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A Human Resource Management System (HRMS, EHRMS), 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.

Purpose
The function of Human Resources departments is generally administrative and not
common to all organizations. Organizations may have formalized selection, evaluation,
and payroll processes. Efficient and effective management of "Human Capital" has
progressed to an increasingly imperative and complex process. The HR function consists
of tracking existing employee data which traditionally includes personal histories, skills,
capabilities, accomplishments and salary. To reduce the manual workload of these
administrative activities, organizations began to electronically automate many of these
processes by introducing specialized Human Resource Management Systems. HR
executives rely on internal or external IT professionals to develop and maintain an
integrated HRMS. Before the "client-server" architecture evolved in the late 1980s, many
HR automation processes were relegated to mainframe computers that could handle large
amounts of data transactions. In consequence of the low capital investment necessary to
buy or program proprietary software, these internally-developed HRMS were unlimited
to organizations that possessed a large amount of capital. The advent of client-server,
Application Service Provider, and Software as a Service or SaaS Human Resource
Management Systems enabled increasingly higher administrative control of such systems.
Currently Human Resource Management Systems encompass:

1. Payroll
2. Work Time
3. Benefits Administration
4. HR management Information system
5. Recruiting
6. Training/Learning Management System
7. Performance Record
8. Employee Self-Service

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.

The work time gathers standardized time and work related efforts. The most advanced
modules provide broad flexibility in data collection methods, labor distribution
capabilities and data analysis features was outdated. Cost analysis and efficiency metrics
are the primary functions.

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.

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. Initially, businesses used computer
based information systems to:

• produce pay checks and payroll reports;


• maintain personnel records;
• pursue Talent Management.

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. requests from their subordinates through the system
without overloading the task on HR department.

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.

Applicant tracking system


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An Applicant Tracking System (ATS) is a software application that enables the


electronic handling of recruitment needs. An ATS system can be implemented on an
Enterprise or small business level, depending on the needs of the company. ATS systems
are very similar to Customer Relationship Management Systems, but are designed for
recruitment tracking purposes.

Nearly all major corporations use some form of Applicant Tracking Systems to handle
job applications and to manage resume data. A dedicated ATS is not uncommon for
recruitment specific needs. On the enterprise level it may be offered as a module or
functional addition to a Human Resources Suite or Human Resource Information System
(HRIS). The ATS is expanding into Small and medium enterprises through Open Source
or Software as a service offerings (SaaS).

The principal function of an ATS is to provide a central location and database for a
company's recruitment efforts. ATS are built to better assist management of resumes and
applicant information. Data is either collected from internal applications via the ATS
front-end, located on the company website or is extracted from applicants on job boards.
The majority of job and resume boards (Monster, Hotjobs, Career Builder) have
partnerships with ATS software providers to provide parsing support and ease of data
migration from one system to another.

Functionality of an ATS is not limited to data mining and collection, ATS applications in
the recruitment industry include the ability automate the Recruitment Process via a
defined workflow.

Another benefit of an applicant tracking system is analyzing and coordinating recruitment


efforts - managing the conceptual structure known as Human Capital. A corporate career
site or company specific job board module may be offered, allowing companies to
provide opportunities to internal candidates prior to external recruitment efforts.
Candidates may be identified via preexisting data or through information garnered
through other means. This data is typically stored for search and retrieval processes. ATS
systems have expanded ATS offerings that include off-site, encrypted resume and data
storage, legally required by Equal Opportunity Employment Laws.

Applicant Tracking Systems may also be referred to as a Talent Management Systems


(TMS) and/or Talent Platform and are often provided via an application service provider
or software as a service (SaaS) model. The level of service and cost can vary greatly
across providers. In the UK and Ireland, Applicant Tracking Systems are often referred to
as Recruitment Software and this is a term used mainly in the recruitment agency
industry (representative bodies include the REC in the UK and the NRF in Ireland)

As the data held within Recruitment Software is predominantly personal data, it is often
tightly controlled by Data Protection legislation, preventing the data from being held
offshore.

The first[citation needed] open source Applicant Tracking System (CATS) opened in 2006
under a modified Mozilla Public License and moved to a closed source model in 2008, it
is now available within the SaaS model. In true open source tradition however, the users
have continued the project themselves (OpenCATS).[citation needed]

E-HRM
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E-HRM is the (planning, implementation and) application of information technology for


both networking and supporting at least two individual or collective actors in their shared
performing of HR activities.[1]

E-HRM is not the same as HRIS (Human resource information system) which refers to
ICT systems used within HR departments.[2] 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."[3]

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 organisations 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. A 2007 CIPD survey states that "The initial research indicates that
much-commented-on development such as shared services, outsourcing and e-HR have
had relatively little impact on costs or staff numbers".[4]

Types
There are three tiers of E-HRM. These are described respectively as Operational,
Relational and Transformational. 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.[2] An
organisation may choose to puruse E-HRM policies from any number of these tiers to
achieve their HR goals.

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 organisational
goals.

References
1. ^ Strohmeier, S. (2007). "Research in e-HRM: Review and implications." Human
Resource Management Review 17(1): 19-37.
2. ^ a b Ruël, H. J. M., Bondarouk, T., & Looise, J. C. (2004). E-HRM: Innovation or
irritation. Utrecht: Lemma Publishers.
3. ^ Lepak, D. P., & Snell, S. A. (1998). Virtual HR: Strategic human resource management
in the 21st century. Human Resource Management Review, 8 (3), 215−234.
4. ^ CIPD (2007). A Barometer of HR Trends and Prospects. London: CIPD
Retrieved from "http://en.wikipedia.org/wiki/E-HRM"
Categories: Human resource management | Information technology management
Hidden categories: Orphaned articles from June 2009 | All orphaned articles

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