Unit 10 - Human Resource Information System
Unit 10 - Human Resource Information System
Unit 10 - Human Resource Information System
10.1 Introduction
In the previous unit, we discussed the concept and objectives of job
evaluation. We also learnt competency and the various job evaluation
methods. Information is the unrefined material of planning. A quality
planning effort cannot be done without proper and adequate information.
Information is provided in an organisation by an inter-related set of
procedures and process known as an information system. An information
system especially developed for the human resource management function
is called an HRIS–Human Resource Information System.
HRIS has become one of the most important tools for many businesses.
Even a small, 20-person office needs to realise the benefits of using HRIS to
be more efficient. Many firms do not realise how much time and money they
are spending on manual Human Resource Management (HRM) tasks until
they sit down and take inventory of their time. HRIS is advancing using
Information Technology (IT). 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 and Human Resource (HR) is no exception.
Input
Input refers to all employee-related data. HR policies, procedures, corporate
goals and information about the statutory provisions entered into HRIS for
conversion into the desired form of output.
Data processing
Data processing refers to the storing and processing of data by a computer
with the help of the software that issues instructions for processing.
Output
Output refers to the generation of reports in the form desired by the users.
This is the final stage of an HRIS process.
Activity 1:
Interview a HR manager in a company, and ask how HRIS is facilitating
them in HR functions?
Hint: Refer Section 10.2
Activity 2:
Analyse existing records, reports and forms in a company to determine the
requirements for data in the HRIS.
hired and paid, each department may have its own specialised system and
process for managing the employee data. As the team evaluates an HRIS
software package, it begins to get a better grasp on what the company’s
business processes are, and therefore what the company might require in
an HRIS. The team will most likely find that HRIS evaluation team members
spend most of their efforts building selection criteria and choosing an HRIS,
instead of setting expectations and building executive support.
There are three primary activities in an HRIS implementation:
Configuring the HRIS for the organisation’s business processes and
policies.
Interfacing data with other systems and converting historical data into
the HRIS.
Preparing the organisation for the HRIS.
An HRIS comes with built-in processes for most HR activities, but an
organisation needs to customise the system to process according to their
specific needs. For example, every HRIS supports the process of benefits
open enrollment, but the system does not come delivered with a company’s
specific benefit providers and eligibility rules.
Configuration tasks then become a process of understanding the company’s
business processes well enough to programme that logic into the HRIS.
This mapping of business processes and policies into system control tables
requires people who understand both the business process and the HRIS–
typically the existing IT support and HR business analysts.
The HRIS project team must track progress not only on the technical
aspects of implementing the HRIS, but also on the softer side of managing
the organisation as a whole to accept the new business processes that
come with the HRIS. Companies typically underestimate this change-
management effort. From the very beginning there must be a focus on
preparing the organisation and the employees for the new HRIS.
For example, HR and payroll may have reported to separate areas of the
company, and parts of HR business processes were scattered throughout
various departments. But once HRIS is implemented, the previous
organisations are transformed to report to a single authority and a shared-
services group is established to perform the integrated work processes that
Activity 2:
Read the article ‘HRIS Helping HR’ and prepare a list of benefits of using
HRIS.
Refer: http://www.employeeeconnect.com/pdf/sept.2001-
employeeconnect.pdf
10.9 Summary
Let us recapitulate the important concepts discussed in this unit:
HRIS includes all the HR functions of the organisation, namely,
recruitment and selection, training and development, wages and salary
administration, incentives and benefits, grievance resolution, human
resource planning and succession planning.
A HRIS performs three interconnected activities as a database: (i)
receiving inputs in the form of data from different sources. (ii) storing and
processing data with the purpose of transforming them into meaningful
information. (iii) generating output in different forms, as required by the
users.
HRIS supports management at three levels of an organisation. The
electronic data processing level, the management information system
level, and the decision support system level.
Different applications of an HRIS are applicant tracking system, training
and development system, compensation management system,
performance management system, manpower planning system,
succession planning system and grievance management system.
Important benefits of HRIS are effective use of human resource, ability
to manage voluminous data, reduction in labour cost, faster and
effective HR decisions, better supervision and control over human
resources, and easily assessable.
