Items Description of Module Subject Name Management Paper Name Human Resource Management Module Title Human Resource Information System Module ID Module 39 Pre-Requisites Understanding the nature of Human Resource Information System Objectives To study the types, components and applications of HRIS Keywords HRIS, Decision Support System, Application Tracking System
QUADRANT I 1. Module 39 : Human Resource Information System 2. Learning Outcome 3. Objectives of HRIS 4. Components of HRIS 5. Types of HRIS 6. Implementation of HRIS 7. Application of HRIS in HRM Summary 1. Module 39: Human Resource Information System 2. Learning outcome After reading this module, you should be able to: Understand the objectives of HRIS List the types and components of an HRIS Enumerate the steps in the implementation of an HRIS Discuss the applications of an HRIS in human resource management Explain the benefits of an HRIS List the conditions essential for an effective HRIS 3. Introduction. The human resource information system is basically a database system developed to assist HR in decision making and reporting. It is normally one of the elements of the overall management information system of an organization. It is indeed an IT-enabled HR service available to the HR managers for data analysis and decision making. HRIS helps the HR managers in making a quality decision by making them available adequate relevant information timely. The scope of HRIS is so wide that it can provide information about every aspect of an employee. As such HRIS provides facilities for the use of computer technology to make HR operations more efficient and simple, reduce costs and eventually enhance the result orientation of human resource management. However, the importance and the components of HRIS may not be same for all organizations. The scope of HRIS includes all the HR functions of the organization ranging from namely, recruitment and selection to grievance resolution, human resource planning and succession planning. The different systems dealing with the HR functions are the job evaluation system, the job analysis system, the HR planning system and the grievance management system. The goal of bringing these HR functions into the ambit of HRIS is to enhance the efficiency of these functions. However, any HRIS would be effective only when the information available for decision making is timely, accurate, concise, relevant and complete. Systematizing and streamlining the HR operations and enhancing the efficacy of the HR department are the focus of the definitions of HRIS. Thus, HRIS may be defined as an automated system for collecting, storing, retrieving, analyzing and disseminating HR-related data for facilitating operational, managerial and strategic decision making that impacts human resources.
4. Objectives of HRIS Main Purpose of Human Resources Information System To help HR Managers and line managers in making decisions that adds value. Facilitates HR Managers to become strategic partners. Helps in making analysis of important matters such as the HR costs. To enhance the ability of the human resource management to leverage and absorb new and emerging opportunities and challenges in the business horizons. Provides effective communication channel. To ensure efficient collection, storage and distribution of HR related information in a papers work environment. It can contribute to employee satisfaction and productivity. To create an integrated system for achieving an efficient and purposeful human resource functions and effective deployment of strategic human resources. Provides the employees access to all relevant information for the accomplishment of organization's mission and strategic objectives. 5. Components of Human Resource Information Systems (HRIS) A human resource information system (HRIS) is designed to assist human resources managers in managing data. Human resource professionals use these systems to create facilities for work flow, improvement of efficient and store and collect information. Several companies proffer HRIS packages to employers which can be customized to the specific needs and requirements of the employer. 5.1 Database The second component is a database to store employee information. HR professionals are able to input all personnel data into the system accessible from anywhere, round the clock. Compensation history, emergency contact information, and performance review are the types of data collected in the database. The core database can also be seen as online backup for paper files.
5.2 Time and Labor Management Activities like time and labor management can highly time consuming. HRIS allows employees to input their own hours worked and allows managers to immediately verify vacation requests, and the data is directly fed to the payroll. Time and labor management also improves the HR department s ability to track punctuality and attendance. 5.3 Payroll Function Payroll function is yet another major component of a HRIS model. HR can simply download employee hours, and issue payroll deposits to employees. Salaried employees can also be paid with substantial low risk of errors. The HRIS payroll usually improves tax compliance for locations with multiple tax levels. 5.4 Employee Interface Most HRIS permit for an employee to have limited user access. Employee users access a portion of the database so as to update their personal details, review pay scales, make changes in retirement benefit programs, update direct deposit particular or download benefit elect documents. 5.5 Recruitment and Retention Finally, recruitment and retention are the most important components of HRIS and is the anchor of all HR policies and systems. Identifying new talent, acquire them, engaging them and ultimately to retain them are the major task of a HR personnel. HRs need to ensure that employees are not only doing their work, but are also provided with the required training; receive appropriate compensation and benefits from the organization. 6. Types of Human Resource Information Systems (HRIS) The domain of human resources management has developed over the last two decades and the foraying in of technology has reshaped the domain considerably. Human resource information systems (HRIS) allow HR professionals to store and organize vast amount of data concerning to employee information. There are different types of HRIS that every organization uses in order to perform their daily tasks of managing employees. 6.1 Operational HRIS Operational HRIS is of great help to the manager in providing with all the needed data to support routine human resource decisions. Several operational human resource systems gather and report human resource data usually including information about the organization s employees, position and governmental regulations. Two major subdivisions under operational HRIS consist of the following: 6.1.1 Employee Information Systems Employee information system is a major part of operational HRIS. Organizations are required to keep a track of an employee s records and information relating to all kinds of personal and professional details. 6.1.2 Position Control Systems The position control systems are introduced in order to identify each position within the organization; the job title and the employee currently assigned to the position.
