Written by Serena Berger
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A human resource management system, or HRMS, is a software package that contains several tools to facilitate human resource functions. Common tools include benefits administration, payroll, recruiting, and training modules. With all of these tools integrated into a single package, it becomes much easier for employees and managers to get the answers for which they are looking.

The Role of HRMS in Your Organization

First, you need a centralized database to keep track of all the information available on each of your employees. This includes skills, previous training, payroll records and personal histories. In the past, a manager would have to consult several databases in order to collect all information on a given employee. HRMS software automates the process by centralizing all records and making them accessible through a single application.

There are essentially four HR tasks that HRMS encompass: payroll, time management, benefits administration, and HR management. Human resource management systems are commonly accessible via the Internet or a corporate intranet. The intent is to improve the efficiency of the company. Rather than requiring a manager to consult with an HR administrator to review an employee's performance, he can do so at his own convenience.

HR modules can provide great assistance to managers when they are assigning new tasks to employees. They can reveal the best possible fit between a task and an employee based on required skill and past employee performance, allowing the company to benefit most from their human capital. Wasting your most productive employee on a small account goes against common sense, but HR software can help you approach the problem from a logical and objective position.

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