What Is a Human Resource Management System?

Whitney Leigh White
Whitney Leigh White
A human resources manager conducting an interview.
A human resources manager conducting an interview.

The human resource department within an organization must be effectively managed in order for it to be successful. A well-managed resource department helps to ensure that a business operates smoothly, as well as enhances its information technology processes. Many businesses integrate their human resource management systems with their information technology processes, which helps them to expand to their fullest potential. A human resource management system is usually software- or online-based, and it thoroughly manages an organization’s recruitment processes, payroll tasks, time and labor documentations, employee benefits procedures, and more. Through this type of system, businesses are able to automate a large amount of their operational processes.

A human resource department is responsible for is recruiting new employees.
A human resource department is responsible for is recruiting new employees.

One of the main tasks that a human resource department is responsible for is recruiting and training new employees. Through an effective human resource management system, a department can develop strategies that it implements to efficiently find and hire employees. This type of system helps to create job descriptions and person specifications, and, as a result, it also helps to develop employee contracts. Through the job descriptions that it creates, a human resource department can identify the exact type of training to provide to its employees as well.

Most human resource management systems will include a payroll module, some of which are operated on a manual basis, while others are linked to computerized ‘clocking in’ systems. By using a computerized payroll module, a business is able to automate a large number of its payroll procedures, which helps to lessen payroll employees’ workloads. In addition, it can also reduce costs associated with outsourcing payroll procedures.

To effectively record all of the hours that an organization’s employees work, a human resource management system includes time and labor modules. Not only is each employee’s time and labor information recorded, but the module also enables human resource departments to easily access, assess, and analyze the information. By analyzing the information, a business can easily identify where hours can be reduced, which helps to reduce operational costs and increase profit levels.

Tracking employee benefits is another activity performed by a human resource management system. As businesses track their employee’s benefits, they are able to see which employees are accessing them. When a business notices that an employee is not accessing his or her benefits, other benefits can then be offered. By providing employees with benefits they will use, businesses are able to retain employees and reduce their turnover rate.

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Discussion Comments


At my company they just updated the human resource management software. I think that the system is great because all of the information regarding promotions, evaluations, and different procedures is all incorporated in this system that is shared by the rest of the executive staff.

It saves so much money as well as time because most of the human resource functions are automated and there is no need to work with a paper system. For example, I asked one of my employees to do a self assessment, and I was able to see the assessment in the system and was able to build the evaluation from there.

I couldn’t believe how easy it was. I also think that this system is helpful when a new manager heads a department because they will have access to the employee’s personnel file through the system, and they will be able to get up to speed on what potential issues there might be with the staff.


@SkyWhisperer - I wish we had a human resource software solution which had an online module that we could access to log requests for vacation time.

Right now, if I want to take time off for vacation, I have to send an email to my boss. This is OK, but sometimes wires get crossed or he forgets about it or something like that.

I worked at a company where we had an Oracle based human resources application. We each had our own account and put in our requests online, and the manager could approve it (or not approve it). I think it’s easier to keep track of that way.


@David09 - I believe that our human resource software has a module that ties into our time tracking application. We use this to record hours worked on various projects.

Obviously we don’t need to see the payroll application, so that’s kept separate. However, the time tracker does, I believe, feed into the human resource software.

You mentioned not hearing if vacation is unused. Well, that’s true with us as well, however we will definitely hear if we are spending too much time on one project. That’s the main purpose of the time tracking application. It keeps us on our toes so to speak, although sometimes I feel like I am being micromanaged.


There is one line in the article that I really like, if only it were true in my case.

It’s the part that says when a business notices that an employee is not accessing his benefits, then other benefits can be offered. Well, that’s never happened to me, although I think it’s a great idea.

If, for example, I don’t use my vacation time, nobody says anything to me. It’s up to me whether or not I want to use the vacation. Some unused vacation will rollover to the next year, but most of it will not if left unused.

I don’t get email reminders, or an offer of something better if I don’t use it. In our business, every employee is responsible for knowing about his benefits and using them – or not using them – as they see fit. This applies to vacation, 401k, sick leave or whatever.

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    • A human resources manager conducting an interview.
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      A human resources manager conducting an interview.
    • A human resource department is responsible for is recruiting new employees.
      By: BlueSkyImages
      A human resource department is responsible for is recruiting new employees.