Human Resources Management System Functions | HRMS

The personnel management system is one of the keys to the business processes of any enterprise or organization. This is an integral part of an effective management structure that has a significant impact on the results of the entire company. The experience of successful firms has shown that in conditions of the highest competition, only those who rely on well-built, well-functioning, and efficient systems for managing human resources and business processes can survive. 

Human Resources Management System Functions


The business strategy defines the human capital management system. The philosophy of human resource management forms the main directions of the company's personnel policy, which are usually prescribed in the policies and procedures for personnel management.


HR Policy and Procedures (HRP) is a holistic HR strategy that defines the direction of work with personnel in an organization. Directions of personnel policy should be closely related to the overall development strategy of the organization. The general content of the CPR should not be limited to the provisions on hiring, dismissal, and social conditions in the enterprise, it is important to include positions in it regarding training, development, and movement of personnel within the organization, while taking into account the interests of all parties. A well-designed PPC contributes to creating talent stability, raising the company's prestige, and generally creating a responsible, cohesive, and professional workforce.


The concept, goals, and functions of the personnel management system 

Personnel management systems are understood as the whole range of techniques and technologies for working with personnel, that is, elements of building management that regulate the activities of employees. The goals and functions of the personnel management system vary slightly depending on the field of activity. But modern management theory does not offer a universal description of the personnel management system, which can be applied without adaptation to any company or organization. When building a personnel management system, company management should take into account: 

  • specifics of activities 
  • company size 
  • management style 
  • firm values 
  • development strategy 
  • the goals of the organization. 


When building an effective system of human capital management, social, scientific, technical, production, commercial, and economic goals are pursued. Production and commercial goals imply tasks related to ensuring the desired production volumes, the required operating mode, and product quality. The economic goals include increasing labor productivity, reducing the cost of products, increasing the company's profits. 


Based on these goals, enterprise management can develop a set of tasks, the solution of which will contribute to the achievement of the desired result. Coordination by employees includes: 

  • staff development 
  • increasing the level of motivation, the degree of commitment to the values ​​of the company 
  • formation of team spirit and corporate culture. 


Based on the goals, objectives, and strategy used by the company, it is possible to identify the main functions of the personnel management system. For example: 

  • Forecasting the need for personnel and the situation in the labor market. 
  • Formation of personnel policy. 
  • Development planning of specialists. 
  • Creation of optimal working conditions at the enterprise, labor protection procedure. 
  • Adaptation of new employees. 
  • Employee evaluation, training, and professional development. 
  • Development and implementation of the concept of motivation and promotion of the personnel reserve. 


To implement the listed functions of the personnel management system, individual and group technologies are used. The former is used in relation to individual employees, and the latter takes into account the mutual interests of employees, influence groups to achieve the desired result. 


The most frequently used group (multi-tier) techniques are the technology of hiring new employees. The stages of selection and assessment of personnel are carried out according to standardized schemes with careful consideration of possible career prospects for the hired employee. 


Separately, it is worth highlighting the legal and information support of the human resource management process. It includes the implementation of tasks of regulating labor relations, personnel accounting, development of personnel policy, providing information to employees on any personnel, and legislative issues. 


To build an effective human capital management system, the following are taken into account: the number of levels of coordination at the enterprise, the number of staff, the flexibility of management and the company, its specialization.


Personnel management functions in the management system Human Resource Management Software (HRMS) is an essential part of management. It helps to build a competent organization of work activities, develop and implement projects, monitor their efficiency, and propose further optimization. Ineffective personnel management translates into increased risks and reduced profits. From a management point of view, the goals and main functions of personnel management are as follows: 


  • formation of an adequate organizational structure 
  • full regulation of the staff, from selection, selection, and hiring to making personnel decisions for promotion and personnel promotion and determining the level of wages and compensation; 
  • building a personnel management system focused on increasing the company's profitability (or any other criterion of success); 
  • development of a strategy for personnel work, the attraction of managers of all levels for its implementation; 
  • creating a pool of specialists, planning the career of the most promising employees; 
  • documenting all processes of working with personnel; 
  • development and implementation of a motivation system; 
  • development of technologies for assessing the staffing and the effectiveness of a particular workplace. 


HR or HR is the part of the top management team that has a say in decisions that affect employees. The HR department must be able to promptly respond to any staffing problem, from the dismissal of any senior manager to a decrease in labor productivity.

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