What is HR Management System?

What is HR Management System- Introduction

HR Management can help you redefine the work structure and productivity of your office space in a commendable manner. From managing company assets to monitoring employees, solving their grievances, generating payroll and assessing employee performance, HR promptly administers many different aspects of the company.

HR Management System is an advanced form of conventional HR management. It assists companies in improving their management system and creating a user-friendly work environment for both the management and the employees. There are numerous well-established companies that have opted for HRMS for adding an advanced and automated Human Resource Management System to their workplace.

Human Resources – the backbone of company management

HR is undoubtedly the backbone of a company’s management.

HR stands for Human Resources.

As the name suggests, Human Resources refers to the employees and staff of a company. They are the most valuable asset for an enterprise and determine the success of the company.

HR, in corporate terms, refers to the Human Resource department that is dedicated to the management of employees, solving their grievances and catering to all the needs of an employee. It aims at providing a comfortable and satisfactory work environment which in turn promotes good quality work and dedication from the employee.

What is an HR Management ?

Now that we understand what HR stands for, we can easily comprehend the purpose of HR management.

Human Resource Management is all about the different processes that are involved in managing the employees of a company.

From documenting their data to regulating their performance, entertaining their resentments to assisting them with skill development and training, Human Resource Management takes care of their entire employee cycle.

HR management is not limited to managing employees that enter the office system, it gets involved right from the initial stages of assessing resumes, shortlisting candidates, organising interviews, hiring employees and guiding them in the on-boarding process.

To know more about HRM read : What is HRM?

HRMS – The Human Resource Management System

HRMS stands for Human Resource Management System.

HRMS is an upgrade to the outdated traditional techniques of managing HR. It comes with a cloud-based interface that permits remote access and network flexibility to the user.

With HRMS, the HR manager can automate all major processes like calculating attendance, generating payroll and monitoring work progress. It engages with all essential data to form an integrated database that can be easily accessed by the team.

It allows real-time data updates and links all HR related data to a cloud. It inculcates ease and convenience to the workplace and provides a user-friendly and hassle-free experience to both the admin and the employee.

You may also like : Importance of HRMS for Digital Marketing Agencies

Advantages of HR Management System

HR Management System has a plethora of advantages that promptly enhance the management of an industry.

Some of these advantages are as follows –

Regular Employee Assessment

There are numerous factors that affect the performance of an employee. These factors can also help the manager in assessing the employee’s performance and detecting areas that require improvement.

HRMS allows managers to come up with transparent assessment reports that can serve as the base for taking decisions for promotions, salary raise and layoffs.

The HR Management System makes it extremely easy to gather individual reports of an employee’s presence, absence and overall performance in projects assigned to them. It simplifies the process of regular assessments and grants a systematic discourse for the same.

You can also read : How HRMS can benefit SMEs and Startups

Transparent communications

Another remarkable benefit of the HR Management System is its capability to infuse transparency in the workspace. It formulates a common space for employees and managers to view basic information of each other. It also allows the employee and the admin to coordinate by providing the status of their leave requests, payroll process and their inclusion in projects and appointed tasks.

Data integration

There are several HR processes that require data from other departments of the company. With manual management, it becomes difficult to filter and share data but with an HRMS this data sharing can be facilitated in a smooth manner.

An HR Management System formulates a common database for all information related to the company and therefore it simplifies the process of sharing and filtering information. In fact, it works simultaneously with other office management systems to share its data with them and fetch data from them when required.

You may also like to read : Why HR Management System is beneficial for an Organization

Access Management

There are different permissions that can only be granted after assessing the job title and position of an individual in the company. For instance, an employee can request for regularising the duration of their work hours for a particular day. This request is made by the employee through their employee portal. But for the manager to view this request and take action on it, they operate through the admin portal.

With HRMS software like Juntrax, access and permission management becomes easy. It provides different portals for admins, super admins and employees, with a distinct set of features and authorization.

