Human Resource Information Systems

INTRODUCTION Office automation has become a reality. Stand-alone personal computers are universally used for word processing, and spread sheets have become the workhorses of office life. As a result, electronic records are being created virtually everywhere in the world. Wherever computers are used to carry out a function records are being generated. Records provide the primary evidence of how the functions of public administration are carried out. They are the building blocks of accountability.In a growing number of organizations human resources are now viewed as a source of competitive advantage. There is greater recognition that distinctive competencies are obtained through highly developed employee skills, distinctive organizational cultures, management processes, and systems. Increasingly, it is being recognized that competitive advantage can be obtained with a high quality work force that enables organizations to compete on the basis of market responsiveness, product and servic e quality, differentiated products, and technological innovation.The effective management of human resources in a firm to gain a competitive advantage in the marketplace requires timely and accurate information on current employees and potential employees in the labour market. With the evolution of computer technology, meeting this information requirement has been greatly enhanced through the creation of HRIS. A basic assumption is that the effective management of employee information for decision makers will be the critical process that helps.A HRIS is concerned with activities related to employees and potential employees of the organization. Because the human resources function relates to all other functional areas in the business, the HRIS plays a valuable role in ensuring organizational success. Some of the activities performed by the HRIS are workforce analysis and planning, hiring, training, job and task assignment and many other personnel related issues (Stair R,2006,241). TH E EVOLUTION OF HRISIn the 1980s, office automation began to appear on the landscape, and HRIS were developed as a special category of office automation systems (OAS). At first it seemed the emphasis was on developing systems as cheaply as possible. The replacement of people with software was seen as the main advantage. Rather than have HR managers maintain extensive employee records, data-entry technicians would enter data once into a system and update records as necessary. Today, however, HRIS would be more accurately viewed as a hybrid of several classical types of information systems.Along with OAS capabilities, current HRIS include features of transaction processing systems (TPS), decision support systems (DSS) and communication systems. HRIS may comprise stand-alone software for any of the primary areas of use for information systems in HR management. These areas include employee record management, compensation and benefits, recruitment and retention, training and development, performance appraisal, and promotion and succession planning.It became evident 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. As top management began to put pressure on HR managers to use HRIS, it was becoming clear that by collecting and processing more and more information in a timely manner, the value added was in the use of the data in decision making and not in the actual system used for collection and storage.This evolution has resulted in firms being able to leverage HRIS for administrative and strategic competitive advantage. WHY THE NEED FOR HRIS IN HUMAN RESOURCE MANAGEMENT Using HRIS gives firms several benefits. They include the following: †¢Providing a comprehensive information picture as a single, integrated database; this enables organizations to provide structural connectivity across units and activities a nd to increase the speed of information transactions. Increasing competitiveness by improving HR operations and management processes †¢Collecting appropriate data and converting them to information and knowledge for improved timeliness and quality of decision making †¢Producing a greater number and variety of accurate and real-time HR-related reports †¢Streamlining and enhancing the efficiency and effectiveness of HR administrative functions †¢Shifting the focus of HR from the processing of transactions to strategic HRM †¢Reengineering HR processes and functions Improving employee satisfaction by delivering HR services more quickly and accurately TYPES OF HUMAN RESOURCES INFORMATION SYSTEMS Although there are multiple classifications of computer-based systems, these the most basic types of systems that are most readily applied to the HR context and for use within an HRIS Transaction Processing Systems: Managers need systems that keep track of the elementary activities and transactions of the organization such as payroll, sales, receipts, cash deposits and the flow of material in an organization. Transaction processing system provides this kind of information.This is a computerized system that performs and records the daily routine transactions necessary to conduct business such as employee record keeping and payroll. This type of system is used as operational level and at this level tasks, resources and goals are predefined and highly structured (Laudon K, 2012,76). When using a transaction processing system for payroll processing, a payroll system keeps track of money paid to employees. An employees’ time sheet with their number of hours worked per week is an example of a single transaction.The system also supplies data to the business on employee payment history for insurance, pension and other benefit calculations to the firms human resources function. The overall aim of this system is to improve transaction speed and accurac y, improve efficiency in the processing of daily business transactions, automate routine transactions and reduce transaction costs Management Information System: This type of system serves the level of middle management and provides managers with reports on the organizations current performance.This information can be used to monitor and control the business and predict future performance. This system summarizes and reports on the company’s basic operations using data from the transaction processing systems. The basic transaction data is compressed and usually presented in the form of reports that are produced on a regular schedule and many of these reports can today be found online. Management information systems serve managers primarily interested in weekly, monthly and yearly results.These systems are also used to answer routine questions that have been specified in advance and have a predefined procedure for answering them as opposed to sophisticated mathematical models o r statistical techniques (Laudon K, 2012,77-78). The main focus of this system is to provides key data to managers, supports regular and on-going decisions as well as provides defined and ad-hoc reporting. Decision support systems: In contrast to management information systems this system supports more non- routine decision making. They focus on problems that are unique and rapidly changing.For which the procedure for arriving at a solution may not be fully predefined in advance. Although this system uses internal information from both the above systems they often bring in data from external sources such as prices of competitors (Laudon K, 2012, 78) These systems use a variety of models to analyse the data and are designed so that users can work with them directly. The systems main concern is to provide interactive managerial decision making, support forecasting and â€Å"what-if† analysis and support business simulations.It can be used to assess staffing needs, analyse the l abour market and assess employee skills Executive support systems: Helps senior managers address questions like what will the employment level be in five years? They deal with non-routine decisions requiring judgement, evaluation and insight because there is no agreed procedure for arriving at a solution. This system presents graphs and data