Human Resource Management
Human resource management is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. HRM is the acronym for the term “Human Resource Management”. Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performancemanagement ,organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. HRM can also be performed by line managers.
A Human Resource Management System (HRMS), Human Resource Information System (HRIS), HR Technology or also called HR modules, or simply “Payroll”, refers to the systems and processes at the intersection between human resource management (HRM) and information technology.
It merges HRM as a discipline and in particular its basic HR activities and processes with the information technology field, whereas the programming of data processing systems evolved into standardized routines and packages of enterprise resource planning (ERP) software.
On the whole, these ERP systems have their origin on software that integrates information from different applications into one universal database. The linkage of its financial and human resource modules through one database is the most important distinction to the individually and proprietary developed predecessors, which makes this software application both rigid and flexible.
The Human Resource Information System (HRIS) is a software or online solution for the data entry, data tracking, and data information needs of the Human Resources, payroll, management ,and accounting functions within a business. Normally packaged as a data base, hundreds of companies sell some form of HRIS and every HRIS has different capabilities. Pick your HRIS carefully based on the capabilities you need in your company.
Typically, the better The Human Resource Information Systems (HRIS) provide overall:
- Management of all employee information.
- Reporting and analysis of employee information.
- Company-related documents such as employee handbooks, emergency evacuation procedures, and safety guidelines.
- Benefits administration including enrollment, status changes, and personal information updating.
- Complete integration with payroll and other company financial software and accounting systems.
- Applicant tracking and resume management .
The HRIS that most effectively serves companies tracks:
- attendance and PTO use
- pay raises and history
- pay grades and positions held
- performance development plans
- training received
- disciplinary action received
- personal employee information, and occasionally
- management and key employee succession plans
- high potential employee identification
- applicant tracking, interviewing, and selection.
A paid time off (PTO) policy combines vacation, sick time and personal time into a single bank of days for employee paid time off. A PTO policy creates a pool of days that an employee may use at their discretion. When an employee needs to take time off from work, the PTO policy enables this time off.
An effective HRIS provides information on just about anything the company needs to track and analyze about employees, former employees, and applicants. Your company will need to select a Human Resources Information System and customize it to meet your needs.
With an appropriate HRIS, Human Resources staff enables employees to do their own benefits updates and address changes, thus freeing HR staff for more strategic functions. Additionally, data necessary for employee management ,knowledge development, career growth and development, and equal treatment is facilitated.
Finally, managers can access the information they need to legally, ethically, and effectively support the success of their reporting employees.
Human Resource management is based in the efficient utilization of employees in achieving two main goals within a corporation or other type of organization.
The first goal is to effectively make use of the talents and abilities of employees to achieve the operational objectives that are the ultimate aim of the organization. Along with realizing the goals of the organization, Human Resource management also seeks to ensure that the individual employee is satisfied with both the working environment and the compensation and benefits that he or she receives.
HRMS allow enterprises to automate many aspects of human resource management ,with the dual benefits of reducing the workload of the HR department as well as increasing the efficiency of the department by standardizing HR processes. Currently Human Resource Management Systems have the following key modules:
- Time & Attendance
- Benefits Administration
- HR Management Information System
- Employee Self-Service
The Organization module is organization structure such as company, location, department, designations, employee group and organization change such as resignation, termination, transfer, promotion.
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 the human resources and time keeping 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.
Time & Attendance
The Time & Attendance Module automates time tracking related processes and enhances the organization's performance by eliminating paperwork and manual processes associated with time and attendance needs. The sophisticated module helps to efficiently organize labor data, improve the workforce management and minimize errors in enforcement of company's attendance policies.
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.
HR Management Information System
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 not in use. Human resource management function involves the recruitment, placement, evaluation, compensation and development of the employees of an organization.
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 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.
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, or '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 if a stand alone 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 LMS allow managers to approve training, budgets and calendars alongside performance management and appraisal metrics.
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. (Overtime) requests from their subordinates through the system without overloading the task on HR department.
The Reports Module provides customized reporting according to employees individual needs. Any number of reports can be defined by selecting from a range of search criteria and report fields. Report definitions can be saved to avoid repeating this task. Once the report definition is saved the report can be generated by providing the required criteria data.
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.
While these above mentioned HR modules each provide benefits to the HR department itself, the applications also aid the enterprise as a whole.
HRM systems convert human resources information into a digital format, allowing that information to be added to the knowledge management systems of the enterprise. The result of this is that HR data can be integrated into the larger Enterprise Resource Planning (ERP) systems of the enterprise.
In analysing enterprise wide resource usage this data can prove invaluable. Data related to the time usage of the workforce can enhance the decision making abilities of management ,allowing the HR department to form an integral aspect of strategy formation for the enterprise as a whole.
E-HRM is the (planning, implementation) application of information technology for both networking and supporting at least two individual or collective actors in their shared performing of HR activities.
E-HRM is not the same as HRIS (Human resource information system) which refers to ICT systems used within HR departments. Nor is it the same as V-HRM or Virtual HRM - which is defined by Lepak and Snell as “...a network-based structure built on partnerships and typically mediated by information technologies to help the organization acquire, develop, and deploy intellectual capital.”
E-HRM is in essence the devolution of HR functions to management and employees. They access these functions typically via intranet or other web-technology channels. The empowerment of managers and employees to perform certain chosen HR functions relieves the HR department of these tasks, allowing HR staff to focus less on the operational and more on the strategic elements of HR, and allowing organizations to lower HR department staffing levels as the administrative burden is lightened. It is anticipated that, as E-HRM develops and becomes more entrenched in business culture, these changes will become more apparent, but they have yet to be manifested to a significant degree.
There are three tiers of E-HRM. These are described respectively as:
Operational E-HRM is concerned with administrative functions - payroll and employee personal data for example.
Relational E-HRM is concerned with supporting business processes by means of training, recruitment, performance management and so forth.
Transformational E-HRM is concerned with strategic HR activities such as knowledge management ,strategic re-orientation.
An organization may choose to pursue E-HRM policies from any number of these tiers to achieve their HR goals.
E-HRM is seen as offering the potential to improve services to HR department clients (both employees and management ),improve efficiency and cost effectiveness within the HR department, and allow HR to become a strategic partner in achieving organizational goals.