Empirical Study

On

HRIS
(Human Resource Information System)

Submitted To: prof. Chirag patel Submitted By: Jagruti J Gamar (A-12).

Vipal J Gandhi(B-11).
  Introduction

“Leading practice companies recognize that in knowledge intensive, Innovate-or-die

world, HR’s role cannot be limited to doing the administrative stuff of hiring, firing and
employee related paper work.HR has to do more. It has to become a full-fledged business
partner/advisor not just an employee advocate.”

With technology touching all aspects of today’s business, there is increasing usage of the
information and communication technologies in a company’s HR department. Suddenly
HR managers are finding themselves in a whirlwind of technological change, with
adoption of IT (both as a process and a tool) becoming a message city for them.

By using information system for storing, organizing, or disseminating information to the

employees, IT is playing a key role in the personnel /people development/HR
departments of companies.HR professionals are doing away with costly, time consuming,
and redundant processes and opting for IT enable HR systems. Systems are now
automated and HR professionals are not longer seen spending time in gathering
information on paper/receiving inquiries, or everyday administrative work.
Employees can now access information and post their queries to the concern person
directly, Rather than going to the HR department.

The use of information technology for competitive advantage involves systems that link
an organization to suppliers, distribution channels, or customers. In general, these
systems use information or processing capabilities in one organization to improve the
performance of another or to improve relationships among organizations.

Declining costs of capturing and using information have joined with increasing
Competitive pressures to encourage numerous innovations in use of information to create
Value.

Information systems for HR

HR role P&A dept HRD Talent manager Business manager

HR process payroll Compensation AMR Strategic consultative

benefit role
leave Training People and business Knowledge
alignment management
Attendance Staffing Talent resourcing and Innovative role
planning
Recruitment Variable pay, --------------- ERM model
performance
planning
Information system File and records HRIS ERP Internet/intranet
architecture
 Statement of the problem

 If you have a medium or large size company, you most likely have encountered
challenges in managing and keeping track of the interactions between your employees
and your organization. Tasks such as accessing employee information, analyzing data,
and creating reports can be time consuming and tiresome; payroll management turns into
a hassle, and more mistakes are made. And the list goes on.

 The HR function is still to a large degree administrative and common to all organizations.
To varying degrees, most organizations have formalized selection, evaluation, and
Payroll Processes.

 Efficient and effective management of the human asset has become an increasingly
Imperative and complex activity to all HR professionals. The HR function consists of
Tracking innumerable data points on each employee, from personal histories, data, skills,
Capabilities and experiences to payroll records.

 To reduce the manual workload of these administrative activities, organizations began to

Electronically automate many of these processes by introducing innovative HRIS
Technology.

Literature Review

 The Human Resource Information System (HRIS) is a software or online solution for the
Data entry, data tracking, and data information needs of the Human Resources, payroll,
management, and accounting functions within a business.
 A Human Resource Information System (HRIS), HR Technology or also called HR
modules, refers to the Systems and processes at the intersection between human resource
management (HRM) and information technology.
 It merges HRM as a discipline and in particular its basic HR activities and processes with
the information technology field, whereas the programming of data processing systems
Evolved into standardized routines and packages of enterprise resource planning (ERP)
Software.
 On the whole, these ERP systems have their origin on software that integrates
information from different applications into one universal database. The linkage of its
financial and human resource modules through one database is the most important
distinction to the individually and proprietary developed predecessors, which makes this
software application both rigid and flexible.
Background

 Human resources operations challenge organizations with a dualistic yet interdependent set
of outcomes. One order organizational change that may be perceived as a threat to the
status quo, while the other set of outcomes gives highly valuable potential benefits for
organizational performance. This paradox stems from the requirement for U.S. businesses
to improve productivity from their skilled workers in order to satisfy the demand shift from
manufacturing to technological and intellectual innovations. This transformation means
that both organizational productivity gains and competitive advantage depend on high
quality worker competence. In other words, increasing productivity through people is now
paramount. Consequently, essential human resource functions have recently become even
more critical to general organizational well-being.

 In reality, computer technology is not required for a successful To achieve these complex
objectives, many organizations have turned to information systems technology (Haines, &
Petit, 1997; Richards-Carpenter, 1997; Simon, & Werner, 1996). The reliance on technology
has deceptively been prompting the false assumption that HRIS is synonymous with
computerized human resource information systems.

 HRIS function, and many HRIS activities still challenge computer automation (Grossman, &
Magnus, 1988; Haines, & Petit, 1997; Simon, & Werner, 1996). Nevertheless, computer
based information technology serves as a tremendous tool for operational zing HRIS
applications. Many related tasks such as rapid information dissemination and feedback would
be impractical or impossible without computerized support.