Conclusion

Human Resource Management System ensures that the functionality of a business venture is well-balanced and consistent. It looks after all aspects of managing Human Resources and ensures a hassle-free workspace for the employees and the admin. Having a good HRMS software is a necessity for all businesses that aim at outshining their competitors and making their mark in the industry.

From employee self-service to automated payroll processing, leave management and attendance management, companies like Juntrax Solutions provide HRMS software that are laden with tools and features to enhance the productivity and performance of your company.

Click here to Book a FREE Demo today!

Crafted By: Aditi Srivastava

What is Performance Management System ?

Introduction

The principle of the butterfly effect states that the slightest movement of the wings of a butterfly can cause a huge impact on the universe.

This is somewhat how every single department of a company altogether contributes to its success and growth. In order to maintain the smooth functioning of the enterprise, it is important to ensure that every aspect is treated with care and importance.

Performance Management is one such aspect that requires attention. The performance of an employee can change the fate of the enterprise and either lead it towards prosperity or cause its downfall.

In this article, we will discuss the meaning and importance of a Performance Management System for an organisation.

You may also like : What is a Performance Appraisal?

What is Performance Management ?

Performance management is a process of assessment and communication between a supervisor and an employee. This process occurs throughout the year with the aims of accomplishing the strategies and goals of the organization. This assessment and communication between the supervisor and the employee include numerous processes like analysing expectations, establishing goals, recognizing advantages, giving feedback, and reviewing outcomes.

What is a Performance Management System?

The most convenient way of understanding a Performance Management System is to look at it as a mechanism. From tracking employee performance to regulating their consistency and streamlining their talent for the best possible outputs, Performance Management ensures.

It allows the corporation to secure an effective and active work structure towards attaining the business goals of the organisation. Successful businesses attain a boon from having employees aligned with the corporate goals in a proper and planned manner.

The performance management system is the standardized method to assess the performance and work execution of employees. It is a procedure through which the company aligns their mission, goals and objectives with the resources that are available to them.

Importance of Performance Management Tools

Performance management tools increase the pace of performance management processes and assist companies in delivering adequate, systematic and useful examinations of the employee.

Performance management tools offer numerous benefits to an organization. Some of these benefits are :

Enabling continual performance administration
Offering 360-degree performance surveys
Improving the regularity of feedback and assessments
Ensuring bias-free and error-free performance appraisals
Making it susceptible to monitor employee performance
Identifying requirements for training and skill development
Automating performance inquiry reports

Features of Performance Management System

Past Performance Details

Performance Management System allows the supervisors and the employees to view their past performance records with their achievements, imperfections and accomplishments in it. It gives them an overview of their past work outcomes and gives them a better picture to assess their objectives and plan their activities accordingly.

Promotes a clear goal orientation

It encompasses organization, department and employee shared goals and objectives. These goals and objectives are aligned with their work structure and available resources. It streamlines all this information and provides better clarity about the expected outcomes and probable changes in the work structure for better output

Reduces Knowledge Gap

This system is also instrumental in identifying the competency, skills and knowledge gap in the employee, their team and the company as a whole. It further allows the company to come up with provisions of training, mentoring and proper guidance to brush their skills and enhance their work efficiency and output.

It also optimizes the results incurred by these provisions through a channel and takes note of grievances and conflicts that evolve amongst the employees or departments.

Feedback Mechanisms

A promising performance management tool provides characteristics and evaluation factors for 360-degree feedback on an employee’s performance. It also provides a well-framed report which can be accessed by the employee and the manager anytime in the present or future.

Ratings and scores

A performance management system allows you to rate your team’s performance. It also authorizes the business to customize evaluation factors to fit in with the company’s objectives and their prevailing performance marking procedure.

Development plans

An employee performance management system entitles employees and managers to document their expectations with respect to their future goals and growth potential in the company. It also addresses their requirements in terms of training and skill development.

Benefits

Better consistency

A performance management system offers better consistency across all performance management processes. By monitoring employee performance, the manager can make sure that common metrics are being used to evaluate all employees.

