What is Human Resource Management System?
Human Resource Management System (HRMS) can be defined as a set of systems used to ensure that an organization’s human capital are utilised efficiently and productively. It can also refer to tools or software used to assist or simplify the Human Resource Management activities in an organization such as:
- performance management,
- and so forth.
For the purpose of this article, we will refer to the latter.
The importance of maintaining an excellent HRMS cannot be underestimated.
In smaller companies, the HRMS may only involve keeping paper records in files locked in cabinet and doing calculations using calculators.
Which is perfectly fine for companies with less than 20 staff.
But for bigger companies with a large number of employees, there is a great need for efficiency using technology that would ensure that the Human Resource department would not stumble into chaos and enable the HR managers to retrieve and understand information swiftly, and using that information to present ideas cogently and clearly.
Human Resource Management System includes, among others, functions that track attendance, sick leave and vacation days accrued and taken by each employee which will help HR managers assess each employee’s performance and detect if there are any room for improvement.
A consolidated report would make it easier for management to decide whether an employee requires further training and to pinpoint his or her strengths and weaknesses.
Aside from that, there is also the HR information system that keeps record of employees’ personal information which could also include payroll. Such a system would be of great help to the HR managers especially when they need to provide specific input during meetings and company planning.
Another brilliant thing about the HRMS software or tools is that they could also help an employer to keep records of employees under more than one companies, thus allowing a separate set of records for each company within a single database.
There are many tools and software available out there that a company could use to improve its HRMS.
Choosing one that would suit its needs and capabilities is another issue that requires in depth and careful analysis, after taking into consideration the current and future direction of the company.
This is when an IT executive or manager would come in handy.
Nobody wants to be responsible for purchasing software that is not compatible with the existing systems in the company.
It is certainly a daunting task, seeing the huge number and variety of HRMS software packages available in the market these days.