Human Resources System

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Human Resources System

What A Human Resources System Entails

The human resources in any organization are its most valuable asset. The Human Resources (HR)

department of any organization administers these resources through the Human Resources System. The

system is software enabled so that all HR processes can be operated efficiently.

Any HR system includes processes such as the selection of employees through raising vacancy adverts,

calling for resumes, and facilitating interviews to finalize the hiring of employees with good skill sets. It also

includes identifying training needs and scheduling of optimum training of employees through participation in

conferences and seminars. Remuneration to employees is another important aspect that HR administers

through the Payroll module of the HR system.

An HR system is an amalgamation of HR management and HR information systems. HR technology through

use of HR modules is used to achieve this amalgamation. The use of a single database is the hallmark of a

successful HR system application package.

The function of the HR department is administrative in nature. One of its important functions is the tracking of

existing employee data in the form of personal histories, capabilities, skills, accomplishments, and salary. The

HR system is software that helps automate and reduce tedious HR processes undergone manually to achieve

the HR daily functioning.

An HR system encompasses benefits administration, HR management information system, work time, payroll,

recruiting, and training modules.

The payroll module automates the pay process. It does so through the collection of accurate data on employee

time and attendance. It also accomplishes this task through calculations of deductions and taxes. Finally it

generates periodic pay cheques and employee tax reports. Data entry is performed through the HR and work

time keeping modules. This module integrates with financial management systems.

The work time module collects standardized time and work related data. It can encompass broad flexibility in

labor distribution capabilities, data collection methods, and data analysis features. Efficiency metrics and cost

analysis are primary components of this module.

The HR benefits administration module helps HR track employee participation in benefits programs. Insurance,

profit sharing, compensation, and retirement are important components of this module.

The HR management module encompasses many HR processes from employee application to retirement. This

module encompasses the demographic and address related data of employees. It also includes selection of

employees, their training and development, and their skills and management. It also includes records pertaining

to compensation provided to employees and other associated activities.



The HR management function involves administering recruitment, placement, evaluation, compensation, and

the development needs of the employees of an organization. Another important area of this module's role is

that related to applicant tracking.

The HR system also includes the training module. This module provides opportunities to employees to enhance

their skill sets and help prepare managers for the leadership role. The Human Resources system also

encompasses the metrics needed to move towards a balanced scorecard.

Purpose

The function of Human Resources departments is generally administrative and common to all organizations. Organizations

may have formalized selection, evaluation, and payroll processes. Efficient and effective management of "Human Capital"

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 high capital investment necessary to buy or program proprietary software, these

internally-developed HRMS were limited to organizations that possessed a large amount of capital. The advent of client±

server , Application Service Provider , and Software as a Service SaaS or 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 module 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. 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. 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:

y produce pay checks and payroll reports;

y maintain personnel records;

y 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:

y analyzing personnel usage within an organization;

y identifying potential applicants;

y recruiting through company-facing listings;

y 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.

Assigning Responsibilities Communication between the Employees.

PRINCIPLES IN DESIGNING HRD SYSTEM

by Archna Khurana Sharma on November 28, 2010

There have been many queries regarding the principles of Human Resource development. Many a times we get confused

between principles and functions of HRD however there is a clear cut distinction between the two. The main functions of

HRD are Training, Personal development, Organisational development, Career planning and development, Change

Management. The principles therefore are not the functions.

HRD systems must be designed differently for different organizations. Although the basic principles may remain the same,

the specific components, their relationships, the processes involved in each, the phasing, and so on, may differ from one

organisation to another organisation.

Designing an integrated HRD system requires a thorough understanding of the principles and models of human resource

development and a diagnosis of the organisation culture, existing HRD practices in the organisation, employee

perceptions of these practices, and the developmental climate within the organisation.

