The decision on whether or not to transition to new technologies in management is always a difficult one to make. Many businesses find it hard to find the balance between value and the high expenses of technology integration. When it comes to Human Resource Management Systems (HRMS) the value of integration has already been proven. Businesses can be sure that they will be getting maximum value from HRMS installation as long as the process is done correctly.
Streamlining HR Processes
The HR department is responsible for very many critical roles of the organization. This department manages the recruitment and selection of employees, performs employee training, implements strategies to retain employees, and manages the employee payroll among many other roles. At the same time, these roles need to be aligned with the overall organizational strategy. HR practices are performed to lead the organization towards its overall goal. Performing all these fragmented roles of workforce management while at the same time making sure they are aligned with the organizational strategy can be difficult. The integration of HRMS into the HR management systems enhances the efficiency of managing HR roles. A study by Hussein, Wallace, and Cornelius (2007) investigated the impact of HRMS on HR professionals. The results of the study found that in both small and large organizations, HR professionals reported increased efficiency in performance of HR functions and the alignment of HR functions with the organizational strategy. These results demonstrate the importance of HR management systems in an organization. Any business that invests in these systems is likely to improve the work that is done by HR employees. In addition to improving efficiency for HR officials, HRMS also improve the performance of the organization.
Impact of HRMS on Performance
There are many ways in which HRMS help to enhance the overall productivity, and hence, performance of an organization. These systems simplify the manual HR procedures and eliminate the occurrence of errors that limit the performance of the HR role in an organization. For example, Foster (2010) reports in his article that integrating technology into the payroll processing systems helps to reduce occurrence of errors such as overpayment and underpayment of workers. This ensures the efficient performance of the company’s financial management while improving the payment procedures for the employees. The systems can also be used to optimize the HR recruitment procedures. With the help of the appropriate algorithms in decision support systems, the organization can appropriately vet different candidates to ensure that they meet the standards of skills, knowledge, and values that are needed at the organization. HRMS can also improve the management of employees. These systems are used to manage employee data. Important employee management metrics can be monitored with the help of these systems (Foster, 2010). Factors such as employee turnover, performance, and level of satisfaction can be monitored through HRMS. The improvement of these processes eventually improves the efficiency of the organization as a whole, leading to better productivity.
Conclusion
Many managers struggle with the decision of whether to implement HRMS or not. This analysis shows that implementation is the way to go. HRMS do not just help the HRM department, but the organization as a whole. There are many roles under the HR docket that influence the organization in general. The integration of HRMS enhances management of these roles while also enhancing the decision making capabilities of the organization’s management. Therefore, if any manager is thinking about this decision, it is likely that implementation will be the best strategy to follow.
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