The human resource system is a core enterprise application for managing administrative and strategic processes related to an organization's most critical asset, its people. Effective and prompt management of the 'human capital' is a complex, but imperative activity to all human resource professionals. The functions of HR consists of tracking multitudinous data on each employee, which includes personal history, personal data, skills, capabilities, work experience, remuneration records, etc. To reduce the workload of HR professionals, organizations automated many of these processes by introducing Human Resource Management Systems.
The client-server HR management systems are mainly developed around four principal areas of HR functionalities: payroll, time and labor management, administration, and HR management. Popular electronic HR management solution includes SAP, Oracle, Lawson, PeopleSoft, and Microsoft. A wide range of companies provide software solutions to various HR functions such as attendance software packages, payroll processing, etc. HR management system products typically comprise of a series of modules that can be integrated to act as a single system covering a wide range of HR functions.
The introduction of HR management system not only reduces administrative burden of HR departments, but also provides easier access to HR data, greater reporting functionality, more consistent and accurate data, higher internal profile, and efficient and standardized processes. These HR systems enable increasingly sophisticated functionality giving companies the opportunity to automate routine transactions to line managers and to employees themselves. It also lays the foundation for e-HR strategy, which would include e-learning and e-recruitment processes.
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The process of choosing and implementing a new HR management system can be a major project both in terms of money and time. The HR management should take the lead from the outset to ensure that the system matches the core needs of the HR department. The level of functionality of the HR management system should be determined by the naturalistic requirements of a particular organization. Because of the high capital necessary to install this application software, human resource management systems are limited to medium and large organizations. In large organizations, the HR executives mostly rely on the internal software professionals to develop and maintain the HR management systems.
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