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Concept
Human resource management system
Summary
A human resources management system (HRMS) or Human Resources Information System (HRIS) or Human Capital Management (HCM) is a form of Human Resources (HR) software that combines a number of systems and processes to ensure the easy management of human resources, business processes and data. Human resources software is used by businesses to combine a number of necessary HR functions, such as storing employee data, managing payroll, recruitment, benefits administration (total rewards), time and attendance, employee performance management, and tracking competency and training records.
A human resources management system ensures everyday human resources processes are manageable and easy to access. The field merges human resources as a discipline and, in particular, its basic HR activities and processes with the information technology field. This software category is analogous to how data processing systems evolved into the standardized routines and packages of enterprise resource planning (ERP) software. On the whole, these ERP systems have their origin from software that integrates information from different applications into one universal database. The linkage of financial and human resource modules through one database creates the distinction that separates an HRMS, HRIS, or HCM system from a generic ERP solution.
The trend of automating payroll and workforce management processes began during the 1970s. Due to limited technology and mainframe computers, companies were still relying on manual entry to conduct employee evaluation and to digitize reporting.
The first enterprise resource planning (ERP) system that integrated human resources functions was SAP R/2 (later to be replaced by R/3 and S/4hana), introduced in 1979. This system gave users the possibility to combine corporate data in real time and regulate processes from a single mainframe environment. Many of today's popular HR systems still offer considerable ERP and payroll functionality.
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