Chapter Two

REVIEW OF LITERATURE

2.1 Introduction

2.2 Review of Literature

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2.1 Introduction:

The recent decade has seen an enormous growth in information technology (IT). It has
evolved from simple business computing applications in the 1960‟ to Enterprise
Resource Planning (ERP). There has been a revolution in hardware, software, and
data management and communication technology. An information system is a set of
organized procedure which when executed, provides information to support decision-
making. An information system is generally required to communicate effectively with
the environment. It is only recently the formal Human Resource Information System
(HRIS) using Information Technology (IT) is being implemented. An HRIS is a
systematic procedure for collecting, storing, maintaining, retrieving and validating
data needed by an organization about its HR. The HRIS is usually a part of the
organization's larger Management Information System (MIS). Earlier manual systems
are being gradually replaced by computerized HRIS. The HRIS need not be complex
or even computerized. But computerization has its own advantage of providing more
accurate and timely data for decision-making.

HR activities are needed to automate so that collection, processing and dissemination

of accurate information to the right person are possible through HRIS. Due to
globalization Human resource management is an essential factor of any successful
business. Human Resource Information System (HRIS) is vital to decision making and
plays a crucial role in the success of the organization. Computerization of the employee
records and documentation has resulted in efficient data management and information
dissemination for the users, Managers, HR Executives and other employee can now
access the information without delay or errors.

Human beings are now widely recognized as the most important resource in any
organization. This has resulted in greater complexity in the field. The dire need exists
to cope up with incredible volume of information & to classification, reclassification
& further cross classification. This can only be achieved through computer-based
information system.

HRIS is a platform for the organization to be more competitive through proper

communication with other systems. It reduces the boundaries of the system which
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create hurdle for both vertical and horizontal communication within organization.
Employee is self sufficient, to communicate and to share experience. HRIS is one
media which reduces the barriers of communication to improve organization
performance. Areas like e-learning, knowledge, management, discussion database and
collaborative computing help an employee to develop and enhance the skill and share
knowledge/experience with others. HRIS empower not only HR Manager but also
employees of the organization.

2.2 Review of Literature

In order to meet the objective of research literature review ,survey(interview and

questionnaire) and cases were used as source .An appropriate literature review
provide available literature .The general purpose of reviewing the related study is to
develop a thorough understanding and insight into the work already done and areas
left untouched or unexplored . These studies also enable to search out many more
related problems as suggestions for future research. It is presumed that the survey of
such studies will make the present investigation more direct and up to the point.So,the
different studies investigating most of the aspect on the subject published in the form
of books, articles and research papers have been studied. The important among these
have been briefly reviewed as follows

Tannenbaum, S.I. (1990)1 “Human Resource Information Systems”, An HRIS is a

systematic procedure for collecting, storing, maintaining, retrieving and validating
data needed by an organization for its HR.

Raymond McLEOD,JR.,GERARDIVE De SANCTIS (1995) 2 “A Resource-Flow

Model of the Human Resource Information System”, In this paper Raymond
McLEOD,JR.,GERARDIVE De SANCTIS proposed a resource-flow model of the
HRIS ,based on System theory ,as a Framework for organizing and assessing HRIS
Components. The Model views applications in terms of activities that are performed
as personnel flow through a firm. The HRIS is the most recent functionally oriented
information systems .HRIS is computer-based application software. The term HRIS is
used in two different ways. One use regards it as an organizational unit and other use
regards the HRIS as an entire computer based applications that process human

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resource information. According to this view Human Resource Information System
can be defined as “a computerized tool for the collection, storage, maintenance and
retrieval of information about people and their job”. As such, the HRIS is an example
of a functional system, similar in organizational positioning to the marketing
information system, the manufacturing resource planning system and the accounting
information system.

Kenneth A. Kovach, Allen A. Hughes, Paul Fagan, and Patrick G. Maggitti

(2002)3,“Administrative and Strategic Advantages of HRIS”, Employment Relations
Today

In this paper authors focus on HRIS as decision tool .In today‟s era HRIS is seen as an
advanced business instrument that shows homogeneity in collecting information about
and for a company‟s employees. As technological advancements redesign the
workplace, the significant use of data or records as information is becoming more and
more important and vital. Thus by successful implementation of HRIS, it is observed
that the business is moving towards a fully active judgmental tool.

