In a broad definition, a human resource management system, or HRMS, encompasses the highest level of human resource management activities. It is a program of multiple human resource policies that are internally consistent in relation to a human resource objective. HRMS also refers to the integration of human resource management and information technology to automate and facilitate human resource activities. The general notion of an HRMS helps small-business managers craft suitable human resource systems based on their field of business and business growth stage.
Organizational Effectiveness
The human resource management system of a company has a significant impact on individual and organizational effectiveness. A good HRMS brings consistency in human resource management practices and improves human relations in the company. An effective HRMS is focused on a strategic objective and works by improving employee knowledge, skills, motivation and contribution opportunities. Based on their overarching goal, human resource management systems contribute to organizational effectiveness in multiple ways.
Employee Commitment
An HRMS focused on increasing employee commitment will recruit selectively, provide employees with intensive training, and offer a high level of compensation. For example, a small medical clinic serving local senior citizens may focus on recruiting and retaining caring staff to provide quality service. Recruiting will require conducting multiple interviews to make sure the personality of the applicant matches the requirements of the position. Once the right person is selected, intensive job training and goods compensation will be provided to increase employee satisfaction, job performance and organizational commitment.
Empowering Employees
The focus of an HRMS can be increasing the involvement of employees and empowering them. Under such a system, employees are given more decision-making power, and teamwork is encouraged. For example, a small-business owner may want to shift from focusing on the day-to-day functions of the business to expanding the business. This requires trusting employees, training them, and giving them more decision-making authority.
Occupational Safety
Occupational injuries and fatalities can have devastating consequences for employee morale. Such incidents can also potentially jeopardize the business. In a small manufacturing company, managers may focus the HRMS on improving occupational safety. This requires hiring reliable, trained and detail-oriented people and providing intense safety training.
Customer Service
Small businesses have typically limited market share. Providing excellent customer service is one strategy to defend market share. An HRMS focused on delivering good customer service includes improving the physical work environment, a supportive and collaborative spirit to cover possible mistakes, and use of appropriate service delivery technologies such as computers.
