HRMS or the Human Resource Management system can be best described as an integrated system providing information used by HR management in decision making. It allows a company to keep track of all of its employees and their information like employee demographics, remuneration & benefits, attendance details, and performance related information. This vital information is secured in a database or in a series of interrelated databases.
Now the next question that lingers in our minds is, "Does my organization need this automated system of managing its Human Resources"?. The answer is definitely a Yes, for a Human Resource Management Software (HRMS) is an important tool for any company, irrespective of its size, serving the following crucial functionalities :
Effective Communication Tool - In any organization be it big or small the management needs to be able to communicate effectively and efficiently with its workforce, so that a healthy dialogue with between the management and its workforce exits. An effective HRMS ensures better communication and collaboration as it offers multiple channels of communication between the Management and employee, and also amongst employees. These enable employees to interact across the teams and departments, which boosts employee productivity and company’s growth.
Easy & Effective data management - An HRMS can effectively manage employee data like their demographics and information about their attendance, benefits, allocations and appraisal.
Central Repository of Data - Central storage of data makes reporting easy and efficient. Customized executive and management reporting can be done "on the fly". Also a central location for documents such as employee handbooks, procedures and safety guidelines accessible to the employees provides them the flexibility to access these without being dependent on the HR personnel.
Efficient Recruitment Management - HRMS automates the entire process of Interview scheduling to candidate selection by generating requests for Manpower, Scheduling Interview Rounds with Automatic alerts to Candidates through Emails, updating Interview Results with Automatic alert to the selected Candidates and Generating Offer Letters to them.
Employee development Programs - HRMS systems can be used to implement customized development programs for employees keeping in mind their skillset, training schedule and cost, and it also provides means to track the execution of these development programs.
Attendance & Leave Management - HRMS automates time tracking. The time at punch in and punch out of an employee is recorded, making it easier for managers to monitor attendance and absences. Firms which use biometric devices or smart cards can import data from them and process the attendance for all employees in one go.
Easy Employee Appraisal - Key Result Area (KRA) and Key Performance Area (KPA) are designed and allocated efficiently to the employees with proper workflow between manager and employee. A 360 degree appraisal can be achieved where Managers, Subordinates, Peer group, Customers, Vendors can rate the employee based on these predefined parameters.
Greater employee satisfaction & productivity - Each employee is provided with an online account which he / she can use to Submit Leave Applications, Reimbursement Bills, Income Tax Declarations. This Improves administrative responsiveness & efficiency and also provides greater employee satisfaction and delivers significant cost & time savings for Payroll / HR department.
Easy Payroll processing - HRMS lets you to process your company’s payroll in a press of a button. All attendance data, leave, remuneration and benefits related data is picked up automatically for payroll processing saving the Payroll processing department a huge amount of time and effort.
All of these benefits lead to improved HR functions and provides the HR personnel the time to focus on development strategies rather than be engaged in basic HR activities.
HRMS are available both as conventional computer-based applications on local network (i.e. PCs or network servers) or web-based HR software which can be accessed through browser. However Web-Based HR Software offers these Advantages over the conventional one
All these benefits clearly imply that implementing a web based human resources management system (HRMS) can help just about any company to function more efficiently. While the benefits to employers are extensive, there are multiple ways in which a web-based HRMS can make employees’ lives easier.
However Web Based HR Software faces certain disadvantages with respect to security of data, availability of network and integration of system with other business application. However in spite of these loopholes, an efficient web based HR software is advantageous since it offers much greater flexibility and convenience in handling all the human resource related activities and benefits the organization by increasing employee morale, solving employee grievances to reduce attrition, provides for employer brand building, and introduces transparency to fasten business decision making.