A human resources management system (HRMS), also human resources information system (HRIS) or human capital management (HCM) system, is a form of human resources (HR) software that combines a number of systems and processes to ensure the easy management of human resources, business processes and data. Human resources software is used by businesses to combine a number of necessary HR functions, such as storing employee data, managing payroll, recruitment, benefits administration (total rewards), time and attendance, employee performance management, and tracking competency and training records.
A human resources management system ensures everyday human resources processes are manageable and easy to access. The field merges human resources as a discipline and, in particular, its basic HR activities and processes with the information technology field. This software category is analogous to how data processing systems evolved into the standardized routines and packages of enterprise resource planning (ERP) software. On the whole, these ERP systems have their origin from software that integrates information from different applications into one universal database. The linkage of financial and human resource modules through one database creates the distinction that separates an HRMS, HRIS, or HCM system from a generic ERP solution.
History
Structured resource about human resource management, especially human resource information system started with payroll systems in the late 1950s and continued into the 1960s when the first automated employee data used.[1]
The first enterprise resource planning (ERP) system that integrated human resources functions was SAP R/2 (later to be replaced by R/3 and S/4hana), introduced in 1979. This system gave users the possibility to combine corporate data in real time and regulate processes from a single mainframe environment. Many of today's popular HR systems still offer considerable ERP and payroll functionality.
The first completely HR-centered client-server system for the enterprise market was PeopleSoft, released in 1987 and later bought by Oracle in 2005. Hosted and updated by clients, PeopleSoft overtook the mainframe environment concept in popularity. Oracle has also developed multiple similar BPM systems to automate corporate operations, including Oracle Cloud HCM.[2][3]
Beginning in the late 1990s, HR vendors, started offering cloud-hosted HR services to make this technology more accessible to small and remote teams. Instead of a client-server, companies began using online accounts on web-based portals to access their employees' performance. Mobile applications have also become more common.
HRIS and HRMS technologies have allowed HR professionals to shy away from their traditional administrative work and have inserted them as strategic assets to the company. For example, these roles include employee development, as well as analyzing the workforce to target talent-rich areas.
The function of human resources departments is administrative and common to all organizations. Organizations may have formalized selection, evaluation, and payroll processes. Management of "human capital" has progressed to an imperative and complex process. The HR function consists of tracking existing employee data, which traditionally includes personal histories, skills, capabilities, accomplishments, and salary. To reduce the manual workload of these administrative activities, organizations began to electronically automate many of these processes by introducing specialized human resource management systems.
HR executives rely on internal or external IT professionals to develop and maintain an integrated HRMS. Before client–server architectures evolved in the late 1980s, many HR automation processes were relegated to mainframe computers that could handle large amounts of data transactions. In consequence of the high capital investment necessary to buy or program proprietary software, these internally developed HRMS were limited to organizations that possessed a large amount of capital. The advent of client-server, application service provider, and software as a service (SaaS) or human resource management systems enabled higher administrative control of such systems. Currently, human resource management systems tend to encompass:
The payroll module automates the pay process by gathering data on employee time and attendance, calculating various deductions and taxes, and generating periodic pay cheques and employee tax reports. Data is generally fed from human resources and timekeeping modules to calculate automatic deposit and manual cheque writing capabilities. This module can encompass all employee-related transactions as well as integrate with existing financial management systems.
The time and attendance module gathers standardized time and work related efforts. The most advanced modules provide broad flexibility in data collection methods, labor distribution capabilities and data analysis features. Cost analysis and efficiency metrics are the primary functions.
The benefits administration module provides a system for organizations to administer and track employee participation in benefits programs. These typically encompass insurance, compensation, profit sharing, and retirement.
The HR management module is a component covering many other HR aspects from application to retirement. The system records basic demographic and address data, selection, training and development, capabilities and skills management, compensation planning records and other related activities. Leading edge systems provide the ability to "read" applications and enter relevant data to applicable database fields, notify employers and provide position management and position control. Human resource management function involves the recruitment, placement, evaluation, compensation, and development of the employees of an organization. Initially, businesses used computer-based information systems to:
Online recruiting has become one of the primary methods employed by HR departments to garner potential candidates for available positions within an organization. Talent management systems, or recruitment modules,[4] offer an integrated hiring solution for HRMS which typically encompass:
analyzing personnel usage within an organization;
identifying potential applicants;
recruiting through company-facing listings;
recruiting through online recruiting sites or publications that market to both recruiters and applicants;
analytics within the hiring process (time to hire, source of hire, turnover);
compliance management to ensure job ads and candidate onboarding follows government regulations.
