This article has been written by Spriha Smith pursuing a course on How to Use AI to Grow Your Legal Practice from LawSikho.

This article has been edited and published by Shashwat Kaushik.

Introduction

The process of recruiting, hiring, training, compensating, developing policies, and developing strategies to retain individuals to accomplish the organisation’s mission, vision and goals is known as human resources management (HRM). HRM is focused on the people that work for an organisation. Despite this, the position is highly significant and demanding due to the dynamic nature of the employees. Over the last two decades, significant transformation has increased its significance in today’s businesses and in HRM as a field. People, in this approach, are seen as the most important resource. The human aspect of an organisation’s management is what it focuses on. It is important to maintain the degree of dedication that each member of the organisation has to acquire and improve their skills and motivate them to reach greater goals, since an organisation is made up of people. Acquisition, development, motivation, and maintenance of human resources are the four primary tasks of the human resource management method. The focus on the growth of the individual, and the group, as well as the interactions between management and employees, are mainly related to those areas of operations that human resource management is responsible for. HRM is also responsible for maintaining positive relationships among individuals in the business. Furthermore, it is focused on the successful integration of organisational and individual goals and the advancement of personal growth. HRM mainly deals with planning, organising, directing and controlling the personnel functions of the business. In order to guarantee the effective use of human resources, the HR department will make optimal use of all other organisational resources. As an organisational resource rather than a factor of production, HRM is concerned with managing people. Recruiting, selecting, hiring, training and developing human assets involves a system that businesses must adhere to. The manner in which management recruits, develops, and uses personnel has a significant impact on the achievement of organisational goals.

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Integrating HRM across the organisation: managing employees at all levels

HRM principles and policies assist organisations in achieving their objectives. HRM is a widespread activity that spans the organisation, managing employees from all levels, not just one department. HRM focuses on people as its primary priority. HRM works with and for individuals. It connects individuals and organisations to achieve common aims. HRM is a continual activity that requires ongoing training, development, and replacement to be competitive. HRM is part of the management role. It handles personnel issues such as hiring, training, development, compensation, motivation, communication, and administration. The primary goal of HRM is to maximise staff productivity. HRM aims to effectively achieve organisational goals by matching the right people to the right tasks. Additionally, it aims to provide skilled and motivated staff to assist the organisation in achieving its goals efficiently, make good use of the available human resources, maximise the employee’s job satisfaction and self-actualization, enhance the organisation’s quality of work life (QWL), promote a positive personal and social environment, and assist in the maintenance of ethical policies and behaviours both within and outside of the organisation. To establish and maintain amicable relationships between employees and management and align individual/group goals with organisational goals.

The influence of information technology on HRM and it’s practices

In recent years, IT has had an impact on practically every element of our society, as well as organisational procedures such as HRM methods and practices. To create competitive advantages, effective HRM requires adequate updates. Information on present and potential employees in the employment market. Through development, IT Evolution has enhanced the technique of gathering this knowledge of HRIS systems. HRIS encompasses systems and procedures that link HRM and IT. After the successful adoption of ERP (Enterprise Resource Planning) and CRM (Customer Relationship Management) solutions, which attempt to improve the processes for making decisions concerning workers, enterprises frequently choose to introduce this information system. To increase overall efficiency by boosting the efficiency of HRM, IT has enabled the widespread use of HRIS systems and aid firms. The way HR work is accomplished and continuous innovations in technology will fundamentally change. Information systems have a significant impact on HRM. It altered HR procedures and practices, particularly how organisations acquire, store, use, and communicate information.

For organisations, the quality of HRM is an important success factor. Environmental, social, economic, political-legal, and technical factors should be analysed by the HR professional. HRM has been compelled to adopt new logic, and most HR managers must abandon obsolete habits, ways of thinking and actions. On the other hand, to enhance human capital, they should assist organisations in defining their strategy and developing programmes. In fact, to attract, select, motivate and retain skilled employees in their roles, technology has transformed the way HR processes are currently managed, essentially, how organisations collect, store, use and disseminate information about their HR are the main goals of HR in organisations. HRIS determines the combination of HRM and IT. HRIS is a management system that is specifically developed to provide managers with information to help them make HR choices. A system that allows one to track all of their employees and their information. It is often done in a database or, more commonly, in a set of interconnected databases. In this context, by improving recruitment processes, organisational communication, employee involvement, and HR manager skills, information systems have boosted HRM efficiency. From there to the best technical solutions, HRM departments must link human capital strategy. 

