The Evolution of HRMS From Paperwork to Digital Efficiency
HRM In the Industrial Revolution
During the late 18th and 19th centuries the landscape of labor saw a profound transformation thanks to the inception of factories and mass production. The shift from agrarian economies, where the majority of income was from agriculture, to industrialization, due to technological advancements led to focused labor in factories.
The rural populace who lived in small communities, plowing the land for supper, were now seen migrating to urban areas and working for these factories. The working conditions were attributed to long hours of work in unsafe conditions with their rights less to nothing. The success of western countries is largely credited to the exploitation of thousands of workers who worked 16-18 hours a day with miserable amounts as wages.
The consequence was the emergence and establishment of trade unions. Employees grew tired of the exploitation and resorted to strikes and boycotts. Intentional slowdowns in productivity, walking out of the factories en-masse, deliberately damaging work property were all tactics trade unions used.
The tactics- violent or not- proved to be a success which called for major labor reforms as all companies need employees as crutches to avoid crashing down. Labour reforms led to better working conditions, higher pay rates, skill and development training, addressing their grievances and much more.
Thus, with the new norm of mechanized mass production and trade unions lurking, there grew a desperate need and demand to manage human resources effectively.
The Pre HRMS Era
Record Keeping: The HR department relied heavily on manual record keeping and often involved maintaining separate files for each employee with details like personal data, employment history, performance evaluation etc,. These records were often stored in cabinets and archives and retrieval of these demanded significant effort.
Payroll Processing: HR department had to calculate wages, deductions, taxes and other payroll related information manually for each individual all while carefully scrutinizing to ensure accuracy and compliance with labor regulations.
Recruitment process : Newspapers, job fairs, and internal postings were the primary platforms for companies to advertise vacancies in the pre technology era. Everything from screening and shortlisting to job offers and contracts involved papers and documents.
Performance Management: Before integrating software into the HRM, setting goals, performance appraisals and providing feedback were all paper based. HR staff would resort to using paper based appraisal forms- physical documents consisting of structured templates or questionnaires- and hold face to face meetings to discuss the further development and goals.
POST HRMS ERA
Automation and Efficiency: HRMS has refashioned HRM, incorporating algorithms and predefined rules to streamline processes automatically. Many manual processes like payroll, leave tracking, employee data management, employee benefits etc,. are all automated, easy and efficient.
Data-Driven Decision Making: softwares has opened the floodgates to access huge amounts of employee related data. This has enabled HRs to make informed decisions by tracking performance, analyzing workforce trends, and understanding areas of improvement.
Recruitment and Hiring: software has digitized the recruitment and hiring process. HRMS now offer application tracking systems, automating the screening process, helping HRs to sift through applications efficiently. Job postings are distributed across multiple platforms easily hiring talent. Onboarding process can also be done via video conferencing. Offer letters, bonds and other paperwork have transitioned to digital documents.
Performance appraisal and Management: HRM software systems also facilitate evaluating performance of the employees by goal setting, reviews and feedback mechanisms enabling HRs to easily track employee progress and assess performance and reward the employees appropriately.
Payroll processing: With integrated payroll modules, hours worked, salaries, taxes and other calculations are automatically captured. HRMS platforms like PeopleWorks offer streamlined and efficient HRMS payroll processing softwares with capabilities to significantly reduce errors.
Strategic HR Management: HRMS has enabled the scope for professionals to dive deeper into the strategic aspects like talent management, succession plans, overall organizational development thanks to routine tasks being automated.
Conclusion:
From the post industrial revolution era to the modern day technology era, HRM has been through quite a journey. Its evolution is significant, and its impact profound.
The post HRMS era has undergone significant developments due to rapid wildfire-like adaptation of the HRM software systems. The shift from paper based methods have single handedly reduced the labor, the tedious effort it took to maintain personal records of each employee and for a long time even. Automation has given the HRs the luxury to focus on the strategic side of the business.
However, in the modern world engulfed in technology, with all its might and allure for advancements, lurks the ominous threat of cybersecurity.