The Advantage of Having an Effective Human Resource Management System

In this modern age & time, organizations are facing increasing complexities in managing their human resources effectively and getting the best for the growth of their organisations. This is where a Human Resource Management System (HRMS) emerges as a valuable solution in these ever-changing challenges faced by all organisation globally and how it empowers organizations to optimize their HR processes, improve decision-making, and foster employee engagement. Many companies are dependent on their employees to gain advantage in the competitive market. Therefore, they are strongly related to the efficiency of their human resources and their human resources management (Collins, 2021).

Streamlined HR Processes –

Figure 01

One of the significant advantages of implementing a Human Resource Management System is the streamlining of HR processes. Traditional manual methods of managing HR tasks, such as recruitment, onboarding, attendance tracking, and leave management, can be time-consuming and prone to errors. An HRMS automates these processes, eliminating manual paperwork, illegal alterations and reducing administrative burdens. This automation not only saves time but also ensures accuracy, consistency, and compliance with relevant policies and regulations which could be monitored in a transparent manner.

Effective DATA management –

Figure 02

An HRMS provides a centralized database for storing and managing employee information. This centralized approach offers several advantages in terms of data management. HR professionals can easily access and update employee data, reducing the need for manual record-keeping and minimizing the risk of data duplication or loss. Furthermore, an HRMS ensures data security and confidentiality, allowing organizations to comply with data protection regulations. The emergence of disruptive technologies such as artificial intelligence, computational intelligence techniques, data mining, machine learning, and the Internet of Things has speeded up data-driven decision-making in HRM (Davenport, T. H., & Ronanki, R 2018).

Improved decision making –

Figure 03

With its advanced reporting and analytics capabilities, an HRMS enables HR professionals and decision-makers to gain valuable insights into workforce trends, performance metrics and HR-related expenses. By generating real-time reports & analytics, it empowers leaders to make Data-driven decision-making which enables proactive strategies aligned with organisational goals. Decision-making is the process of selecting an alternative course of action that will solve a problem (Lussier, 2011)

Enhanced Employee Engagement –

Figure 04

Which is crucial for organizational success & productivity and plays a pivotal role in enhancing employee engagement by providing self-service portals and employee-centric features which are personalized and confidential. Employees can also update their profiles, view payslips, apply for leave, access training resources/programmes and even self-appraise their performance based on the targets set out by their organisation. Employee engagement is strongly related to employee attitudes, behaviours, performance, and well-being (Bailey, Madden, Alfes, & Fletcher, 2017) as well as organizational outcomes such as financial and customer metrics of performance (Schneider, Yost, Kropp, Kind, & Lam, 2018).

Compliance & Risk Management -

Figure 05

Staying compliant with Labour Laws & regulations, knowing industry standards is a critical aspect of HRM. An HRMS helps organizations ensure compliance by automating various HR processes and generating accurate reports. It could also incorporate built-in compliance features such as payroll, tax calculations, benefits and leave tracking. This provides organisations with peace if mind and ensures that HR practise align with proper legal requirements. Human resource risks are emerged in many forms, such as the risk of losing key employees, the risk of insufficient or incorrect motivation among management staff and so on (Nadri & Mehrabi, 2018).

Scalability and Adaptability –

Figure 06

As organizations grow and evolve, their HR requirements change. An HRMS offers scalability and adaptability to accommodate these changing needs. Whether it's handling of a larger workforce, expanding to new locations or integrating with other business systems. An HRMS provides the flexibility to scale and adapt without disrupting existing HR processes. This ensures that organizations can effectively manage their HR operations as they grow & adapt to market dynamics.

 

Conclusion -

Figure 07

The Implementation of a HRMS brings numerous advantages that can transform HR operations and drive organizational success. Enhance their HR efficiency, improve employee satisfaction, and gain a competitive edge in today's dynamic business environment.

References

Collins, C. J. (2021). Expanding the resource based view model of strategic human resource management. The International Journal of Human Resource Management, 32(2), 331-358.

Available at : https://aipublications.com/uploads/issue_files/4IJEBM-FEB202141.pdf

[Accessed 25 March 2024]

 

Davenport, T. H., & Ronanki, R. (2018). Artificial intelligence for the real world. Harvard Business Review, 96(1), 108–116.

Available at : https://blockqai.com/wp-content/uploads/2021/01/analytics-hbr-ai-for-the-real-world.pdf

[Accessed 25 March 2024]

 

Lussier, R. (2011). Management fundamentals: Concepts, applications, skill development, Cengage Learning.

Available at : https://books.google.com/books/about/Management_Fundamentals.html?id=aeLFDwAAQBAJ

[Accessed 26 March 2024]

 

Bailey, C., Madden, A., Alfes, K., & Fletcher, L (2017) The meaning, antecedents and outcomes of employee engagement: A narrative synthesis. International journal of management reviews, 19(1), 2017, 31-53.

Available at : https://www.tandfonline.com/doi/abs/10.1080/09585192.2019.1674358

[Accessed 26 March 2024]

 

Schneider, B., Yost, A.B., Kropp, A., Kind, C., & Lam, H. (2018). Workforce engagement:

What it is, what drives it, and why it matters for organizational performance. Journal

of Organizational Behavior, 39(4), 462–480. https://doi.org/10.1002/job.2244

Available at : https://repository.up.ac.za/bitstream/handle/2263/89172/Prinsloo_Organisational_2022.pdf?sequence=1

[Accessed 29 March 2024]

 

Nadri K. & Mehrabi L. (2018), Investigating the types of risk and risk management in the

Islamic banking system, Development Strategy, 54(14): 160-181.

Available at : file:///C:/Users/Roshan%20Pelpola/Downloads/eagip,+21.+esf.pdf

[Accessed 29 March 2024]