What is HRIS ?
Human Resource Information System (HRIS) is a systematic way of storing data and information for each individual employee to aid planning, decision making, and submitting of returns and reports to the external agencies. It is an online solution for the data entry and tracking of a company's human resources department information, payroll, management, and accounting.
What is HRIS ?
Human Resources is an organizational function that deals with issues such as recruitment and selection, training, appraisal, compensation and performance management of the employee. Human beings are also considered to be resources because it is the ability of humans that helps to change the gifts of nature into valuable resources. While taking into account human beings as resources, the following things have to be kept in mind: The size of the population The quality "The people that staff and operate an organization"; as contrasted with the financial and material resources of an organization.
HRIS functions
Storing information and data for each individual employee. Providing a basis for planning, decision making, controlling and other HR functions.
Meeting daily transactional requirement such as marking attendance and granting leave.
Supplying data and submitting returns to government and other statutory agencies.
HRIS functions
Personal Records Recruitment & Selection Employment Equity Salary Administration
Medical Records
People
Pension Administration
Job
Positions
Employee Relations
HR Planning
Compensation
Benefits
Model of HRIS
INPUT SUBSYSTEM OUTPUT SUBSYSTEM
Date base
users
Model of HRIS
Output subsystem of an HRIS consist of five subsystem: HR acquisition subsystem (planning, requirement, selection & placement) HR development subsystem (operative training, management development and organization development) Appraisal and compensation subsystem (performance appraisal, financial compensation, incentives) Maintenance subsystem (mobility, safety, health and stress management) Industrial relations subsystem (discipline management, grievance handling, management of industrial disputes)
Need of HRIS
Costly exercise Personal records, when kept manually, do not offer up-to-date information at short notice.
Inaccurate
The manual transfer of data from one record to another may increase the chances of errors.
Fragmentation
Information is not easily accessible place since records are kept at different locations.
Difficult to analyse
The manual analyzes of data is time consuming and quite often not readily available for decision making purposes.
Career planning
Recruitment
Skill inventory
Performance appraisal
SALARY ADMINISTRATION Salary review procedure are important function of HRM, a good HRIS system must be able to perform what if analysis and present the reports of changes.
LEAVE AND ABSENCE RECORDING Essentially be able to provide comprehensive method of controlling leave/absences. SKILL INVENTORY It is also used to store record of acquired skills and monitor the skill database both employee and organizational level. PERFORMANCE APPRAISAL The system should record individual employee performance, appraisal data, such as due date of appraisal, scores etc.
Advantages
PAYROLL It automates the entire payroll process by gathering and updating employee payroll data on a regular basis including employee attendance, calculating various deductions and taxes on salaries, generating automatic periodic paychecks and handling employee tax reports.
TIME & LABOR It lets HR personnel apply new technologies to effectively gather and appraise employee time and work information. It helps in assessing whether an employee is performing to their full potential or not, and if there are any improvements that can be made to make an employee feel more secure.
Advantages
EMPLOYEE BENEFITS By using a Human Resource Information System (HRIS) in employee benefits, the human resource department is able to keep better track of which benefits are being availed by which employee and how each employee is profiting from the benefits provided.
HR MANAGEMENT It curtails time and cost consuming activities leading to a more efficient HR department. This system reduces the long HR paper trail that is often found in most HR divisions of companies and leads to more productive and conducive department on the whole.
Terasen Pipelines
SITUATION
Terasen Pipelines is a subsidiary of Terasen Inc. located in Vancouver, Canada and is located in several provinces and U.S. states. In 2001 the company changed its headquarters to Calgary to be closer to the oil. With the big move, the company went through a growth spurt. With the company in many different locations and the growing numbers of employees, the HR department saw a need to find a new system to keep more accurate records.
Terasen Pipelines
RESPONSE
In the past Terasen had kept records on paper and with spreadsheets and with the growth of the company, this system does not work as well as in the past. In order to compensate for future growth, Terasen began to look into HRIS companies to help with the HR operations. After researching different companies, Hewitts application service provider model with eCyborg was found to be the right fit.
OUTCOME
Although there was difficulty adapting to a new way of recordkeeping, Terasen was able to find a system that will help support the current and future growth of the company. Fortunately, some of the HR staff had experience working with an HRIS and were able to help their colleagues imagine new processes, as aided by a system.
Limitations
It can be expensive
Its effective application needs large-scale computer literacy among the employees responsible for maintaining HRIS. Absence of continuous up-dating of HRIS makes the information stale.
Computer systems are only as good as the data they have to work with. Small firms are internally incapable of HRIS applications and hence they need the help of external resources.
Conclusion
By automating Human Resource practices, HRIS saves time and money and adds strategic value to the organization. HR managers must make use of HRIS to achieve improved performance. Comprehensive HRIS provides the needed information within the shortest period and at reduced cost. It improves effectiveness by automating routine activities and helping the management focus on decision making as well as other crucial areas.
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