The human resource information system (HRIS) is considered to be of strategic as well as management importance. In research as well as in practice, it believed that an effective HRIS provides information on just about anything the company needs to track and analyze about employees, former employees, and applicants. The company will need to select a Human Resources Information System and customize it to meet their needs.
The greater degree of human resource information system is strongly associated with higher levels of performance, which has been a prevalent assumption behind much human resource information literature.
Review on the past research, it had focus more on the effects of the role of human resource information system towards strategic human resource management by impacts of job roles and the size of the company. This research focuses more on the element of job roles, size of the company and competencies of human resource task.[W-5]
5.Methodology of data collection
There are two types of data:
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Primary data:- I could not gather any primary data for my assignment I just used internet and collected data from a company and another sources.
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Secondary data: -
Data mining internet Browsing: Navigating blogs, Forums, Communities Promoting through free classifieds, company website. The source of data collection is being shown with the help of Map
Chapter-3
6.Components of an HRIS :
Kovach etal., (1999) presented the three major functional components in any HRIS by giving the model below:
Input → Data Maintenance → Output
The Input function enters personnel information into the HRIS. Data entry in the past had been one way, but today, scanning technology permits scanning and storage of actual image off an original document, including signatures and hand written notes. The maintenance function updates and adds new data to the data base after data have been entered into the information system. Moreover, the most visible function of an HRIS is the output generated. According to Kovach etal.(1999), to generate valuable output for computer users, the HRIS have to process that output, make the necessary calculations, and then format the presentation in a way that could be understood. However, the note of caution is that, while it is easy to think of HR information systems in terms of the hardware and software packages used to implement them and to measure them by the number of workstations, applications or users who log onto the system, the most important elements of HRIS are not the computers, rather, the information. The bottom line of any comprehensive HRIS have to be the information validity, reliability and utility first and the automation of the process second.
7. Limitation of the study
- In going behind the rhetoric of ‘The best performance HRIS in Human Resource Management' shown that evidence cannot be taken for granted
- The topic of my study is a gigantic subject. Within the short time of my study many aspects could not be discussed in this assignment.
- More research is needed in particular with regard to the effect of organization performance on Human Resource Management
- The collections of data are only secondary. I could not collect sufficient information about the HRIS.
8.Users of HRIS applications:
HRIS meet the needs of a number of organizational stakeholders. Typically, the people in the firm who interact with the HRIS are segmented into three groups:
- Managers in functional areas (production, marketing, engineering etc.) and
- Employees (Anderson, 1997).
HR professionals rely on the HRIS in fulfilling job functions (regulatory reporting and compliance, compensation analysis, payroll, pension, and profit sharing administration, skill inventory, benefits administration etc..
Chapter-4
9. HRIS functions:
Functional HRIS must create an information system that enables an assimilation of policies and procedures used to manage the firm’s human capital as well as the procedure necessary to operate the computer hardware and software applications (Hendrickson, 2003). While information technology affects Human Resource (HR) practices (Lengick- Hall et al., 2003) HRIS and HRIS administration comprise a distinct supporting function within HR. Some of the HRIS functions include the following:[B-2]
9.1 Integrating the Technologies of HR :
Isa fact, that developments in Information Technology have dramatically affected traditional HR functions with nearly every HR function (example, compensation, staffing, and training) experiencing some sort of reengineering of its processes. However, this process of change has created significant challenges for HR professionals resulting in the transformation of traditional processes into on-line processes
9.2 Increased Efficiency:
Rapid computing technology has allowed more transactions to occur with fewer fixed resources. Typical examples are payroll, flexible benefits administration, and health benefits processing. Though technologies of early mainframes provided significant efficiencies in these areas, the difference is that the record processing efficiencies that were once only available to large firms are now readily available to any organization size (Ulrich, 2001).
9.3 Increased Effectiveness:
Most often, as with processes, computer technology is designed to improve effectiveness either by in terms of the accuracy of information or by using the technology to simplify the process. This is especially the case where large datasets require reconciliation. However, onerous manual reconciliation processes maybe executed faster, but also with near perfect accuracy using automated systems. For instance, pension and profit sharing applications, benefits administration, and employee activities are just to mention but a few. Using computer technology in these processes ensures accurate results and offer substantial simplification and timeliness over manual processing. Consequently, the vast majority of HR functions have had some degree of automation applied in order to gain both efficiency and effectiveness.
