Human Resources Management System (HRMS) is a term that refers to a
system that manages human resource activities. In a modern world HR work is
more sophisticated and involves a lot of complex activities. There's a lot of
work involved in employee data management, which involves anything from
recruitment and hiring to training and assessments, along with other things. Human
Resource Management theories focus on methods of recruitment and selection and
highlight the advantages of interviews, general assessment and psychometric
testing as employee selection processes.
Because of
the importance and manpower involved in these duties, HR professionals must use
HR management software in order to handle human resource data more efficiently
and effectively. This is where an HRMS may assist an organization. HRMS stands
for Human Resource Management System, and it is a collection of software that
companies use to handle their internal HR activities. HRMS software aids in the
management of modern workforce.
Many
organizations now deploy a human resource management system (HRMS), which is a
set of systems and procedures that link human resource management with
information technology via HR software.
A human resources management system (HRMS) can be used for candidate
recruitment, payroll management, leave approval, succession planning,
attendance monitoring, career development, performance evaluations, and the
general management of personnel information inside an organization. A human
resource management system (HRMS) may assist major corporations and small
businesses in increasing their growth and production. The automation of human
resources management's tedious and time-consuming activities frees up some of
the company's most valued people, allowing the focus to move to culture,
retention, and other high-impact areas.
Employee
histories, skills, abilities, pay checks, and performances are all tracked by
the human resources department. By replacing specific procedures with multiple
tiers of HRMS systems, information management duties may be distributed so that
the majority of data collection is not allocated only to HR. Information is
maintained more accurate by allowing workers to update personal information and
conduct other duties, and thereby HR personnel are not burdened with all these
task.
Major Modules of Human Resource Management
System
The major components
of an HRMS are Applicant Tracing System (ATS), Employee Information System, Employee
On boarding/Off-boarding, Time management and Payroll Management.
1) Application Tracking System
Major organization hire candidates for many
positions at once and receive hundreds of applicants for each position. Most of
these candidates may be unskilled or not fit for the job. Going through all
these applications will be a time consuming task. This is where Application
Tracking System (ATS) does its part.
All of these resumes are kept in one place by
applicant tracking systems, which makes it easier for recruiters and hiring
managers to stay organised. In principle, these technologies save time by
discovering and identifying the best candidates automatically. In actuality,
application tracking systems (ATS) assist recruiting managers in narrowing
their applicant pool.
2 Employee On-boarding
According to a recent Gallup poll, only 12% of
new recruits believe their company has a proper on-boarding procedure. The on-boarding
process usually lasts a day or two, leaving them confused and disappointed. Due
to increased employee turnover, a poor on-boarding process might have financial
ramifications for the organization. Candidates who are dissatisfied with their
on-boarding experience are more likely to leave the organization within a year.
Human Resource Management System helps an
organization in monitoring on-boarding processes by automating all the process
needed for on-boarding an employee.
Distributing checklists to new recruits and internal teams, providing
welcome packages, and obtaining applicants' e-signature are some of the on-boarding
duties that your HRMS may assist you with automating.
3) Employee Information System
Manually
managing administrative activities may be exhausting and time-consuming. Using
spreadsheets to manage employee timesheets is particularly cumbersome. Manual
activities frequently result in repeated mistakes, resulting in compliance
difficulties. Manually keeping all employee data becomes impractical as
businesses develop since it is difficult to modify. Also the employee data is
often vulnerable to theft. Any time spent on these manual processes depletes
resources for hiring, reducing staff turnover, enhancing employee engagement,
succession planning, and other important duties.
Employee
Information System helps in reducing this work load. All the employee documents
of an organization can be recorded and maintained in one place using an
Employee Information System. Allowing your employees to personally complete
their profiles will help you to get the accurate information.
4) Time Management System
Time
Management System gives an authenticated access to the employees, which allows
to track IN and OUT timings of the employees. Daily check-in and check-out times will be
recorded and saved in the time management system. It assists businesses in
managing employee timeliness and keeping remote staff on schedule. With an
effective time management system, the tedious inconvenience of handling
employee leaves and holidays may also be automated.
5) Payroll Management
Payroll is
a list of the company's employees who are paid. Payroll, in simple terms, is
the process of paying employees' salaries and part-time workers' wages based on
their work hours and agreed-upon remuneration.
In
practice, this procedure is not so simple. Other calculations and data, such as
leaves taken, remaining leaves, loss of pay, loan, compensations, appraisal,
withholdings etc. are to be calculated before the final pay, which is to be
paid to employees. The payroll process requires communication with a number of
departments and individuals.
Automating
the payroll management helps to reduce a lot of time and effort. Payroll
management automation facilitates payroll processing for the entire workforce
in a couple of minutes.
Selecting
and deploying the right human resource management system for your business may
have a significant impact on future development and success. While it is
possible to do HR activities manually, from the above discussion we have seen
that an automated system can assist to increase productivity and transform the
way your organization is seen in modern world. It's crucial to keep in mind that
these systems aren't "one size fits all". Each organization is unique
by nature. So there are different systems available in market which suits the
requirements for each organization.
