The 4 Functions of HRMS Software

HR software or a human resource management system (HRMS) connects HR and information technology. It is essentially a movement to integrate a system that analyzes company personnel and functions, to a systemized, standardized, and regular process done by mainframe computers. This rigorous characteristic of a human resource management system requires both the software and the personnel be both multi-modular and flexible.

Human resource department in every company is to a degree very administrative since they regularly deal with people from within. Each company maintains its own selection, evaluation, and payroll processes, formed in a way that is advantageous for them. Thus, a large manual workload is required to company HR departments to organize personal data. The HRMS software serves to help store the data electronically to a database and with various software, most manual workload are now automated by the HRMS.

This idea of electronic integration has existed since the late 1980s. However, companies have to depend on IT professionals and bulky computers to run the software and handle the transactions. The developments today are based on the client-server model which cuts the overhead cost of hiring technical people while having the HR employees run the software.

The client-server model work around four general functions.

1. Payroll Functionality

The payroll functionality automates the payment process from the data gathered on an employee's work hours, attendance, calculating various deductions from tardiness, payment of income taxes, printing paychecks and establishing payroll reports. This module can be further extended to send these reports to the accounting department or it can manage employee deductions as accounts payable to other transactions.

2. Time and Labor Management Functionality

The time and labor management functionality measures the efficiency of the personnel and the company by evaluating their time and work information. This involves a plethora of methods strategically modified based on the needs of HR department. This functionality is important in cost analysis.

3. Benefit Analysis Module

The third function is the benefit analysis module. This functionality tracks the different benefits that are given to the clients such as health care, stock options, insurance policy, and pension plans. With the HRMS these things are organized to be readily understandable for both the HR department and the employee.

4. HR Management Module

Finally, the HR management module is the most integrated functions of HRMS that covers training and development, position management and position control, and succession planning etc. This management module readily serves to handle the management task required by the HR department from recruitment, handling different application, employee evaluation and grading, and employee development.

The HRMS allows a company's HR department to analyze and manage human capital. The management of human capital as a primary input in a company's growth is one of the most crucial tasks of the corporate world. With the HRMS, personal growth and development is now seen as a set of data that can readily be analyzed with various cost accounting measures, efficiency protocols, time and labor evaluations and many more. The bridge to automation that is most possible through HRMS allows companies to have a downsized but highly effective personnel and management.

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