9.4. IT-Enabled Processes:
While many of the application areas· gains are through increased effectiveness and efficiency over manual processing, some are only possible using contemporary technologies. Most notably, computer-based (web-based) training is a growing area of HR practice that was not available until computer software was created. Even computer based training was not as practical as it is today because it was geographically dispersed until the training was upgraded from computer-based to web-accessible training. However, by taking traditional computer-based training programs and making them accessible on the Internet, firms have created a powerful tool to upgrade and assess employee skill sets. Moreover, many other traditional HR functions have evolved Information Technology (IT) –dependent components with the advent of the Internet. Online recruitment centers, along with the ability to conduct virtual interviews, background checks, and personnel tests on-line have dramatically changed those processes, increasing the geographic reach of firms for potential employees.
10. Why Do We Need HRIS
There are several advantages to firms in using HRIS. They include the following:
- Collecting appropriate data and converting them to information and knowledge for improved timeliness and quality of decision making.
- Producing a greater number and variety of accurate and real-time HR-related reports.
- Streamlining and enhancing the efficiency and effectiveness of HR administrative functions.
- Shifting the focus of HR from the processing of transactions to strategic HRM.
- Reengineering HR processes and functions.
- The size of the organization, with large firms generally reaping greater benefits;
- The amount of top management support and commitment
- Improving employee satisfaction by delivering HR services more quickly and accurately to them.
- Providing a comprehensive information picture as a single, comprehensive database; this enables organizations to provide structural connectivity across units and activities and increase the speed of information transactions.
- Increasing competitiveness by improving HR operations and improving management processes.
Chapter-5
11. Cost and benefit of HRIS:
An HRIS system represents a large investment decision for companies of all sizes. Therefore, a convincing case to persuade decision makers about the HRIS benefits is necessary. The common benefits of HRIS frequently cited in studies included, improved accuracy, the provision of timely and quick access to information, and the saving of costs (Lederer, 1984; Wille and Hammond, 1981). Lederer (1984) discussed why the accuracy and timeliness of HRIS is very important in terms of operating, controlling, and planning activities in HR. In addition, Kovach et al., (2002) listed several administrative and strategic advantages to using HRIS. Similarly, Beckers and Bsat (2002) pointed out at least five reasons why companies should use HRIS. These are:
- Increase competitiveness by improving HR practices
- Produce a greater number and variety of HR operations
- Shift the focus of HR from the processing of transactions to strategic HRM
- Make employees part of HRIS, and
- Reengineer the entire HR function
12.Emergence of HRM and HRIS
The economic landscape underwent radical changes throughout the 1990s with increasing globalization, technological breakthroughs (particularly Internet-enabled Web services), and hyper competition. Business process reengineering exercises became more common and frequent, with several initiatives, such as right sizing of employee numbers, reducing the layers of management, reducing the bureaucracy of organizational structures, autonomous work teams, and outsourcing.
Firms today realize that innovative and creative employees who hold the key to organizational knowledge provide a sustainable competitive advantage because unlike other resources, intellectual capital is difficult to imitate by competitors. Accordingly, the people management function has become strategic in its importance and outlook and is geared to attract, retain, and engage talent. These developments have led to the creation of the HR or workforce scorecard as well as added emphasis on the return on investment (ROI) of the HR function and its programs.
The increased use of technology and the changed focus of the HRM function as adding value to the organization’s product or service led to the emergence of the HR department as a strategic partner. With the growing importance and recognition of people and people management in contemporary organizations, strategic HRM (SHRM) has become critically important in management thinking and practice. SHRM derives its theoretical significance from the resource-based view of the firm that treats human capital as a strategic asset and a competitive advantage in improving organizational performance.
A good example of the importance of HR and the information provided by an HRIS can be found in the human resources planning (HRP) function. HRP is primarily concerned with forecasting the need for additional employees in the future and the availability of those employees either inside or external to the company. A good example is when a company is considering a strategic decision to expand by establishing a production facility in a new location. Using the information recorded and analyzed in the HRIS, HRP can provide estimates of whether or not there are enough people available in the external labor market of the new location to staff the new facility. Thus, the availability of potential employees in the labor market may be critical to the strategic decision to build the new facility, and this, of course, could involve millions or billons of dollars.