Today, however, HRIS would be more accurately viewed as a hybrid of several

traditional types of information systems. The current HRIS include features of
transaction processing systems (TPS), communication systems, decision support
systems (DSS) and systems with elements of artificial intelligence. Interactive voice
response (IVR) is the latest method being adopted by many firms to allow employees
to update their HR information. This includes common tasks such as updating address
information, changing beneficiaries on life insurance, planning for retirement,
updating health-plan information, reporting on life events such as the birth of a child
etc. It became clear, as HRIS took hold in the corporate culture that a quality HRIS
could provide valuable information to the organization in managing one of its most
valuable assets: the organization‟s human resources. The HR software applications
are able to provide detailed information in a variety of areas. Through the proper
management of HR records, the business units are now able to perform calculations
that have effects on the business as a whole.

The authors of this paper look for an expanding opportunity for HRIS in the future.
They state that, HRIS will not only benefit employees and managers, but also

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suppliers, consultants, benefit providers, and others, as more and more users become
connected wirelessly.

HRIS is an excellent example of an area where businesses can capitalize not only on
administrative cost savings, but also on leveraging a strategic advantage through
information gathering, processing, and sharing.

Nicholas Aston Beadles II& Christopher M.Lowery (2005)4,”The impact of

Human Resource Information Systems: An Exploratory Study in the Public Sector “In
this article author proved that HRIS decreases cost, improves communications and
decreases in time spent on mundane activities should create an environment where in
the Human Resource (HR) department would play a more strategic role in the
organization. The idea has been that HRIS would allow for the HR function to
become more efficient and to provide better information for decision making.

Kristine Dery,David Grant and Sharna Wiblen(2006)5 ,”Human Resource

Information Systems(HRIS):Replacing OR Enhancing”, In this article author found
that the implementation and use of HRIS is being hindered by three main challenges
:maintaining organizational attention, addressing the complexities associated with
people management and managing user acceptance of the change associated with the
system. This challenge demonstrates that the material, functional characteristics of
technologies such as HRIS are complex and make them difficult to introduce and
operate.

Harekrishna Mishra (2006)6 “Role of Human Resource in Information Technology

alignment in organizations: A metric Based Strategic Assessment Framework” In this
paper author defined various metrics to evaluate alignment of organizations business
activities with HRIS. Information technology (IT) is increasingly becoming an
important factor and fundamental to support business processes in organizations. IT
acquisitions are quite productive in supporting transactions and in aiding coordination
mechanism provided the organizational resources and business processes are properly
aligned with the IT. However, many IT acquisition projects fail due to improper
alignment of the business process with IT. Role of human resource (HR) is quite
critical to such alignment process. It is important that acquiring organizations display
HR capability to support alignment process especially in the pre-acquisition stage to
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minimize the post acquisition shocks. In this paper role of HR in IT alignment process
is discussed through some metrics during pre-acquisition stage. A framework is
developed and causal relationships among metrics are discussed. This framework is
then tested for its fitness and applied to a case for appreciation.HR involvement is an
important aspect in all the stages of IT acquisition process. In order to ensure a better
and effective use of the IT acquired, HR involvement is required the most in the pre-
acquisition stage in order to effectively manage subsequent stages. Policy, attitude of
strategic decision makers, decision making style in the organization; perception of
users on IT (fear of losing importance and/ or anxiety to use technology) also
influence end-users in accepting IT. In this paper they discussed a model that an
organization can apply to assess its internal preparedness to manage the IT acquisition
process. Application of the model in the cement company revealed many important
reasons behind the current status of IT. The model stressed the importance of strategic
and tactical level managers to understand the processes in the pre acquisition stage
and then organize a measuring tool to monitor the acquisition process. Studying only
the pre acquisition stage is the limitation of the study and therefore, in the next stage
of the research it is intended to expand the horizon of this model and apply it for the
IT acquisition stage and Post acquisition stage.

“
Sandeep Krishnan,Manjari Singh (2006-07)7 Issues and Concerns in the
Implementation and Maintenance of HRIS”

This paper looks at the issues and concerns faced by Indian organizations in
implementing and managing HRIS. In this study, the critical success factors and
weaknesses in various stages of implementing an HRIS are explored. The problems
are rooted in mainly two factors .One is the fact that HR department lacks knowledge
about HRIS and hence is not able to clearly elucidate the requirement of the system
.Poor assessment is a continuation of this problem .Second is the lack of importance
given to HR department in the organizations.