Implementation of HRIS is expensive for an organisation. They need to
be careful in deciding about its installation, each company has their own
approach to implementation of HRIS. The stages that can be considered
for HRIS installation are determination of the need for HRIS, selecting a
project team for implementation, who will be doing the HRIS
Implementation, setting HRIS implementation expectations, HRIS
implementation project cost versus hourly or daily, preparation for HRIS
implementation, stay on track.
HRIS have a deep effect on organisation that implements them. Most
often organisations are replacing several related systems, such as
employee database, payroll system and benefits system, with one HRIS
that does it all. Many companies go through a process of comparing and
evaluating several HRIS packages using a team of analysts or
Manipal University Jaipur Page No. 188
Human Resource Management Unit 10
10.10 Glossary
Enterprise resource planning: Enterprise Resource Planning (ERP) is
an integrated computer-based system used to manage internal and
external resources, including tangible assets, financial resources,
materials, and human resources.
Management Information system: It is a computer based or manual
system that transforms data into information useful in the support of
decision making.
Payroll: The total amount of wages and salaries paid by a company to
its employees.
10.12 Answers
Terminal Questions
1. HRIS includes all the HR functions of the organisation, namely,
recruitment and selection, training and development, wages and salary
administration, incentives and benefits, grievance resolution, human
resource planning and succession planning. For more details, refer
section 10.2.
2. HRIS supports management at three levels of an organisation. The
electronic data processing level, the management information system
level, and the decision support system level. For more details, refer
section 10.4.
3. Different applications of an HRIS are as follow, applicant tracking
system, training and development system, compensation management
system, performance management system, manpower planning system,
succession planning system, and grievance management system. For
more details, refer section 10.5.
4. Important benefits of HRIS are effective use of human resource, ability
to manage voluminous data, reduction in labour cost, faster and
effective HR decisions, better supervision and control over human
resources and easily assessable. For more details, refer section 10.7.
5. Implementation of HRIS is expensive for an organisation; they need to
be careful in deciding about its installation, each company has their own
approach to implementation of HRIS. The stages that can be considered
for HRIS installation are determination of the need for HRIS, selecting a
project team for implementation, who will be doing the HRIS
implementation, set HRIS implementation expectations, HRIS
implementation project cost versus hourly or daily, preparation for HRIS
implementation, stay on track. For more details, refer section 10.6.
6. The HR department looks for improved reporting of employee data,
payroll is concerned with the system’s paycheck calculations and
regulatory reporting, while benefits may be looking for a more
streamlined enrollment process. The hiring process is a good example.
As a person is recruited, hired and paid each department may have its
own specialised system and process for managing the employee data.
As the team evaluates an HRIS software package, it begins to get a
better grasp on what the entire company’s business processes are, and
therefore what the company might require in an HRIS. For more details,
refer section 10.8.
has not been very impressive for some time since some of the new entrants’
performance was simply dismal.
The management was not impressed by the explanations provided by the
HR department. So it appointed an external HR expert to look into the
problems of the HR department. The external HR expert, who audited the
HR policies, procedures and performance of the HR department,
recommended the introduction of an HRIS in a phased manner. As a first
response to the recommendation of the external HR auditor, management
decided to implement the applicant tracking system in the recruiting section
of the HR department. It instructed the HR manager to plan and implement
the system in a hassle free way in close consultation with the trade union.
Discussion Questions:
1. If you are in the position of HR manager in Sridhar Pharmaceutical how
do you find HRIS is going to help you in the recruitment process?
(Sources: Durai, P. (2010). Human Resource Management. New Delhi:
Pearson Publication.)
References/ E- references:
Durai, P. (2010). Human Resource Management. New Delhi: Pearson
Publication.
Kavamagh, M. J., and Thite, M. (2009) Human Resource Information
System. New Delhi: Saga Publication.
Fisher, S, and Shaw. (2010). Human Resources Management. New
Delhi: Cengage Publication.
Aswathappa, K. (2010). Human Resource Management. New Delhi:
Tata McGraw Hills.
Wayne, C. F. (1998). Managing Human Resource. Irwin/McGraw Hills.
E-References:
http://www.hr.howard.edu/HRIS/default.htmHuman Resource (Retrieved
on 26 February, 2012)
http://www.insightcp.com/res_09.html(Retrieved on 26 February, 2012)
http://www.egyankosh.ac.in/bitstream/123456789/35600/1/unit-16.pdf
(Retrieved on 26 February, 2012)