Human Resource Management System
All in all, the HR function is still to a large degree administrative and common to all organizations. To varying degrees, most organisations have formalised selection, evaluation, and payroll processes.
Efficient and effective management of the "HUMAN CAPITAL" Pool (HCP) has become an increasingly imperative and complex activity to all HR professionals. The HR function consists of tracking innumerable data points on each employee, from personal histories, data, skills, capabilities, experiences to payroll records.
To reduce the manual workload of these administrative activities, organisations began to electronically automate many of these processes by introducing innovative HRMS/HCM technology. Due to complexity in programming, capabilities and limited technical resources, HR executives rely on internal or external IT professionals to develop and maintain their Human Resource Management Systems (HRMS). Before the CLIENT architecture evolved in the late 1980s, every single HR automation process came largely in form of mainframe computers that could handle large amounts of data transactions.
In consequence of the high capital investment necessary to purchase or program proprietary software, these internally developed HRMS were limited to medium to large organisations being able to afford internal IT capabilities.
The advent of client-server HRMS authorised HR executives for the first time to take responsibility and ownership of their systems. These client-server HRMS are characteristically developed around four principal areas of HR functionalities: 1) Payroll 2) time and labour management 3) benefits administration and 4) HR management.