Regardless of the type of organization or business, “employees” are the vital gears that drive these operations towards achieving the main goals of the organization. It is evident that when establishing a company, various components such as capital, workplace, and organizational management strategies are required. However, all of these elements ultimately rely on the work performed by the personnel. Therefore, every organization should highly prioritize their human resource management system to empower employees to fully unleash their potential and align their work with the organization’s ultimate goals. Today, Humanica will explain the importance of human resource management system to help everyone understand what it is and how it can contribute to organizational development.
What is Human Resource Management System
Human Resource Management System (HRMS) refers to the strategies or processes for managing and organizing personnel using information technology, including software and applications. It aims to enhance the efficiency of HR team’s workload in terms of complexity, accuracy, and speed of data management. The HRMS can handle various tasks throughout the HR processes, such as recruitment, managing employee benefits and compensation, workforce planning, and more.
What information does the Human Resource Management System contains?
With the purpose of the Human Resource Management System (HRMS), which deals with the collection of essential data that represents the organization’s structure or framework, it aims to support various functions within the organization for planning, analysis, and decision-making to benefit the organization itself. Within the HRMS system, the following important data are recorded:
1. Employee Personal Information
This data includes the employee’s name, address, contact details (phone number and email), age, personal relationships (family, siblings, spouse), as well as important medical information of each individual. This enables the HR department to save time in searching and inquiring the information.
2. Employee Attendance Records
This section involves recording all evidence of employee attendance, including clock-in/out times, tardiness, absences, and various types of leaves (sick leave, annual leave, personal leave, unpaid leave). This data is used for workforce planning according to the organization’s workload, as well as for evaluating individual performance.
3. Training and Employee Development
Training and development of personnel are essential for organizations to continually enhance their skills, enabling effective mutual growth. Examples include workshops related to the organization’s products, job-related skills, and interesting knowledge.
4. Reporting and Performance Evaluation or Key Performance Indicators (KPI)
This part involves collecting performance data from all job responsibilities of employees throughout their employment period. It allows the HR department to use this information to evaluate individual performance and assist in planning personnel development and organizational restructuring.
5. Salary and Personal Benefits
Within the Human Resource Management System, there are records of salary details and various components such as bonuses, overtime pay, and salary base adjustments. This information is used to calculate employee remuneration within the organization. Additionally, personal benefits of individuals are also recorded, as different departments may have different benefits, including group insurance, commissions, and more.
6. Complaints and Suggestions from Employees
This dataset is considered crucial for helping the development of the organization. It begins with improvements in various areas that may affect the smooth functioning of employees, such as conflicts within teams and individuals. It also includes suggestions on what the organization should have. These inputs help the HR department and management understand issues that may impact the organization’s culture.
Benefits of using a Human Resource Management System in your organization
- Convenient Information Retrieval: It provides easy access to information for users, including the HR department, accounting department, management, and employees themselves. They can view relevant details related to themselves, making information retrieval convenient.
- Efficient Organization’s Resource Allocation: The system serves as a crucial database that helps in efficient resource allocation, such as workforce planning, budget planning, and organizational management design.
- Improved Communication and Collaboration: It acts as a central platform for connecting management, the HR department, and employees, enabling seamless communication and collaboration. This fosters better understanding and positive relationships among all departments.
- Increased HR Efficiency: The HRMS reduce HR work process , resulting in improved efficiency in data accuracy, quick information retrieval, and streamlining of various processes, particularly in querying employee data instantly through the Human Resource Management System (HRMS).
- Unified Document Approval: The HR department and management can approve critical documents through the same system, including leave requests, financial documents, and salary slips.
- Enhanced Data Security: The system offers greater data security compared to traditional paper-based documents, preventing unauthorized access to sensitive information by individuals unrelated to the organization.
Summary of Human Resource Management System
Personnel or employees are valuable resources for organizations as they play a crucial role in achieving organizational goals efficiently. Each individual possesses unique expertise and their effective coordination acts as a central medium that aligns everyone towards a shared vision. Therefore, implementing a robust Human Resource Management System is essential and should not be overlooked. For organizations seeking an efficient HR solution with effective management and superior care, Humanica is an ideal choice as it can play a significant role in leading your organization towards the sustainable growth.