What is HRM – Human Resource Management

What is HRM?

HRM stands for Human Resource Management.

As the name suggests, HRM is responsible for resolving all issues related to the company employees and manages the Human Resources. It looks after all their requirements and ensures a healthy and convenient work structure for the employees. It includes solving employee grievances, processing payroll, maintaining attendance records, and analyzing employee performance.

Human Resource Management delivers comprehensive advantages to corporations as it looks after their three dimensional needs from documenting their data to utilising their precious time and improving the company’s work culture.

Why is HRM important?

Employees are the most valuable asset for any company. A well-operated work environment encourages an employee to operate at their best potential in the most promising way and uplift the overall image of the company in the market. This in turn promotes the success and well-being of an enterprise along with better management and utilization of resources.

What is HRM Software?

HRMS stands for Human Resource Management System. An HRM software can be understood as an upgraded alternative to the manual supervision of HR records.

HRMS is an optimized system that has a collection of tools to process and document Human resource data by linking it to information technology with the help of the HR Software. From maintaining data to tracking recruitments, this software performs all the duties of the HR department. It also fetches data from other Office management systems to form an integrated web of information for a better outlook and overview of information.

You can also read : Why HR Management System is beneficial for an Organization

Benefits of Human Resource Management

Human Resource Management is one of the most important departments to be taken care of, in a business venture. It upholds and enhances its management structure to provide a smooth and efficient work structure for the company.

HRM engages with a broad set of systems that aim at monitoring all ongoing processes of the company.

To understand how an HRM helps the company, here are a few use instances :

Employee Management

A key benefit of an HRM is the ability to manage employees and cater to all their needs and requirements. Consider an example where the employee has changed their address and now they need to update the information in the company database. This can be easily done by the employee’s access to the employee portal. No more sending and keeping track of emails between employee and manager.

It is important for companies to maintain an updated version of all the employee information therefore the employee will reach out to the admin.

The admin will then guide them in the process by fetching the correct files and ensuring that the updates are carried out in a smooth manner.

On the surface level where this appears to be a minor task when performed in numerous organisations it altogether consumes a considerable amount of time and energy. When this task is performed efficiently with the help of HRM, it makes things easy for the company and the employees.

Felicitating Employee On-boarding

Human Resource Management can also make the on-boarding process much more consistent and valuable. With new additions to the team, it becomes important to ensure that everyone finds a comfortable environment to work in.

To ensure this, the HR department needs to pay attention to the very start of the employee’s journey in the company i.e. provide a smooth and convenient on-boarding experience to them. This not only allows them to develop their confidence but also assures a good first impression of the company in the eyes of the employee.

You can also read : What is the importance of HRMS for Digital Marketing Agencies?

Features of Human Resource Management

HRM comes with numerous features that are necessary for the growth and smooth operation of an enterprise.

Some of these features are :

Employee hiring and selection

Hiring employees for the enterprise is one of the most essential functions of Human Resource Management. HR goes through each application and shortlists the ones that match the required qualification and skill set demanded for the job.

This process is very important as it only will include members who can align with the vision of the company and strive to achieve its goals and objectives.

Formulating a Job design & analysis

HRM is responsible for formulating the job design and jb analysis of different posts in an enterprise. For job designs, the HR manager compiles information like duties, responsibilities, role expectations and operations of the job.

Human Resource Management studies these factors intricately to ensure that they hire a deserving employee who would fit in the job role, their team and the overall work structure of the company. Job analysis pertains to characterizing all job prerequisites like the employee’s skill set, their qualification and their work experience.

Employee training

After hiring and on-boarding employees, HRM also takes care of employee training and development. HR department has to make sure that all their employees are accustomed to the latest updates in their office space from their daily schedule to fresh tools and software.

HRM arranges the training sessions for employees so they can acquire work and company oriented skills in order to drive the company towards success. These sessions also aim at developing their work ethics and giving a boost to their overall efficiency.

It prepares employees for bigger projects, urgent tasks and the responsibilities they need to take up for their own professional development and the overall growth of the company.

Talent Management

Human Resource Management also includes talent management of each employee working for the enterprise. This is done by the HR departments to monitor the work of their employees and have a report of their performance graph for every month.

