Role of HRIS in Improving Modern HR Operations

By Chauhan, Akansha; Sharma, Sanjeev Kr et al. | Review of Management, April-June 2011 | Go to article overview

Role of HRIS in Improving Modern HR Operations


Chauhan, Akansha, Sharma, Sanjeev Kr, Tyagi, Tarun, Review of Management


Information Systems for Human Resources Management

Information is an essential tool for managers in the retention, recruitment, utilization and evaluation of human resources in organizations. Since they support the goals and objectives of the organization, information systems play an important role in planning and management of human resources. These systems will serve as an important personnel administration operational programs, including employee record keeping, budget control, compensation, benefits management, and government reporting. A human resources information system (HRIS) is the integration of software, hardware, support functions and system policies and procedures into an automated process designed to support the strategic and operational activities of the human resources department and managers throughout the organization.

An HRIS database maintains an inventory of people, job skills, and positions and its system draws on these inventories for transaction processing, reporting, and tracking. The HRIS provides a foundation for a set of analytical tools that assist managers in establishing objectives and in evaluation the performance of the organization's human resources programs. The well designed HRIS will serve as the main management tool for aligning human resources department goal with long term planning goals.

Development of HRIS

HRISs are systems used to collect, record, and store, analyze, and retrieve data concerning an organization.s human resources. The collection of information on aspects of work life as diverse as salary and payroll, compensation, leave, accidents, superannuating and employee benefits has always been part of the human resource manager.s function.

In the early development of human resource management, information systems, although often accurate and comprehensive, were mainly used for administrative and operational purposes. Forms were used to collect leave requests, workers compensation and accident data, and salary variation and superannuation entitlements. During the 1970s and 1980s, several factors radically changed attitudes towards human resource information systems. The increasing complexity of payroll systems in this period demanded more flexibility in, and access to information system. In large organizations, centralized payroll processing sections began to be separated from other human resource functions. Some organizations contracted their payroll responsibilities to external payroll bureaus with greater technological expertise, and for reduced costs.

Nature and Benefits of HRIS

Modern human resource information systems are comprehensive, accurate and accessible systems for recording employee and work data relevant to HRM, HR and organizational planning. HRIS is the system used to acquire, store, manipulate, analyze, retrieve and distribute pertinent information regarding an organization.s human resources. Its purpose is to facilitate, or support, straight, tactical and operational decision making, to avoid litigation, to evaluate programs, policies, or practice and daily operations Specific benefits of such systems include:

i. Improved planning and program development using decision support software. Faster information processing and improved response times

ii. Decreased administrative and HR costs

iii. Accuracy of information

iv. Enhanced Communication at all levels. Not all systems fulfill all these requirements, nor is such a complete system suitable for all organizations. Essentially however all HRIS contain information on:

* Employees

* Jobs and work conditions

* Positions

* HR events (e.g. recruitment. training and development, performance appraisals, and terminations).

Comprehensive and integrated HRIS can be used widely -in administrative, operational and strategic fields by HR and other managers. On the operational level HRIS data can be used to identify potential internal applicants for job vacancies, saying external recruitment costs and assuring employees of career opportunities. …

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