A Human Resource Management System (HRMS) is an Enterprise Resource Planning (ERP) software application that specifically deals with personnel issues. These systems are often integrated with other business applications such as finance. Over the years managing an organization's human resources has become more and more complicated. This key functional group must track employee data including education, job history, skills, and personal information. For decades it has been virtually impossible for medium and large organizations to manage the wealth of human resources data effectively and efficiently without using computers. In the past HRMS ran on large, centralized mainframe computers. Now many of these systems are available on microcomputers. Let's look at some of their typical components.
The Payroll module gathers data on employees' hours worked and absences. Depending on its sophistication this module calculates taxes and other deductions and generates a series of employee paychecks, government checks, and multiple reports. It must apply to the letter federal, state, and municipal tax regulations, and a series of other technical documents including union and non-union contracts. Some payroll systems calculate and track overtime. Many of them automatically deposit employee paychecks. Ideally data coming from the payroll module feeds into financial management systems and helps managers make financial decisions.
Human Resource Software
We all know that benefits are an increasingly important part of many employee compensation packages. A Benefits Administration module enables organizations to process employee participation in benefits programs such as life and health insurance, profit sharing, stock purchases, and retirement pensions. The best systems provide detailed reports that help the organization devise an attractive and yet relatively inexpensive benefits package for their employees.
In good economic times organizations must constantly try to recruit new employees. Even if the company is not presently hiring, it should gather resumes of qualified candidates so it can fill positions rapidly when the need arises. In the Internet world much of this recruiting is done online. Online Recruiting has become a major Human Resources application. Talent Management systems, also known as Applicant Tracking Systems, analyze the organization's current personnel usage and needs, identify qualified applicants whether internal or external, and handle the actual recruitment process. A major function of such systems is assuring compliance with Equal Opportunity Employment laws.
The preceding is by no means a complete list of Human Resources modules. Other modules analyze employee production, track individual qualifications and company training efforts, and provide general management of the HR function. Interested companies may choose from a wide variety of off-the-shelf HR systems. Many vendors are willing to make extensive modifications to their computer systems, for a price.
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