Flynn, Simone I(2008)8 “ Human Resource Information System”, This article focus
on Human Resource Information System and the way in which Human Resource
Information System is used by business organization to minimize human capital.
Business, governments and non-profit organizations around the world rely on human

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resource information system (HRIS) to facilitate information sharing as well as
facilitate downsizing and reengineering efforts. In final analysis, HRIS increase
competitiveness in the marketplace by improving the efficiency of HR operations,
produce more and varied HR-related data and reports.

Majid, R. (2009)9 “Measuring the effectiveness of human resource information

system in the national Iranian oil company an empirical assessment”

In this study the author wants to focus more on evaluation of the effectiveness of the
IS system. End users satisfaction is main criteria to evaluate the effectiveness of the
system. The end user satisfaction depends on system quality, system use, information
quality, etc. By providing effective training about using the system an organization
can easily eliminate the entire paper work system of the organization or department.
Growth and development in Management support system leads voluntary use of e-
commerce systems is more common today.

The widely accepted IS model is based on satisfaction of end user. There is always a
pressure on IS units to give best services to the end users. There is always a debate in
timeliness of delivering quality services & the costs associated with it, however if the
Quality of IS service is provided it may decrease the costs linked with software
selection, application software maintenance, training ,education to enhance computer
literacy skills, etc. The effectiveness of IS can be measured at different parameters but
sustaining service level is a difficult task, it is critical from the point of effectiveness.

Rao Purna Chandra (2009)10,”Role of HRIS in improving Modern HR operations”,

The HR will become vital source for managing future challenges. HRIS is a modern
tool to the better operations of HR. Hence, HRIS would soon be an integral part of
HR activities in all organization.

Business trends are changing day-to- day, for the betterment, more and more
organizations realize the importance of IT and enabled services. In this environment
major HRIS providers are concentrating on the small and middle range organizations
as well as large organizations for their products. They are also coming up with very
specific software modules, which would cater to any of their HR needs. Hence, HRIS
would soon be an integral part of HR activities in all organization. In a nutshell, the
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HR manager should treat personnel not only as resource but also as assert, reward
them equitably, and integrate their aspirations with corporate goals through suitable
HR policies. Management views that the HRM function has an important tool to
enhance competitiveness for which the function must be used strategically. An
effective HRIS provides information on just about anything the company needs to
track and analyze about employees, former employees and prospective applicants.
The company will need to select a suitable HRIS and customize it to meet your needs.
With an appropriate HRIS, Human Resources staff enables employees to do their own
benefits updates and address changes, thus freeing HR staff (Empowering the
personnel) for more strategic functions. Moreover, data necessary for employee
management, knowledge develop- ment, career growth and development and equal
treatment are facilitated. Finally, Managers can access the information they need to
legally, ethically and effectively support the success of their reporting employees.

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Sanjay Mohapatra (2009) “Framework for HRIS Implementation in Non-IT
Sector”.In this paper, a framework has been developed for successful implementation
of Human Resource Information System (HRIS) that would help in aligning business
goals with stakeholders‟ objectives. As one of the stakeholders, employees are keys to
the success of organization. Managing employees effectively and upgrading their
skills properly will result in increased collective performance at organizational level.
The author proposed following framework for successful implementation of HRIS
Proper selection of software: whether to select ready-made customized software or to
develop in house as per the organization‟s needs.

Data re-engineering: conversion of existing data into new system as per the
requirement.

Implementation goals: Identifying the requirement and goals to be achieved.

Stakeholders involvement: proper training and provide required resources.

Status review by senior manager: to get status quo of the implementation and to do
required changes in plan and schedule.

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Implementation project plan: predefined stages/phases to implement HRIS inform to
all the concerns.

Project Organization structure: make available required man-power as per the

structure mentioned for successful implementation of HRIS.

As seen in the paper, for implementing HRIS, the following things need to be
addressed, such as lack of management commitment, satisfaction with the status quo,
no or poorly done needs analysis, failure to include key people, failure to keep project
team intact, politics / hidden agenda, failure to involve / consult significant groups,
lack of communication, bad timing (time of year and duration).

Matt Minahan (2010)12 “OD and HR”. In this paper author emphasizes on the
relationship between OD and HR. It also focuses on how IT and HR manager are
useful to form and implement the organization strategy and budget function.

The purpose of OD and HR together is to sharpen the boundaries of the system which
brings standardization in the system. It is the need of an hour to establish OD
function independently to know the boundaries and to work independently.

The days of HR staff being hired principally because they were people with good
listening skills are gone. The fashion toward activity based costing (ABC) is now
showing the true cost of overhead functions such as HR, and HR is responding by
making itself more appropriate to the business of the organization. Many HR staff are
now called business partners, often reflecting an inspirational goal, but quite distant
from the actual reality of their skills on the ground.

