Human Resource Management System: Purposes and Functions

A Human Resource Management System relates processes and systems of day-to-day HR activities with information technology. This is indicative of an organic evolution in HRM field at the crossroad of human resource management and information technology. New information technologies and their services have considerably improved the cost-efficiency and lowered the execution risks of human resource management systems. Those technologies and services include human resource payroll system, appraisal system, software as a service (SaaS) and integrative corporate management systems such as enterprise resource planning software (ERP) and customer resource management (CRM).

All these human resource management systems aim at relieving the HR department of their heavy and cumbersome workloads. The HR department performs administrative activities, which are almost common to all organizations. They function in the fields of recruitment, evaluation, payroll, appraisal, etc. in their own ways, which have so far been clumsy, time-taking, paper-based and of course, error-prone.

With the advent of ingenious human resource management software, organizations came to know of its advantages, such as automated processing of daily HR works and database management services. On being convinced of the benefits, organizations migrated to the automated HRM system. That shift has made organizations able to dramatically reduce their workloads of administrative activities, thereby lowering expenses and improving efficiencies.

From a small organization to a large corporation, this software can be very useful for managing employee-wise database, their skills, salary details, confidential files and records and many more. To enable the HR workflows convenient and user-friendly, software developers have created different modules of the software, such as payroll module, work time module, recruitment and resume manager module, appraisal module, employee self-service module and, of course, the HRMS module. All of these modules have their distinctive functions and have efficiencies to perform their respective jobs.

Payroll Module: It manages employees’ payroll related tasks, which had been an enormous job in the manual HR management era. With using this module, automated processing of employee pay has become possible. The software processes the pay by collecting data of employees’ time and attendance, performance, withholding, taxes and deductions. For generating pay cheques of employees, users of this software are only to upload employees’ information into the database of the application. Then, the rest is managed by the software itself, thereby lowering the time-consumption.

Time-sheet Module: This module is popularly known as Work Time Module. This helps manage project-wise time accounting for employees. In a word, recording efficiency metrics and doing cost analysis are the main functions of this module.

Appraisal Module: The main function of this module is to track and record the contributions of employees to their organizations in a defined period.

Recruitment & Resume Manager Module: This module is also invariably known as Talent Management Module. This module identifies potential applicants, conducts interviews online, selects and recruits candidates through company-defined recruitment principles.

Self-Service Module: This module allows employees to access database where they can put forward their queries to the HR department regarding any issue, such as leave application, loan request status, etc.

HRMS Module: Managing employee-wise database comes under the purview of this module. It manages the database of employees’ profiles, their salary, retirement info and all those info which are important for an organization.

Automated service of this human resource management software has alleviated the workloads of all HR departments. Different modules of this software work differently. Users will have a feel of working along with an HR executive who will guide them all the way through. Companies can customize the features of the software in accordance with their needs also.

Modules of a Human Resource Management System

A Human Resource Management System or HRMS provides a linkage between human resource management (HRM) and information technology, automating many aspects of HRM. This improves efficiency, increases productivity and reduces the overall completion time of projects. Many businesses have started to realize the benefits of implementing HR Management Systems. Operations become smoother and the performance of employees can be analyzed in a better way.

A HR Management System consists of many modules which are similar to the job duties of the Human Resources Department. Each module allows employees to focus on the task at hand, and thus accomplishment becomes easier.

Even the most basic software packages dealing with Human Resource Management Systems will contain almost all of the modules mentioned below.

Payroll Module
Just as the name implies, the payroll module automates the payroll process, and ensures that no errors occur in calculations and all tasks are completed before the salary date. In a basic Human Resource Management System, the HR personnel will have to manually enter attendance and timekeeping records. However, advanced Human Resource Management Systems automatically log the attendance data through electronic cards or a tracker which is connected to every employee’s computer.

When all attendance information has been inputted, the module calculates the salary amount for each employee, and automatically deducts money for tax, conveyance, medical and other related expenses. After this, paychecks and tax reports can be generated.

Benefit Administration Module
The Benefit Administration module of Human Resource Management Systems is a convenient way to monitor and control participation of each employee in various benefit programs such as pension schemes, medical insurance, and profit sharing. An ERP system is an intuitive, easy to use ERP software that facilitates recording and processing of all the financial transactions.

HR Management Module
This module offers a wide range of solutions related to application data analysis, demographic details of all employees and other similar HR functions. Its purpose is to provide an efficient way to control the Human Capital Pool or HCP of the organization. This is done by recording training, qualifications and skills of each employee.

Talent Management Module
A talent management module or applicant tracking system simplifies the recruitment and the talent acquisition process. It analyzes usage of human resources, identifies, potential candidates, and allows the HR team to recruit people through company facing listings and online job websites. It also compares shortlisted candidates on the basis of their scores, education and experience, which makes it easier to make a decision.

Introducing the Human Resource Management System

Do you feel that, as your business grows, you are needed to keep track of more and more information? Well, that is the truth that will never go away. After all, the more things you have to handle, the more effort and people you will need. There is no other way around it, so we might as well just welcome it with open arms. That is our ultimate goal, anyway: to start a company and see it grow to become a very profitable and successful business. Yes, we may have differing opinions on what “success” is, but the fact of the matter is that everybody will surely be most concerned with growing their companies. And with that growth comes the growth of everything else: manpower, expenses and more.

Therefore, rather than be discouraged at the potential amount of work that needs to be done should your business go well, it would be better to simply focus on the ways you can efficiently perform these tasks.

Fortunately, we live in a world of advanced technology; and with this advanced technology come a huge number of tools and methods to make our lives simpler. We shall look into the employee aspect in this post, and how it can contribute to your business’ improvement.

First of all, when your business grows, you should expect an increase in manpower as well. This will be true for almost every department of your company. More product or service orders means more work to be done, which then means that you will need more people to accomplish your tasks. Over time, you will surely need to hire more people when your current workforce just cannot handle the workload. This means that you should be able to hire good employees while still monitoring closely your existing ones. Thankfully, you have the option of using a Human Resource Management System for this task. Also known as a Human Resource Information System, or HRIS, this program will make it easy for you to track your employees. You will have the benefit of easily seeing important information about your workers, while still giving you a very good idea of their performance and skill level. So, should you need someone to work on a particularly pressing task, you can look at your database and see which of your current employees have the experience to do so. You may not see it now, but this can really help out a lot in the long run