Discussion Forum

Discuss the traditional and modern approaches to HRM?

TRADITIONAL Personal management

Narrow scope
APPROACH

MODERN Human resource

management
APPROACH Broader scope

Traditional human resource management focuses on the administrative tasks of human

resource management. It is a predominantly administrative record-keeping function that
aims to establish and maintain equitable terms and conditions of employment .Whereas the
modern human resource management integrates the traditional personnel management
functions to corporate goals and strategies, and performs additional people centred
organizational developmental activities. The major difference between “traditional human
resource management” and “modern human resource management” is that the traditional
approach is the personnel management whereas the modern approach is the human
resource management toward managing people in an enterprise. Effective HR management
of employees is a modern version of what used to be called personnel management.
Although there are overlaps between HR management of employees and personnel
management, there are some differences and definitive improvements that need to be
recognized.

Some of the differences are:

 Traditional human resource management approach is narrow in scope. It includes

functional activities such as manpower planning, recruitment, job analysis, job
evaluation, payroll administration, performance appraisal, labour law compliance,
training administration, etc. Whereas modern human resource management
approach is broader in scope as it includes all this activities plus organizational
development activities such as leadership, motivation, developing organizational
culture, communication of shared values etc. This approaches remains integrated to
the company’s core strategy, vision and to optimize the use of human resource for
the fulfilment of organizational goals.
 Traditional human resource management approach gives importance to norms,
customs, and established practices. It concerns itself with establishing rules, policies,
procedures, contracts whereas modern approach gives importance to values and
 mission. It remains impatient with rules and regulations and tends to relax them
based on business needs and exigencies.
 Traditional management holds employee satisfaction as the key to keeping
employees motivated , institute compensation, bonuses, rewards, work
simplification initiatives as possible motivators whereas modern philosophy holds
improved performance as the driver of employee satisfaction, devise strategies such
as work challenges, team work, creativity to improve motivation.

Some modern HR management benefits:

 Traditional personnel management focused on personnel administration and basic

labour relations issues. In contrast, the HR management of employees is more
diverse, focusing on relation on recruitment and selection into workplace, on-going
motivation and morale in the workplace and the maintenance of benefits
administration and insurance requirements.
 Under traditional personnel management, employees are provided with less training
and development opportunities. Under HR management off employs, training and
development opportunities are employed to maximize employee’s productivity and
effectiveness.
 Traditional personnel management focuses on increasing production while keeping
employees satisfied and moving forward from an external perspective. The modern
HR management of employees helps to hit the mark of a company’s productivity and
profitability benchmarks by fostering a supportive workplace culture that promotes
effective strategies across the board.
As a professional employer organization, Total HR management provides our client
companies with the very best in modern human resource management options.