Integrating sustainability and globalization into the world of OD brings another set of
challenges. To play effectively as a free standing function, free of support from HR,
OD practitioners need: To understand and be effective at intervening in economic
systems, balancing productivity with innovation, sustainability, and diversity, new
and better ideas for progress, guided by diversity, development, and sustainability. To
make sure that the ecology has standings in all decisions.

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Kostadinka Toteva (2010)13 - “Electronic tool for analysis of employees feedback”
,In this paper author focuses on the new tool which is used to get feedback from the
employees which is helpful to decide the future strategies of the organization.
Organizational culture, leadership, motivation, commitment and participation of
employees, etc. are critical success factors for change management, quality
management, strategy implementation and generally for higher efficiency and
performance of organizations. Along with the introduction of various management
techniques in organizations, the speedy development of Information and
Communication Technologies (ICT) provides huge opportunities for higher efficiency
and performance of company and HRM. Expert systems, data bases and business
intelligence tools have rapidly changed the business environment and the
opportunities for analysis, decision making and control. However, the successful
business application of Information and Communication Technologies and HRMS, as
well as gaining the desired company benefits strongly depends on their adoption by
organizational leaders and employees. Therefore, it is essential to have tools not only
to communicate to employees the corporate strategy, goals and tasks, but also to
obtain their feedback and ensure interactive communications as a regular practice in
corporate management and decision making.

HRMS is specialized software for HR management. It is designed on modular

principle and provides services to various HR activities. The main modules of the
system are divided into three groups - Additional modules – provide links to other
systems and generalized information for the business. Standard modules – serve the
operating HRM activities and are targeted for usage by HR specialists. Self-Services –
is a web-based module for the use of all employees. It supports operational tasks
which do not require HR specialists‟ involvement.

The Author also considers the importance of the proper human resources management
for the success of organizations in the knowledge society. It proposes a new electronic
tool as an extension of existing human resources management software aimed at
collecting objective and subjective feedback from employees. This new module has
increased essentially the potential of the whole HRMS.

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 “
A. Chamaru De Alwis (2010)14 The Impact of Electronic Human Resource
Management on the Role of Human Resource Managers”

In this study, an attempt is made to find out the background of the e-HR adoption in
the Sri Lankan context and its impact on the role of the HR professionals. 70 % of
large scale businesses in Sri Lanka have adopted a moderate level balance beyond that
point. At the same time, budget allocation for this adoption shows an improvement of
usage within the year 2010-2012. If an organization is going to adopt this, first of all
they must evaluate employee attitudes, organizational characteristics, culture and the
way of collaborating those with HR and IT. This adoption should not be done in an ad
hoc way. It should be planned and implemented in the proper manner. An
organization should identify the suitability of the select software through cost and
benefit analysis, because it critically affects the post performance of the whole
system. The adoption of e-HR by HR professionals will make a significant change in
their roles by making them strategic partners in business.

Alok Mishra,, and Ibrahim Akman, (2010)15 “Information Technology in Human

Resource Management: An Empirical Assessment “,In this paper authors focus on
challenges before HR in global economy and how to cope up with the challenges
using HRIS. It is observed that HRMSs can meet the challenge of simultaneously
becoming more planned, flexible, cost-efficient, and customer-oriented by leveraging
information technology.

The industrial advances are being determined primarily by powerful demands from
human resource professionals for enhancement in speed, effectiveness, and cost
containment. Technology and HRM have a broad range of influences upon each other,
and HR professionals should be able to adopt technologies that allow the
reengineering of the HR function, be prepared to support organizational and work-
design changes caused by technology, and be able to support a proper managerial
climate for innovative and knowledge-based organizations.

HRIS can support long-term planning with information for manpower planning as
well as supply and demand forecasts, separations and applicant qualifications, and
development with information on training program costs and trainee work
performance. It can also support compensation programs, salary forecasts, pay

38
budgets, industrial relations with information on contract negotiations and employee
assistance needs.
Increasing globalization creates the environment more complex and competitive and
to cope up with the HRIS works as a decision making tool.

