History & Evolution :

Contemporary HR is dated back to the years preceding World War II, in order to keep
basic record details such as name of the person and his address. But, least did they
know the enhanced connection between the record keeping and the performance of
the company .0020

HRIS History
The origins or antecedents of contemporary HRIS began in the
years preceding World War II. During the early twentieth-century,
personnel staff performed basic employee record keeping
on such limited topics as employee names and addresses. This
service had little impact on the efficiency or strategic advantage
of the firm. Organizations, between 1945 and 1960, began to recognize
the connection between employees and firm performance.
As a result of this emerging organizational insight about human
capital issues, organizations began to develop formal processes
for employee selection and development. Organizations, from
1960-1980, restructured with human resources increasingly integrated
into the overall strategy of business organizations. HRI,
during this period, transitioned from paper to computer recordkeeping.
Organizations, from 1980 to today, have come to rely on
their HRIS to generate management solutions that optimize the
contribution and potential of a firm’s human capital (Hendrickson,
2003). In 1998, 60 percent of Fortune 500 companies use
the HRIS to support daily human resource management (HRM)
operations. The growing popularity of HRIS in connected to
its usefulness and applicability to administrative, strategic, and
business decision-making arenas (Ngai & Wat, 2006).

Operational systems were unable to meet this need for a range of

reasons:
• The processing load of reporting reduced the response time of the
operational systems,
• The database designs of operational systems were not optimised for
information analysis and reporting,
• Most organizations had more than one operational system, so companywide
reporting could not be supported from a single system, and
• Development of reports in operational systems often required writing
specific computer programs which was slow and expensive
As a result, separate computer databases began to be built that were
specifically designed to support management information and analysis purposes.
These data warehouses were able to bring in data from a range of different data
sources, such as mainframe computers, minicomputers, as well as personal
computers and office automation software such as spreadsheet, and integrate this
information in a single place. This capability, coupled with user-friendly
reporting tools and freedom from operational impacts, has led to a growth of this
type of computer system.

The first computerized human resource application in business took

place at General Electric in the early 1950s. A 1984 survey of 1000 personnel
journal subscribers, which yielded 434 usable returns, revealed that 99.7% of the
respondents used computers in one capacity or another in the human resource
function. A similar survey conducted in 1988 found that 99.8% of the
respondents had automated one or more Human resource function. This is quite
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an evolution to have taken place in just a few decades. Undoubtedly computer
usage has increased since this last survey.
First Generation:
The first generation of computerized HRIS is involved the conversion of
manual information keeping system to computerized system. Often a large
external service bureau ran the resulting systems. In the case of very large firms
an in-house mainframe computer. Large, costly processor crunched pay roll and
other data and end uses had very limited access to the system. Data had moved
from the file cabinet to a mysterious mainframe. Human resource data were now
in the care of a computer group that was either in-house or contracted outside.
Requests from human resource personnel for information had to be funneled
through the computer group. This system did result in a significant decrease in
the time required to produce most reports, but it also made Human Resource
personnel feel depend on the computer group. Many Human resource managers
regretted not having direct access to their own data. Some even longed for the
old days of paper files.
Second Generation:
As the 1970 advanced, the second generation of the computerized HRIS
was initiated with the introduction of the Mini-computer. Mini-computers
handle a network of simultaneous uses and have multiple input and output
device. Mini computer facilitated the transition form strictly batch processing to
interactive processing.
The second generation of computerized HRIS was completed in the early
1980s with the arrival of the personal computer. The low cost stand alone pc
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moved data processing to the desktop. The Data Repository was moved to the
human resource professional desktop. Software proliferated and before long the
human resource record keeping function was within reach of every size of
organization. At the same time mainframe and mini computer system were being
made much more accessible and user-friendly. From a functional stand point,
however human resource managers were doing their job in the same basic
manner they always had. The one major difference was that computerization
allowed them to do more and to do it more rapidly.
Third Generation:
Moving the data repository from some mainframe or computer group to
the desktop caused a great deal of excitement in the human resource field.
Human resource professional began to see the possibility of new applications for
the computers. Rather than merely computerizing what had been done manually,
they visualized ways to use the computers to fundamentally changed the way
they performed the job. The basic idea was to integrate many of the different
human resource functions.
Software vendors observed the desires of human resource professional
and began to develop systems to integrate the various areas within their
applications. The result was the third generation of the computerized HRIS, a
feature rich, broad based, self-contained HRIS. The third generation took system
far beyond being mere data repositories and created tools with which human
resource professional could do much more. The extent to which the organization
has developed their HRIS varies from organization to organization.