Objectively recognize outstanding performers and training necessities

A straightforward performance management system allows the manager to detect which employee is performing better and what kind of training and skill development can enhance their performance. It also detects training gaps and works towards its improvement.

Examination of training efficacy

With a good performance management system, it becomes easy to assess the impact and outcomes of training courses.

Boosted motivation of employees

Employees develop a better sense of engagement when they are aware of the care and concern the company holds for them. Consistent feedback helps them perform better and work on their shortcomings.

Better employee retention

Employees tend to leave their jobs when they feel unappreciated or their work goes unnoticed. With performance management, the objectives of a company are aligned with the individual goals of an employee and provides them with better assessment and feedback of their work.

Time saving

A performance management system makes the process of evaluation easy and hassle-free. It does not include any paperwork and allows easy filling, processing and sharing of data.

Conclusion

A Performance Management System aims at continuously regulating and assessing the performance criteria of the employees and aligning their abilities to achieve the goals and objectives of a company. It is an important procedure for monitoring employee dedication towards their work and also promotes an active disciplined environment in the work space.

What is Performance Appraisal?

Introduction to Performance Appraisal

A performance appraisal is a way to track the work and performance of an employee to align their ability with good results and prosperity for the company.

Every enterprise is greatly dependent on its employees for its success and credibility in the market. It is therefore essential to ensure that all their work is running smoothly and they are dedicated to a goal-oriented work discourse.

What is a Performance Appraisal?

As the name suggests, a performance appraisal is a regular assessment of an employee’s work performance and their dedication towards the company which is reflected through their work. Performance appraisals can be conducted as per the decision of the admins of the company. Usually, they are conducted at a regulated time interval annually, semi-annually or quarterly.

A performance appraisal is also termed as an annual review, performance review or evaluation. It’s basic is to evaluate the employee’s skill set, their accomplishments in the company and their growth chart.

It allows the admin to evaluate their employees and make reasonable decisions on the rate of pay increase, bonuses, promotions, demotions, deductions and terminations. It allows the employee to have a transparent understanding of their work and role status both in terms of their pay and position in the company.

You may also like : What is Sabbatical Leave?

Types of Performance Appraisal

There are many different types of performance appraisals. However, implementing and practising these are entirely based on the discretion of the company and its protocols.

Here are some of the different types of performance appraisals –

Top-down performance appraisal

The supervisors evaluate the work and performance of their employees independently. But the employee being evaluated exercises no input in the process.

Self-assessment performance appraisal

The individual being evaluated is allowed to assess and rate their own performance and conduct with respect to their job.

Peer assessment performance appraisal

The employee is evaluated by their team and rated according to their feedback.

360-degree feedback assessment performance appraisal

This is a very comprehensive inspection and includes reviews from the employee, their team and their manager. Some companies also include client feedback in their assessment program.

Negotiated performance appraisal

This is a modern approach to performance appraisals that aims at moderating the hostile examinations by allowing the subject to demonstrate their stance first. It tends to be effective while resolving ideal differences between associates and managers.

You may also like : What is CTC in Salary?

Shortcomings of Performance Appraisal

Dissatisfaction with the appraisal process

There can be a prominent difference between the performance of an individual and the work structure of the entire organisation. This difference can be a core factor of the employees’ contribution not being reflected in the overall performance of the company. If the evaluation process does not take this difference into account, it can be unjust for the employee and lead to unfair appraisals. Employee dissatisfaction with the appraisal process is a significant shortcoming of performance appraisals.

Unethical and false practices

Mistrust in the case of appraisal assessment and grant can cause problems between the associates and managers. It can also cause situations where the employees tailor their behaviour and outlook only to please their employer. There are some labour experts who also believe that the use of performance appraisals has dropped the quality of merit- and performance-based compensation.

It can also lead to the adoption of unfair goals that further demoralise the workers, exploit them and force them to engage in immoral pursuits.

Admin Bias

Performance appraisals can also cause irrational evaluations where the employees are judged on the basis of their likability and relationships with the manager instead of their talent. This might result in the manager giving good evaluation and appraisal to an under performing staff instead of a deserving one. Irresponsible and unprofessional managers can introduce many biases in the appraisal process and add to unreasonable factors of evaluation.