Referring to the position control systems, a HR manager can identify the information about and vacant position. 6.2 Performance Management Information Systems Performance Management Information Systems include data concerning performance appraisal and productivity information frequently used as evidence in employee grievance matters. Careful documentation of employee performance and the measurement of performance and reported is critical to acceptance of appraisal information in grievance hearing. Performance management systems can lead to a number of decisions beyond merely the decisions to retain, promote, transfer or terminate an employee. 6.3 Tactical HRIS Tactical human resource information systems provide managers with support for decisions emphasizing the allocation of resources. Within the domain of HR, these include recruitment decisions, job analysis, and job design decisions, training and development and also employee compensation plans. Different subpart of tactical HRIS also has a few subparts that include job analysis and design information system, recruiting information system, compensation and benefits information systems and employee training and development systems. 6.4 Strategic HRIS Strategic HRIS focuses on supporting labor negotiations, HR planning, and certain specialized human resources functions. The main purpose is to have entire good idea about labor resources and workforce planning. Major types of strategic HRIS comprise information systems supporting workforce planning and specialized human resource information systems 7. Implementation of an HRIS Several organizations have recognized the need for application of technology to human resource management in order to develop human resources as strategic instrument to survive and grow in an intensely competitive market. It is generally expected that the future success of human resource management depends on how effectively it is integrated with technology. HRIS play a major role in planning, administration, decision making and control activities of the human resource management. Thus, organizations of all sort, are interested in installing an HRIS. The installation of HRIS involves the stages of determination of the need for HRIS, constitution of a project team, development of the project plan, designing and developing system specifications, identification and training of user group, implementation and maintenance, and evaluation of effectiveness of HRIS. The steps are shown in Fig.2
7.1 Determination of the need for HRIS The first stage in the implementation of HRIS is the determination of the need for HRIS. The management must determine the need for an HRIS in the organization and in the HR department in particular. It should first assess the present HR operations that require system-enabled support and then the extent to which these operations require such support. Factors like the size of the organization, the strength of the workforce, the corporate and HR philosophies, the present level of HR efficiency, and the existing bottlenecks in the HR operations should be considered carefully before any decision is taken regarding the HRIS implementation. The existing HR practices, the degree of centralization, the present model of report generation and the future HR information requirement can also influence the HRIS installation decision. As part of assessing the HRIS needs, the views of the managers and the employees can be ascertained through reviews. When the management is convinced that the HRIS can make a substantial difference o the organization in terms of efficiency and productivity, it may go ahead with its implementation in the organization. 7.2 Constitution of a Project Team Once the management decides about the implementation of the HRIS, the next step is to choose a specialized team for this specific purpose. The main task of this team is to supervise the entire operation from the planning to the execution of the project, including post-installation monitoring. Since the project is associated closely with HR operations, the HR professionals must be involved in the task force in substantial numbers along with technical people. 7.3 Deciding the Project Plan
Normally, the first assignment of the task force is to evolve a comprehensive plan regarding how and when the team should begin its task, how should proceed with the task, and so on. The preparation of an exhaustive plan can help the team in foreseeing the likely challenges in the process clearly and in developing strategies for surmounting these challenges. In any case, the plan developed by the task force must be practicable and well focused. As part of the project plan, the team members may also develop guidelines for order placement and evaluation. 7.4 Designing and Developing System Specifications In this stage, the task force should develop a precise system design and specifications for the proposed HRIS after examining and defining the users data requirements. Certainly, identification of data needs and applications is crucial for developing the design and programming specifications. For this, the task force members must have adequate knowledge of the concepts, methods and techniques of computer system design and specification preparation. They must also be aware of the techniques of computer system design and specification preparation. They must also be aware of the techniques for flow chart preparation, program coding, and compilation and testing. Since the HRIS software would be controlling the processing part of the HRIS, it is essential to consider the input data characteristics and the desired quality of output information. 7.5 Identification and Training of User Groups This is the most sensitive stage in the entire HRIS planning process because employees would not be involved in the HRIS implementation. At this stage, the probable users of the HRIS are identified and imparted the necessary training for handling an HRIS. The task force must anticipate vocal or subdued resistance from the existing employees for two reasons. Once, they may oppose automation due to the fear of job losses in the organization and the compulsion to forego their skills and abilities learnt from the existing practice. Two, they may fear and doubt their own ability to learn and master the new technology and techniques. The task force, along with the management, must act judiciously in dispelling the feature of the employees and in imparting training to make them fit for an HRIS work environment. A timely acquisition of information system capabilities by the HR staff is essential for a seamless introduction of HRIS in the organization. 