What is Human Resource Management System (HRMS) ?

Human Resource Management System (HRMS) is Software that integrates all the Employee activities in an organization. There are various HR activities namely, attendance records, leave management, HR Policies, pay slip generation, PF & ESI Calculations, recruitment, training, and so on. For a small company with few employees, these tasks may seem to be simple. But for a big organization having around 5000 employees, these tasks will be a huge hectic work. 

Human Resource Management System HRMS in ERP Software

Here comes the need for a software system that can handle all these functions under a single screen. An HRMS Module comes as one of the modules in an ERP Software System integrated with all other departments. 

Back in those days, Imagine when there were no computers and what this HR Operations would look like. Everything would have been written manually and maintained as a file. And later on, when the computers took place in the office, these records were maintained in Excel sheets. But these data are difficult to maintain as well as it will consume more man hours. Also, there won’t be any accuracy in the data. Later, with the evolution of computers and advanced technology, software has come into existence which handles all these employee data more securely.

 Components of HRMS :

Attendance: The attendance made through bio-metric machines integrated with the HR module easily records and maintains the employee’s working hours. You have many functions like, manual log-in entry, On duty entry, permission entry, leave form submission, check your balance/taken leave, comp off, and so on. 

Salary: A salary is calculated with factors like Basic, Dearness Allowance, HRA Allowance, Conveyance Allowance, and other PF & Tax deductions. The predefined format helps HR to easily generate pay slips and send them to their email with a single click.

PMS (Performance Management System): This is used in appraisal processes for employees based on their performance. It is calculated based on the score of key result areas (predefined points of tasks to be achieved) 

HRMS: This records all the information of a candidate right from the interview process to the appointment and joining. Each candidate’s personal information is securely stored in a centralized database. 

PF & ESI: You can generate reports on the amount of PF/ESI that has been paid to an employee over the specified period.

Loan and Advance: The employees have the option to apply for a loan or salary advance. The report shows the details of the employee’s eligibility for taking the loan, the balance needed to be paid, the status of a raised request, and so on.

Why must an organization have Human Resource Management System (HRMS)?

  • It avoids repetitive tasks and automates the process for all the employees’ data. This greatly reduces manpower and man hours.
  • Since the information is stored under centralized data, duplication can be avoided.
  • The software ensures the accuracy of the data being input, and can’t be changed easily.
  • It greatly helps and eases the salary generation process with built-in formats and values.
  • Able to retrieve any employee profile in a single click. Thus completely get rid of large numbers of files that occupy your physical space.
  • The cloud app and mobile app make it easier for the employees to enter their OD, leave, or other requests on the go.

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