A Study on

Application of HRMIS in LankaBangla

Finance Limited

A STUDY ON APPLICATION HRMIS IN LankaBangla

FINANCE LIMITED

Course Name: Management Information System

Course Code: K503

Submitted To
ATM Jakaria Khan
Lecturer
Institute of Business Administration
University of Dhaka
Submitted By
Ahmmed Imtiaj
Shawon Shuvro Paul
Roll: 45, Batch: 52 D
Roll: 01, Batch: 52 D

EXECUTIVE SUMMARY
The Management Information System is a collection of men, tools, procedures and
software to perform various business tasks at various levels in the organization.
Many organizations have separate MIS departments which are involved in
maintaining records, performing transactions, report generations and consolidation
of the important information which will be supplied to the various levels of the
management. MIS primarily serves the functions of controlling and decision making
at the managerial level. MIS has three basic levels: operational, middle
management and top management where the information is passed from bottom to
top. This paper is an attempt to design and develop the Management Information
System (MIS) for the human resource department of LankaBangla Finance Limited,
which involves Attendance Capturing & Recording System which will be used in
monitoring the staff, control over the irregularities and reporting to the top
management and show how it is useful in decision making at top level. The
Management Information System (MIS) has evolved as an important tool and
technique in business management area in the current opportunities and business
threats. Right information at right time in right format will decide the managements
Human resource decisions. Now- a -days MIS is one of the important functions of
management. In the 21st century the organizations need the information which is
accurate, timely and reliable. The MIS plays an important role in providing the
information required for crucial decision making which affects directly to the
performance of the organization.
A Management information system is not just a technical artifact but a conception
referring to a collection of interdependent components such as human beings
(including their actions and behavior), organizational structures, work procedures,
communication lines, computers, databases, and so on. With emergence of
information technology, MIS has made its plays in almost every sector of modern
days organization. There is hardly any department in any big organization that is
deprived of the benefit of MIS. But probably the most benefitted department from
the use of MIS is human resource department. Use of MIS has made many
operations of HR much easier than once they were.
The human resources department within an organization is highly critical to the
organization as a whole. Its many functions serve as a supportive background for
the company by providing everything from skilled and talented labor to
management training services, employee enrichment opportunities and more. The
fact is that this department is so critical and performs so many important functions
for the organization that human resources professionals need access to the right
tools and resources in order to perform their tasks more efficiently and effectively.

Here lies the importance of HRMIS. It provides managers with access to the minute
details of its personnel and keeps them updated with the latest developments in the
organization. Thus HRMIS assists managers to make correct decisions. We have
tried to measure these impacts analyzing a reputed financial organization of our
country LankaBangla Finance Limited.

COMPANY OVERVIEW
History
LankaBangla Finance Limited started its journey long back in 1997 as a joint-venture
financial institution with multinational collaboration having license from Bangladesh
Bank under Financial Institution Act-1993. Now LankaBangla is the countrys leading
provider of integrated financial services including corporate financial services, retail
financial services, SME financial services, stock broking, corporate advisory and
wealth management services. Under the broadest umbrella of products and service
offerings, they are the lone financial institution to operate credit card (MasterCard
and VISA) and also provide third party card processing services to different banks in
Bangladesh. LankaBangla is a primary dealer of government securities since
November 2009. Since 2006 LankaBangla has been listed in both DSE & CSE in
Bangladesh.
Corporate profile and subsidiaries
LankaBangla Finance Limited is one of the largest private financial institutes in
Bangladesh. LankaBangla Finance Limited offers the entire spectrum of financial
services to customer segments covering corporate financial services, SME financial
services, and Personal Financial Services and Deposit schemes. LankaBangla
practices participatory management and adheres to industry best practices in all
endeavors and serves with wide operational periphery covering major business
hubs of the country. LankaBangla operates in a centralized administrative
framework through cutting edge technological environment. LankaBangla is the
market leader in the capital market services and giving all out effort to develop an
efficient, vibrant and transparent capital market in Bangladesh. Through their
subsidiary, LankaBangla Securities Limited they are providing top notch broking
services and leading the industry with cutting edge trading, top rate research and
customer service. Another subsidiary, LankaBangla Investments Limited is a
premier investment bank in the country providing corporate advisory, issue

management

and

portfolio

management

services.

