Human Resources Information Systems (HRIS) For Better HR Operations

By

Prof. Dileep Kumar M.

Ex-Professor Symbiosis (SCMHRD, SCDL), IIIT, SCMLD, SBS Pune Human Resources Management (HRM) is the attraction, selection, retention, development, and utilization of labor resource in order to achieve both individual and organizational objectives. Human Resources Information Systems (HRIS) is an integration of HRM and Information Systems (IS). HRIS or Human resource Information system helps HR managers perform HR functions in a more effective and systematic way using technology. It is the system used to acquire, store, manipulate, analyze, retrieve, and distribute pertinent information regarding an organization's human resources. A human resource information system (HRIS) is a system used to acquire, store, manipulate, analyze, retrieve, and distribute pertinent information about an organization's human resources (Tannenbaum, 1990). The HRIS system is usually a part of the organization's larger management information system (MIS) which would include accounting, production, and marketing functions, to name just a few. Human resource and line managers require good human resource information to facilitate decision-making. An extensive study by Towers Perrin study revealed the following benefits of Application of HRIS HRIS can be applied in the following areas of HRM HR planning Succession planning Work force planning Work force dynamics analysis Staffing Applicant recruitment and tracking Employee data base development Performance management Learning and development Compensation and benefits Pay roll Job evaluation Salary survey Salary planning International compensation Benefits management Develop innovative Org. Structure Develop IT

HRIS Benefits: HRIS has showed many benefits to the HR operations. A few of them can be detailed as;

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Faster information process, Greater information accuracy, Improved planning and program development, and Enhanced employee communications (Overman, 1992).

Barriers to the success of an HRIS: o o o o o o o o o Lack of management commitment Satisfaction with the status quo No or poorly done needs analysis Failure to include key people Failure to keep project team intact Politics / hidden agendas Failure to involve / consult significant groups Lack of communication Bad timing (time of year and duration

HRIS software: Abra Suite: for human resources and payroll management ABS (Atlas Business Solutions): General Information, Wages information, emergency information, Reminders, Evaluators, Notes customer information, Documents and photos, Separation information. CORT: HRMS: applicant tracking, Attendance tracking and calendars, Wage information, Skills tracking, Reports-to information, Status tracking, Job history tracking, Cost center tracking, Reviews and tracking, Mass update and change tools etc. HRSOFT: Identify and track senior managers, Assess management skills and talents, Generate a wide range of reports, resumes, employee profiles, replacement tables and succession analysis reports, Identify individuals for promotion, skills shortages, unexpected vacancy, Discover talent deep, Competency Management, career development, align succession plans etc. Human Resource MicroSystems: sophisticated data collection and reporting, flexible spending accounts, compensation, employment history, time off, EEO, qualifications, Applicant/Requisition Tracking, Position Control/Succession Planning, Training Administration, Organization Charts, HRIS-Pro Net (employee/managerial self-service), HR Automation (eNotification and eScheduler), and Performance Pro (performance management) ORACLE- HRMS: Oracle iRecruitment, Oracle Self-Service Human Resources, Payroll, HR Intelligence, Oracle Learning Management, Oracle Time and Labor PEOPLESOFT: Enterprise eRecruit, Enterprise Resume Processing, Enterprise Services Procurement, Workforce Planning, Warehouse SAP HR: Human Capital Management (HCM) for Business, All-in-One: Rapid HR, SPECTRUM HR: iVantage and HRVantage. iVantage is a Web-based HRIS product designed for organizations with up to 10,000 employees. VANTAGE: HRA: 'Point-and-Click' report writing, internal Messaging System for leaving reminders to yourself, to someone else or to everyone using HRA - very useful for Benefit Applications, Disciplinary Actions, Special Events, Employee Summary Screen for Basic, Leave (Absenteeism) and Salary/Position History, skills & training module, Leave Tracking Module

Critical Analysis Although almost all HR managers understand the importance of HRIS, the general perception is that the organization can do without its implantation. Hence only large companies have started using HRIS to complement its HR activities. But HRIS would be very critical for organizations in the near future. This is because of a number of reasons. Large amount of data and information to be processed. Project based work environment. Employee empowerment. Increase of knowledge workers & associated information. Learning organization

The primary reason for delay in HRIS implementation in organizations is because of the fear psychosis created by "technology" and "IT" in the minds of senior management. They may not be very tech savvy and fear being left out. But trends are changing for the better as more and more organizations realize the importance of IT and technology. Major HRIS providers are concentrating on the small and middle range organizations as well as large organizations for their products. They are also coming up with very specific software modules, which would cater to any of their HR needs. SAP and Peoplesoft provide HR modules within their business intelligence software. Hence HRIS would soon be an integral part of HR activities in all organization.

