It is not a secret that the Human Resource is the most intricate department of a corporate establishment. Due to the elaborate nature, the HR processes require the highest attention and swiftness in execution. To make the performance speedy and efficient, the systems now renowned as HRMS software came into existence.
In this blog, we will talk about how this solution evolved over a period of time from its basic idea and inception. But first, let us understand what it means.
What is a Human Resource Management System?
HRMS software, also commonly known as Human Capital Management or Human Resource Information System, is the HR solution that combines and mechanizes all the HR operations. From Hiring and Recruitment, Time and Attendance Management, to Payroll Processing, any human resource activity that you think of can be automated using an HRMS software.
But, it was not always like this! So, let us throw some light on the transformation of HRMS from the very beginning till the latest developments in the same:
History of the Human Resource Management Systems
In the late 1960s and early 1970s, the HRMS first came into existence when companies realized the need to improvise record-keeping by centralizing personnel information. It started with writing programs on large mainframe computers and then a new solution was designed that acted as a central data repository. By the 1980s, the system was conceived as HRIS (Human Resource Information System) and performed important functions like payroll processing. Different suites of ERP applications were integrated and the mainframe systems were replaced by the intelligent client-server technologies.
The Rapid Advancement of HRMS Over the Years
After that, there was no looking back. The HR software in India took everyone by storm and received rapid recognition and acceptance by the businessmen here. By the end of the 1980s, the HR sphere saw humongous changes in the way activities were carried out.
Let us look at the different HR operations that were automated by now:
- Benefits Management
- Time and Attendance Management
- Payroll Management
- Compensation Management
- Learning Management
- Expense Management
- Reporting and Analytics
- Allowances and Reimbursements
- Performance Evaluation and Management
After the 1980s, self-service applications were developed to facilitate easy accessibility and user-friendliness. The users were able to run the application from anywhere at any time.
The Current State of Human Resource Management Systems
Now, as the software production rose, the prices of the HR technology went down. Almost every business owner and the employer is now able to afford an HRMS software and bring advancement to the HR zone of the workplace. Today, the incorporation of artificial intelligence in every field has also added to the effectiveness of HR solutions. With the adoption of SaaS (Software as a Service), the HR software could be personalized as well as customized as per individual choices and requirements. So, clearly, the privacy and security are resolved and the financial aspects of employment are also covered in the scope of this HCM suite.
The current state of HRMS software is such that complex tasks such as Employee Engagement, Employee Retention and Workforce Management are also resolved using the system. There is absolutely no area without the expansion or outreach of an HRMS software. You name the HR function and this system can do it all! Besides, challenging situations like illness of an employee, regional lockdown and other emergencies call for work from home or telecommuting. Here, an HR software plays an integral role to maintain workflow through the mechanized features so that the productivity and performance of the workforce don’t get hampered.
Bottom Line The rate at which the development in technology is progressing, the HR sphere is sure to reach heights of advancement. We never know what new feature could be introduced that has the capability to change our work lives forever. So, the bottom line is that, we should keep exploring the depth to which automation can be played with, in order to enjoy the best possible state of Human Resource Management.