What is Human Resource Management System

An HRMS (Human Resource Management System) in the simplest sense can be explained as - a kind of HR programming that uses information technology to empower the administration of HR works. 

The HRMS plans to improve the profitability and proficiency of the business through the mechanization of manual and monotonous assignments. This in turn, additionally opens up the HR team’s time to strategically focus on the mission built and to address more on the progressively key business assignments. 

The HRMS normally covers each component of a human resource information system and incorporates the capacities of the human capital administration framework. The two prevalent attributes of a typical Human Resource Management Software is the Payroll and Time and Labor Management (TLM). 

So before we get into the benefits or the functionalities laid any human resource management system, it is important that one understand the basic functions of an HR, as every HRMS is built on the basis of HR functions. Have a look at the following blog to explore more about HR activities that support the organisation strategy. HR Activities that Support the Organisation Strategy

History of HRMS

The administrative system, Human Resource Management, can be considered tremendous strategic planning for the management of employees of an organization.  The ultimate aim of the human resource management system is to foresee the operational objectives of an organization and to imply an optimum level of efficiency from its employees. 

The trend of HRM systems began during the early periods of the 1970s. The organizations looked forward to an automated system for handling their workforce. Payroll is the first function to be computerized. Unfortunately, with the narrow technology and the mainframe computers, organizations still worked hard to meet up their requirement. Even though the inquisitiveness toward the advancement of a human resource solution continued and a completely HR-centered system came true in the late 1980s with the progress of technologies. In addition to the payroll functions, the system is able to manage employee records, recruiting, leaves, attendance, advanced reporting, and more. This results in a devastating impact on employee management. The system helped a lot for HR professionals in automating their tasks. 

Further, the advent of Intenet in the late 1990s promised highly advanced benefits of automation and technology, which brought drastic change and growth in the business scenario. All the paper and pen works are replaced by digital equipment and introduced new digital solutions. The cloud-based technology in the twentieth century brought a revolutionary change in business and developed well-automated platforms for human resources management. New innovations and enhancements what is the HR system are continually being made in accordance with technological advancements.Have a look at the following blog to explore more about HR Software Functions. HR Software Functions

Why is HRMS needed?

In the digitalized business era, the scope of the human resource management system is widened. An advanced HR management system is indispensable in the fast-growing industrial and corporate world. It must require absolute attention and perception to take over the employees and their crucial information. An automated human resource management system can only help you meet your organisation's requirements. A comprehensive, digitalised and automated system is essential to get a perfect balance between your organizational works, functions, resources, performances, and data security. 

A sophisticated HR management software can bring down the burdens from the shoulders of HR persons, and they will get more productive time for managing other important functions. Also, robust and well-equipped management software is needed for automating and streamlining your business. With the help of the HR software, the work will be more efficient and effective for employees, managers, and HR persons 

Thus, the system helps you to enhance your organization's productivity and efficiency. Moreover, a digitalized system can only ensure data security and integrity. A well equipped human resources management system can nourish an organization to synthesise their data and offers a one-stop solution for managing all HR - employee-related works. Read more about Why is Human Resource Management Important

How HRMS is important?

An OpenHRMS platform is the best strategy for facilitating advanced and efficient employee data management and employee functions. The authorities and the HR responsible persons should aim and work hard for the growth of an organization, and they are also required to constantly strive to build a happier work environment. If the employees are satisfied and comfortable, then only they can contribute their maximum potential towards their organization. Implementing an advanced HR management software like OpenHRMS suite into an organization will help you to achieve maximum efficiency and will also increase the happiness index of an organization. Further, the advanced system helps the HR persons to save a considerable amount of time, and they will get enough time to entirely focus on their customer and employee satisfaction.

Automated, digital software can help you to reduce human errors and ensure better operational efficiency and highly relevant data security policies.  The conventional mode of human resource management is an irregular strategy, and there will not be a proper space or place for creating and storing data. Some data will be on the spreadsheet, and others will be in the form of paper works. This type of data and resource management is not a scientific approach, and always there has a chance of missing important documents and records. All these issues can be solved by implementing efficient human resource management software in an organization. Have a look at the following blog to explore more about Strategic Human Resource Management. Strategic Human Resource Management

What are the uses of HRMS software?

The Human Resource Management software is the finite solution for flawlessly integrating all the operational aspects of an organization and all HR related works into a single platform. The technically assisted system is suitable for managing all types and sizes of organizations. The software system assures better and deeper organizational insights and allows you to keep all the important records in one single place. Further, the system helps you to have real-time collaboration with employees. Each activity of employees can be easily tracked. As a result, the organization can keep employees on track and transform them into loyal to the organization.

The well defined and structured modules in the human resource management system help you to reduce the processing time and bring more accuracy. Also, the system will give you centralized employee records. The user-friendly interface of the system helps you to create a happier and healthier atmosphere in organizations. Further, the HRMS software has the ability to keep employees more work centered and shape your HR persons more productive. All the challenges and hurdles faced by the HR department can be minimized, and the system will help you to transform the company into self-sufficient and more profitable.

