Personnel Management System – Functions & Overview

The personnel management system provides an overview in the company. All personnel data and processes are stored and managed centrally here. HRMS cloud software is the standard for modern companies here.


The personnel management system provides an overview in the company. All personnel data and processes are stored and managed here. HRMS cloud software is here usually the standard format for modern companies.

What is Personnel Management System?

The Personnel Management System or HRMS (Human Resource Management System) is a software solution, which combines various systems and processes to ensure the simple management of personnel, business processes and data.

Thus, all important documents can be centrally stored in the personnel file and processes such as absence, vacation notifications, time recording, etc. can be centrally controlled.

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The Difference between Personalmanagementsystem and Personnel Management System?

The difference lies here in the two underlying languages. The German Personal Management System refers to a system for managing employees – often referred to as HRMS. In contrast, the English Personal Management System or PMS refers to a system for managing one’s own tasks, ideas and data.

This can cause confusion. One of the best indicators is that the German term is written as one word and three words are used for the English variant of the system for self-management.

Main Functions of a Personnel Management System

Even though the tasks have increasingly expanded from pure personnel management, the core functions can still be divided into three areas:

  • Capturing data
  • Saving data
  • Evaluating data

The key is always the personnel data. Typical here is the personnel file, which contains a lot of information about the employees. This area is expanded by data that is regularly recorded, such as absences, vacation requests, and the other. It becomes exciting when this data is evaluated. Either for very simple statistics such as the number of active employees or for predictions such as employee development or evaluations to identify and counter problems at an early stage.

How Do You Introduce a Personnel Management System Correctly?

The selection and implementation of a personnel management system is not easy. A short guideline about this can be found in the blog: Implementing a personnel management system the right way.

Personnel Management System in the Past and Today

In the past, personnel management was the task of many hardworking people in a large archive. After all, there are a lot of data points to collect, merge and evaluate. But with the current data volumes, it is not possible anymore with a paper archive. Technology has advanced, and modern cloud software allows us to automate the work of many employees. Moreover, in the future, we can expect to see many simplifications in workflows.

HRMS Cloud Software

We would not be able to manage the countless amount of data we have today with classic paper-based data storage. Therefore, HR management software has been around for many years, giving great relief in managing and analyzing data.

With the advent of modern SaaS systems, the topic of HRMS was further developed and the standard today is a personnel management system as cloud software. Here, everyone involved can simply log in via browser or app and work on the data online. Especially for the paperless offices, this is a great advantage.

Definition and Tasks of Personnel Management

There is a wide range of tasks that fall under the topic of personnel management or employee management. In general, it can be said that it always revolves around topics concerning the documentation and evaluation of employee data, as well as ensuring the goals of personnel planning and employee satisfaction.

Personnel Planning

A company needs the right employees at the right time. Here, forward planning can help to ensure that there are not any limitations or even loss of production.


Planning is good, but in the end, it must be implemented. Recruiting new personnel is the next topic. In general, this is also referred to as “recruiting“.

Electronic Personnel File

Information about employees must also be stored. Instead of countless paper, there is now the electronic personnel file, which ensures easy processing of data and good access control.

Vacation Planning and Release

In order to ensure the safe and continuous operation of the company, the vacation planning of employees must be coordinated. For this purpose, there are usually specifications such as company leave and release processes.

Duty Roster & Time Recording

The employment contract specifies the amount of the working hours weekly. This is done for transparency and to protect employees. In many companies, there is a regulation that is based on trust. However, the standard procedure is time recording. Today, there are many electronic variants or systems that are activated via the work computer, for example.


If one is sick, e.g., if one is absent from work for more than one day, a sick note is required. In this case, the employee must provide a medical certificate stating that it will not be possible to work for the period.

Travel Expense Accounting / Business Trips

The employee should not, of course, be responsible for the planning and costs of business trips. If there are expenses, these can be submitted and reimbursed with a travel expense report. As a rule, there is also central planning and booking of business trips.


We would like to point out that our website provides non-binding information, which under no circumstances constitutes legal advice. This also, and especially, applies to topics within the sphere of legal HR advise. The content of this contribution cannot and is not intended to replace individual and binding legal advice. For this reason, all information provided is without guarantee of correctness and completeness, but always researched with the utmost care.

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