The significant cost incurred in maintaining an organized recruitment effort, cross-posting within and across general or industry-specific job boards and maintaining a competitive exposure of availabilities has given rise to the development of a dedicated applicant tracking system (ATS) module.
The training module provides a system for organizations to administer and track employee training and development efforts. The system, normally called a "learning management system" (LMS) if a standalone product, allows HR to track education, qualifications, and skills of the employees, as well as outlining what training courses, books, CDs, web-based learning or materials are available to develop which skills. Courses can then be offered in date specific sessions, with delegates and training resources being mapped and managed within the same system. Sophisticated LMSs allow managers to approve training, budgets, and calendars alongside performance management and appraisal metrics.[5]
The employee self-service module allows employees to query HR related data and perform some HR transactions over the system. Employees may query their attendance record from the system without asking the information from HR personnel. The module also lets supervisors approve O.T. requests from their subordinates through the system without overloading the task on HR department.
Many organizations have gone beyond the traditional functions and developed human resource management information systems, which support recruitment, selection, hiring, job placement, performance appraisals, employee benefit analysis, health, safety, and security, while others integrate an outsourced applicant tracking system that encompasses a subset of the above.
The analytics module enables organizations to extend the value of an HRMS implementation by extracting HR related data for use with other business intelligence platforms. For example, organizations combine HR metrics with other business data to identify trends and anomalies in headcount in order to better predict the impact of employee turnover on future output.
There are now many types of HRMS or HRIS, some of which are typically local-machine-based software packages; the other main type is an online cloud-based system that can be accessed via a web browser.
The staff training module enables organizations the ability to enter, track and manage employee and staff training. Each type of activity can be recorded together with the additional data. The performance of each employee or staff member is then stored and can be accessed via the Analytics module.
Employee reassign module is a recent additional functionality of HRMS. This module has the functions of transfer, promotion, pay revision, re-designation, deputation, confirmation, pay mode change and letter form.
Employee self-service
Employee self-service (ESS) provides employees access to their personal records and details. ESS features include allowing employees to change their contact details, banking information, and benefits. ESS also allows for administrative tasks such as applying for leave, seeing absence history, reviewing timesheets and tasks, inquiring about available loan programs, requesting overtime payment, viewing compensation history, and submitting reimbursement slips. With the emergence of ESS, employees are able to transact with their Human Resources office remotely.
With ESS features, employees can take more responsibility for their present job, skill development, and career planning. As part of HRIS, feedback is given for skill profiles, training and learning, objective setting, appraisals and reporting/analytics.[6] These systems are especially useful for businesses with remote workers, where employees are highly mobile, have flexible working, or not collocated with their manager.[6]
Applicant Tracking System– Software application that enables the electronic handling of recruitment and hiring needsPages displaying short descriptions of redirect targets
Enterprise resource planning (ERP) is the integrated management of main business processes, often in real time and mediated by software and technology. ERP is usually referred to as a category of business management software—typically a suite of integrated applications—that an organization can use to collect, store, manage and interpret data from many business activities. ERP systems can be local-based or cloud-based. Cloud-based applications have grown in recent years due to the increased efficiencies arising from information being readily available from any location with Internet access.
Human resources (HR) is the set of people who make up the workforce of an organization, business sector, industry, or economy. A narrower concept is human capital, the knowledge and skills which the individuals command. Similar terms include manpower, labor, labor-power, or personnel.
PeopleSoft, Inc. was a company that provides human resource management systems (HRMS) better known as human capital management (HCM), financial management solutions (FMS), supply chain management (SCM), customer relationship management (CRM), and enterprise performance management (EPM) software, as well as software for manufacturing, and student administration to large corporations, governments, and organizations. It existed as an independent corporation until its acquisition by Oracle Corporation in 2005. The PeopleSoft name and product line are now marketed by Oracle.
A management information system (MIS) is an information system used for decision-making, and for the coordination, control, analysis, and visualization of information in an organization. The study of the management information systems involves people, processes and technology in an organizational context. In other words, it serves, as the functions of controlling, planning, decision making in the management level setting.
Staffing is the process of finding the right worker with appropriate qualifications or experience and recruiting them to fill a job position or role. Through this process, organizations acquire, deploy, and retain a workforce of sufficient quantity and quality to create positive impacts on the organization's effectiveness. In management, staffing is an operation of recruiting the employees by evaluating their skills and knowledge before offering them specific job roles accordingly.
Human resource management (HRM) is the strategic and coherent approach to the effective and efficient management of people in a company or organization such that they help their business gain a competitive advantage. It is designed to maximize employee performance in service of an employer's strategic objectives. Human resource management is primarily concerned with the management of people within organizations, focusing on policies and systems. HR departments are responsible for overseeing employee-benefits design, employee recruitment, training and development, performance appraisal, and reward management, such as managing pay and employee benefits systems. HR also concerns itself with organizational change and industrial relations, or the balancing of organizational practices with requirements arising from collective bargaining and governmental laws.
