Role of HRMS in various facets of HR

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Role Of Hrms In Various Facets Of Hr

Back in 1893, when an American institutional economist first coined the term “human resource” in his book “The Distribution of Wealth”, no one had ever imagined that in the future there will be a full-fledged formal HR department in every organization tasked with addressing the concerns between employees and their employers.

Now the next question arises:

  • Why does a company need a whole department to manage human resources?
  • Do you think that an organization can do without HR departments?

Suppose you are an employee in a reputed company and encountered some confusion related to your attendance or related to salary credited on payday. You tried to resolve the issue with the help of your lead or manager. They recommend you to request the HR department for immediate resolution of your problems related to attendance, or even anything related to onboarding,  recruitment, or employee-related guidelines, etc in the future.

Human Resources (HR) is the division of a business that is charged with screening, recruiting, and training job applicants as well as administering employee-benefit programs. An HR department is tasked with maximizing employee productivity and protecting the company from any issues that may arise within the workforce. Investopedia

What are the different facets of the HR Department?

The Human Resource or HR department encompasses a number of positions, responsibilities, and aspects related to the growth of an organization and the productivity of employees.

Some of the different facets of HR are mentioned below

  1. Handle recruitment process from posting a job opening, candidate sourcing, interviewing, taking approvals, monitoring the TAT, and much more.
  2. Administer employee life cycle starting from recruiting the candidate, rolling out offer letters, onboarding to offboarding the organization, and completing the F&F process smoothly.
  3. Define HR policies and procedures for employees as per the organizational structure 
  4. Manage payroll system by defining salary breakup, processing salaries, arrears, payslips, and taking care of regulatory compliances in payroll, etc.
  5. Set guidelines related to attendance cycle, fix attendance calculation, compensatory policies, etc. for an efficient attendance management system.
  6. Formulate a well-stipulated performance management model to evaluate employees as per their aligned tasks and actual goals achieved.
  7. Take care of employee engagement and boost workforce morale to drive mutual growth.

Different facets of HR

  • Handle recruitment process
  • Administer employee lifecycle
  • Formulate policies for employees
  • Manage payroll system
  • Monitor attendance in real-time
  • Review performance regularly
  • Encourage and motivate the workforce
  • Rather than switching between multiple software and flipping different spreadsheets, organizations started adopting Human Resource Management System software.

    What is HRMS or Human Resource Management System?

    An HRMS connects HR processes and information technology through a combination of systems. In today’s business world, the HR management system (HRMS) has become indispensable for data management, reporting, recruiting, payroll, performance and learning management, and several other HR functions. Further, the advent of cloud technology has significantly reduced the barriers to its adoption.

    However, many organizations still rely on innumerable documents, notes, and spreadsheets to run their HR functions. Nonetheless, many smart companies have readily made the leap into automating their human resource functions with HR software.

    Fact Check
    SurveyMonkey partnered with Microsoft and reported that 93% of the 1000+ millennial workers surveyed say that a business having up-to-date technology is an important factor when choosing a workplace.

    What is the purpose of HRMS?

    In this era of digitization and automation, organizations integrate HRMS software within their company to improve the ability of the HR departments in taking strategic decisions. HRMS comprehensively brings all the HR processes under one roof and eases out the management process.

    The purpose of HRMS software includes:

    • Making data management a team process where employees can upload and verify data on their own.
    • Supporting the organization in complying with regulatory guidelines and standards.
    • Automating several processes and reducing reliance on manual processes.
    • Increasing security and privacy of HR databases and confidential information.
    • Customizing the workforce and attendance management system for better HR management.

    Above all, the main purpose of the HRMS software is to focus primarily on human resources rather than on data entry, verification of information, maintaining compliances, resource allocation, and much more.

    Functions of HRMS or Human Resource Management Software

    Why should you adopt HR management software in your organization? HRMS can perform numerous functions in a timely and cost-effective manner. Some of the major functions are as follows:

    1. Automate all Herculean Tasks

    HR and payroll have to deal with a lot of employee data and information, and organizing them takes a whole lot of time. Moreover, if data is disorganized, finding them at the right time becomes arduous and there is a risk of misplacing or losing crucial information entirely.

    With HR management software, you can automate all the tasks related to entry, processing, storing, and access, thereby improving data organization while saving precious time and avoiding human errors.

    2. Overcome Geographical Barriers

    Companies with multiple locations and operations around diverse geographical areas can utilize the capabilities of advanced human resource management software to hire and evaluate candidates online, anywhere across the globe. HR management software also helps achieve standardization in standards and policies across multiple locations.

    3. Information Sharing Becomes Easy

    HR software helps streamline information sharing between HR, employers, and managers across the entire organization. Modern HRMS such as HROne also come with an employee self-service feature that allows employees to manage and customize their own dashboard, thus enabling information-sharing anywhere, anytime.

    Since HROne is a cloud-based platform it can also be accessed on your mobile phone. A streamlined system helps avoid inconsistencies in sharing information related to company updates, policy changes, news, etc.

    Stats Check
    According to a CareerBuilder Survey, HR managers lose an average of 14 hours a week manually completing tasks that could be automated. More than a quarter waste 20 hours or more.

    4. Supports Sound Decision Making

    Employee development, performance management, and hiring are done in a much better manner with a sophisticated HR management system. HRMS helps managers make better hiring, firing, promotion, and employee development decisions by utilizing the power of data, analytics, and reliable and evidence-based information.

    5. Enhances Effective Performance Management

    With effective HR software, performance management doesn’t have to be a one-off, yearly affair that is cumbersome, unproductive, and almost dreadful. Modern HRMS allows you to schedule monthly, quarterly, or even weekly review sessions to truly gauge employee progress, set goals and provide feedback in a transparent way. Employee development becomes more effective and productive with a clear and realistic view of employees’ progress.

    Summing Up

    With so many options to choose from, it is difficult for organizations to select the best human resource management software. Before selecting the HRMS, assess organizational needs, project parameters and experiment with a few software to evaluate their performance. Your selection should be based on the area where you need the most support or where your present HR software is lacking to deliver.

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    Tarulika Jain

    Hi.. I am Tarulika Jain. I work as a content writer in HROne. I am an Electrical Engineer by degree, and a pragmatic writer by profession. I bring you insights about Human Resource Management and how digitalisation can make your workplaces happier. When I’m not writing, researching and reading, I walk around the woods, sip my coffee and listen to Indie Music.

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