As you desire.... a detailed reply from me.
Human Resource Management Systems (HRMS, EHRMS), Human Resource Information Systems (HRIS), HR Technology or also called HR modules, shape an intersection between human resource management (HRM) and information technology. It merges HRM as a discipline and, in particular, its basic HR activities and processes with the information technology field. Basically, it is HR workflow automation.
HR workflow typically affects the complete life cycle of an employee in an organization. From the time they are a 'Perspective' employee until the time they separate and become an alumni. These alumni may also be prospective employees in some cases (most cases).
So, an HRIS performs the simple task of removing or minimizing paperwork and the administrative burden on HR. Typically, HR handles:
- Recruitment
- Leave and attendance management
- Travel and conveyance expenses
- Payroll, compensation, and benefits administration
- Performance appraisal
- Training and development
- Succession planning
- Employee separation management
Most HRIS solutions introduce the concept of employee self-service, which means the workflow is triggered at the employee level. For example, when applying for leave, an employee submits the leave application to HR. HR then sends it for approval from the supervisor. Once approved, HR updates the leave balances, and the person is informed that their leave is sanctioned.
With HRIS in place, this entire process is automated with no HR intervention. The benefits are evident:
- Administrative load on HR is reduced, allowing them to focus on strategic HR.
- Since all relevant information is captured, a good HRIS will provide better reports for decision support.
- Saves time.
- Built-in escalation engines track workflows and ensure continuity.
- Every exception to business rules will require approvals (this may or may not be a benefit, but all good HR systems have very powerful exception handling features).
- Creates a central repository of employee data. (In many organizations, this data is scattered in Excel files).
A company with multiple business units can opt for a centralized HRIS. This helps in cases where they want to incorporate cross-business unit employee mobilization or simply save costs.
When we talk about a system, we refer to it as a set of defined rules and workflows. In an organization, we create different departments with different functions like sales, finance, etc., but for an employee, the HR rules remain the same throughout, regardless of the department they are in.
Similarly, as long as the basic HR rules are common across the business units (e.g., leave policies, travel policies, or any other business policy for HR), the same HRIS will work. The extent of flexibility in the HRIS will determine if policy deviations across business units can be enabled. Normally, HRIS vendors do not encourage that for obvious reasons.
I hope that answers your query.
Just a thought away,
Saurabh