Human resource management system

Human Resource Management Systems (HRMS,keeping modules to calculate automatic deposit and
EHRMS), Human Resource Information Systemsmanual cheque writing capabilities.
(HRIS), HR Technology or also called HR modules,Sophisticated HCM systems can set up accounts
shape an intersection in between human resourcepayable transactions from employee deduction or
management (HRM) and information technology. Itproduce garnishment cheques. The payroll module
merges HRM as a discipline and in particular its basicsends accounting information to the general ledger for
HR activities and processes with the informationposting subsequent to a pay cycle.
technology field, whereas the planning andThe time and labour management module applies new
programming of data processing systems evolved intotechnology and methods (time collection devices) to
standardised routines and packages of enterprisecost effectively gather and evaluate employee time
resource planning (ERP) software. On the whole, thesework information. The most advanced modules
ERP systems have their origin on software thatprovide broad flexibility in data collection methods, as
integrates information from different applications intowell as labour distribution capabilities and data analysis
one universal database. The linkage of its financial andfeatures. This module is a key ingredient to establish
human resource modules through one database is theorganisational cost accounting capabilities.
most important distinction to the individually andThe benefit administration model permits HR
proprietary developed predecessors, which makes thisprofessionals to easily administer and track employee
software application both rigid and flexible.participation in benefits programs ranging from
All in all, the HR function is still to a large degreehealthcare provider, insurance policy, and pension plan
administrative and common to all organisations. Toto profit sharing or stock option plans.
varying degrees, most organisations have formalisedThe HR management module is a component
selection, evaluation, and payroll processes. Efficientcovering all other HR aspects from application to
and effective management of the "Human Capital"retirement. The system records basic demographic
Pool (HCP) has become an increasingly imperative andand address data, selection, training and development,
complex activity to all HR professionals. The HRcapabilities and skills management, compensation
function consists of tracking innumerable data points onplanning records and other related activities. Leading
each employee, from personal histories, data, skills,edge systems provide the ability to "read" applications
capabilities, experiences to payroll records. To reduceand enter relevant data to applicable database fields,
the manual workload of these administrative activities,notify employers and provide position management
organisations began to electronically automate manyand position control.
of these processes by introducing innovative HRMS/Typically, HRMS/HCM technology replaces the four
HCM technology. Due to complexity in programming,core HR activities by streamlining them electronically; 1)
capabilities and limited technical resources, HRpayroll, 2) time and labour management, 3) benefit
executives rely on internal or external IT professionalsadministration and 4) HR management. While using the
to develop and maintain their Human Resourceinternet or corporate intranet as a communication and
Management Systems (HRMS).workflow vehicle, the HRMS/HCM technology can
Before the "client-server" architecture evolved in theconvert these into web-based HRMS components of
late 1980s, every single HR automation process camethe ERP system and permit to reduce transaction
largely in form of mainframe computers that couldcosts, leading to greater HR and organisational
handle large amounts of data transactions. Inefficiency. Through employee or manager self-service
consequence of the high capital investment necessary(ESS or MSS), HR activities shift away from paper
to purchase or program proprietary software, thesebased processes to using self-service functionalities
internally developed HRMS were limited to medium tothat benefit employees, managers and HR
large organisations being able to afford internal ITprofessionals alike.
capabilities. The advent of client-server HRMSCostly and time consuming HR administrative tasks,
authorised HR executives for the first time to takesuch as travel reimbursement, personnel data change,
responsibility and ownership of their systems. Thesebenefits enrolment, enrolment in training classes
client-server HRMS are characteristically developed(employee side) and to instruct a personnel action,
around four principal areas of HR functionalities: 1)authorise access to information for employees
"payroll", 2) time and labour management 3) benefits(manager's side) are being individually handled and
administration and 4) HR management.permit to reduce HR transaction time, leading to HR
The payroll model automates the pay process byand organisational effectiveness. Consequently, HR
gathering data on employee time and attendance,professionals can spend fewer resources in managing
calculatingvarious deductions and taxes, and generatingadministrative HR activities and can apply freed time
periodic paycheques and employee tax reports. Dataand resources to concentrate on strategic HR issues,
is generally fed from the human resources and timewhich lead to business innovation.