It also assists the admin in assessing the performance of the employee while considering a raise in their monthly payments or assigning projects to them.

Employee Stats

HRM maintains performance reviews, performance stats along with hire and exit schedules of the employee. This helps the admin maintain a history of each employee for future purposes. This information is well documented and stored for future references.

Securing compensation and benefits

The Human Resource Department is functional in breaking down a clear indication of all company policies, protocols and guidelines for an employee. HRM also safeguards their rights with respect to the compensation, and benefits that the company is liable to pay the employee.

They are also instrumental in ensuring that these policies are properly implemented and followed both by the company and the employees. This leads to the development of better understanding in the company and creates transparency between the management and the employee.

Conclusion

Human Resource Management is the foundation for forming a healthy and thoughtful work environment in a company. It takes care of numerous requirements of the company by managing, monitoring and assessing employees to come up with ways of utilizing their potential in the progress and improvements of the company.

With numerous technological advances in the market, there are Human Resource Management Software that have proven to reduce the amount of time and energy invested in performing HRM tasks manually. Juntrax is a prime example of a convenient and premium HRM Software which comes with a wide range of tools and features.

To check our Juntrax HRM Software, book a FREE Demo now!

Are Disconnected HR and Professional Services Automation (PSA) Softwares Hurting Your Employees’ Productivity?

Introduction

For any company, profitability is the keyword! Companies often tend to get waylaid in the processing of figures and profit levels. Many times, SMEs and startups can’t even figure out where they have gone wrong. More often than not, the problem lies in streamlining and integration. Crucial resources are wasted in managing too many disconnected things related to organizational management, resource planning, and employee functionality. Companies need to focus on having Professional services automation.

Three critical disconnects inadvertently trigger frequent “fire drills” within your organisation each month, often undermining profit levels without your immediate recognition of their profound impact.

1. Fluctuating Costs:

Many companies utilize various management solutions from different IT firms, ranging from project management to report generation software. These tools, often from different providers, come with distinct billing models based on their features. The cumulative addition of these software tools and their subsequent updates or add-ons results in escalating costs that may impact your company’s budget.

2. Streamlining Challenges:

Diverse software solutions with varying maintenance timelines can clash, causing workflow interruptions and decreasing productivity and customer satisfaction. Office and HR software should harmonize to enhance employee efficiency, yet often, this integration is lacking, leading to additional maintenance costs and duplicated features across multiple software.

3. Manual Transfers:

Operating multiple software systems for different departments may appear process-oriented externally but often leads to internal discrepancies. Updates of one software may not seamlessly integrate with others, causing employee frustration and time wastage. Manual data transfers, invoice discrepancies, and other issues arise, hampering workflow efficiency and cash flow management.

These seemingly small issues, when aggregated, can lead to significant operational flaws. For startups or SMEs, such discrepancies could risk losing credibility with customers, affecting profits and market positioning.

Streamlining Your Business Through Hybrid HR +Professional Services Automation Software

Professional services automation (PSA) is a cloud-based HCM & HRMS SaaS solution to the above-mentioned fundamental problems that SMEs and Startups face every month. PSA also boosts the credibility of SMEs while pitching to investors.

Investors tend to invest in startups that have robust management systems in place. This qualifies as the first thing that they see when choosing a company to back. Next comes the business model and idea integration into the product or service provided. If you look closely, investors are always backing up organizations that merit systematic processes in place. Uber, Oyo Rooms, Ola, and Flipkart are a few examples of Indian companies that have integrated, and streamlined PSA in their businesses, and all of them enjoy great backing from investors.

PSA Software: A Complete Guide For Understanding, Evaluating, And Implementing Professional Services Automation Software

The PSA market is projected to grow at a Compound Annual Growth Rate (CAGR) of 11.7%, reaching $1,244.8 million by 2022 from $716.5 million in 2017. The segment of small and medium-sized enterprises (SMEs) is anticipated to mirror this trend, experiencing an even higher CAGR in the professional services automation market. (Source: MarketsandMarkets)

SMEs and Professional Services Automation

SMEs also stand to benefit from the deployment of professional services automation on the cloud. Cloud-based Service Management Platforms offer cost-effective alternatives to on-premise solutions, potentially reducing IT infrastructure and maintenance expenses. The market’s influx of small vendors has expanded affordable options for organizations. Factors like real-time monitoring, scalability, cost-effectiveness, and enhanced efficiency drive SMEs toward adopting professional services automation (PSA) solutions, resulting in a sharp rise in their adoption.