An applicant tracking system (ATS) is a software application that enables the electronic handling of the entire recruitment and hiring processes.
Ramco Systems Limited is an Indian multinational enterprise software product & platform provider. Founded in 1997, it is a part of the Ramco Group, and is headquartered in Chennai, Tamil Nadu, India.
Enterprise software, also known as enterprise application software (EAS), is computer software used to satisfy the needs of an organization rather than its individual users. Enterprise software is an integral part of a computer-based information system, handling a number of business operations, for example to enhance business and management reporting tasks, or support production operations and back office functions. Enterprise systems must process information at a relatively high speed.
Oracle Applications comprise the applications software or business software of the Oracle Corporation both in the cloud and on-premises. The term refers to the non-database and non-middleware parts. The suite of applications includes enterprise resource planning, enterprise performance management, supply chain & manufacturing, human capital management, and advertising and customer experience.
OrangeHRM Inc. is a HR software company based in Secaucus, New Jersey, best known for its Human resource management system. OrangeHRM was founded by Sujee Saparamadu in 2005. OrangeHRM offers Starter and Advanced Versions for its clients.
A talent management system (TMS) is an integrated software suite that addresses the "four pillars" of talent management: recruitment; performance management; learning and development; and compensation management.
E-HRM is the planning, implementation and application of information technology for both networking and supporting at least two individual or collective actors in their shared performing of HR activities.
Ultimate Software was an American multinational technology company that developed and sold UltiPro, a cloud-based human capital management (HCM) software system for businesses. Headquartered in Weston, Florida, the company was founded in 1990 by Scott Scherr, and it released its first version of software in 1993. As of the fourth quarter in 2017, Ultimate Software reported total revenues of over $940.7 million. As of 2017, the company employs more than 5,000 people and services 4,100 customers in 160 countries. Ultimate had offices around the U.S., Canada, UK, and Singapore. On February 4, 2019, Hellman & Friedman Capital Partners announced it would purchase Ultimate Software Group for $11 billion; the purchase closed on May 3, 2019.
Human resource planning is a process that identifies current and future human resources needs for an organization to achieve its goals. Human resource planning should serve as a link between human resource management and the overall strategic plan of an organization. Ageing workers population in most western countries and growing demands for qualified workers in developing economies have underscored the importance of effective human resource planning.
Human resource metrics are measurements used to determine the value and effectiveness of human resources (HR) initiatives, typically including such areas as turnover, training, return on human capital, costs of labor, and expenses per employee.
CapacityPlus is a global project funded by the United States Agency for International Development and led by IntraHealth International. Focused on strengthening the health workforce needed to achieve the Millennium Development Goals, the project assists countries to improve accessibility and quality of health services by addressing deficits in human resources for health (HRH).
The inoERP enterprise management system is an open-source Go and Flutter based Enterprise Resource Planning (ERP) application which can be used with MySQL, MariaDB or Oracle 12c databases. The objective of inoERP is to provide a dynamic pull based system where the demand /supply changes frequently and traditional planning systems are unable to provide a good inventory turn.
Oracle Cloud Human Capital Management is a cloud-based HCM software application suite for global HR, talent, and workforce management released by Oracle Corporation in 2011.
Human resource information systems (HRIS) are software designed to help businesses meet core HR needs and improve the productivity of management and employees. HRIS is used to manage human resources in a more structured way. Human resource management needs timely and reliable information on the present and potential workforce in order to acquire a competitive advantage in the marketplace. HRIS and technological innovation have made it much easier to meet this information demand. HRIS is also hardware, support functions, policies, and systematic procedures that support the strategic and operational processes of HR departments into automated processes. It involves databases and computer programs that are utilized in HRIS implementation to store, manages, record, deliver, and manipulate data for a variety of human resource operations.
References
↑ Bhuiyan, Faruk, et al. “Historical Evolution of Human Resource Information System (HRIS): An Interface between HR and Computer Technology.” Human Resource Management Research, vol. 4, no. 4, 30 June 2023, pp. 75–80, https://doi.org/10.5923/j.hrmr.20140404.01.
Maier, Christian; Laumer, Sven; Eckhardt, Andreas; Weitzel, Tim (September 2013). "Analyzing the impact of HRIS implementations on HR personnel's job satisfaction and turnover intention". The Journal of Strategic Information Systems. 22 (3): 193–207. doi:10.1016/j.jsis.2012.09.001.
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