A final year project on “Human Resources Management System (HRMS) As A Linking Bridge Of Productivity Between Organization And Its Employees” was submitted by Naman Joshi (from Galgotias University Greater Noida, Uttar Pradesh) to extrudesign.com.
| University: | Galgotias University Greater Noida, Uttar Pradesh. | |
| Project Title: | Human Resources Management System (HRMS) As A Linking Bridge Of Productivity Between Organization And Its Employees | |
| Submitted by: | Naman Joshi | |
| Authors: | Naman Joshi, Madhuvendri Yadav, and Mohammad Azaan | |
| Supervised by: | N/A | |
| Department: | Bachelor in Business Administration | |
| Academic Year: | 2021-22 |
ABSTRACT
The research was conducted to determine how Human Resources Management System is playing a vital role in the effective and efficient management of human resources by making it convenient for the organization to manage the various human resource-related work processes in the system. HRMS makes it effortless for the employees to perform day-to-day tasks like
- Attendance management
- Leave management
- Overtime calculations
In addition to the above benefits, many weekly, monthly, quarterly, half-yearly and yearly tasks are also handled trouble-free with the help of the Human Resources Management System software the tasks involving
- Recruitment management
- Training management
- Bulk salary creation
- Bonus calculations
- Appraisal process ( Promotions, Transfers and Increment)
- Reliving Formalities
- Contract labour management
The objective of the research is to determine how Human Resources Management System acts as a linking bridge of productivity between an organization and its employees. Thus making it peaceful for the employees to complete their tasks before the time required in turn assisting them to utilize their time and resulting in better productivity of the employees. In this research, the feedback of 10 employees working in different Multinational companies across INDIA about HRMS systems was taken into consideration and is expected to be informative to the readers.
Chapter one
Introduction
This chapter is set about how human resources management systems are helping in the growth and productivity of the employees as well as the organization.
It is an attempt to give the readers what the Human Resources Management System are and how HRMS make the management of human resource-related work processes convenient resulting in the betterment of the organization as a whole.
Background of the study
Human resources management systems or Human resources information system is a set of software applications used for the easy management of human resource-related work processes throughout the employee life cycle.
Home helps the employees working in an organization to perform their various hr related work processes swiftly and conveniently and thus saving their time and making them more effective and efficient in turn resulting in better productivity and growth of the organization.
Model of HRMS – Aggarwal, N., & Kapoor, M.(2012) observed from the Tech System model that it has three sets of components, which are input subsystems, HRIS database, and Output subsystem. Kovach et al., (1999) presented the three major functional components in any HRIS by giving the model below
According to (K. Kovach & Cathcart, 1999), HUMAN RESOURCE MANAGEMENT SYSTEMS are available from different dealers like software enterprises, consulting firms, as well as company system developers.
The components consist of the HR system consist of
- Input subsystem: It includes the input for data processing, HRM analytics and research. The input data can transform into the required report format.
- HRIS database: Data and information are stored in the server. The RDBMS (Relational Database Management System) helps to perform the maintenance process.
- Output subsystem: It comprises all the output connected to human resource planning, staffing, compensation and benefit, performance management, job analysis, training, and analytics.
The above content allows the readers to develop a basic understanding of HRMS systems.
So now the benefits of implementing HRMS systems in an organization are
Key features of HRMS (Gupta, B.(2013))
- Administer Payroll – HRMS provides payroll management for employees. It handles the compensation system and benefits that includes salary, allowances and overtime rates.
- Managing common administrative tasks – it is often seen that peer handling of time-consuming tasks like travel reimbursement, change/update in employees’ personal information, expense reporting etc increases the cost of labour. Hrms assist to manage such time-consuming tasks and save time for HR managers to focus on strategic issues.
- Talent retention – Hrms helps to design employee recruitment to retention strategies. It attrition rate is higher in an organization. If the attrition rate is high in an organization, HRMS will support the HR manager with suitable analytical information to come over this issue.
- Manage leave entitlement – without any inconvenience, HRMS accurately administers absenteeism. Absenteeism is an important element of HRMS to evaluate the job satisfaction of employees.
- Performance management – HRMS effectively simplifies the appraisal process by taking KPAs and KRAs into accountability. It gives more clarity and unbiased output of attendance and punctuality of every employee.
- Streamlines the recruitment process – HRMS effectively manages the staffing process by tracking all the end to end records like total applications received for a particular job, shortlisted candidates and the interviews conducted till the best candidate is selected.