The following principles related to focus, structure, and functioning should be considered when designing integrated HRD

systems.

y Focus on enabling capabilities: The primary purpose of HRD is to help the organisation to

increase its enabling capabilities. These include development of human resources,

development of organisational health, improvement of problem solving capabilities,

development of diagnostic ability (so that problems can be located quickly and effectively), and

increased employee productivity and commitment.

y Balancing adaptation and change in the organisational culture: Although HRD systems are

designed to suit the organisational culture, the role of HRD may be to modify that culture to

increase the effectiveness of the organisation. There always has been a controversy between

those who believe that HRD should be designed to suit the culture and those who believe that

HRD should be able to change the culture. Both positions seem to be extreme. HRD should take

the organisation forward, and this can be done only if its design anticipates change and

evolution in the future.

y Attention to contextual factors: What is to be included in the HRD systems, how is it to be sub-

divided, what designations and titles will be used, and similar issues should be settled after

consideration of the various contextual factors of the organisationits culture and tradition,



size, technology, levels of existing skills, available support for the function, availability of outside

help and so on.

y Building linkages with other functions: Human resource development systems should be

designed to strengthen other functions in the company such as long-range corporate planning,

budgeting and finance, marketing, production, and other similar functions. These linkages are

extremely important.

y Balancing specialisation and diffusion of the function:Although HRD involves specialised

functions, line people should be involved in various aspects of HRD.Action is the sole

responsibility of the line people, and HRD should strengthen their roles.

y Ensuring respectability for the function: In many companies, the personnel function does not

have much credibility because it is not perceived as a major function within the organisation. It

is necessary that HRD be instituted at a very high level in the organisation and that the head of

the HRD department is classified as a senior manager. Both the credibility and usefulness of HRD

depend on this.

y Balancing differentiation and integration: The human resource development function often

includes personnel administration, human resource development and training, and industrial

relations. These three functions have distinct identities and requirements and should be

differentiated within the HRD department. One person may be responsible for OD, another for

training, another for potential appraisal and assessment, etc. At the same time, these roles

should be integrated through a variety of mechanisms. For example, inputs from manpower

planning should be available to line managers for career planning and HRD units for potential

appraisal and development. Data from recruitment should be fed into the human resources

information system. If salary administration and placement are handled separately, they should

be linked to performance appraisals. Differentiation as well as integration mechanisms are

essential if the HRD system is to function well.

y Establishing linkage mechanisms: HRD has linkages with outside systems as well as with internal

sub-systems. It is wise to establish specific linkages to be used to manage the system. Standing

committees for various purposes (with membership from various parts and levels of the

organisation), task groups, and ad hoc committees for specific tasks are useful mechanisms.

y Developing monitoring mechanisms: The HRD function is always evolving.

It therefore requires systematic monitoring to review the progress and level of effectiveness of the system and to plan for

its next step. A thorough annual review reappraisal every three years will be invaluable in reviewing and planning the

system. It may be helpful to include persons from other functions in the organisation in the HRD assessment effort.

HRD Process

Our core values rest on respecting individual worth, integrity and beneficence that eventually help us to aim towards building responsible and sustainable partnerships



within the organization (among the employees and the management) and outside (withexternal stakeholders- community, donors, other civil society organization and thegovernment).This value system governs our organizational ethos and is evident in our HRDevelopment process mentioned below:

Recruitment

SRIJAN has an elaborate process of Recruitment and Selection. The procedure includesvarious psycho and socio-metric tests in order to ascertain the individuals ability towork in a team and with the community. Our professionals are drawn from instituteslike Xavier Institute of Social Sciences, Ranchi; Department of Social Work Jamia MilliaIslamia, New Delhi; University of Agriculture Sciences, Bangalore; Indian Institute of Technology, Kharagpur; G. B. Pant University, Pant Nagar; OUAT, Bhubaneshwar;North East Regional Institute of Science and Technology, Itanagar, etc.

Induction ProgrammeIn view of tremendous growth of the organization and its programmes over the past five years, SRIJAN have evolved its induction processes intermittently. The main fociremain to assimilate the newly acquired professionals into the SRIJAN community andto impart qualities that will help them to accommodate and work with the ruralcommunity.

Bearing this in mind the HRD cell has devised the induction programme in a mannerthat helps to the new recruits to adopt the field situations, and helps to integrate theminto the organization and prepare them to work in teams

Performance Review As integrity is one of core values we believe it to be inculcated in our workenvironment by means of assessing individual performance and giving the opportunityto each professional for self-evaluation as well creating a work ambience based onopen learning. Thereby, strengthening the feedback mechanisms within theorganization.Training/Exposure Review of trainees that are organized after three months, apart from being anevaluation exercise also aims at clarifying their vision and helps them chalk out plan fortheir knowledge, skills and competencies enhancement in consultation with the coregroup of the organization. SRIJAN Write Programme is one such plan to build theknowledge base of the professionals writing skills.

