What is HRMS? Does it stand for Human Resource Management System or Head Rush Musical Score? The answer, fortunately, is the former though it might as well be the latter in today’s digital world of social media and online playlists. HRMS stands for Human Resource Management System (henceforth referred to as HRMS), a software platform designed to assist the human resource department of an organization with day-to-day administrative tasks, such as managing employee details and information, payroll calculation, performance reviews, benefits management, and more.
First, let’s define what an employee relationship management system is
An ERP system is a comprehensive software system design to automate and synchronize business processes. Typically, ERP systems provide enterprise-wide visibility into critical information and real-time updates from multiple applications so employees can make faster decisions that can help increase productivity and decrease costs. An employee relationship management (ERM) application contains modules such as performance management, talent acquisition, workforce analytics and employee development. Some ERM platforms are even more specialized in nature; for example, sales force automation (SFA) is use primarily by businesses in the sales industry.
Then, let’s back up to 1970-1980 when personnel databases were first being implemented
back then, they were primarily developed on mainframe computers (like IBM’s OS/360) that existed in a single office and ran on proprietary programming languages. So what did these first-generation systems do? Well, for starters, they kept track of personnel data – things like dates of birth, salary and hours worked. The information was enter manually into an application by administrative assistants (i.e., no automated tools), which meant that it had to be 100% accurate. Furthermore, these applications couldn’t interface with any other systems at all; in fact, many didn’t even provide ways for non-IT staff to view or access their data.
Next, let’s move forward to 1980-1990, when large ERP systems started to become more widely implemented
a time when people began to transition into having a greater amount of computers in their offices. During these years, it wasn’t unusual for businesses to have two separate IT systems, one for payroll and one for human resources. In order to consolidate operations and save money, however, many companies decided to implement a new type of system that could do both payroll and HR tasks. These applications were call Human Resource Management Systems (HRMS). The first business-specific HRMS application was developed by RJE Custom Information Systems in 1981 and was sold as RJE Human Resource Management System (RJEHRMS) for Honeywell Bull mainframes.
Afterward, let’s fast forward to 1990-2000 when manufacturing ERP systems began growing
a business, such as a factory, typically needed to automate its shop floor first and foremost. Once that was accomplished and manufacturing ERP systems were established, businesses began looking for ways to centralize their records management. Enter Human Resources Management Systems (HRMS). These types of systems designed to handle all non-shop floor related activities within an organization, from payroll management (i.e., employee timekeeping) and recruiting through to benefits administration. Some products from that era are still around today in various forms such as Oracle’s PeopleSoft.
And then we’ll jump ahead to 2000 – 2010, where CRM systems began becoming more important
As companies began to increase their customer acquisition efforts, it became necessary for them to manage these customers in one place. That’s where customer relationship management (CRM) systems were born. CRM systems streamline communication between a company and its customers across various channels (online, mobile, email and social media) by providing users with one central place to organize, store and analyze data related to their interactions with customers. In short, they reduce time spent on repetitive tasks and give employees more time to focus on other aspects of customer service.
Finally, we’ll fast forward again all the way up until today where we see how far employee management systems have evolved
In today’s technological age, a solid Human Resources Management System (HRMS) can go a long way to managing your organization. A few short years ago, we had all of our information on sticky notes and we used word processing software to fill out forms. Now, HRMS Systems have taken on a life of their own by offering cutting-edge features that help businesses run smoothly in every area imaginable. Some systems even feature full-scale automation for faster data entry and administration tasks—with only a few clicks required on both employee and employer sides! The evolution from paper to computer files was just one step in an ongoing journey toward revolutionizing business management. As time goes on, I think we’ll see more automation take place across many types of industries—including HR.
Now that we’ve explored all these HRMS Systems, it seems as though we have a lot more choices than ever before. This can be both good and bad. On one hand, you have many options to choose from and more functionality from each system. However, if you’re not careful with how you manage your data between different systems, it could all easily become overwhelming. Regardless of what you decide on, make sure to choose a software solution based on your needs not just because it has a great web interface! You should also keep up-to-date on future trends in human resources management so that you can continue making smart decisions when it comes time to make upgrades or additions to your HRMS Systems.