- Effective communication – HRMS facilitates a healthy relationship between the employee and the company by providing a convenient and easy flow of communication. It makes sure that employee concerns are promptly addressed by the company.
- Managing staffing requirements – HRMS helps to determine the better candidate for the right job. It also manages to identify the vacant position that may be important to run the organization efficiently. It is well taken that for small-medium enterprises the fulfilment of staff requirements will make the organization grow consistently.
- Medical allowances – HRMS also takes care to track and maintain medical entitlements offered to employees and their family members. Timely care taken by the system for employees will increase the satisfaction ratio.
- Employee training – with the change in technology every employee needs to upgrade his/her skill sets. HRMS helps the employees in identifying the gap between their actual performance and the desired performance and assists them to eliminate the gap and managing other key factors like the cost required.
- HRMS portal & Mobility – it provides mobility to facilitate the employees their all types of records related to different HRM functions. All information is maintained with authenticity and privacy access to each employee.
The above points show the benefits of HRMS in an organization. In the current scenario, every organization has implemented HRMS to manage their work processes conveniently and to promote leading and team-building quality in their employees by facilitating effective communication between the employees in an organization and thus increasing the growth and productivity of the organization.
Problem statement
The major problem employees face these days is how to manage their time effectively as in many days to day tasks they spend more time than they should thresultingult in less time for their other important tasks thus decreasing their productivity.
Organizations must manage their employee-related workflows efficiently to make the employee productivity this can be achieved with the use of HRMS software.
Purpose of this study
The study shows how HRMS results in better productivity of the employees by helping them manage their tasks effortlessly and in turn resulting in better productivity of the organization.
Research objectives
- To determine whether HRMS assists the employees in managing their time effectively by making it effortless for them to perform various work processes thus enhancing employee productivity
- To determine whether HRMS helps the employees by resolving the diurnal problem of leaves and other payroll related queries
- To determine whether HRMS helps the organization achieve success in the marketplace
Scope of the study
The research was conducted to present to the readers how HRMS brought a positive change in organizations by making the employees productive and resulting in the overall growth of the organization.
Geographical scope
The survey was conducted through a questionnaire of employees working in Different MNCs across INDIA. There are 40,000+ MNCs across India.
Significance of the study
Hard work is the key to success but in today’s world, hard work has been replaced with smart work whether we take into consideration employees, students, or organizations everyone is working flexibly to achieve their goals.
Technology promotes smart work by helping everyone who has access to it, as in Covid times when face to face interaction was stopped students, employees were working through their Pc’s this was only achieved with the help of technology otherwise many economic breakdowns would have occurred routine activities were stopped.
Thus in the same way software like HRMS helps the employees to perform their tasks conveniently and resulting in better [productivity of the employees and thus contributing to the growth of the organization.
The study gave me an idea of how research is performed and helped me to obtain my degree.
CHAPTER TWO
Literature Review
Within this period, HRMS emerged as the most resourceful system for the organization as well as its employees. With the use of hrms remarkable changes are observed in the performances of organizations, this can be very well studied by the survey conducted by FARUK and OSMAN in 2015. In the survey conducted by them, they considered the effectiveness and efficiency of the HUMAN RESOURCE MANAGEMENT SYSTEM. While conducting the survey they brought to light the following incentives which are
- Allocation of the workforce more effectively and efficiently
- Promotion of organizational culture
- Automation of the task or function repeating
And also upgrades help the staff for HR end-users to develop technology for the smooth performance of Hr practices in a convenient way.
SABRINA,(2012) attempts to make available a theoretical analysis regarding benefits, limitations, and barriers in the system this concludes that HRMS is necessary for effective people management and to offer a competitive edge. The HRMS program must be viewed as an expenditure, not an expense. The dedication of higher authority is required to remove the existing barriers to the success of HRMS.
SHAMMY (2012) suggested that HRMS has brought considerable enhancement in the HR functions. HRMS is an important transition for the HR department of every company. The study shows that the method is a little complex sometimes and it’s difficult to work with, but it has helped a lot to match the HR practices with the organizational strategy, assist in identifying the improvement areas and keep abreast with the current practices. HRMS has helped majorly to contribute to the potential of the HR department towards the organization, in developing the structure, payroll, time, and attendance and appraisal performance, recruiting, learning management, training management, etc.
