What is HR Management System
A Human Resources Management System (HRMS) is a form of human resources (HR) software that combines a number of systems and processes to ensure the easy management of human resources, business processes and data. Human resources software is used by businesses to combine a number of necessary HR functions, such as storing employee data, managing payrolls, recruitment processes, benefits administration, and keeping track of attendance records.
Human resource information systems provide a means of acquiring, storing, analyzing and distributing information to various stakeholders. HRIS enable improvement in traditional processes and enhance strategic decision-making. The wave of technological advancement has revolutionized each and every space of life today, and this includes HR. Early systems were narrow in scope, typically focused on a single task, such as improving the payroll process or tracking employees’ work hours. Today’s systems cover the full spectrum of tasks associated with human resources departments, including tracking and improving process efficiency, managing organizational hierarchy, tracking absence and annual leave, simplifying financial transactions, and providing reports on people data. In short, as the role of human resources departments expanded in complexity, HR technology systems evolved to fit these needs.
The function of human resources departments is administrative and common to all organizations. Organizations may have formalized selection, evaluation, and payroll processes. Management of “human capital” has progressed to an imperative and complex process. The HR function consists of tracking existing employee data, which traditionally includes personal histories, skills, capabilities, accomplishments, and salary. To reduce the manual workload of these administrative activities, organizations began to electronically automate many of these processes by introducing specialized human resource management systems.
HR executives rely on internal or external IT professionals to develop and maintain an integrated HRMS. Before client–server architectures evolved in the late 1980s, many HR automation processes were relegated to mainframe computers that could handle large amounts of data transactions. In consequence of the high capital investment necessary to buy or program proprietary software, these internally developed HRMS were limited to organizations that possessed a large amount of capital. The advent of client-server, application service provider, and software as a service (SaaS) or human resource management systems enabled higher administrative control of such systems. Currently, human resource management systems tend to encompass.
- Retaining staff
- Managing payroll
- HR planning
- Recruiting/Learning management
- Performance management and appraisals
- Employee self-service
- Scheduling and rota management
- Absence management
- Leave management
- Reporting and analytics
- Employee reassignment
- Grievance handling by following precedents