Human Resource Management (HRM, or just HR) revolves around enhancing the employee performance in lining up with business' vital targets. HR is principally centered around how individuals are overseen inside associations, concentrating on frameworks and approaches. HR includes the accompanying sub-capacities:


Literally saying the HRMS revolves around fulfilling all the aforesaid HR functions carried in business. 

1) Recruitment Management

The functionalities of an HRMS start from the hunting of the right talents. They play the role of recruitment management software, taking care of the vacancies in an organization, strategically designing job positions to overcome the present challenges. Secondly, setting the credentials and other desirable qualifications for the applicants. Thirdly and most important streamlining the entire process of recruiting.

HRMS goes deep into the management of recruiting processes. It caters to the advertising of different job vacancies in different portals, later filtering the candidates, scheduling the interviews, further filtering the creamy layer from the selected list and finally processing the hiring protocols. 

Many recruitment management systems also take care of employee onboarding. They take special care to the training of new candidates and finally engaging them in the right positions to derive the best results. Further constant monitoring is imparted to measure employee engagement in a particular task or assignment.

2) Employee Engagement, Attendance and Time Management

There are many HR information system software in the market that precisely look into timetable management. They come incorporated with timesheets, where the employees can input their work hours. This helps the HR professional or the management to track employee engagement. This HRMS function enables the management to rightly track the work progress, employee progress, his work engagement, accessing his skill to complete the task and also giving timely assistance and warning in case of misleads.

The timesheet based management also helps the business organization in calculating the employee payroll, as there are many organizations that use Timesheet based payroll. Open HRMS has a timesheet module that helps your business in the seamless calculation of employee work hours and thereby calculates his /her payroll.

3) Payroll Management

Payroll calculation is a cerebral pain to any organization. As the number of employees increases, managing them becomes very hectic. There is a chance that something often gets missed while calculating the pay. It becomes highly critical for the management to handle them manually. 

On the other hand, HRMS helps with the seamless calculation of employee payroll, calculating all the statutory dues, reimbursements, tax deductions and thereby generating adequate reports. There is no chance to miss out on any pertinent information as everything is automated here. 

As you do deeper the HRMS caters to different segments like-Employee Appraisal, Custody Management, Employee Data Management, HR Reports, Branch Transfer, Disciplinary Tracking, Legal Actions, Service Requests, Resignation, Vacation Management, Project Management and more. 

The Need for an HRMS

Better Management of Information

HR information is the absolute most delicate information accessible inside an association. The prior way to deal with the HR information was paper-based, which called for overwhelming investment in the space required and the time required too, which was too critical for the business organization. Following this came the period of spreadsheets. This technique turned out to be a mistake inclined and tedious. The response to all the above issues came as HRMS, which is, as a matter of first importance, paperless and thus dispenses with the issue of being lost or inadequate, among others. 

An HRMS likewise takes into account the following of continuous information crosswise over different HR capacities, for example, leave, participation, and finance, for example. This winds up significant when workers are progressively being seen as clients and representative commitment has turned into a key piece of the hierarchical riddle. 

Self Service by Employees

The HRMS comes accessible to the employees in a single focal center point. Present-day hrm process is packaged with a representative Self Service gateway which gives workers access to all their very own information. Such an exhaustive perspective on basic information, for example, that identifying with finance, leave and participation incites trust in the association as well as demonstrates for all intents and purposes gainful for the employees on a few tallies. They would now be able to see/download their payslips, see leave updates and continuous engagement reports and their assessment liabilities for the month or year without the need to approach HR. The opening up of the HR group's ideal opportunity for other vital undertakings likewise improves the productivity of the business' working.

Efficient Reporting

An HRMS enables you to create various predefined statutory just as MIS reports quickly without any setup. On the statutory front, CLRA Report, Shops and Establishment Act Report, and such, can be gotten to in their predetermined configurations with no exertion at all. Also, amazing channels enables the users to create any reports around the workforce dependent on various parameters on an on-request premise, more often than not on the demand of senior administration. In addition, HR dashboards give you a fast perspective on basic data, all on a solitary screen. 

Improved Employee Engagement 

An engaged employee turns out to be the most productive one. In view of this, it is anything but difficult to perceive how highlights, for example, worker Self Service, timely and precise finance management, improved leave and attendance management, etc feed into the association's objectives by keeping employees engaged, guaranteeing a progressively beneficial workforce. HR works that would have generally be riotous and long-drawn, end up streamlined with HRMS and lead to higher worker commitment and fulfillment levels. 

100% Statutory Compliance

Compliance with state and central laws plays a major role in the hygiene aspect of any company’s functioning. Why, it can even have serious cost implications if not handled with care, by way of fines and penalties to be paid out to government agencies. Modern cloud HRMS ensures compliance through regular updates of statutory changes to the back end of the software, such that you are not forced to go hunting for the nitty-gritty of legal changes in a constantly evolving legal landscape such as that present in India.

Adopt Best Processes in the Industry

Best practices ensure that you’re at the top of your game given the limitations of your functioning. Adopting best practices improves efficiency, increases productivity, reduces chances of errors, and more. An HRMS is researched and set up in such a way that it incorporates within it the best human resource strategy.

So do not waste your time, try getting an HRMS Software for alluring more business results. Have a look at the following blog to explore more about HRM Components. HRM Components