Human Resource Management System (HRMS) is the term used to describe formal systems devised for the management of people within an organization. The responsibilities of a human resource manager fall into three major areas: staffing, employee compensation and benefits,and defining/designing work. Essentially, the purpose of HRMS is to maximize the productivity of an organization by optimizing the effectiveness of its employees
The primary responsibilities associated with human resource management include: job analysis and staffing, organization and utilization of work force, measurement and appraisal of work force performance, implementation of reward systems for employees, professional development of workers, and maintenance of work force.
The modern HR technology term, human capital management (HCM), has come into more frequent use than the term, HRMS, with the widespread adoption by large and midsize companies and other organizations of software to manage many HR functions.
HRMS is really employee management with an emphasis on those employees as assets of the business. In this context, employees are sometimes referred to as human capital. As with other business assets, the goal is to make effective use of employees, reducing risk and maximizing return on investment (ROI).