Ana Maria Lozano/April 21, 2022 /Dynamics 365/Human Resources/ 4 min read

What is an HR Management system, and what is it for?

Keep this entry for future references

Since the creation of ERPs, the companies that created the HR management systems found the need not only to automate processes and have information in one place but also to provide users with a great experience using the created tools. In this blog, I will talk about ERPs focused on the human resources area.  

First, what is an ERP? It stands for Enterprise Resource Planning. To define an ERP, you must look at the context to understand its processes. You will find hundreds of ERPs on the internet with different functionalities covering different companies’ needs. For example, some cover inventory management, billing, accounting, purchasing management, customer relations, or human resource management. A good ERP will cover all or most of the needs in a single system that optimizes time, resources, and money. 

Therefore, an ERP system allows us to keep the company’s information in one place, automate processes and streamline them. There are also ERPs or focused systems; they are a manufacturer’s specific applications or products created to cover a particular need in a company. Many manufacturers found the area of human resources a special requirement. 

The Human Resources area is of great importance since it manages employees, the most critical resource of companies. Every day, it is more vital for organizations that their staff feel happy and motivated since they are more productive. Centralizing processes such as recruitment, hiring of personnel, termination of employment, development, administration of disciplinary procedures, training, organizational culture, and talent management, among others, is vital for high-level decision-making. Still, when the information is scattered and in different formats, it is difficult and cumbersome to collect all the necessary information, confident that it is complete and shows accurate statistics of what is happening in the company. 

Dynamics 365 Human Resources is a solution created within the Microsoft suite so that it can be easily integrated with other systems. It combines human resources with information technology, which provides employees in the human resources area with the possibility of maintaining and managing sensitive information in the area in a single and secured place. 

It is a solution designed to manage the needs of the Human Resources area through 11 modules that cover the bulk of what the area process covers in small and medium-sized enterprises (SMEs) and large ones: 

What is an HR Management system, and what is it for? 3

These modules allow for centralizing information and improving the management and productivity of workers in the HR area since they can issue reports in real-time and manage sensitive issues, such as statistics or KPIs in the area. Also, headcount, compensation, and employees’ benefits; all in one place and within reach of a couple of clicks.

It also has two workspaces where all employees have a unique self-service user experience and agility in communication with the human resources area and with the direct manager regarding some requests. The Employee self-service and the Manager self-service allow users to request their permits, vacations, and leaves automatically and immediately. The manager can approve these requests by clicking from his computer or cell phone.

From the Employee self-service, employees can perform actions such as:

Carry out activities requested by their direct manager.

Enroll in courses

Fill out surveys

keep their personal information updated

In addition to this, all the information is centralized in one place, such as your position profile, employment contract, compensation, and skills by level regarding your position, among others. With all this information, employees and managers can evaluate the possibility of making internal movements in the organization.

In conclusion, I will list the 5 benefits below that a company can realize when acquiring Dynamics 365 Human Resources:

Make better decision-making since the information on the performance and engagement of the collaborators will be at hand.

Automate manual processes, saving time and generating value for the company.

Measure and monitor critical data for the different areas of the company since they will have the necessary job satisfaction evaluation tool, which will identify training and performance needs, guaranteeing a positive return on investment.

Personalize the evaluations. The human resources area will control who has permission to view and modify data, which facilitates personal information security management and optimal data usage.

Improve the employee experience since Dynamics 365 HR is very intuitive, easy to use, and will contain information of interest, which will allow employees to have greater engagement with the organization, creating a relationship of support and development.

Thank you.

What is an HR Management system, and what is it for?

Please stay tuned to this saga of blogs on Dynamics 365 HR, where we will expand information on this solution. It will undoubtedly make your life easier if you work in the Human Resources area.

Ana Maria Lozano
Dynamics 365 Human Resources Lead

Read more blog entries by Ana Maria Lozano

Read more: Dynamics 365 | Human Resources

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