from many sources through an interface that is easy for senior managers to use.These systems are designed to incorporate data about external events such as new tax laws or competitors but they also use summarized information from internal management information systems and decision support systems (Laudon K, 2012, 80). The primary focus of this system is to provide aggregate high-level data, to helps managers with long term planning and support strategic direction and decisions. It can be used to assist HR managers with succession planning which means having a systematic process where managers identify, assess and develop their staff to make sur e they are ready to assume key roles within the company.Enterprise resource planning systems: are used to integrate business processes in human resources as well as manufacturing and production, finance and accounting and sales and marketing into a single system. Information that was previously separated into many different systems is stored into a single comprehensive system where it can be used in many different parts of the business. Managers are able to use firm-wide information to make more precise and timely decisions about daily operations and long term planning as well as share data across functional boundaries (Laudon K, 2012, 81).ADVANTAGES AND DISADVANTAGES OF HRIS SYSTEMS Widespread Access Traditionally, records and archives have been created and maintained in paper form as physical objects. Their physical state limits access to a specific time and place: only one person can use a record at one time and only in one physical location. Producing multiple copies is expensiv e and time consuming, requiring access to photocopiers or printers. Duplication also leads to confusion about which of many versions of a document is the official record.Electronic records, on the other hand, can be shared widely and they can be accessed and used by several people at the same time, even if they are in different places. In environments where resources are scarce or distances are great, the ability to provide access to information without the boundaries of time or space can dramatically improve service, increase information sharing and enhance operations. In some countries, for example, the ability to share an electronic record among government offices in different parts of the country saves money and time.Copying and mailing or faxing documents across thousands of miles can become prohibitively expensive and can slow down operations and delay decisions and actions. But even in some less developed countries, governments today are installing computers in community outp osts in rural, underdeveloped areas so that people in the area can keep abreast of government activities and world events. Flexibility HRIS enhance flexibility in the creation, storage, use and management of information and records. In a paper environment, records are created, received and filed in one office, and they accumulate in one place.Electronic records can be stored remotely or on CD’s or flash discs, allowing people to share records and use their information resources more dynamically. Because so many people in an organisation can have access to electronically stored records at the same time, they can carry out their duties without being hindered by a lack of information. They also have better access to more up-to-date information, since they can access data such as electronic records on employees or databases directly. Efficiency and EffectivenessThe use of information technologies improves information handling and allows for the speedy retrieval of records and inf ormation through electronic search facilities. As a result, policy makers can make informed decisions quickly and efficiently, contributing to the effectiveness of the organisation. Further, when the retrieval of records and information happens swiftly and decisions are made on time, the image of the organisation improves as it is seen to be reliable, capable and responsive to the needs of its clients or the public.Certainly, if someone knows where records are stored, whether in paper or electronic form, he or she can retrieve them in good time, but too often knowledge about where manual records can be found maybe held by only one person in the organisation, and if he or she is not available then access to records is delayed. And once the volume of records reaches a certain point, no one person can ‘remember’ where everything is. Well-designed HRIS will facilitate easy retrieval of electronic information, improving the speed and quality of service.Economic Benefits In t he paper environment where records are physical objects, their accumulation requires ever-increasing amounts of space, including office space, shelves, filing cabinets and storage boxes. Several staff members may be needed to carry out routine procedural work such as filing documents and retrieving boxes. Through the use of new technologies, organisations are able to economise in terms of storage space, as HRIS can store large volumes of data and records in a small physical space.Database management systems, electronic mail systems, web and multimedia software programs are all good examples of information technologies that can store far more information than traditional paper records storage systems. In a well-managed organisation, it is also possible to manage staff resources more effectively. Much of the day-to-day work of filing and retrieval will be done by officers throughout the organisation as part of their daily routine, leaving time for other staff to participate more activ ely in activities such as appraisal.General Business Opportunities The professional image of an organisation can be enhanced by improved information flow, and the organisation may be able to take on more complex work because it is more efficient and cost-effective. HRIS can improve communications, reduce the loss of essential information, speed up the completion of projects and increase public awareness of the organisation. The use of technologies also exposes organisations to communities outside of their normal client base, locally, regionally, nationally and internationally.Auditing Capabilities Well-designed records and document management systems also allow an organisation to regulate and oversee actions and decisions. Many HRIS include mechanisms to maintain audit trails, encouraging more accountable record keeping and promote compliance across the organisation. HRIS Disadvantages An HRIS also can be a problematic for small businesses in which some employees must wear many hats . If your company isn’t big enough to have a dedicated human resources technology specialist, consider outsourcing.Some of the disadvantages of an HRIS involve human error during information input, costly technology to update your system and malfunctions or insufficient applications to support your human resources needs. There is a demand for computer and technology specialists with general information technology knowledge, and finding a qualified specialist with human resources functional area knowledge can be difficult. With such a demand, your cost to hire an HRIS specialist may be far above the average salary for a computer technology specialist.The cost per-hire for another employee in a specialized field may be a stretch for some small businesses. CONCLUSION It is obvious as we move into the 21st century that data will drive an increasing number of business decisions and strategies. HRIS is an excellent example of an area where businesses can capitalize not only on admi nistrative cost savings, but also on leveraging a strategic advantage through information gathering, processing, and sharing.Despite certain potential pitfalls, it appears that HRIS are now today’s cutting-edge software for effective human resources management. We are only now beginning to realize the potential not only within the HR function, but organization-wide. What was once a future vision is reality and HR managers should jump aboard immediately. If they do not, the train is about to pick up speed rapidly, and they will be left behind. |