Importance of Human Resource Information Systems

 


Technology has reached greater heights, to an extent during the past decade that modern business processes are far faster & efficient with the use of modern technology compared to the time that they were manually operated.

Human Resource Management System (HRMS)

When organizations grow, they find it difficult to manage with the traditional manual methods as it eats into a lot of valuable management time. It is at this stage that most small to medium size firms begin to computerize their individual HR tasks. 

There are many sources of help available. There are vendors who provide software solutions for virtually all HR tasks including:

·         Compensation management

·         Payroll management

·         Time & attendance systems

·         Computerized performance appraisal systems

·         Compromised leave application & approval

·         Loan requisitions on line

Human Resource Information System (HRIS)

As companies grow, they integrate their separate HR systems into Human Resource Information system (HRIS). It merges HRM as a discipline & in particular it’s basic HR activities & processes with the information technology field. 

“HRIS is interrelated components working together to collect, process, store, & disseminate information to support decision making, coordination, control, analysis, & visualization of an organization’s Human Resource Management   activities” (Dessler, 2005)

Advantages of having a HRIS

Cost Benefits/Speed – Maintenance & updating of records manually is a labor intensive & costly exercise.

Accuracy – It reduces the chances of error in the transfer of information. Computerized information will be accurate and reliable.

Investigation – In manual system different information is stored in different files. When computerized, all information about an employee could be stored in one file & viewed easily.

Analysis – The most significant criticism of a manual record system is the difficulty in analyzing the information. Ina manual system, the HR department may not be able to submit useful information, which would influence in decision-making.

Saves Time -  Provide an integrated comprehensive HRIS to the organization, accurately & quickly. As a result, management can spend more time for strategic HR

Increase efficiency - Increase efficiency of the Personnel Department and integrating the human resource function with other business functions in the organization to serve personnel better.

Self service facilities – Employees themselves can find about the relevant information needed by themselves. Eg-leave available, over time worked for a period

Barriers and Points to be considered when implementing ICT/HRIS:

  1. Budget/cost
  2. Transform time
  3. Skill level of Employees
  4. Backups
  5. IT getting obsolete very fast
  6. Staff redundancies
  7. Attitude issues
  8. Objectives of the users
  9. Selecting the technology
  10. Lack of resources
  11. Cooperation with management

Levels of HRIS usage

Any organized approach for obtaining relevant and timely information as a base for human resource decisions.

Strategic Level - For Strategic decision making – Create a comprehensive “Learning Organization” that enhances the knowledge capital of all the employees.

(01) Recruitment

  • Candidate information
  • Job description
  • Vacancies
  • Minimum requirements

(02) Performance Feedback

  • Executive & Non executive performance feedback
  • 306 degree appraisal
  • Balance score card

(03) Career & Succession Planning

       Predict future development requirements

(04) Training & Development

  • Training needs analysis
  • Training plan
  • Link training to performance

Tactical Level - Tactical decision making

(01) As a tool for day to day problem solving

       Ex. Garment factory short of cutting staff

              Information about individual skills to form a team for a project

(02) What if analysis

        Ex. What is the company liability for gratuity payment as at today?

Operational Level - Operational Day-to-Day tasks

(01) To perform day to day HR work

(02) Employee personal information

(03) Benefit schemes (Loans, Bonuses)

(04) Production incentives


References 

Dessler, G. (2020). Human Resource Management,16th Edition. Pearson

Hussain, Z., Wallace, J., & Cornelius, N. (2007). The use and impact of human resource information systems on human resource management professionals. ScienceDirect


Comments

  1. A human resource information system's goals are to maintain data accurate and useful while also speeding up HR processes. You have clearly described HRIS and its importance of HRIS. Good Luck.

    ReplyDelete
  2. HRIS provides a centralized database of applicant tracking capabilities, onboarding, employee demographics, compensation and benefits options, time tracking and more. It's also a hub for employee data, including up-to-date information about your organization's hiring trends and employee retention. This blog clearly described the importance of HRIS.

    ReplyDelete
  3. HRIS is a software that stores the employee information HR needs to operate. The objectives of a human resource information system are to keep data accurate and more usable to speed up HR's operations. Good article.

    ReplyDelete
  4. HRIS assists in organizing everything properly and compliance with current requirements. With an HRIS program, HR employees can do their jobs without the boredom and repetition.

    ReplyDelete
  5. HRIS is a software that stores the employee information HR needs to operate. A human resource information system's goals are to maintain data accurate and useful while also speeding up HR's processes.

    ReplyDelete
  6. As discussed, A human resource information system's goals are to maintain data accurate and useful while also speeding up HR's processes. Good article

    ReplyDelete
  7. Managing employee information and data is an utmost important function of modern business World. In the present data is the money. Accordingly application of HRIS will be an definite advantage to an organization. You clearly explained the importance and the advantages of the HRIS systems and it was an interesting article. All the best.

    ReplyDelete

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