Subjective approach

Performance appraisals that work adequately in one industry or job structure may not be useful in another. This subjectivity often goes unaddressed while considering appraisals.

You can also read : What is Compliance Management?

Benefits of Performance Appraisal for an Organization

Employee inspections can make a huge difference in the performance of an organization. They provide insight into how employees are participating and contributing to the organizations.

Some of the benefits of performance appraisal in an organisation are –

It Identifies points where the management can enhance their work situations and boost productivity and work quality of their company.
It helps them address behavioural issues of the employees before they become a major issue and affect the productivity of their department.
It encourages employees to contribute to the company by acknowledging their skills and utilising them effectively.
It supports employees by encouraging aptitude, skill and career growth.
It improves strategic decision-making in circumstances that require dismissals, progression planning, or filling open roles.

Benefits of Performance Appraisal for an Employee

Performance appraisals are directed to deliver encouraging results for the employees and address their contributions to the company. The understandings developed from evaluating and examining an employee’s performance can help the organization in:

Recognising and appreciating the accomplishments and assistance provided by the employee.
Comprehending the circumstances, factors and chances for granting promotion and compensations.
Identifying and supporting the necessity for extra training and skill development to promote career development
Determining particular sectors where employee skills can be enriched.
Motivating employees and assisting them in getting involved and interested in career development.
Opening up conversations about the long-term objectives and opportunities of employees.

The Performance Appraisal process:

The examination process is usually facilitated by Human Resources, who assist managers and supervisors in inducting individual appraisals within their departments.

Here are some of the factors that must be looked upon while planning an appraisal process :

An assessment method should be established.
Required competencies and job exin expectations to be drafted for each employee.
Individual appraisals on employee performance need to be conducted.
A one on one interview must be scheduled between the manager and employee to discuss the review.
Future goals of an employee should be consulted with the admin.

Conclusion

Performance appraisals are instrumental in the creation of additional training and development sessions both for the managers and the employees. They allow them to reflect on the shortcomings of their work and further act on them to improve.

Juntrax Solutions will soon release a Performance Management module that will give a user-friendly and simplified outlook for managing employee performance and utilising their full potential. It will provide a holistic career plan to align employee talent with company goals.

Performance Appraisal enables the organization to intricately assess the productivity and dedication of an employee. It also creates a regulatory and disciplined environment for the employees to function efficiently and fulfil all their responsibility.

What is an HR Audit?

HR Audits

Every business venture is just steps away from becoming a great name in the market, but covering these steps is not a cakewalk. From admins to the employee, each component needs to be well managed and fulfilled in order to achieve efficiency in the workspace. Human Resource audits assist companies in accomplishing a similar task.

Audits are a detailed study of business processes. They aim at assessing the positive and negative aspects of a venture.

One such audit that is specially dedicated to monitor and review the changes required in the workspace of an organisation, is known as an HR audit..

What is an HR Audit?

The HR (Human Resource) Audit is an audit that is dedicated towards administering the Human Resources Department of a venture. It is a procedure framed to assess all the aspects of HR tasks and concerns of a company. These tasks revolve around company policies, work strategies, protocols, documentation, and office systems.

In order to ensure proper assessment of all aspects of HR, an HR Audit engages with diverse aspects of the human resource department.

To tackle, each aspect of HR audits are divided into more categories.

Some of these categories of HR audits are:

Hiring Procedure
Employee On-boarding
Compensation Plan
Benefits Package
Performance Review
Termination of Tenure
Exit Interview

These HR audits formulate a significant portion of the HR processes in a corporation.

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

Objectives of HR Audit

HR audits assist companies in numerous ways. Some of the objectives of HR audits are :

Assisting the HR Department to comprehend and implement changes for better functioning.
Surveying all data and resource issuance for human resources
Assuring compliance of the company’s working with the governing legislation.
Proposing a strong base for developments and upgrades in future

Varieties of HR Audit

Established upon the several objectives that are served by HR audits, they have many different types.