Singh, H.P., et al. (2011)16 “ Role of Human Resource Information System in

Banking Industry of Developing Countries”. The deployment of Human Resource
Information System (HRIS) in banking is the fruit of development of Information
Technology (IT). It has emerged as an important interdisciplinary tool to achieve vital
organizational Human Resource (HR) objectives.
In this paper, the role of HRIS in transforming the banking industry of developing
countries was discussed. HRIS in banks of various developing countries like India,
Pakistan, Indonesia, Thailand, Sri Lanka and Kenya are studied. It is done to explore
the current status and potential utility of HRIS in developing countries.
This paper establishes HRIS as a prominent interdisciplinary tool to effectively
manage organizations and brings forth synergies among disciplines of HR, IT and
banking in the context of developing countries.
HRIS has a very wide scope in banks of developing countries. It is applied in
personnel administration, salary administration, leave/absence recording, skill
inventory, medical history, performance appraisal, training and development, HR
planning, recruitment, career planning, negotiations etc. It is very important for a bank
to clearly identify its system requirements before implementing HRIS. This would
enable to decide the appropriate level of sophistication of HRIS and would lead to
optimal utilization of scarce resources.

K.P.Tripathi (2011)17 “Role of MIS in Human Resource”. In this paper author has
emphasized on the use of MIS in HR. HR is considered as one of the key resources of
business organization.The transaction processing layer of MIS in human resource
function deals with routine activities like attendance recording and payroll
calculations. The operational level activities also include maintaining the employee
records which is used as a basis for strategic layers. With the growing importance of
human resource management and increasing size of the organizations, maintenance of
employee related data and generating appropriate reports are the crucial aspects of any

39
organization. Therefore more and more organizations are adopting computer based
human resource management systems (HRMS).

Akansha Chauhan, Sanjeev Kr. Sharma and Tarun Tyagi,(2011)18 “Role of HRIS
in Improving Modern HR Operations” .As per authors‟ view, use of Human Resource
Information Systems seems plays an important role in Human Resource Management
(HRM) because HRIS functions improve HRM in terms of administrative purposes
and analytical purposes. As a key component of an organization wide integrated
information system, a strategic HRIS will provide important information about human
resources needs and capabilities; this information will assist the management team in
establishing the organizational mission and setting goals and objectives in motion.
Final conclusion made by authors, HRIS adds competitive value to the organization as
a whole and to the HRM department specifically.

David Grant et al (2011)19“Human Resource Information Systems (HRIS): An

Unrealized Potential”.

In this paper, the authors examine the ways in which HRIS might be used in order to
achieve contribution to organization strategy. Through this, analysis of four
Australian case study organizations found that the claimed potential of HRIS to
contribute to business strategy wass contingent on its overcoming one or more of
three key challenges. Initial findings from four case studies suggest that although new
or upgraded HRIS systems are being used to automate and devolve routine
administrative and compliance functions traditionally performed by the HR function,
the potential for this technology to be used in ways that contribute to the strategic
direction of the organization is not being realized. More specifically, our results
suggest that the opportunity to enhance HR‟s role as strategic partner as a result of the
use of HRIS is being hindered by three main challenges. The first challenge relates to
the ability to maintain the levels of senior management commitment and resources
needed to implement and manage new or upgraded HRIS. The second concerns
managing the complexity of the HRIS and its associated functionality. The third
challenge stems from barriers associated with the acceptance of HRIS among key
managers and employees along with the importance attached to managing the change

40
processes associated with the implementation and introduction of the new or upgraded
systems.

Verma, S. and Gopal,R.(2011 )20 ”The Implication Of Implementing Electronic –

Human Resource Management(E-HRM) Systems in Companies” .

The objective of this paper is to identify the challenges associated with the
implementation and maintenance of e-HRM systems and also to offer
recommendations for enhancing the effectiveness of e-HRM systems. The paper
presents a comparative picture between the services vs manufacturing sector w.r.t. the
adoption of e-HRM systems in Indian companies. Over the past decades the role of
the personnel department has been transformed from that of an administrator to more
recently a critical component in the competitive success of the business. Companies
are leveraging human capital technologies for use by everyone in the business. E-
HRM (Electronic- Human Resource Management) is a web-based solution that takes
advantage of the latest web application technology to deliver an online real-time
Human Resource Management Solution.

Through this research an endeavor has been made to identify the challenges involved
in achieving administrative/service excellence by companies through e-HRM and also
the challenges of moving towards performance excellence. By understanding and
overcoming these challenges, companies can be successful in achieving the primary
objective of any e-HRM venture i.e. to diminish costs of HR transactions, condense
time value and make resources easily available for utilization.

