THE ADVANTAGES
OF
HUMAN RESOURCE MANAGEMENT
SYSTEM
Human resource management
(HR) is an essential, complex, and information-intensive function in every
business. It is also closely regulated by federal and state
agencies. Thus, IT is an essential tool in the efficient management of
human resources. A human resource management system (HRMS) uses the power
of information technology to capture, store, analyze, and report on all aspects
of an organization's most important resource - people. An HRMS is also
called a Human Resources
Information System (HRM), Human Capital Management System (HCMS), and Human
Resources Information Technology (HRIT)
ADVANTAGES:
Automate and
improve basic processes
These
systems automate crucial human resource management functions: employee
information, payroll, benefits, and decision support. An HRMS integrates a set of
databases related to functional processing units, such as hiring management,
time and wages, benefits and pensions, employee management, and learning. For
example, employee working time is entered into the system and used to pay
workers, calculate and accumulate benefits, pay taxes, measure productivity,
and capture human resource operating costs.
By
implementing an HRMS, companies examine their existing processes and improve
them to make the best use of the information system. An HRMS, coupled with
streamlined workflow processes, improves organizational performance, lowers
costs, and allows HR staff to focus on employee management issues and project
work.
Decision
support and strategic planning
An
HRMS simplifies reporting and management decision support activities as the
data An HRMS simplifies reporting and management decision support activities as
the data stored in the system can be used in many ways. Standard HR
reports, such as hours worked, terminations, and payroll summaries, can be used
to manage business and plan for the future. Additionally, users can
develop special HRMS
reports to identify trends and measure operational effectiveness. This
aids in decision-making management and strategic planning. management and
strategic planning.
Compliance support
Human resource management
systems generate the reports required by federal and state
agencies. These reports can be transmitted electronically to the
appropriate agencies, saving time and money. For example, a company must
file with the Equal Employment Opportunity Commission EEO-1 Employer Detail and
Synthesis Report and the Department of Occupational Diseases and Injury Report
on a regular basis. An HRMS can help a company manage a union agreement by
tracking years of service for promotions, raises, and layoffs. It also
helps the business monitor employee performance problems and complaints.
Facilitate communication with
employees
Using
an intranet, a private secure computer network owned and operated by a company,
HRMS can use to share
information and communicate with people throughout the organization. This
intranet link is the fastest growing area of human resource systems,
as it encourages employee self-service. Employees can enter their work
hours, enroll in continuing education courses, benefit programs, update their
personal details, and view their accrued vacation and sick leave without having
to call or write to the human resources department.
Link to other
information systems
A
human resource management
system enables data exchange and integration with other essential business
systems, such as accounting, finance, and supply chain management. It also
supports data transfer with third-party systems, such as health insurance
companies and retirement fund managers, to share employee information. These
links streamline workflow and reduce operating costs.
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