 With this major charge, information systems technology has introduced wide spread
implementation of human resource information systems that more fully allow organizational
members to participate in information sharing and decision-making. Indeed, past studies have
shown that over 90 percent of organizations have a formalized and separate HRIS department
or an equivalent function.

 Nearly all organizations have actually implemented some form of HRIS Anonymous, 1996;
Richards-Carpenter, 1997). However, these applications vary widely from organization to
organization, and there is equal diversity in the resultant benefits.

 Preliminary research shows that successful HRIS operations are identified by such outcomes
as organizational competence; i.e., meeting strategic goals (Thomas, 2001; Pierce, &
Newstrom, 2002). Furthermore, successful HRIS functions support such key processes as
executive decision-making, employee training, technology selection, interdepartmental
integration, and organizational reporting structures.

 While such studies provide valuable insights into HRIS implementation, their
generalizability is limited due to the absence of a comprehensive foundation in which to
 contextually base these findings (Kovach, & Kathcart, 1999; Kuhn, 1996; Weick, 1979).
Equally important, the development of any such framework should also be practical,
applicable current organizational issues, and flexible enough to address emergent trends.
Foremost, and a key pacesetter among these trends, is knowledge management, or the belief
that Intellectual capital is the core competitive asset in contemporary organizations.

 Knowledge management assumes that knowledge and its complement, learning, are the
forces that optimize organizational performance (Davenport & Prusak, 1998). Furthermore,
organizational knowledge can be more closely observed in its currency, intellectual capital,
which has been defined as both "hard" and "soft" assets. Both of these categories are distinct,
yet clearly interdependent. "Hard" intellectual capital assets refer to legal documents,
software, and databases; while their "soft" counterparts are people-centered organizational
strengths including skills, expertise, culture, and commitment (Stewart, 2001).

 These two categories can be effectively integrated with human resource information systems
that are well designed. In brief, HRIS make vital contributions to knowledge management by
advancing organizational learning. For example, HRIS facilitates double loop learning
feedback that enables organizational change and discussion, intra organizational
communication and decision-making, and shared visions (Argryis, & Schon, 1996). Strategic
initiatives and related modifications can also benefit from HRIS pathways. In addition,
knowledge management involves relevant training, which can often be delivered in both
cost- and time-effective ways with an HRIS. Even total quality management of highly skilled
professionals such as physicians can be enriched with a carefully planned HRIS (Davenport,
& Glaser, 2002).

 Finally, HRIS gives the support to introduce and foster "systems thinking" in an
organization, especially when the organization is driven by strategic vision, a mission based
road map for future organizational goals. Practices such as holistic problem solving,
continuous improvement, and team learning are examples of the processes that accompany
these HRIS structures (Senge, 1990).

 Systems theory (Weick, 1979; Wilkerson, & Paul, 1985) is a necessary framework for model
development because it gives strategic analytical criteria for such dynamic phenomena as
HRIS (Cascio, 1998). Systems theory also draws the boundaries for any given system along
with definitional criteria that are especially important for preliminary research (Wilkerson, &
Paul, 1985).

 In addition, researchers rely on systems theory to develop hypotheses about which units are
required for a properly functioning system, how those units should interact, their strength of
influence on overall system effectiveness, and how to optimize unit interactions towards
realization of strategic objectives (Weick, 1979; Wilkerson, & Paul, 1985).
 The Importance of HRIS:

 Integration of various HR applications.

 Collection of data at various points in the HR function (HR databases) and using
computerized tools for making information available for effective decision making.
 Developing and improving intranet based applications for streamlining processes,
coordination and workflow management.
 Enable the function to provide better services to line management.
 Reduce the work load of the HR function, eliminating low value task while still enabling
the function to provide effacement administrative services.
 Web based self service implementation for ensuring quality and timeliness of HR
services.

 With the HRIS system, you can track down to which path your work-related decisions are
taking. By having a clearer view of what is presently happening in your company, you
can also predict what could happen in the future.

 One important thing that you could monitor through this is the cash flow of the company.
Through the HRIS, you can monitor and justify some of the HR-related expenses that the
company has incurred over a period of time.

 Learning objectives

1. To understand the role and impact of information system on HR processes.

2. To discuss the importance of analysis and reporting in the field of HR.
3. To understand the different type of information system applications for different HR roles
and processes.
4. To study software packages for HRIS.
5. Basic knowledge of ERP software such as SAP.

 Data source

The sources include books, periodicals, websites, printed literature etc.