In India the pioneers adopting and apparently benefiting from the e-HRM initiatives
have been companies in the IT, BPO and retail banking sectors where employee
numbers run into tens of thousands. But now even traditional FMCG companies are
following suit. HR departments in many non-IT companies are also adopting e-HRM.
Experts say the basic reasons hampering the growth of HR outsourcing in India there
is a significant difference in the usage of e-technology between Services vs
manufacturing groups for these HR functions.

Syeda Qussia Batool and Dr.M.A.Sajid(2012)21,”Benefits and Barriers of Human

Resource Information System in Accounts Office and Azad Jammu and Kashmir
Community Development Program” .
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In this paper the authors found out the barriers and benefits of HRIS. For this study,
authors collected responses from the account office and the people involved in the
activities of community development program.

Technology is completely changing the way we do things. The roles of HRIS are
increasing and become strategic. Availability of timely information, improvement in
the services played an important role. Although AJKCD and Accounts office
implemented the HRIS partially. The implementation of HRIS reduced the workforce,
save time. It enables the organization to improve their data and enhance the
competitiveness. But the implementation of HRIS also causes some problems such as
lack of expertise, technical problems, lack of funds, and time consumption by the
untrained staff. Inspite of barriers in implementation, HRIS has more positive effect
on the organization performance. Actually this is a newly implemented system and
employees and organizations are trying to understand and streamlining the system.
HRIS made it possible for the organizations to have employee development..It is easy
for both organizations to get the information from line departments and from the
communities timely and most influencing barrier is the lack of funds.

Md. Sadique Shaikh (2012)22 , “Human Resource Information System(HRIS) Designing

needs for Business Application” .The Author developed three models in his research paper

for HRIS designing namely basic HRIS design model, HRIS hexagonal and HRIS phase’s

model. The author emphasized on the payback of HRIS engineering and execution for all
levels and domains of businesses; in the form of profitable strategic HR and related business
plans and decision, to forecast and to control HR process inside and outside of business
organization using HR-databases or HR-Knowledgebase‟s, which includes information
related to human resource maintained and processed by HRIS.

Kamran Nazari, Saber Sharifi, Hameidreza hatamikhibari, Behrooz

sohrabi(2012)23“,The Role of Information Technology in Human Resource
Management Function”. In this paper a brief history of both information technology
and human resource management and its impact and consequences on human
resource management functions are explained. The conditions and opportunities in
human resource management provides IT application, has been studied. The correct

42
use of information technology will improve not only the future of human life but also
the bugs in the past technologies.

Using information technology in each of the functions, fields necessary to identify,

recruit selection, training and effective deployment of human resources will
ultimately improve the performance of human resources.

Advances in information technology means for more information on the organizations

that created and its circulation is also faster. Many of the old manual processes are
fully mechanized, these developments led to significant changes in occupational
structure and improve professional skill of staff.

Continuous variables can be organized and competitive environment requires the use
of modern information technology in the organization. The role of information
technology in the new organization is bold enough to many of the theorists, Managers
and decision makers to adopt the strategy of organizations associated with these
technologies.

Yasemin Bal, Serdar Bozkurt, Esin Ertemsir( 2012)24 ,“The Importance of Using
Human Resource Information Systems (HRIS) and A Research on determining the
success of HRIS”. In this article authors want to focus on need of HRIS at different
management levels. The top management is interested in identifying the manpower
requirements for long term business plans and goals. Middle management uses human
resources systems to supervise and evaluate the recruitment, allocation and
compensation of employees. Here HRIS supports various HR practices such as
workforce planning, staffing, compensation programs, salary forecasts, pay budgets
and labor/employee relations. The author here has applied HRIS perception to HR
employees in order to assess the effectiveness and use of HRIS in organizations.
Firms invest in information systems for the business objectives such as achieving
operational excellence, developing new products and services, attaining customer
intimacy and service, improving decision making, achieving competitive advantage
and ensuring survival.

The use of HRIS in organizations has various advantages for managers especially in
decision making processes. In this study, the HRIS perception and HRIS satisfaction

43
of HR employees were investigated. According to correlation analysis results, positive
and high level relationships were found among all dimensions of HRIS and system
quality, information quality and perceived ease of use which jointly constitute HRIS
success. The results of the research reveal that HR employees perceive HRIS useful
and they are satisfied with the system. Overall present research provides valuable
insights into the study of HRIS success.

Sunanda Sharma (2012)25 “Role of Information System in Human Resource

Management for Global Business Competitiveness”.

In this paper, the author mainly focused on importance of employee‟s records and its
usage for HR management. Application of information system in Human resource
Management helps business organization to compete with competitors. Human
resource information systems (HRIS) usage allows the human resource (HR)
professional to become a strategic player.

