What is hrm and why is hrtech gaining popularity

What Is HRM & Why Are HR Softwares gaining popularity?

HRM as simply described “Human Resource Management” is a term widely used to define the process of developing the human capital of an organization. As HRM term puts it “Human Resource,” in this process, the human aspect of the organization is considered as its “asset,” they are treated as essential part of the organization which is worth investing in and developing.

The process starts off with analysis of a required job in an organization and ends with ensuring overall employee development and satisfaction but, it is to be remembered that HRM is a continuous cycle so it truly never ends. The broad categories that define the HRM process are:
– Staffing.
– Defining work.
– Designing job structure.
– Compensation and employee benefits.


The detailed steps included in the HRM process are:
– Assessing the requirement of a new job.
– Planning job description.
– Identifying the right skill set and education for the role in consideration.

– Recruitment of best-fit talent.
– Orientation/Induction.
– Training and development.
– Assessing employee performance.
– Planning benefits.
– Grievance handling and dispute resolution.
– Clear communication within all employees.


The purpose of HRM in all organizations is primarily to; hire right candidates, continuously develop them, and retain these employees. HRM stands for proper and optimal use of available human resources in an organization. But out of all disciplines of management i.e. finance, supply chain, marketing, and human resource, the “human resource” is the most volatile and difficult domain to handle due to its major chunk being the “human” element.

The role of HR in an organization has developed exponentially over the last few decades, with human resources/employees now being amongst the priority resources for an organization. Organizations now have realized the importance of hiring, developing, and retaining the right talent, and how they can truly contribute to the profit and success of the organization, hence solidifying the term human resource/asset.

Due to this, the importance of HRM process has also increased exponentially over the past few years, making it the most sought after department/skill an organization or a person can have. As evaluated HRM process is a time consuming and labor-some work to complete by human individuals, so in order to reduce the investment of time and increase the ease of business now-days HRM software is being implemented by all the organizations regardless of the organization’s size.

Also, one more factor that has contributed to the popularity of HRM software is the need to ensure that there is a negligible margin of error in this process; HRM software is implemented in most of the organizations.
HRM software is an automated software – which automatizes most of the parts of HRM process; i.e. recruitment, employee management, payroll management, employee scheduling, learning & development management, training, performance evaluation, analysis of data, reporting of data and database collection & management etc. It is also an efficient way to centralize the entire HRM process and the data which is generated in this process.

The HRM software helps to gather all the information of individual employees in a centralized manner so that it can be assessed with ease when the requirement arises i.e. at the time of appraisal, training, new job creation etc. If the benefit of HRM could be summarized in one sentence it’ll be to improve overall organizational efficiency.

Due to their popularity today there is a plethora of HRM software in the market catering to either all of HRM process or some of its parts, but regardless the basic HRM software features remain the same. Some of these HRM software features are:

  • Improving HR efficiency

    • By reducing the process time and increasing the efficiency of different segments.
    • Database collection.
  • Automated aid in recruiting

    • Planning and posting jobs.
    • Applicant tracking based on skill set requirement.
    • Analyzing resumes.
    • Interview scheduling.
    • Aiding in the induction process.
    • Collaborative recruiting.
    • Using social media in hiring.
    • Assigning KRA’s.
    • Aiding in internal promotions.
  • Improvised tracking of employee data

  • Better and easy scheduling of employees

  • Performance evaluation

    • Evaluating completion of KRAs.
    • 360° evaluation review of performance.
    • Performance tracking.
    • Ease and efficient tracking of training/developmental activities required and their output.
    • Automatic reporting.
  • Efficient and fast payroll management.

  • Better HR analytics and reporting from data gathered thus leading to better decision making.

All these features make HRM software an essential part of the organizations across the world. Apart from these features, there are other benefits of HRM software which prove to be of critical importance in aiding to their popularity from the past few years.

The benefits are,

  • Highly efficient aid

    • Being automated the chances of error in performing a task are minor.
    • They give the ease to access any information.
  • Cost-effective

    • HRM software come at fairly reasonable prices, as compared to the entire team which was earlier used in their place.
    • Also, their maintenance is easy and inexpensive.
  • Less time consuming

    • Can access large quantities of information at once.
    • Information can be easily gathered from various departments in an instant.
  • Easy and precise data collection

    • Data collection is precise and aids in making informed decisions.
    • Can easily compile and analyze reports based on the data collected throughout the years.
  • Strategic decisions

    • Practical and strategic decisions like; making new job descriptions, selecting the type of training to be given etc. can be made, by assessing the past trends shown by the data collected.
  • Improvised communication

    • Data collection like, contact information, past work, and projects undertaken by employees can be easily distributed amongst the team.
  • Ease of data recovery

    • Having an automated system helps in ease of data backup and recovery, which in turn aids in the efficient overall process.


All these points are evident that HRM software has become a critical and most important part of an organization, which easily plays a vital role in its success.