which requires a lot of paperwork and other stuff, and doing it manually takes a lot of time. 

2) Payroll Management 

In traditional HR processes, the payroll management is also done manually. It requires a lot of record-keeping and calculations before you distribute the salaries. For example, if you have to send a salary to an employee, then how many days he worked, how much leave he took, and performance evaluation are important for salary and incentive calculations. Now, doing all this for all the employees in the organization becomes a complex task. The tools that are mostly used in this task are MS Excel and Google Sheets. 

3) Attendance Management 

Attendance tracking with traditional methods of HR management works very simply. It mostly uses pen and paper to mark the attendance of the employees. Now, it may look very simple, but it also has some disadvantages. Firstly, being manual, there are chances of errors, which can lead to incorrect payroll calculations. Moreover, keeping long-term records with such methods is also very hard. You need physical space to keep the registers; in case of casualty, you may lose data very easily. 

So this is all about the traditional methods of HR management, but let’s now look at modern HRMS to conclude the debate of traditional HRMs vs modern HRMs. 

Modern Human Resource Management 

Modern human resource management is a lot different from traditional one. With the help of evolving technology, it has become a lot easier to do HR tasks. One such breakthrough in HR management is the HRMS, which stands for HR management software. It is software with all the HR tools in one place and is automated with the help of technology. Let’s look at some tasks that we have looked at in traditional HR management and compare how they are done with modern HRMS. 

1) Hiring

Hiring an HRMS with the power of resume parsing is way easier and more efficient than the traditional method. It takes just software to employ for the job that humans may not do with 100% accuracy. With an application tracking system, job postings, the intake of applications, their segregation, and even screening can be done with little to no human need. 

2) Payroll Management

In modern HRMS, payroll management is advanced and automated, too. The payroll management system of the HRMS is synced with the attendance manager and other important resources to calculate the employees’ salary. Then, it disburses the salaries and records the salaries disbursed. Moreover, it also sends the employees a salary slip that they can download from their HRMS counterparts. 

3) Attendance Management 

Firstly, modern HRMS allows you to mark your attendance from anywhere. So, if there are any job roles where coming to the office is  not important, then attendance can be made easy. For example, if someone does work from home, he/she can put the attendance with the HRMS application on their phone. Additionally, keeping the record of attendance is also done digitally; hence, finding the attendance of any employee on any date and year is a matter of a few seconds. This is the Advantage of an Attendance Management System in organization.

Which is better: Traditional hrm vs Strategic hrm?

The answer to traditional HRMs vs modern HRMS is quite simple. You should choose the strategic HRM or modern HRMS. Firstly, it allows for better accessibility than the traditional one. 

For example, if an employee wants to access any form or salary slip, it can be done from anywhere. Moreover, modern HRMS promotes self-servicing, such as taking leave with simple steps or marking attendance from the phone. 

Being automated and online, the risk of errors and data loss is also less than the traditional HRM. Last but not least, modern HRMS comes for all companies regardless of size. So, if you are a small business, you can opt for the affordable one; if you are a full-fledged company, you can opt for a more extensive solution. 

Final Words 

So this is all about the traditional hrm vs strategic hrm debate. There is no doubt that traditional HRM is now outdated. Moreover, the options you get today, like affordable pricing and cloud-based operation, have made it clear that modern HRMS is the current generation’s need. If you don’t want to tackle unwanted inaccuracies or time consuming processes, then the modernization of your HR management is important. 

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