The

other

subsidiary,

LankaBangla Asset Management Company Limited is providing professional wealth

management services. They

recently have gone through a business process

reengineering to build capacity to offer their clients superior experience than any
time ever. The company now operates in centralized administrative framework
through cutting edge technological environment. LankaBangla is serving with wide
operational periphery covering major business hubs of the country. Our commitment
to maintaining disclosure of information has garnered recognition as LankaBangla
has been the recipient of the National Award for Best Published Accounts and
Reports awarded by the Institute of Chartered Accountants of Bangladesh (ICAB) for
the past six years.
Increasing stakeholders value is the driving force at LankaBangla. Their long
standing sustainability efforts have resulted in increased environmental and social
value in the market. By embracing high ethical standards, governance and
transparency, they dream to grow big. Their ethos is simple; they aim for success
by partnering with their enterprising clients. they are committed to changing the
lives of the ordinary. Through their efforts to develop an efficient, vibrant and
transparent capital market in Bangladesh, LankaBangla has become the market
leader in capital market services in Bangladesh.
LankaBangla practices participatory management and adheres to industry best
practices in all endeavors. Increasing stakeholders value is a natural driving force
for the people at LankaBangla. Their

long standing sustainability efforts are

creating environmental and social value while they step ahead. By embracing high
ethical standards, governance and transparency, we dream to excel their
excellence.
Vision, Mission and Values
To be the most preferred financial service provider in creating, nurturing and
maximizing value to the stakeholders, thereby, GROWING TOGETHER.
Mission

Be a growth partner for their customers, ensuring financing and superior

experience
Maintain a culture of meritocracy in the DNA of the company
Be sustainable and ensure quality returns to their valued shareholders
Uphold efforts to develop their community

Core Values
They have strong values that are well embedded in our culture. Their values create
the following goals to help deliver strategy:

Cherish a sense of ownership

Be customer centric
Grow as a team
Act with integrity & professionalism
Deal with respect

Their commitment to the society is quite evident in their involvement to the CSR
activities. Corporate Social Responsibility has always been an integral part of
LankaBanglas culture and the cornerstone of their core values of good corporate
citizenship. They believe their business financing is to not only tie with the business
progress but also with the development of the overall economic growth that drives
the development of the national at large. They believe their success lies in the
stewardship in Triple Bottom Line for sustainability. This believes is reflected on
their Mission and their day to day business operation. In this document on
Corporate Social Responsibility Report - they are proud to share how actions support
their mission to encompass economic, social and ecological value to our
stakeholders.

WHAT IS HRMIS
A Human Resources Management Information System (HRMIS) 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 from 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 proprietarily-developed predecessors, which makes this software
application both rigid and flexible.
A Human Capital Management Solution, Human Resources Management Information
System (HRMIS), or Human Resources Information System (HRIS), as it is commonly
called, is the crossing of HR systems and processes with information technology.
The wave of technological advancement has revolutionized each and every space of
life today, and HR in its entirety was not left untouched. Early systems were narrow
in scope, typically focused on a single task, such as improving the payroll process or
tracking employees' work hours. Today's systems cover the full spectrum of tasks
associated with Human Resources departments, including tracking & improving

process efficiency, managing organizational hierarchy, and simplifying financial

transactions of all types. In short, as the role of Human Resources departments
expanded in complexity, HR technology systems evolved to fit these needs.
The function of human resources (HR) departments is administrative and common
to all organizations. Organizations may have formalized selection, evaluation, and
payroll processes. Management of "human capital" progressed to an imperative and
complex process. The HR function consists of tracking existing employee data which
traditionally includes personal histories, skills, capabilities, accomplishments and
salary. To reduce the manual workload of these administrative activities,
organizations began to electronically automate many of these processes by
introducing specialized human resource management systems. HR executives rely
on internal or external IT professionals to develop and maintain an integrated
HRMIS. Before clientserver architectures evolved in the late 1980s, many HR
automation processes were relegated to mainframe computers that could handle
large amounts of data transactions. In consequence of the high capital investment
necessary to buy or program proprietary software, these internally developed
HRMIS were limited to organizations that possessed a large amount of capital. The
advent of clientserver, application service provider, and software as a
service (SaaS) or human resource management information systems enabled higher
administrative control of such systems. Some of the modules human resource
management information systems encompass:
1. Payroll
2. Time and attendance
3. Performance appraisal
4. Benefits administration
5. Recruiting/Learning management
6. Performance record
7. Employee self-service
8. Scheduling
9. Absence management
10.Analytics
11.Employee Re-assign module

TYPES OF HRMIS

HRMIS has many different types based on criteria of classification. It can be

classified differently. There are now many types of Human Resources Management
System (HRMIS) or Human Resources Information System (HRIS) some of which are
typically local-machine based software packages the other main type is an online
cloud-based system which can be accessed via a web browser. Broadly HRMIS can
be classified in the following categories1.
2.
3.
4.

