The advent of technology as a viable way to streamline business functions in any organizations. Management programs are computer software that are designed to facilitate complex management task that will enable users to easily transmit different data such as project reporting, team collaborations, scheduling and so much more (Beal, n.d.). With that, moving into the definition of an HR management system, it is a type of information system that mixes different aspects of the Human Resource department such as payroll, recruiting and hiring, and benefit administration just to name a few. This system works hand in hand with the staff of the HR department (Beal, n.d.).
The HR management system (HRMS) is used primarily by the HR department. It is connected to an enterprise resource planning system as a standalone software. It helps HR staff to perform seemingly mundane tasks in a way that can be time efficient. In most cases, the HRMS is connected to different functions to other support systems like, time tracking, attendance, finance, and administration (Techopedia, n.d.). HRMS is closely linked to Human Resource Information System (HRIS). HMIS is an IS that provides an automated data entry of the human capital of a company (Techopedia, n.d.). An effective HRIS is geared towards:
- Simplification of workflow
- Efficient and effective data distribution
- Optimization of the workforce data credibility
Depending on the size and needs of the company, companies can opt to have a simple HRMS that can take care of day-to-day operations of the company or a more complex role such as training and development, Performance management, and/or recruitment. HRMS should be an extension of the HR department that can help them do their function at an exemplary way while meeting the goals of the company (Bhuvaneswaran, 2019). HRMS can be availed through freelance programmer. Companies can contact these programmers and have them analyze their current system so they can create an HRMS that will fit the company. On the other hand, they can contact an HR Company that offers ready made HRMS that offers a wide array of functions for the company. Contrary to popular belief, HRMS can be relatively cheap depending on the complexity which the program will run. As long as the company knows what they need with regards to their HRMS, they can look for specific systems that will target those needs and hopefully get their bucks worth (Bhuvaneswaran, 2019).
ADVANTAGES AND DISADVANTAGES OF AN HR MANAGEMENT SYSTEM
Advantages of an HR Management system
- Data Accuracy
- By using HRMS, the HR department will be forced to unify all existing employee data which in return can provide accurate employee information for the different departments of the company. Not only that, integration with the different departments can access this data with ease.
- Payroll Integration
- Integrating the payroll in the HRMS will be a cost-effective way to for employees to retrieve withholding forms, tax forms, and deposit information rather than having an HR clerk produce each forms and distribute it one employee at a time.
- Time efficient
- The main advantage of an HRMS is the ease of data entry. With only one HR staff needed to input employee information, the risk of double information and human error can now be minimized. It will also lessen processes that may take up too much time for the HR department such as time-in and time-out computations, overtime pay computations, etc.
- Not only that HRMS minimize human error, but it provides proper documentations of different employee status, bonus pay, number of leaves, and so many more documentation that may seem overly clerical but with HRMS, the task will be automated.
Disadvantages of an HR Management System:
- Cost of installation and implementation
- A small business may find cost of installation and implementation sort of a problem. Not only will it entail hundreds and thousands of pesos but you will also have to dedicate time in training your employees to fully understand how your new system works.
- Data Privacy
- With technology, there will always be the risk of information leakage. The risk of having sensitive employee information in one system can be risky for some. The risk of hacking may be present for some companies that have low level security built-in in their HRMS.
- Employee Assessment
- HRMS also do employee assessment for performance report. THe disadvantage in using a computer software to assess people is that, it takes away the human element of the company. Softwares cannot assess potentials. They can only assess failures and achievements.
- Difficulty in Analysis
- With so much data in HRMS, it can be difficult sometimes to sift through records to analyze different aspects of the company. For example, if you would want to check the level of employee turnover with the rate of compensation, the HR staff may find it difficult to analyze these data points and come up with a proper report.
THE LONG TERM EFFECTS OF AN HR MANAGEMENT SYSTEM
The effects of an HR management system:
- Promotion of Positive work behaviour
- HRMS will give companies an added space for employees to focus more on other aspects of their jobs. Since HRMS automates the simple tasks of an HR Staff, multiple opportunities will arise from it and employees may feel more positive knowing that mundane tasks are not being done manually anymore.
- Organizational effectiveness
- HR management systems has an impact on overall organizational effectiveness. Having an effective HRMS can make the company be more consistent in reaching their goals. HRMS are there for strategic purposes. It allows the HR department to be more strategic by improving knowledge, skills, and motivation.
- Occupational Safety
- Many companies are engaged in the manufacturing business. Most of the time, these companies have factories with high incidents of injuries which may lead to negative psychological impacts for employees. HRMS can be used as a tool to focus on analyzing and designing ways that can help provide safety inside the work environment.
- Customer Service Satisfaction
- One way to gauge if the company is doing good is their customer satisfaction. If customers are not satisfied, companies experience a decline in their sales and this is not good for companies. HRMS can be focused on better customer service. HRMS can promote collaboration in the workplace in the hope to minimize possible mistakes in the future.
- Proactivity and Innovation
- A study by Lee, et. al. (2016) says that evolving HR practices contribute for proactiveness and innovation in the workplace. Their study suggests that, HRMS as part of effective strategic human resource management. It implies that, as long as the company can adapt to new and innovative ways of HRM, such as HR management systems, the workforce will be more proactive and innovative.
- Empowering Employees
- Related to the former bullet, the HRMS can be a tool for companies to delegate decision-making task to employees which can increase employee involvement and empowerment. These can lead to a more productive workforce that encourages teamwork with one another.
- Performance Management
- Since the HR department has to handle most of the employee’s development throughout their stay in the company, HRMS can be used as a tool for appraisals, leave management, payroll management, and time-sheet tracking. Since most of those are already automated, retrieval of information will be easier compared to a company who does not use any HR management system.
- The automation of data input and data tracking provided by the HRMS proves to be a great effect when companies are under audits.
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