Purpose and Use of Hrms

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Maryam Qureshi BBA 2K8(A)

Every organization has a set of employees working together to achieve the same goals known as the “human resource” of the organization. These people in turn are handled by another set of employees known as the “human resource management”. As the fast growing environment and the technology is becoming an active part of the daily exchanges in the business environment, companies are forced to implement latest tools to compete in the fast paced world. One of the tools utilized by the managers to counter the activities of the human resource management is to utilize the human resource management systems or they may also be called human resource information systems. These systems make a direct link with the human resource management and the information technology, enhancing the competence of the organization. Moreover, their main purpose is to automate the activities handled by the human resource management which in turn boosts the efficiency of the department. FINDINGS:

Focusing on the purpose and uses of the human resource information systems, let’s look at the reason why managers want to implement these systems in the first place. There comes a time when your business is generating large profits and there is an immense amount of information that needs to be stored; be it about your employees or about the organization itself, there has to be a database securing this information. To ensure the security of this information along with reduction in paper work, organization of data, reorganization of processes, maintenance of profits and the employees an organization may require a human resource management system. These systems serve various purposes and hence, incorporate a lot of modules. Their main focus is on the employee information. First to mention is the Payroll module which takes a note of the attendance of the employees after which it automatically calculates various taxes that they are supposed to pay and also the deductions if any. This helps to reduce all the paper work and calculations; the only manual work done over here is to enter the attendance of the employees. The Work Time module takes care of the time along with the work efforts that the employees need to put in. This information is eminent in order to keep the costs of the organization low and efficiency high. Thirdly, there is the Benefit Administration module which basically focuses on making the employees involved in the benefit programs. These programs generally include compensation, insurance, retirement benefits and so on and so forth. The next module is known as the Human Resource management module. It helps managers to evaluate and analyze employees through their data provided and also takes care of the training and development of the employees and what skills do they encompass. There have been great advancements in technology and such systems have also been developed which tap relevant applicants and put them in the right database for further evaluation by the managers. Another similar module which focuses only on training is known as the Training module. It keeps a check of the skills, education and what type of learning the employee has and suggests books, CDs and other various platforms which may enhance their learning. A cost check is also kept by them, telling what training may cause what expenditures. The next module, known as the Employee Self-Service module enables the employees to check records of their attendance and also question the records if ever a problem is faced, without having to go directly to the HR personnel. It helps them to perform transactions related to the human resource department and ask questions related to the department. Basically this facilitates the employees to solve their own matter. All of these modules combine together to help the organization as a whole. The human resource unit is benefitted as it improves their...
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