Another main strategy that helps in assessing the training needs of various teams is theProject Review Meetings (PRMs) that is held on quarterly basis that provides a platformfor each team to present the progress of their respective projects. Each team is assistedby the house to plan strategically and discuss interventions that could be taken up.PRMs are also important occasions for learning from each other, identifying expertise





27 Points of Difference between Personnel Management & HRD

No. Dimension Personnel Management Human Resource Development

Beliefs & Assumptions

1 Contract Careful delineation of written contracts Aim to go µbeyond contracts¶

2 RulesImportance of devising clear

rules/mutualityµCan-do¶ outlook; impatience with µrule¶

3 Guide to management Action Procedures µBusiness ± need¶

4 Behaviour Referent Norms/custom & practice Values/Mission

5Managerial Task vis-à-vis

Labour Monitoring Nurturing

6 Nature of Relations Pluralist Unitarist

7 Conflict Institutionalised De-emphasised

STRATEGIC ASPECTS

8 Key Relations Labour Management Customer

9 Initiatives Piecemeal Integrated

10 Corporate Plan Marginal to Central to

11 Speed of Decision Slow Fast

LINE MANAGEMENT

12 Management Role Transactional Transformational leadership

13 Key Managers Personnel/IR Specialists General/business/line managers

14 Communication Indirect Direct

15 Standardisation High (e.g. µparity¶ an issue) Low (e.g. µparity¶ not seen as relevant)

16 Prized management skills Negotiation Facilitation

KEY LEVERS

17 Selection Separate, marginal task Integrated, key task

18 Pay Job Evaluation (fixed grades) Performance ± related

19 Conditions Separately negotiated Harmonisation

20 Labour Management Collective bargaining contracts Towards individual contracts

21 Thrust of relations Regularised through facilities & trainingMarginalised (with exception of some bargaining for change

models)

22 Job categories & grades Many Few



23 Communication Restricted flow Increased flow

24 Job Design Division of Labour Teamwork

25 Conflict Handling Reach temporary truces Manage climate & culture

26 Training & Development Controlled access to courses Learning companies

27Foci of attention of

interventionsPersonnel procedures Wide ranging cultural, structural & personnel strategies

HRM vs HRD

HRM stands for human resources management, which refers to the art of managing all aspects of the human work force at

a company or organization. HRM aims at providing an optimal working environment for employees to fully and freely

utilize their skills to their best to achieve the companyâ¼�s intended output. As human resources management usually

applies to big companies and organizations, it has sub categories, among which is HRD, which stands for human resources

development. This is a component of HRM that focuses on â¼×nurturingâ¼� employeeâ¼�s skills. Because the process of

hiring new employees can be long, expensive and cumbersome, most companies employ the strategy of HRD to promote

longevity of employees within the company because through this an employee is likely to progressively scale up the

managerial ladder.

Human resources management of a company is often an independent department of its own composed of various sections

including recruitment and retention, performance and appraisal management, HRD and compensation sections. But HRD

does not only focus on development of skills but also focuses on the personal development of employees. Because

peoplesâ¼� needs and expectations are ever growing and changing this section of HRM is specifically there to help

employees cope with such and prepare them for future uncertainties.

Generally speaking, professionals working within the HRM department must have excellent people skills although this is

more so with those particularly working in the HRD section. The HRD section needs to have professionals with

impeccable people management skills as they need to be able to realize talent within people from a cross section of

backgrounds. The HRD section is concerned with identifying strengths and weaknesses among different employees and

devising training means that aim at making those skills complement the other.

HRD aims at developing a superior workforce so that the company and individual employees may achieve their work

goals in the customersâ¼� service. It can take on a formal approach as in a classroom or laboratory training in a case

where it may apply. It may also take the informal route where an employee receives coaching or simple mentorship from

his superior, usually a manager.

Summary:

1. HRD is a sub section of HRM, i.e. HRD is a section with the department of HRM.

2.HRM deals with all aspects of the human resources function while HRD only deals with the development part.

3.HRM is concerned with recruitment, rewards among others while HRD is concerned with employee skills development.

4.HRM functions are mostly formal while HRD functions can be informal like mentorships.



Read more: Difference Between HRM and HRD | Difference Between | HRM vs HRD

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Human Resources System