Research Methodology
Data collection
Sources of Data
Primary Data – The data is collected by the researcher and was collected through a self-prepared questionnaire.
Secondary Data – the research of various researchers was related to this particular study
Research Design
A Survey research is a type of quantitative research that is used for the collection of data from a particular sample. It collects data that is used to answer a wide range of what, when and how questions to a particular group of population.
Data collection instrument –Self-prepared questionnaire was used for data collection purposes.
Sample size – 10 employees working in different MNCs.
Tools used for data collection – self-prepared questionnaire was used to gather relevant information about how HRMS has positively contributed to employee productivity and organizational growth.
Data analysis and interpretation – analysis of the survey is as follows
1. Do you think HRMS is an effective method for the employees to perform their routine activities?
Figure 2: According to the pie chart above 9 out of 10 employees responded that HRMS helps them to perform their routine activities effectively. As HRMS make it effortless for the employees to perform their various tasks shift allocation, leave management, overtime calculations and bulk salary creations, etc.
2. Do you think HRMS helps the employees to manage their time effectively?
Figure 3: As per the data 80 per cent of the employees were in favour of HRMS as it helps the employees to manage their time effectively whereas the rest 20 per cent were neutral.
3. Do you think HRMS enhances employee efficiency and productivity?
Figure 4: As per the data all the employees thought HRMS enhanced their efficiency and productivity. As employees were able to manage their time efficiently so in turn increased their productivity.
4. HRMS renders the employee problem of chasing the hr team for his leave and payroll information?
Figure 5: As per the data collected 20 per cent of the employees strongly agreed, 40 per cent of the employees agreed and the rest 40 per cent of the employees were neutral regarding the solution of payroll and other queries with the use of HRMS.
5. Do you think HRMS scales the growth of employees?
Figure 6: As per the data 60 per cent of the employees thought that HRMS had contributed positively to their growth whereas 40 per cent of the employees were neutral regarding the same.
Conclusions and Recommendations
Conclusions
- HRMS has brought a positive change in the employees which in turn benefits the functioning of the organization.
- HRMS helped the employees to perform their tasks efficiently and resulting in better productivity of the organization.
- HRMS solves the employee problem of chasing the human resource team for “leave and payroll related queries”.
- HRMS scales the growth of the organization.
- HRMS assists an organization to achieve success in the marketplace.
Recommendations
HRMS contributes to enhancing employee productivity and growth as many traditional tasks are replaced with automation. HRMS promotes team building in an organization by facilitating effective communication. Thus HRMS emerged as the most effective system for assisting the employees, making it necessary for organizations to implement the HRMS system to achieve competitive advantage.
Limitations
- To implement HRMS systems changes need to be performed regarding changing the mindset of employees, infrastructure changes, etc.
- Employees training.
- The change process in the pre-installation phase needs to be managed properly.
References
- Gupta, B. (2013). Human resource information system (HRIS): Important element of the current scenario. IOSR Journal of Business and Management, 13(6),
- Aggarwal, N., & Kapoor, M. (2012). Human resource information systems (HRIS)-Its role and importance in business competitiveness. Gian Jyoti E-Journal, 1(2), 1-13.
- Faruk, B., & Osman, G. M. (2015). Usage of Human Recourse Information System and its Application in Business: A study of Banking Industry in Bangladesh (Vol. 7).
- Sabrina, J. (2012). Effectiveness of Human Resource Information System on HR functions of the organization- A Cross-Sectional Study. US-China educational Review, A 9.
- Dianna, L. S., & Kimberly, M. L. (2009). An expanded model of the factors affecting the acceptance and effectiveness of electronic human resource management systems.
- Julia, E. H., & James, H. (2013). Shared leadership in enterprise resource planning and human resource management system implementation. Human Resource Management Review, journal homepage: www.elsevier.com/locate/humres
- Sabrina, J. (2012). Effectiveness of Human Resource Information System on HR functions of the organization- A Cross-Sectional Study. US-China educational Review, A 9.
- Shammy, S. (2012). Shared leadership in enterprise resource planning and human resource management system implementation, Human resource management review, volume 23, Issue 1, March 2013,
Credit: This final year project on “Human Resources Management System (HRMS) As A Linking Bridge Of Productivity Between Organization And Its Employees” was completed by Naman Joshi, Madhuvendri Yadav, and Mohammad Azaan, BBA, School of business from Galgotias University Greater Noida, Uttar Pradesh.
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