A human resource information system (HRIS) is defined as a computer based application for assembling and processing data related to the human resource management (HRM) function. As in other types of information systems, an HRIS consists of a database, which contains one or more files in which the data relevant to the system are maintained, and a database management system, which provides the means by which users of the system access and utilize these data. The HRIS thus contains tools that allow users to input new data and edit existing data; in addition, such programs provide users with the opportunity to select from an array of predefined reports that may either be printed or displayed on a monitor. Reports may address any of a number of different HRM issues (e.g., succession planning, compensation planning, equal employment opportunity monitoring). HRISs also generally include tools by which users or system administrators may generate ad hoc reports and select specific cases or subsets of cases for display. In order to understand the types of applications available to HRIS users, it is best to consider the evolving nature of human resource information systems applications. The

HRM field lagged behind a number of other functional areas of management in the utilization of computer applications, but beginning in the late 1980s extensive use of sophisticated applications began to appear. Prior to that time, manual record systems often dominated in personnel or human resource departments. Computer applications used in the field were generally limited to basic record keeping and payroll management systems. Virtually all such systems were based on mainframe computers and required extensive support from information systems professionals. Thus, human resource managers had little opportunity to design sophisticated reports and computer-based analytical tools to aid in managerial decision making. In general, uses of computers in HRM fell into the category of electronic data processing applications, which generally involve the automation of relatively routine tasks (e.g., calculating pay and printing checks). A number of trends seem to have contributed to a growing reliance on computers as information-processing and decision-aiding tools in HRM. The emergence of the human resource management field (versus personnel administration) gave the human resource function greater credibility within the managerial hierarchy, necessitating more sophisticated use of information, especially as it related to the strategic management function. Firms have experienced increased competitive pressures that have translated into greater cost containment demands from upper management, leading to greater automation of the record-keeping function in the HRM field. The ready availability of microcomputers and relatively userfriendly software means, that to an increasing extent, human resource managers are no longer dependent on information system professionals to develop and implement applications (which might be assigned a lower priority than other management functions). Many HRM departments in larger organizations have also developed internal information system capabilities, so that HRIS units have been established. Another important factor has been the development of numerous HRIS products by external vendors. There are several full-featured, human resource-dedicated database management systems available, both for mainframe and micro platforms. Perhaps the best known of these is PeopleSoft, although numerous other such products exist. Many of these utilize client-server architectures, where databases reside on a central server

and are accessed from individual workstations, connected to a network, via local client applications. There is also a trend toward enterprise-wide applications that integrate information system applications for various managerial functions (e.g., marketing, finance, human resources), which facilitates communication across functional areas, economizes on information system development at the enterprise level, and allows firms to collate information from multiple sources to facilitate strategic planning at the business unit and corporate levels. Examples of commonly used integrated systems that include HRIS modules are SAP and Oracle. Specialized applications, intended to supplement HRISs, are also widely available. These include modules to aid in such areas as succession planning, benefits administration, applicant tracking, job evaluation, employee performance evaluation, grievance handling, and labor relations. These products, coupled with declining costs of computer systems (especially microcomputer systems) and the increasing userfriendliness of computer applications, have meant that the use of HRISs is increasingly attractive to practitioners. As a result of the rapid change in computer and software technology, HRIS-related products are constantly upgrading and changing. Advanced Personnel Systems, a California-based HRIS consulting firm, markets a fairly up-to-date database listing a wide-range of HRISs and supplementary programsalong with descriptions of the capabilities of these systemsto guide managers in selecting appropriate products. There are also several conferences and shows held annually around the United States that are dedicated to advances in HRM-related information technology applications, including HRISs. HRIS vendors often demonstrate products at such shows. Leading practitioner-oriented magazines, such as HRMagazine (published by the Society of Human Resource Management), review new products and carry articles highlighting changes in the field. And not surprisingly, a number of web sites document HRIS resources on the Internet. A comprehensive listing of major HRIS sites can be obtained through the "Software and Technology" section of Workindex.com , a comprehensive index of Internet resources related to human resource management.

Perhaps the most significant development in the HRIS area currently is the growing use of organizational intranets as a means of managing many aspects of a firm's HRIS. An intranet is an internal network that makes use of World Wide Web technology (browsers, servers, etc.) to gather and disseminate information within the firm. Intranets may be linked to the external Internet, but are usually secured in a variety of ways so that only authorized users can access the information on the internal components. While it is quite easy to generate static extracts of HRIS data tables, queries, forms, and reports for posting on an intranet, it is also quite feasible to establish live links between an intranet and a firm's HRIS. This allows real-time collection and display of information. Thus employees can complete forms online that enroll them in benefits programs, allow them to bid on job openings, let them submit suggestions, and facilitate filing of various claims. In addition, intranet displays can be tailored to the needs of specific users. The user may check on the current status of his or her fringe benefits, vacation time, training program enrollment, or pension fund. Intranets obviously require extensive security measures to prevent inappropriate changing or accessing of data. The issues seem to have been addressed, however, and HRIS products are increasingly emphasizing their functionality in intranet environments. Another variant is the extranet. Again, relying on World Wide Web technology, such systems allow organizations to interact with clients in a secure environment that mimics the Internet. Thus a health insurance company might establish an extranet that links to the intranets of its major clients. Employees in client organizations can then connect to the insurance vendor's extranet from within the employer's intranet environment in order to check on the status of their policies, obtain coverage information, file claims, and follow-up on outstanding claims. All indications are that HRISs will continue to play an increasingly important role in the HRM field. An important driving factor is that HRISs facilitate process reengineering in the HRM area, thus promoting greater efficiency. Functions that once were carried out manually and in many steps can often be largely automated. And the business firm's continuing demand for information to facilitate planning and strategy formulation will necessitate further reliance on HRISs. Finally, the linking of HRISs to organizational

intranets is apt to gain in popularity as a relatively inexpensive and appealing means of gathering and distributing human resource information.

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