Therefore, in determining the strategic fit between technology and HR, it is not the strategy per se that leads to competitive advantage but rather how well it is “implemented,” taking into account the environmental realities that can be unique to each organization and, indeed, between units and functions of the organization.[B-1,2]
13.Interface between HR and Technology
The IT-driven automation and redesign of work processes certainly help reduce costs and cycle times as well as improve quality. Management information systems (MIS) can further help decision makers to make and implement strategic decisions. However, IT is only a tool and can only complement, not substitute, the people who drive it. Often, organizations mistake IT as a message and not the messenger and divert time, effort, and money away from long-term investment in people to developing and deploying information technologies. In fact, the critical success factors in information systems project implementation are nontechnical and are due more to social and managerial issues.
With the increasing use of information technologies in HR planning and delivery, the way people in organizations look at the nature and role of HR itself may change.
In traditional organizations with silo mentalities, turf wars between departments and functions acting as independent entities are common. Therefore, top management needs to be mindful of organizational politics in managing change. Through most of its evolution, HRM has had an administrative and caretaker focus in its delivery. With technology significantly decreasing the time required for administrative tasks, many HR professionals may find it difficult to redefine their jobs and may thus resist the change to an HRIS. This calls for redefining and transforming the role of HRM through value-added, strategic initiatives and interventions. This also involves learning new skills for HR professionals and rethinking the way the HR department is organized and delivers its services. With the improved job skills of HR professionals, technology will be seen as HR’s “partner in progress.” While having an advanced, full-fledged system will not automatically make HR a strategic business partner, it acts as a building block and an effective aid in the process. [B-1,2]
14. System Development Process for an HRIS
From the engineering and information processing literature, the formal design of any information processing system is supposed to follow a set of steps labeled the System Development Life Cycle (SDLC). However, the traditional SDLC is somewhat difficult to use as originally specified. But there is agreement that the SDLC has five general phases:
(1) Planning
(2) Analysis
(3) Design
(4) Implementation and
(5) Maintenance.
Applying the main concepts and phases of the traditional SDLC to the HRM function, The HRIS development process refers to the steps taken from the time a company considers computerizing its human resources functions through the analysis, design, development, implementation, maintenance, evaluations, and improvement of the system. The development of an effective HRIS should follow seven stages: “Proposal to Management, Needs Analysis, System Specifications, System Design, System Development, Installation and Conversion, and Evaluation”.
15. A Model of Organizational Functioning
The Figure depicts a model of an organizational system centered on HRIS. This model depicts the interrelatedness of the parts of an organization that can affect the functioning of the organization. It shows the interrelatedness between the strategic management system, the strategic HRM system, and the performance goals, business and HR, that are generated during the strategic planning process. Note particularly how the business goals directly affect the HR goals, and this relationship should be an ongoing process in an organization to make adjustments to either set of goals as needed. The HR goals drive the HR programs that provide management the tools for the efficient and effective use of employees. As will be emphasized throughout this book, the alignment between the strategic management system, the strategic HR management system, the business goals, the HR goals, and the HR programs is critical to the organization to maintain its competitiveness in its market.
Figure: Model of an Organizational System Centered on HRIS [W-4, B-4]
There are several aspects of this model that are critical for its use in this assignment. First, this model is a framework to use in reading, organizing, and understanding the information given in this study. Second, this is a systems model; that is, it is organic and can change over time as represented by the feedback loops from goal achievement to other parts of the model. Third, the model is centered on the use of an HRIS as critical to the efficient operation of an organization. If the HRIS were removed, it would still be a model of organizational functioning. However, it is my contention that it would run more slowly and less efficiently, and this could hurt the competitiveness of an organization in its marketplace. Fourth, the HRIS and the HR program evaluation results in terms of HR metrics, and cost-benefit results (value added and ROI) are in continual interaction. This emphasis is consistent with current thinking in the HRM field and has generated the HR or workforce scorecard. Finally, it is important that the successful design, development, and implementation of an HRIS depend equally on IT and on HR knowledge. There are other aspects of this model that are important. First, all the factors in the external environment will influence the internal functioning of the organization. The most important of these factors is national culture. National culture will affect all the factors in the external environment: government regulations, labor market, societal concerns, technology, HRM research, and competition. These factors in turn will have an impact on the organization. Simple comparisons across various countries—for example, the United States, Australia, Europe, and China on most of these six factors would provide significant differences on each of these external factors. I feel that these differences are important and have devoted a chapter to them. Second, the two-way arrow between the strategic management system and strategic HR indicates our understanding that this interaction will improve the functioning of the organization. Finally, corporate culture influences the entire internal operation of the organization.
Chapter-6
16. DISCUSSION
Concept in the Human Resource Information System is made up of certain factors; competencies of HR task, job roles, and size of the company as what had been explain in literature review and it believed to be important construct in order to determine the human resource information system performance.
