Brief description of Human Resource Management

The HRM department of an organization performs the functions related to the people working as employees at the firm. It ranges in dealing from recruitment, interviewing, and selection of candidates as employees and later on their compensations, benefits, development, training, safety, and legal advisory. This process is run by the HRM from the origin of an employee’s job till his retirement. It also helps employees to attain motivation for the tasks at hand and simultaneously provides a strategic edge to the organization whereby every human resource would have its goals aligned with the goals of the company.

Reasons for the Importance of HRM in Business

  • Recruitment and Onboarding: Selecting the right fit for the job
  • Hiring Processes: Carrying out the correct tools for selection
  • Training and Development: Providing the tools for enhanced performance
  • Compensation and Benefits: Deciding remunerations based on market research
  • Employee Satisfaction: Keeping the employees content with the work culture and incentives
  • Risk Management and Compliance: Abiding by legislative requirements of the government and avoiding harmful activities of the business
  • Strategic Management: Aligning the goals of employees with the mission of the company

Issues/Challenges of HRM

  • Retention of existing employees in the best way possible
  • Recruitment of new employees that are skillful
  • Meeting the productivity standards of business
  • Giving the employees the right training
  • Complying with the law of government for sustainability
  • Promoting and authenticating diversity, if written in policies
  • Maintaining discipline of the workplace
  • Finding the right freelancers for outsourcing projects
  • Making and providing accurate payrolls
  • Entertaining employee queries for a peaceful environment

Role of Enterprise Resource Planning in HRM

ERP was initially created for the purposes of planning and scheduling but it has emerged as much more useful software. It can be used by a large company to integrate all its departments using a single database that can provide an interactive interface for all the employees. Similarly, for HRM, ERP combines the functions of employee management so that they can be carried out efficiently. It also plays a role in the following aspects of HRM:

Centralized Database: A single software for all departments to be interconnected so that HRM can remain updated at the earliest.

Time Management: Supports HRM to find any employee or assets by just entering the ID of the entity, which removes the hassle of manual record keeping and extracting.

Talent Acquisition: Helps HRM in filtering the candidates through digital commands for finding the right fit for the job that may have been advertised.

Performance Feedback: An ERP gives the modules of appraisals to the HRM to collect data from various employers regarding their employees. This also boosts the communication of the company.

Payroll Management: The system for recording and delivering wages and salaries becomes automated and accurate than ever due to digital calculations.

Optimization: Digital software requires less labor for handling the tasks, which creates room for employees to focus on more crucial responsibilities, hence increasing the performance of HRM.

ERP solutions to HRM issues

  • To retain existing employees, ERP helps HRM to keep accurate records for providing remunerations, incentives, and appraisals.
  • ERP gives time-saving and convenient access to CV’s, applications, and contact details of candidates while recruitment.
  • The management of every level in the hierarchy can instantly collaborate with each other using a single software to increase productivity.
  • An ERP system can help the HRM to track the progress of employees in their training phase by keeping records of their compliant activities.
  • HRM can obtain accurate records of courses attended and documents issued by the company in compliance with the law for demonstrating to the audit bodies.
  • An ERP software can verify any discriminative activities expressed if the record is being kept of such behavioral actions, and can be used to improve the workplace thereafter.
  • HRM has to maintain discipline and for that, an ERP can give minutes of meetings, letters between employer, employee, and trade union representatives, and any follow-up activities to provide as evidence.
  • To achieve potential outsourced service, an ERP helps record their qualifications and expertise for identifying the correct contractors.
  • Payrolls involve two departments i.e. HRM and Accounts, and for linking them together, ERP becomes very useful for record-keeping.
  • An ERP system has the modules of all the functions of the HRM which can be used to answer the queries of employees if there is any ambiguity.

Best ERP Software’s for integrating HRM

For large businesses: SAP ERP, Oracle EBS, and Microsoft Dynamics AX

For medium businesses: Netsuite, Sage 300, and Info

For small businesses: Workday, Work[Etc], Syspro