Some of the different types of HR Audit are :

Policies

Policy audits take care of the existing and future policies of the enterprise. They take care of consistency and ensure that the policies do not violate the legal guidelines.

Salary and Working Hours

Salary and working hour audits monitor the company’s salary structure with respect to the working hours for its employees. It looks after the legal factors related to salary calculations, overtime compensation and benefits.

Legal Compliance Audit

This audit monitors the strategies of the company and ensures that they lie within the outlines of the employment laws. This audit looks into the leave structure, payroll, health assistance, safety measures and HR operations of the company.

I-9 Audit

The I-9 form is a mandatory legal requirement for companies in order to verify that each of their employees has a valid employment authorization. A 1-9 Audit is responsible for monitoring this form and ensuring that it is free from all sorts of errors.

Departmental Audit

Departmental audits are specifically dedicated to a certain department in the enterprise. For example, there will be a separate departmental audit for payroll, timesheets or sales and purchase. It reviews the compliance factors for specific departments of the organisation.

Employee Training

Employee training audits administer the training and development programs of employees. It aims at enhancing the skill set of the company’s workforce by assessing the programs, catching flaws and suggesting upgraded and better programs.

Safety

A safety audit assists the company in taking care of the employee’s health. It ensures that the company takes enough measures in the workplace, to keep away all possible harms that can occur to an employee’s health.

Hiring

A hiring audit monitors the hiring process of a company. It makes sure that the company formulates a consistent, effective, reasonable and non-discriminatory hiring structure.

Benefits & Compensation Package

A benefits & compensation package audit administers the salary and benefits package provided by the company. It ensures that the package takes all legal factors like minimum wage, compensation and employee benefits into consideration.

You can also read : What is HRM?

HR Audit Checklist

There are numerous different types of HR audit as discussed earlier but it is important for the company to keep certain things in mind while implementing them.

An HR checklist can assist the company to monitor these factors while performing HR audits. Here are some of the crucial factors of the HR checklist –

Employee Records

Keeping an updated Human Resource Information System i.e. HRIS is a very essential part of managing the Audits. It allows the company to keep a record of all employees data which makes it convenient to track and search their information. This data is also important for filling the I-9 forms. Both these forms and the data must be kept properly for future requirements.

Employee Handbook

It is important to create an aware workspace. This inculcates satisfaction and work efficiency in the system. Companies must conduct annual checks on the company handbook and inform the employees about all the changes and updates. It is also important to reach out to a legal consultant and get the company guidelines and protocols cross-checked for any violations or flaws.

Compensation

Companies must check with the national pay scale and offer a salary package that is competitive enough to yield dedication and productivity from an employee. A proper understanding of increments must be developed mentioning all factors contributing to the same. Companies also need to ensure that their salary packages fall under the legal guidelines of the country.

Performance Evaluations

Companies must examine their performance appraisal tools and procedures. They need to come up with a structure that will provide a clear duration, requirements, expectations and other criteria that contribute to the evaluation process. Factors responsible for the promotion or demotion of the employees must be presented in a transparent and honest manner.

Benefits

Companies must ensure that their employees are aware of the benefits and advantages that the company is providing them. In order to create an earnest and productive workflow, companies must have a proper assessment of the market and update their benefits package to a more robust package for their employees.

Training

Companies need to propose fruitful training and development programs for their newly hired employees. Depending upon the department of employees, the training plan will also vary. In order to conduct an effective, it is important to view the condition from the employee’s point of view along with the admin’s point of view. Exploring different perspectives will provide better insight and therefore help in coming up with better plans for improvement and action.

Conclusion

An HR audit aims at creating an accurate inspection of all the policies, protocols and practices of a company. It acts as a troubleshooting tool and detects the shortcomings and errors of the system. Along with discovering these errors it also suggests the required action and inculcates efficiency in the workspace and operation of the company. It is a very significant component in the successful working of an enterprise and therefore demands adequate attention.