7.6 Implementation and Maintenance of an HRIS Once the HRIS software s procured from the vendor, it should be properly installed under the careful supervision of the task force as per its plan and guidelines. The team must conduct performance testing to ensure that the HRIS fulfils all the system specifications and user requirements. It is important for the team members to analyze the real time functioning of the system and decide the critical system performance to ensure that the system performance meets user needs. In this regard, the team must have adequate knowledge of the tools and techniques used for testing the software. In fact, they must develop the test data for checking the efficacy of the entire system. Once the testing phase is over, the task force must make the HRIS available to the actual users in the HR department. The performance of the users in the HRIS environment must be observed closely. The task force must also ensure the availability of the user operational and program manuals. When any complaint and trouble is reported about the HRIS, it must be ready for troubleshooting. Similarly, it must ascertain the views and suggestions of the users for improvements in the system functions. The HRIS must be properly maintained to ensure that it produces optimum
results throughout its life. If the task force is permanently responsible for maintaining the HRIS throughout its lifetime, it must keep a watch on its performance and maintenance constantly. 7.7 Evaluation of Effectiveness The organization must undertake periodic evaluation of the performance of the HRIS to ensure that is fit and adequate to meet the present and future information requirements of the users. When the HRIS is found to be inadequate in its present form, the management may update it with new features. In contrast, if the present form of the HRIS has become obsolete due to technological and other changes in the environment, the organization should begin its search for a new HRIS by replicating the whole HRIS implementation process. 8. Application of HRIS in Human Resource Management HRIS is applicable to a number of areas of an organization. These are discussed below: 8.1 Applicant Tracking System Several organization of different sizes are now automating their recruitment process by installing an applicant tracking system to streamline the complete recruitment process and offer a unique support for all forms of candidate application. It assists the organization in screening applicant capabilities and facilitates the accomplishment of the hiring goals of the organization in a fast and cost effective manner. 8.2 Training and Development System The training system helps the user to track the qualifications and competency levels of the employees constantly. Then the training module uses the job codes to link job requirements with employee competencies to determine the training needs through a process called competency matching. Based on its assessment of the training needs, the training system schedules and registers the employees for training courses. Once the training program is over, it automatically updates the employee profile by recording the result of the training program in their profiles. 8.3 Compensation Management System The compensation management system aims at computing employee payments through an integrated payroll system. It makes a flexible module available for the processing of pay and all related financial transactions. 8.4 Performance Management System The online performance management system permits the organization to automate the review process and allow the managers to have instant access to current and correct employee information while writing performance reviews. 8.5 Human Resource Planning System The HR planning module automates the manpower requests based on the long and short term goals of different departments. 8.6 Succession Planning system The succession planning module makes an attempt to bring the identified and selected employees into the succession route. Usually, this system functions in close coordination with other systems like training system, compensation system, and performance management system.
8.7 Position Control and Budgeting System This system maintains all information about each position in a separate database. This database maintains information about position descriptions, education and skill requirements, requisitions, incumbent history, reporting relationships, and budgeting information for each job in the organization and functions in coordination with other systems. 8.8 Benefits Administration System This system manages all the current and historical employee benefit information for the entire organization. A few examples of employee benefits are retirement plans, medical and life insurance plans, vacation pay, holiday pay, maternity leave, and employee stock ownership plans. The benefits administration system keeps information about the beneficiaries and the details of the benefits. 8.9 Personnel Information and Identification System The purpose of a personnel information system is to manage report and analyze employee information. This system provides almost all information about the employees. It contains general staff data like name, address, family details, identify number, date of appointment, job position and location in the organization structure, job classification, job specifications, job descriptions, and disciplinary action taken. It can also automate reporting, notifications, and form generation relating to human resource operations. 8.10 Grievance Management System The grievance management model can effectively track and analyze the grievances of the employees. It assists the management in pre-empting employee grievance by analyzing its nature, sources and frequency of earlier grievances and by acting on the sources of those grievances. Summary The human resource information system is basically a database system developed to assist HR in decision making and reporting. The scope of HRIS includes all the HR functions of the organization ranging from namely, recruitment and selection to grievance resolution, human resource planning and succession planning. There are various objectives of HRIS. Different components of Human Resource Information System are database, time and labor management, payroll function, employee interface, recruitment and selection. Types of human resource information system include operations HRIS, employee information system, position control system, performance management information systems, tactical and strategic HRIS. The installation of HRIS involves the stages of determination of the need for HRIS, constitution of a project team, development of the project plan, designing and developing system specifications, identification and training of user group, implementation and maintenance, and evaluation of effectiveness of HRIS. Once the HRIS software is procured from the vendor, it should be properly installed under the careful supervision of the task force as per its plan and guidelines.