To make an outcome, researchers actually look into data analysis and findings where shows that there are two significant factors in explaining the human resource information system performance towards job roles and size of the company.
16.Strategic HR tasks :
There was a significant difference in the proportion of SME and large companies, who use HRS in support of communication as an HR task. There was strong evidence that the degree of use by SME was lower compared to large companies. Human resource development and workplace learning. The test showed no significant difference in the proportion of users from SME and large companies who use HRIS in support of human resource development and workplace learning. There was no evidence that the extent of use by SME were any different. [B-3]
There was a significant difference in the proportion of users between SME and large companies, who use HRIS to support Career management as a strategic HR task. There was evidence that the extent of HRIS use in support of career management by large companies were higher. [B-3]
The study showed no significant difference in the proportion of users between SME and large companies, who use HRIS to support Commitment management as a strategic HR task. There was no evidence of difference in the extent of HRIS use in support of commitment management between SME and large companies. [B-3]
There was a significant difference in the proportion of users between SME and large companies using HRIS in support of Leadership management as a strategic HR task. There was strong evidence of greater HRIS use in support of leadership management among large companies. [B-3]
Business process reengineering
There was a significant difference in the proportion of users between SME and large companies, who use HRIS to support business process reengineering as a strategic HR task. Once again, there was strong evidence that HRIS use in support of business process reengineering was higher in large companies. [B-3]
Managing trade union relations with the organization
There was evidence of difference in the proportion of users between SME and large companies, using HRIS to support managing trade union relations as a strategic HR task. SME usage was significant, demonstrating limited use of HRIS in support of this. [B-3]
There was also a significant difference in the proportion of users between SME and large companies, using HRIS in support of decision-making as a strategic HR task. There was evidence that HRIS use in support of decision-making was lower in SME. [B-3]
Chapter-7
17. Conclusion
Human Resource Information Systems (HRIS) have become one of the most important tools for many businesses. Even the small, 20-person office needs to realize the benefits of using HRIS to be more efficient. Many firms do not realize how much time and money they are wasting on manual human resource management (HRM) tasks until they sit down and inventory their time. HRIS is advancing to become its own information technology (IT) field. It allows companies to cut costs and offer more information to employees in a faster and more efficient way. Especially in difficult economic times, it is critical for companies to become more efficient in every sector of their business; human resources (HR) is no exception.
HRIS refers to software packages that address HR needs with respect to planning, employee information access, and employer regulatory compliance. The following text begins with a discussion of human resource planning, followed by human resource management systems.
18. Recommendations and Suggestions
While this study has confirmed existing studies into HRIS, it provides a platform for future work in this area, which should concentrate on a number of issues.
- First, a detailed research would be needed to explore the role of HRIS in SHRM, especially; with much, bigger sample size and a higher response rate so that a deeper analysis can be done for generalization.
- Second, HRIS represent a large investment decision for companies of all sizes. However, SMEs are increasingly failing to use HRIS in support of strategic HRM tasks. It would therefore be very interesting if future research could geared towards finding answers to why SMEs are reluctant to commit time and resources for the implementation of HRIS in strategic HR tasks. This will enable a careful analysis and diligent consideration of HRIS application to strategic HR tasks since a successful execution is rewarded with numerous benefits including improved accuracy, provision of just-in-time information, and costs saving (Lederer, 1984; Wille and Hammond, 1981).
- Third, an in-depth study on HRIS usage in support of trade unions' relations with organizations needs further examination. This will allow both the trade unions and the employers to manage and resolve conflicts and other related labor issues efficiently and effectively.
- Finally, as HRIS becomes an increasingly vital component of SHRM tasks performance, researchers must expand their efforts to understand the opportunities and threats that it fosters. [w-5]
References
BOOKS:
[1] Kavanagh Michael J. and Thite Mohan , Evolution of Human Resource Management and Human Resource Information Systems, The Role of Information Technology.
[2]Gary Dessler, International Edition, Human Resource Management, tenth edition.
[3]Robert A. Pitts, David Lei. 4th edition, Strategic Management, Thomson Higher Education.
[4]Arora A., Management Information Systems, Himalaya
Publishing House, Mumbai.
WEBSITE
[1]Annual Report of Birla Corporation Limited
[2]
[3]http://www.birlacorporation.com/contact.html
[4]
[5] http://www.universityessays.com/human-resource-information-system.php.htm
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