Page 41 - Banking Finance November 2022

ARTICLE

provider and software as a service (SaaS) has enable Creating suitable and well justified Key Result Area (KRA)
additional features rendering greater administrative control. and Key Performance Indicator for the employees is a
With the penetration of mobile technology amongst the vital step for Human Resource Management System.
various users, mobile applications based HRMS have also At the time of appraisals, non-availability of matched
become more common. performance management module can cause distress
and demotivation among employees which would
Various challenges businesses encounter ultimately affect their efficiency and output besides
inviting chaos and unrest in the organisation.
in modern HR operation:
4. Self-serve dashboard: Maintenance of updated
With the scalability of operations and organizational growth,
employee records at a central location is important and
it seems impossible to manage hundreds of employees,
sensitive. It needs to be easily comprehendible and
vendors and finances manually. HRMS serves as a boon in
acquired for meaningful information sharing. Self
managing and mitigating the diverse business challenges by
Service portal provides employees access to all their
reducing errors and presenting dashboard for effective
own data. Exhaustive view on analytic data related to
analysis and decision making. Some of the major challenges
employee's payroll, leave and attendance etc. builds
faced by the organization in HR operations include:
employees trust in the organization and proves
1. Finance Management: Managing payroll, payments,
practically valuable to employees on several counts. If
and salaries is a tedious and complex work. Starting
the dashboard does not function properly, then it might
from on boarding throughout the life cycle of the
create serious issues.
employee in organisation as well as at the time of
5. Data Management: HR data is one of the most
separation (voluntarily or regular), payment of expense,
sensitive, ever growing, and dynamic data available
salaries, increment, arrears, retirement benefits etc.
within an organization. The earlier adopted
necessitates the need for having a robust HR
methodology of storing and managing this data was
management system.
paper based and called for heavy investment in terms
2. Mobility: The ability to access employee records and
of required space and time. Further, the era of
data on the go is a serious impediment. It becomes
spreadsheets proved to be error-prone and also time
further difficult to sync real-time data for attendance,
consuming. Thus, the quicker and paperless data
leaves, and other tasks.
management eliminating the chances of being
3. Performance Evaluation: The diverse operating field misplaced, incomplete/incorrect posed a great
for employees results in employees having their own challenge for the organization.
expectations regarding performance evaluation.
6. Recruitment: End-to-End recruitment cycle is considered
to be one of the ordeals by many recruitment experts. It
includes salary dossiers, policy inferences, and many other
hiring-related statements. Requirement of listing
openings, candidate screening, and hiring adds intricacies
to an already sensitive process.
7. Statutory Compliance: Obedience with state and
central laws plays a major role in the attainment of the
purity aspect in the functioning of any organisation.
Thorough regular updates about the legal changes with
respect to human resource in a constantly burgeoning
legal landscape such as prevalent in India poses greater
challenges. Integrating taxation and compliance
towards vendors / suppliers' payments has added
another level of complexity.

BANKING FINANCE | NOVEMBER | 2022 | 41