Enterprise Resource Planning
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ERP Human Resource Management Systems (HRMS) Advantages

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HRMS is one of the modules of ERP system which collects data related to the employee's daily activities and integrates it to the other modules to provide the complete work flow of an organization. Some of the common modules found in HRMS are payroll, work time, administration, management, recruiting, training, performance appraisals, performance records, insurance, employee benefits, arrears, employees' grades and self service.

Need for HRMS

The payroll module collects data from daily attendance to find out the number of working hours of an employee and enables the ERP software to calculate the monthly remuneration earned by an employee. The payroll module includes the integrated information from the work time, recommendations from the administration, HR management, appraisals, employee loans, employee advances, deductions, tax, monthly leaves etc.

The main functions of the software should be to automate office functions related to employee's time management and working hours. Time management includes time administration, incentives, shift planning, time sheet and wages.

It should also provide personal administration such as attracting and motivating employees, meeting the demands of the HR functions and meeting the legal needs of an organization. The software based on human resource should not be just technical it should work as a HR management system which provides improved performance and accountability and saves time. It should be integrated to ERP or to the payroll system.


1. It provides employee turnover reports in minutes. It provides employee performance evaluations.

2. Employee contact information, educational information, work experience, previous history and personal information are stored in the software.

3. The organization can plan training depending on employee data.

4. One can get customized letters; send memos or alerts to employees, clients or business partners' or communicate with members of an organization through the software.

5. The module covers all the areas of employment of an employee up to retirement which enables the organization to keep an updated record of employee history, capabilities, compensations, achievements, evaluation, etc.

6. Many organizations use it to support recruitment, hiring, employee benefit programs, safety security and the software is integrated to payroll, attendance tracking, over time, labor hours, financial modules, CRMS and other modules of the ERP.

7. Many global organizations find it easy to analyze the performance of a production unit using the software as it can provide an analysis of various departments based on employee data and compare the profits generated by various units. The management can compare the expenses and the returns to analyze the performance of a manufacturing or production unit.

8. It helps in improving the work environment of a job location. It can help in getting the best from the employees.

9. It provides audit trails to view the changes made in the organizations which helps it to grow.

Some of the popular HRMS packages are by PeopleSoft which is now marketed by Oracle, and SAP R/3 system which provides human capital management that consist of modules such as personnel administration, organizational management, recruitment, time management, budget management, personal cost planning etc.

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