What is Human Resources System? (HR System)

You might have heard the term “HR system” multiple times in the professional world. It is hard to miss it unless you are living under a rock (which is highly UNLIKELY).

What is Human Resources System?

HR stands for Human Resource, which is an integral part of any business. It involves a multitude of services and functions to keep the business running smoothly and efficiently.

Human Resources system, or HR System, is a combination of systems and processes that connect the HR functions and information technology through software.

The HR work these days is getting quite complex due to its incredible degree of involvement. Managing different information of employees and then coming up with action plans require a significant amount of effort. To understand HR systems, one must understand different HR functions.

Functions of HR.
Following are some of the important duties that are carried out by an HR department in a company:

·         Recruiting candidates

·         Managing employee payroll

·         Approving leaves

·         Planning for a succession

·         Tracking attendance

·         Reviewing Performance

·         Evaluating career progression

·         And many more functions.

With so many important tasks, the resources and manpower required are also major. Thankfully, to HR systems, the professionals have efficient software at their disposal for better management of information. The phenomenon of using these software – or tools – is known as HR systems.

Importance of Human Resources System

The HR system allows essential information to be stored, processed, and reported upon. It is a powerful tool that provides valuable insights on workforce planning; employee productivity, performance, and behavior; and job satisfaction.

The HR systems can be operated manually as well – such as preparing databases and spreadsheets. While using automated systems comes with many added perks and facilities.

Benefits of Automated HR System.
Be it automated or manual, there are numerous benefits of any type of HR system adopted (will be discussed ahead). However, like any automated system, automated HR also wins out on manual systems. Some unique advantages of these are:

Information is easy to interact with.
In a non-automated system, many people are involved in recording data. It might be difficult for some to understand the input of the previous person who generated the data. Similarly, generating easy-to-understand input for the next person can also be difficult.

Accessibility Hierarchy.
Automated systems are also capable of providing different accessibility hierarchies to distinct individuals. For example, HR people can access programs related to training or recruitment.

While other employees can access other services such as requesting holidays, viewing their own statistics or tasks aka ROTAs.

Sensitive Information.
As lesser manpower is involved in automated systems, sensitive information is also protected.  Furthermore, the accessibility hierarchy also plays an important role in keeping confidential information secure.


also read: HR Department – Bridge between Employers and Employees


Two Types of Human Resources System

There are two types of HR Systems.

1.       Human Resource Information System (HRIS).

2.       Human Resource Management System (HRMS).

However, both of these usually refer to same thing. HRIS is generally the same type as HRMS. HRIS typically involves employee information such as schedule, recruiting, benefits administration, etc.

Whereas HRMS makes more use of IT and HR management technology. HRMS includes information such as employee satisfaction, job performance, analytics, and profitability, etc.

Important HR Functions Covered by HR Systems.

Now, that we have a pretty good idea of HR systems, let’s end by covering a few important functions of HR systems.

1.       It makes storing and managing employee records very convenient.

2.       A variety of charts and graphs can be produced through HR systems.

3.       Enabling staff to request their own holidays.

4.       Setting up recruitment procedures and introducing automation.

5.       Establishing shift plans.

6.       Viewing real-time attendance records.

7.       And finally, setting up training courses.



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