The Human Resource Information System (HRIS) enables businesses to manage and automate basic HR procedures. These HR software solutions provide time and attendance, benefits administration, and payroll, among other operations, as well as the storage of employee data such as personal, demographic, and salary information. To support fundamental HR activities that are more linear and quantitative in nature, such as time and attendance management or payroll processing, a Human Resource Information System (HRIS) relies on an employee database. Only a few years ago, large businesses mostly used HRIS solutions. However, it becomes increasingly possible for smaller and growing businesses to reap the benefits and efficiencies of an HRIS as integrated cloud-based systems gain popularity. Here are some instances of firms that have successfully used SAP SuccessFactors solutions to optimise HR procedures:

For over twenty years, with a diversified and dispersed workforce, Growmark has been serving farming enterprises in the United States and Canada. To integrate and automate activities throughout the whole employee life cycle, they utilised SAP SuccessFactors products. While also attracting and nurturing the skills to help its customers flourish, GROWMARK, as a result, can manage effective HR procedures.

By providing extensive product selections at low rates, the Kmart Group transformed shopping in Australia, New Zealand, and Asia. To enhance employee experiences and revolutionise the work in over 500 Kmart, Target, and Catch locations, it turned to SAP SuccessFactors solutions when the company sought to reinvent it HR system.

SAP SuccessFactors is an American multinational corporation that offers cloud-based human capital management software using the Software as a Service model. Workday, Oracle Cloud HCM, and Ceridian Dayforce are some competitors.

Advantages human resources and employees get from HRIS

Human intervention and the possibility of errors can be reduced by automation of tasks. The system stores all information, reducing paperwork and allowing multiple users to access it simultaneously. Multitasking facilitates HR procedures and saves time. Quick response to changes and improvisations. Retrieval and processing of data at a higher speed, ease in classifying and reclassifying data; ad hoc reporting, documentation, and analysis; and customisation, privacy and security for users are offered. HRIS increases transparency in the company by improving communication and connections between management and employees. Every organisation must comply with state and federal labour laws and regulations. By ensuring that the company follows labour regulations and avoids costly penalties, a good HRIS aids the HR staff. It might incur a substantial cost, depending on the role and function of the HR department. Without an HRIS, the HR department might have to pay a variety of charges, including recruitment fees, administrative fees, development costs, and training and development. An effective HRIS brings costs down. Activities such as document collection and transmission, employee time tracking, and payroll generation can be automated by an HRIS. Such a technology automates these operations, allowing HR specialists to concentrate on activities that provide a higher return on investment. An HRIS enables a business to make sure that its workforce adheres to industry standards’ rules and regulations.

Conclusion

Many organisations are implementing HRIS, which combines HR and IT, as a strategic tool to increase corporate competitiveness. To be an enterprise-wide decision support system that helps achieve both strategic and operational goals, HRIS has the potential to enable it. To remain competitive in the market, firms are automating HR operations, implementing HRIS, and utilising the internet and intranet. Addressing the needs of all stakeholders, HRIS serves as the company’s spine. Among firms, HRIS improves effectiveness, efficiency, and competitiveness.

Where information technology facilitates communication freely between integrated features, HRIS must be driven by strategic vision and it should be implemented as an open system. The organisation, HR, and employees are provided numerous benefits by using an HRIS. When the organisation has between thirty and fifty people, working with this type of software usually becomes fascinating. Managing basic employee information in Excel becomes onerous, and simple procedures like approving employee time off need to be standardised. For large organisations, which often employ more advanced HRIS systems to handle various HR functions, using an HRIS is especially helpful. As for small businesses, a simpler HRIS would be appropriate. For Human Resource Planning (HRP), HRIS is a great tool. It improves the accuracy with which vacant openings are identified and analyses each employment position and its title inside an organisation. Despite facing obstacles such as forecasting labour demand and supply, access to information, workforce shortages and recruitment costs, it also gives insight into organisational training needs, selects the best people to educate, and evaluates the efficacy of training programmes.

References

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