Operational HRMIS
Tactical HRMIS
Strategic HRMIS
Comprehensive HRMIS

Operational HRMIS
Operational human resource information systems provide the manager with data to
support routine and repetitive human resource decisions. Several operational-level
information systems collect and report human resource data. These systems include
information about the organizations positions and employees and about
governmental regulations.
1. Employee Information Systems
The human resource department must maintain information on each of the
organizations employees for a variety of decision and reporting purposes. One part
of this employee information system is a set of human resource profile records. An
employee profile usually contains personal and organization-related information,
such as name, address, sex, minority status, marital status, citizenship, years of
service or seniority data, education and training, previous experience, employment
history within the organization, salary rate, salary or wage grade, and retirement
and health plan choices. The employee inventory may also contain data about
employee preferences for geographical locations and work shifts. Another part of an
employee information system is an employee skills inventory. The skills inventory
contains information about every employee, such as work experience, work
preferences, test scores, interests, and special skills or proficiencies.
2. Position Control Systems
A job is usually defined as a group of identical positions. A position, on the other
hand, consists of tasks performed by one worker. The purpose of a position control
system is to identify each position in the organization, the job title within which the

position is classified, and the employee currently assigned to the position.

Reference to the position control system allows a human resource manager to
identify the details about unfilled positions.
3. Applicant Selection and Placement Information Systems
After jobs and the employee requirements for those jobs have been identified and
after a suitable pool of job candidates has been recruited, the candidates must be
screened, evaluated, selected, and placed in the positions that are open. The
primary purpose of the applicant selection and placement information system is to
assist human resource staff in these tasks.
4. Performance Management Information Systems
Performance Management Information Systems include performance appraisal data
and productivity information data. Performance management information systems
data

is

frequently

used

as

evidence

in

employee

grievance

matters.

Careful documentation of employee performance and of how the performance was

measured and reported is critical to acceptance of appraisal information in
grievance hearings. Performance management information can lead to a number of
decisions beyond merely supporting the operational decision to retain, promote,
transfer, or terminate a single employee.

5. Government Reporting and Compliance Information Systems

Government Reporting and Compliance Information Systems provide information
needed both to maintain compliance with government regulations and to improve
productivity and reduce costs associated with employees.

Tactical HRIS
Tactical human resource information systems provide managers with support for
decisions that emphasize the allocation of resources. Within the human resource

management area, these decisions include recruitment decisions; job analysis and
design decisions, training and development decisions, and employee compensation
plan decisions.

1. Job Analysis and Design Information Systems

The information inputs to the job analysis and design information system include
data from interviews with supervisors and workers and affirmative action guidelines.
Inputs also include information from sources external to the firm, such as labor
unions, competitors, and government from sources external to the firm, such as
labor unions, competitors, and government agencies. The outputs of the job
analysis information system are job descriptions and job specifications. These
outputs provide managers with the basis for many tactical human resource
decisions.

2. Recruiting Information Systems

To direct the recruiting function, the organization needs to develop a recruiting plan.
The plan specifies the positions to be filled and the skills required of the employees
for these positions. To develop the plan and to monitor its success, a recruiting
information system is necessary to collect and process the many different types of
information needed to construct the plan, including a list of unfilled positions; the
duties and requirements of these positions; lists of planned employee retirements,
transfers, or terminations; information about the skills and preferences of current
employees; and summaries of employee appraisals. Other inputs to the recruiting
plan include data about turnover rates and about the success of past placements.

3. Compensation and Benefits Information Systems

The Compensation and Benefits Information Systems may support a variety of

tactical human resource decisions, especially when compensation and benefits
information

is

related

to

information

from

internal

and

external

sources.