Read our blog 4 ways PSA Solutions can minimize security risks

Our Professional Services Automation

Our comprehensive PSA system empowers engineering companies to prioritize productive teams and satisfied clients, freeing them from internal system intricacies. Through automation, we steer organizations towards superior products, content teams, and delighted clients, ensuring top-tier PSA services. Backed by exceptional support, our software ensures peak profitability for engineering firms while preserving morale and saving time and money.

Diverse management software—project management, payroll, expense management, cash flow, client invoicing, and report generation—comes with varied billing models based on features. These varied charges for updates or add-ons can significantly increase overall costs, impacting your company’s budget and expenditure.

5 Reasons Your Organization Needs a PSA Software

Here are five ground-breaking reasons how a PSA can transform your organization, and give it the much-needed push.

Automation is no longer a luxury but, in fact, a necessity that is fuelling organizational growth. Sensing this opportunity, several professional services organizations (PSOs) are turning to professional services automation (PSA) platforms to make their tasks easier. But is it all mere hype, or is PSA a genuine trendsetter that will revolutionize the future of the industry?

Here are five ground-breaking ways a PSA can transform your organization, and give it the much-needed push.

1. Project Management at lightening fast speed

Even the most basic PSA systems help in the efficient planning, management, and execution of projects. Engineering services firms can use it to gain a holistic overview of any project, its progress, and its status. Executives can evaluate the projects that are in the pipeline and predict their resource requirements or cashflows accordingly. At the same time, Project Managers can build a workforce that will suit the project and prepare a repository of crucial data to lay a solid foundation for the project.

Most importantly, it establishes closed-loop channels so that different teams, members, and leaders within the SMEs can effortlessly communicate with each other.

2. Gives You Full Control of Project Cash Flow

PSA software can keep a tab on the project costs at a granular level, which eliminates the need for accounting or ledger maintenance services. In addition to project cashflow management, it also keeps a minute-by-minute track of the time spent on the project and other ancillary costs. Thus, small and medium businesses can gain a comprehensive insight into every form of investment involved.

At the same time, a PSA also allows you to compare the planned budget with the actual expenditure.

3. Helps Streamline The Project Lifecycle

A suitable PSA platform can automatically manage all stages in the lifecycle of a project, right from assignment to execution. As a result, an engineering services firm can focus on various qualitative measures to deliver an unparalleled service experience to clients.

Several PSA platforms can seamlessly integrate with other automation tools, such as CRM or accounting software. Thus, the introduction of PSA eliminates the need for any manual intervention.

Coronavirus and work from home

4. Enhances Resource Allocation And Utilization

As stated previously, PSA can offer the Project Manager a snapshot of the projects in the pipeline. Based on these inputs, executives can gauge future demands and schedule and allocate resources accordingly.

With a robust PSA tool, your company can assign the right talent for the right project at the right billing rate. Even if the team comprises of members scattered across the company, PSA acts as a unifying collaborative platform for them to work together.

Furthermore, you can locate the underutilized resources and take appropriate action accordingly.

5. Supports Real-Time Data Visibility And Decision-Making

Through the centralization of all service processes, PSA offers a bird’s eye view of the entire company and its resources. As a result, it overcomes the issue of information silos, data redundancy, and inaccuracies. PSA software acts as a single source of truth, where every action or process of information is systematically recorded in real-time.

All data related to resource availability, project status, and employee productivity helps in making data-driven decisions that will benefit your business.

It’s A Wrap

Professional Services Automation (PSA) simplifies administrative tasks, aiding PSOs in efficient project management and timely payments.

Streamlining work processes and ensuring timely payments isn’t something anyone complains about. It elevates employee and customer satisfaction, laying the groundwork for business success.

Happy employees foster a positive work environment, while satisfied clients pave the way for stronger business connections—key ingredients for organizational growth!

For an all-encompassing PSA solution with compatible HR modules, opt for Juntrax!