itself to be of higher efficiency, profitability, and firm value.The usage of information systems increased dramatically as these systems became a foundation for conducting business, and allowed organizations to transform themselves into digital firms, where all business processes, departments, and employees became digitally implemented.
Management Information Systems (MIS) have many advantages which are worth stopping by, such as:
- Customer/supplier intimacy: MIS allow better chances to contact customers and analyze their consuming behavior and make the firm more flexible in providing the customers with customized products and services at the right time.
- Improved decision making:¬† Information systems allow the management to acquire the required information in low intervals of time, contrary to other approaches that make the management take wrong decisions and end up with over or under estimating costs and production.
- Competitive advantage: Acquired after achieving the operational excellence, new products, supplier/customer intimacy and improved decision making. Firms adopting information systems are more capable of competing others in the global market as they can spot suppliers and can have a bigger market
- Day to day survival: There are many firms today that cannot survive without information systems.Those include e-business firms , telecommunication firms and others.
Answers.com states some other benefits:
- Improve personal efficiency
- Expedite problem solving(speed up the progress of problems solving in an organization)
- Facilitate interpersonal communication
- Promote learning or training
- Increase organizational control
- Generate new evidence in support of a decision
- Create a competitive advantage over competition
- Encourage exploration and discovery on the part of the decision maker
- Reveal new approaches to thinking about the problem space
- Help automate the Managerial processes.
What does this have to do with Human Resources?
Organizations are becoming more technologically oriented as they are transforming themselves into digital firms, and hence the firms that pay a great attention on human resources introduced major modifications in business models and strategies through the implementation of Human Resources Management Systems (HRMS) that help in conducting business and in achieving competitive advantage in a global economy.
As a brief definition (From webopedia) “A Human Resources Management System (HRMS) is a software application that combines many human resources functions, including benefits administration, payroll, recruiting and training, and performance analysis and review into one package”.
Human Resources Systems importance is in different aspects, such as:
- Less costs in terms of money and time, where the processes can be done in a fast pace
- Managing all the employee information
- Reporting and analysis of employee information. Examples of reports generated:
- Employee performance evaluations.
- Sick or vacation accruals.
- Employee training.
- Benefits enrollment.
- Employee contact information.
- Automating routine tasks and processes, resulting in reducing paperwork, improving efficiency and increasing the company’s growth rates.
The human resources processes are vast and hence includes many solutions that can be implemented in human resources systems, each of which has a specific purpose and handles a specific process, as follows:
Essential for any organization, aiming at creating a powerful entry for payroll information, ensuring quality and accuracy of information whilst at the same time helping to eliminate any duplication of both effort and data
- Time Sheet Software
Log time sheets from employees and managers and have them passed to the relevant finance and payroll departments for processing .
- Recruitment Software also know as Applicant Tracking Systems (ATS)
Organizations uses this solution to manage resumes, post jobs into their career portals, manage the applications of candidates, coordinate with job boards to post some of their jobs and in some cases coordinate with
vendors that send them resumes for job seekers. The system can also be intended for the use of employees that go through on boarding process and then can make use of the features provided by a given software including applying for internal jobs as an example.
- ¬†Performance¬† Management:
Such solution intends to manage the performance of managers and employees under some organizational hierarchy. Such systems¬† keep track of skills, competencies, goals, and achievements of the employees over a certain period.
At the end of each period the employee is appraised according to his/her performance. Such systems are typically linked to payroll systems where appraisals results determine the raises.
- Training and development
Companies manage the trainings for employees through courses and development plans and paths so as to improve the skills of employees. This system is very beneficial for¬† multinational companies that conduct trainings from several locations and where employee count is large. Another aspect of such solutions is building and planning career development paths for these employees.
So if you are seeking enhancing your HR department, this is where you need to start