By using following ways a business organization become successful and able to

compete with competitors in present scenario: Information Systems Supporting
Workforce Planning, Information Systems Supporting Labor Negotiations,
Specialized Human Resource Information Systems Software.

In general, the computerization of HRIS has resulted in an integrated database of

human resource files. Position files, employee files, skills inventory files, job analysis
and design files, affirmative action files, occupational health and safety files, and
many other human resource files are constructed in a coordinated manner using
database management systems software so that application programs can produce
reports from any or all of the files. Thus, the human resource management director
can produce reports listing likely internal candidates for open positions by running an
application program that queries position files, job requirements files and skills
inventory files. Maintaining human resource data in a variety of individual databases
is less efficient than storing it in one database and having all applications access the
data as needed.

Alternate options to individual systems include: Enterprise resource planning (ERP),

many companies have invested in ERP systems, which handle human resource
management and other business functions. ERP should be evaluated to ensure that
44
they meet business information management requirements. Redesign, some
companies have made investments in an enterprise data model and new management
information systems to access common data. This option is not as costly as it might
appear since much of the analysis work will be required even if an ERP option is
selected. Companies should complete a cost benefit analysis to compare the cost of
redesign with the cost of ERP. Therefore, it can be stated that, application of
Information System in Human Resource Management can change overall position of
any business organization. It can make enterprise able to compete with other
competitors at global level.

Shammy Shiri (2012)26 “Effectiveness of Human Resource Information System on

HR Functions of the Organization: A Cross Sectional Study”, In this paper the author
emphasized on the effectiveness and the importance of the use of HRIS on the HR
functions of an organization. It includes the top management, managers, and
executive of HR working in manufacturing, service and IT sectors. Results provide
insights into HRIS practice, its effects, effectiveness and shows that HRIS is of direct
significance verifies completeness of the HR function and also provides HR
professionals with opportunities to enhance their contribution to the strategic direction
of the firm.
Through this study author observed that,71.15% of the participants highly agree and
28.85% agree that HRIS has helped in gathering, storing, and analyzing information
on HR. Out of 104 respondents, 78.85% agree that HRIS has deliver of strategic
competencies and increased administrative efficiency and 21.15% highly agree. From
the respondents, 84.62% agree and 15.38% highly agree that HRIS has made work
easier. A majority (78.85%) of the participants agrees and 21.15% highly agree that
HRIS has enhanced organizational performance. There is an equal response (50%)
highly agree and agree that HRIS has improved work environment. An equal (50%) of
the respondents agree and highly agree that it has helped decision-making process.

The study shows that the system is sometimes complicated and difficult to work, but
it has helped to align the HR practices with the organizational strategy, identify
improvement areas, and keep abreast with the current practices. It allows an
organization to assess and evaluate any gaps or potential risks and increase the
commitment of HR professionals to continuous improvement. On the whole, HRIS,
45
increases the efficiency of HR function, has helped to contribute the potentials of HR
Department towards the organization, developed the structure, payroll, time, and
attendance, appraisal performance, recruiting, learning management, training system,
performance record, employee self-service, scheduling, absence management,
systems, styles, reduced HR cost, increased motivation of the HR personnel, analyzed
the problems and solved them smoothly, provided and developed sound performance
appraisal systems, systematic job analysis, and smooth adoption of the changing
mind-set. A follow-up study can be done to see if more organizations have adopted
HRIS, if the extent of HRIS adoption is greater or if the HRIS is used for more
strategic purposes. By making the HRIS a part of the organization, the HR
Department can transform itself to be a strategic business partner.

Janet H. Marler and Barry D. Floyd (2012)27 ,”Database Concepts and Applications
in HRIS “ .The authors described about the database concepts and how database is
used for HR purpose using various software tools to make it more and more useful for
planning and decision making. Whether an organization purchases, leases, or
develops its HRIS, the data and the information it produces are stored and retrieved
through a database. Data are produced, stored, updated and used by HR employees
and managers on daily basis. Today‟s employee‟s database is backbone of HRIS
application. HRIS transform data into information that is essential for business
operations and for decision making. Knowledge is different from data and
information. Knowledge gives idea how to use data, information for decision making.
For example, In HRIS fact about age, gender, and education are the data. Information
created from this data could include average age, gender ratio and number and types
of graduates at business level. Such data and information help HR manager, plan
recruitment, schedule training programs to bridge skill gaps and identify whether
there may be employee discrimination. Knowledge represents how HR manager can
execute recruitment plan. In the HR function, data about employees and jobs are the
foundation of most of the information that is vital to analyzing and making HR
decisions. Knowledge, on the other hand, constitutes knowing what information is
needed from the database, and how to use it to achieve HR objectives.
The queries can be used to support decision making. More sophisticated data analyze
and reports such as executive dash boards are produced from specialized databases

46
called data warehouses, and using business application software called business
intelligence (BI) software. Most of the functions of HRIS for decision making are
depend on database. Most of the ERP package which contains HRIS module used
Oracle, My SQL, DB2, Microsoft SQL Server as their DBMS.

