HRMS – Full Form and Meaning


Human Resource Management System is a software application that helps manage various functions of human resources. It provides single and centralized management of a company’s workforce by maintaining and storing the relevant data. It uses multiple applications such as talent acquisition, benefits administration, compensation management, performance management, succession planning, and career development.

HRMS benefits an organization and employees of the organization as well. It automates the onboarding process, transactions, payroll, and compliance.

HRMS ensures transparency by uploading data of the employees on the dashboard from where they can access all the policies and schemes. It also helps the HR (Human Resource) to view any data related to their employee.

Functions of HRM

Human Resource Management plays an essential role in providing a workplace where both employees and employers thrive. It assists in the recruitment and onboarding process, managing payroll, gathering and storing employee data, performance evaluation, learning management, safety, and compliance, attendance tracking, employee self-service, etc.

Candidate Management

Candidate Management is a recruitment strategy that helps recruit, communicate, and manage candidates throughout the recruiting cycle. It keeps the candidate data more organized and elevates the hiring standards. It is an effective management system that helps in building and maintaining relationships with the candidate.

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Payroll Management

Payroll Management is a system through which HR can manage the financial records of the employee. Payroll Management includes allowance structure, salaries, incentives, bonuses, deductions and taxes, and net pay. Periodic salaries improve financial integrity by creating a trustworthy relationship between the employee and the organization. It is a module that streamlines all the payroll activities. Payroll Management helps in maintaining the tax details, reducing the chances of incurring penalties.

Employee Management

Employee Management is a process that helps the employee perform the best to help an organization achieve its goals. It is a holistic process and includes employee recruitment, payroll management, performance management, etc. It increases workers’ motivation, productivity, and performance.

Performance Evaluation

Performance Evaluation is a process of assessing an employee’s performance. It helps in improving the quality of their work and delivering better results. The performance is evaluated based on role and responsibilities, individual goals, behaviors, and other aspects. Performance Evaluation System provides an equitable measurement of an employee’s contribution to the workforce, produces correct appraisal documentation to protect the employee and employer, and obtains a high quality and quantity in work made.

Training and Development

Training and Development is essential to train an employee to fit in the job profile completely. The HRMS module manages every aspect of training. It helps in improving individual performances in an organizational setting. Through training, employees learn specific skills while Development helps the candidate enhance their personality and management skills. The employee utilizes the knowledge imparted to improve the productivity of the company. This allows the company to achieve its objectives. 

How To Find The Right HRMS for Your Company

To find the right HRMS for the company, we have to identify the needs of the company. When planning to invest in the latest HR software, the benefits are also maximized.

Below are specific steps to be followed before making a purchase decision:

  • The first step is to develop an HR strategy that best fits the organization.
  • The next step is to determine a tool called an HR software tool that will help accomplish the goals.
  • Before searching for vendors, it is essential to know the budget or amount of money spent.
  • It is necessary to choose 4-5 vendors for review.
  • Another critical step is to research the company or talk to support services.
  • To know more about the right HRMS, it is essential to watch a demo.
  • The next step is to make a purchase decision.
  • The last step is to check for best practices in HR and Payroll.

HRIS Vs. HRMS: Is HRIS Different from HRMS

HRIS stands for Human Resource Information System, which is synonymous with HRMS or Human Resource Management System. When IT departments were first introduced, they were commonly known as the management information system (MIS). HRIS came into existence when HR information and processes became computerized. HRIS was responsible for electronic handling and recording of employee data. So, HRIS is when human resources records, procedures, and reporting become electronic using the software. With the advancement of technology, the system expanded beyond keeping employee information and documents. Thus, HRIS became HRMS. The terms are used interchangeably that describes a system that maintains employee information and records and automates HR processes in an organization.

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