HRIS Benefits
HRIS, which requires capital and technical resources to design
and implement, is believed to create a competitive advantage
for organizations through improved accuracy, the provision of
timely and quick access to information, the cost savings, quality/
customer satisfaction, and innovation (Ngai & Wat, 2006). HRIS
impact the time allocation and work-flow of human resource
staff. For example, HRIS, which eliminates work duplication
and streamlines processes, allow human resources staff to spend
less time on administrative tasks and more time on strategic decisiona making and
planning. This reallocation of time for human
resources staff creates increased efficiency and departmental
response time. HRIS improve business organization’s knowledge
management and, in turn, increases competitive advantage in the
marketplace and stakeholder satisfaction (Targowski & Deshpande,
2001). Ultimately, HRIS data have provided a new tool
for managerial decision-making in the human resources arena
and organizations-at-large. The management uses this strategic
data to make a wide range of decisions from work-related decisions
regarding an individual employee to large scale decisions
about corporate strategy (Kovach, Hughes, & Fagan, 2002).

The Human Resources Department & the HRIS

The human resources department is responsible for employee recruiting, training,
promoting, terminating, record keeping, and meeting legal and governmental
standards and regulations. An effective human resources department is considered to
be one of the main factors in developing sustainable competitive advantage
in the marketplace (Targowski & Deshpande, 2001).
The inputs of HRIS include the information relating
to employees, their abilities, qualifications, potentialities, creative instincts, age,
pay scales, various jobs in the organisation, their required skill and
qualifications to do them, the number of employees and executives manning
various positions, organisational objectives, policies and procedures etc. This
information is loaded into the system. This data is processed into the most
useful information required by the managers.
This HRIS is not only prepared for an industrial, service or government
organisation but also for the entire city, district, state or country. In order to
eliminate human resource problem of any kind, HRIS comes to the rescue and
provides the services of hiring human resources, maintaining the complete
record of human resources. It can at any moment show the supply of human
resources available. The figure below shows how the HRIS works.
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Inputs: The input of HRIS includes information related to employees such as
education, age, experience, training, present status, present salary, whether
promoted or not, organisation’s policy past and present, procedures past and
present and other necessary detailed information relating to the human resources
in the organisation. The computerized human resource information system in all
respect superior to manual system, which is time consuming and not so cost
effective. The most important benefit of the system is that the information is
available immediately as and when required.
Transformation: The information fed to the computer can be transformed into
more meaningful and necessary information that is exactly required by the
organisation. This is the conversion stage of computerized HRIS. The
information transformed into meaningful calculation is very useful to the
managers and organisation as well. This works as a decision support system,
which aids in making appropriate decisions.
Output: Output refers to the printouts of the transformed material from the
computer printer like salary statement, report on performance of an employee,
INPUTS
TRANSFORMATION
OUTPUT
Feedback
Control
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budget estimates, etc. All these can be had in the form of printouts, terminal
screens etc. A well knit HRIS acts as a worthy decision support organism of a
very high quality. The high quality output must be accurate, relevant,
consistent, readable and comprehensive.
Feedback and Control: Whether the output obtained is relevant and useful or
not must be known. The method of ensuring it is known as feedback. Feedback
establishes control over the system.
HRIS can often be accessed from multiple locations within an organization including
employee offices, factory floor portals, and email kiosks. HRIS portals and kiosks
located in public and centrally located spots throughout the organization, a growing
trend in business organizations, enable all employees to complete human resources
transactions regardless of their work hours, work location, and profession (Kovach,
Hughes, & Fagan,2002).

Is HRIS coping with the demands of HR?

Results from "The Gap Between IT and Strategic HR in the UK",(June

2006) a study by talent management solutions company Taleo, show a
significant disconnect between HR's strategic functions, including talent
acquisition and workforce planning, and IT ability to support these business
initiatives.
The survey of 100 senior HR managers, all in organizations employing
more than a thousand people, found that only a quarter thought that strategic
functions such as workforce planning, leadership development and performance
management were well supported by their IT systems. Only a third felt confident
in systems support for recruitment and employee progression. Other findings
included:
• Current technology systems were out-of-date. Over half the respondents
(55%) felt that more sophisticated technology systems and processes
were needed to support recruitment and development.
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• IT focused on lower-level, administrative functions. Respondents said
that payroll and employee administration (68%) and evaluation and
management reporting (53%) were adequately supported by IT.
However, more strategic HR initiatives such as performance
management (28%), leadership development and planning (25%) and
strategic workforce planning (25%) were not well supported.
• Inadequate data and technology systems obstructed workforce
management. Just 29% of respondents felt that they had sufficient
systems in place to gain a clear picture of existing employee skills.
• The HR function was striving to become more strategic. 63% of
respondents cited talent management (including recruitment) as a
significant priority in the year ahead.
Taleo Research Vice President, Alice Snell said:
"The gap between the support of administrative functions and strategic
HR responsibilities needs to be addressed in order for HR directors to deliver
results to the Board. When HR directors can assess the workforce changes
needed by the business, acquire and develop the talent needed to optimise the
workforce, and then measure the results, their true value can be realised."