The new way of acquiring an HRIS is called software as a service (SaaS). Software as
a service is a software licensing and delivery model in which software is licensed on a
subscription basis and is centrally hosted. It is sometimes referred to as "on-demand
software". SaaS is typically accessed by users using a thin client via a web browser.

Humayun Zafar (2013)28 “Human resource information systems: Information

security concerns for organizations” ,In this the paper author has emphasized on
information security. This study explored the under-researched area of HRIS and e-
HR security issues. In the organization only authorized personnel are allowed to have
access to confidential data. It leads to employee centric culture, boost satisfaction and
morale, and more motivated and loyal workforce. A comparatively recent move
toward electronic human resource (e-HR) systems has allowed organizations to offer
a personalized interface to individual employees. The interfaces include ability to
apply for jobs, changing job-related benefits, and web-based training.
Confidentiality assures that private information is kept safe from unauthorized
individuals. It is critical for maintaining the privacy of the employees' personal
information. Information security, at times referred to as computer security, is defined
as the protection afforded to an automated information system in order to attain the
applicable objectives of preserving the confidentiality, integrity, and availability
(CIA) of information system resources. Accordingly, information security should be a
critically important issue of concern for today's HR personnel.

Privacy is categorized into three groups. The first is concerned with physical space or
protecting an individual's territory from being attack by unwanted objects. In the
second view, privacy is primarily concerned with the ability to make a choice without
obstruction. Finally, the third cluster is concerned with the flow of personal
information. Specifically, it highlights an individual's control over the attainment,
disclosure and the use of personal information.

47
The factors contributing toward HRIS and e-HR security are data evaluation, policies,
legislation/regulation and architecture. Comprehensive security architecture will
enhance HRIS and e-HR security.

Nikhal Aswanth Kumar, Sanjana Brijball Parumasur (2013)29 “Managerial

Perceptions of the Impact of HRIS on Organizational Efficiency”. This study
evaluates the impact of the HRIS system on HR functions, time management, cost
management, managerial satisfaction and organizational efficiency. The results
indicate that managers have a fairly positive view of the impact of the HRIS on
organizational effectiveness with the greatest degree of confidence being placed on
the impact of HRIS on time management and on HR functions. The results confirm
that a well implemented and managed HRIS enables readily available information to
be translated into more information sharing, greater knowledge transfer and
management. Consequently, the HRIS has the potential to enhance the speed and
quality of decision making and the realization of the HR strategy, thereby enhancing
organizational effectiveness.
A HRIS brings about organizational effectiveness in the sense that the HR department
is more efficient and employees and management can access any of their records
online 365 days of the year whenever they need too. It removes the burden of HR to
carry out mundane requests from employees, thus giving HR staff more time to spend
on strategic tasks. It is also important to nurture the organizational culture needed to
support the new HRIS in the organization. The system should cater for all business
processes and tasks in order to reduce paperwork and enhance the spontaneity and
quality of decision and should be accompanied by a fast bandwidth. It is also
recommended that the HRIS can be implemented and managed in a manner that
facilitates the attainment of the overall HR strategy. It has the potential to enhance the
speed and quality of decision making and the HR strategy, thereby enhancing
organizational effectiveness.

HRIS has a very wide scope in banks of developing countries. It is applied in

personnel administration, salary administration, leave/absence recording, skill
inventory, medical history, performance appraisal, training and development, HR
planning, recruitment, career planning, negotiations etc. This would lead to the
development of an integrated HRIS platform for the whole organization.
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Foot Notes:
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23. Kamran Nazari, Saber Sharifi, Hameidreza hatamikhibari, Behrooz sohrabi
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“
29 Nikhal Aswanth Kumar, *Sanjana Brijball Parumasur Managerial
Perceptions of the Impact of HRIS on Organizational Efficiency”
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Dec 2013 (ISSN: 2220-6140).

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