Communication process
The Flow of Communications at the Organizational:
Communication is much more than talking, speaking and reading. True
communication takes place when an understanding has been transferred from
one party or source to another. Therefore, communication can be defines as the
transfer of information that is meaningful to those involved.
In this light, each and every one of the human resource functions
discussed requires some degree of effective communication to succeed. For
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example, think of the important role communication plays in career planning,
recruiting and performance appraisal. In all too many instances, Human resource
managers spend tremendous amounts of time developing very good programs,
only to subsequently do a poor job of communicating them. The end result is
often great programs that go largely unused.
The two dynamic systems of communication in business are internal and
External communications. But the emphasis is quite distinct.
In internal communications, emphasis is in presenting and interpreting
facts. In contrast, in external communications, emphasis is on promoting
goodwill and future business.
Internal Communications
The following is an example of a hierarchy chart. It shows the positions
of Superiors and subordinates in a company. All communication among the
employees is INTERNAL because they are co-workers.
A human resource Manager’s first step in becoming an effective
communicators is to develop an appreciation for the importance of
communication. The problem is not that human resource managers tend to
belittle the importance of communication; rather, they often fail to think
consciously about it.

DATA CAPTURING FOR MONITORING &

REVIEW
The Overriding purpose of any HRIS is to assist human resource
managers and other top managers in making sound decisions. If this is to be
accomplished, the HRIS must produce information that is useful to the
organization. Unfortunately, many human resource information systems are
disappointments to managers simply because they do not produce the types of
information management values. The problem is often that the managers
designing the HRIS do not have a thorough understanding of what constitutes
quality information to the users of the information.
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If the information provided: (!) Accuracy,(2) Significance and relevance,
(3)Comprehensiveness, (4) Readability and visual impact, and (5) Consistency
of format.
Producing information that is of quality to the user obviously requires an
investment in time, effort and communication on the part of HRIS managers.
However, this investment can result in an information system that wins the
respect of top management and one it can depend on.
The evaluation should determine whether or not the HRIS has performed
up to its expectations and if the HRIS is being used to its full advantage. Some
basic performance issues can be addressed to help evaluate an HRIS.
1. Compare the time spent on data entry to the value of the reports
generated. Is this time well spent?
2. Compare the system response time for data entry and inquiry. Does the
screen come up immediately or is there a considerable delay?
3. Does the system have real-time, online and immediate update capability
If not the system is antiquated by today’s standards.
4. Is the HRIS interfaced or integrated with the payroll system? If the HRIS
is a stand-alone system that has data entry element that are duplicated
and entered on the payroll system, the answer to this question is no.
5. Does the system have the capability to produce reports that provide
answer to specific functional questions? For example can an individual
quickly receive information concerning the turnover rate in the finance
department?
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6. Does the system use inquiry rather than pulling employees files to
answer questions? If files must be pulled the system inquiry capabilities
have not been properly designed.
7. Does the system generate the proper type of information? A good HRIS
should generate more adhoc, on request reports that regular monthlydetailed
reports.
8. Analyses the cost to implement and maintain the current system, This
includes such things as machine and software costs, maintenance
agreements, supplies and hourly salaries of data entry operators and
programmers. How do these costs rate against the time saved by the
system?
Addressing the preceding questions should indicate whether the
organization has a useful HRIS and if the HRIS is being used to its full
advantage. Such an evaluation may also reveal a need to show end users how to
better utilize the system.

MATRIX ORGANIZATION STRUCTURE

• The operation of a product/service unit Involves a ham of functional
specialists, brought together to manage or develop the particular product
or project. The composition of these teams may vary over time as the
product p through different stages in its life cycle, each one requiring
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different specialist inputs. Each functional unit will be involved
simultaneously in a number different products or projects and some
individual members may also involved in more than one project
simultaneously.
The key advantage of this form of structure is that it can readily adapt to
- demands, i.e. the development of new products or technologies, or the
changing needs of existing products.
Other advantages claimed for the matrix structure are these:
• it is more efficient in allowing the exploitation of specialist functional
resources
• employees have a more direct involvement and interest in particular
products and hence are more motivated to achieve success
• it encourages a more market-oriented approach within each product/sent
unit
• it improves communication and co-ordination between functions.
The matrix structure is also said to have a number of disadvantages, the
more significant of which include the following:
• individuals experience personal problems, as they must often report to
more than one manager, say, a functional manager and one or more
product service managers
• co-ordination and communications across the total organization rather
than within the particular product/service group may he less effective
because the complex interrelationships of functions and product/service
groups
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• tensions may arise between the objectives and plans pursued by the
product/service units and those pursued by the functional units.
We are not concerned here with an exhaustive evaluation of the
alternative organization structures. Our aim is to use this discussion of the two
alternatives to clarify the structural issues that relate to planning improvements
to information systems within the given structure.