Compensation and benefit plans can play an important part in improving an

organizations productivity. Tying employee productivity to pay or encouraging
increased productivity with incentive pay plans can often improve an organizations
productivity substantially.
4. Employee Training and Development Systems
The training offered by the employee training and development systems must meet
the needs of jobs available in the organization as identified through the position
control system and the job analysis and design system. The training should also be
directed at those persons interested and capable of benefiting from it, as identified
by the skills inventory and human resource files.

Strategic HRIS
1. Information Systems Supporting Workforce Planning
Organization involved in long-term strategic planning, such as those planning to
expand into new market areas, construct factories or offices in new locations, or add
new products, will need information about the quantity and quality of the available
workforce to achieve their goals. Information systems that support workforce
planning serve this purpose.
2. Information Systems Supporting Labor Negotiations
Negotiating with craft, maintenance, office, and factory unions requires information
gathered from many of the human resource information systems. The human
resource team completing the negotiating needs to be able to obtain numerous ad
hoc reports that analyze the organizations and unions positions within the
framework of both the industry and the current economic situation. It is also
important that the negotiating team be able to receive ad hoc reports on a very

timely basis because additional questions and tactics will occur to the team while
they are conducting labor negotiations.
3. Specialized Human Resource Information Systems Software
A great deal of software has been specifically designed for the human resource
function. This software is available for all types and sizes of computers, including
microcomputers.
management

Software

function

specifically

can

be

designed

divided

into

for

the

two

human
basic

resource
categories:

comprehensive human resource information systems software and limited-function

packages that support one or a few human resource activities.

Comprehensive HRMIS
In the last few years, the software industry has produced several products that
organize the various human resource information systems into integrated software
referred to as comprehensive human resource management information systems or
HRMIS software.
In general, the computerization of HRMIS has resulted in an integrated database of
human resource files. Position files, employee files, skills inventory files, job analysis
and design files, affirmative action files, occupational health and safety files, and
many other human resource files are constructed in a coordinated manner using
database management systems software so that application programs can produce
reports from any or all of the files. Thus, the human resource management director
can produce reports listing likely internal candidates for open positions by running
an application program that queries position files, job requirements files, and skills
inventory files.

USE OF HRMIS

HRMIS has been developed to assist HR professional in performing their tedious and
prone-to-error tasks. To ease the work of human different modules have been added
to the HRMIS. Each module has its own use. Here some of thoseThe payroll module automates the pay process by gathering data on employee
time and attendance, calculating various deductions and taxes, and generating
periodic pay cheques and employee tax reports. Data is generally fed from the
human resources and time keeping modules to calculate automatic deposit and
manual cheque writing capabilities. This module can encompass all employeerelated transactions as well as integrate with existing financial management
systems.
The time and attendance module gathers standardized time and work related
efforts. The most advanced modules provide broad flexibility in data collection
methods, labor distribution capabilities and data analysis features. Cost analysis
and efficiency metrics are the primary functions.
The benefits administration module provides a system for organizations to
administer and track employee participation in benefits programs. These typically
encompass insurance, compensation, profit sharing and retirement.
The HR management module is a component covering many other HR aspects
from application to retirement. The system records basic demographic and address
data, selection, training and development, capabilities and skills management,
compensation planning records and other related activities. Leading edge systems
provide the ability to "read" applications and enter relevant data to applicable
database fields, notify employers and provide position management and position
control. Human resource management function involves the recruitment,
placement, evaluation, compensation and development of the employees of an
organization. Initially, businesses used computer based information systems to:

produce pay checks and payroll reports;

maintain personnel records;

pursue talent management.

The training module provides a system for organizations to administer and track
employee training and development efforts. The system, normally called a "learning
management system" (LMS) if a standalone product, allows HR to track education,
qualifications and skills of the employees, as well as outlining what training courses,
books, CDs, web based learning or materials are available to develop which skills.
Courses can then be offered in date specific sessions, with delegates and training
resources being mapped and managed within the same system. Sophisticated LMS's
allow managers to approve training, budgets and calendars alongside performance
management and appraisal metrics.

The employee self-service module allows employees to query HR related data

and perform some HR transactions over the system. Employees may query their
attendance record from the system without asking the information from HR
personnel. The module also lets supervisors approve O.T. requests from their
subordinates through the system without overloading the task on HR department.
Many organizations have gone beyond the traditional functions and developed
human resource management information systems, which support recruitment,
selection, hiring, job placement, performance appraisals, employee benefit analysis,
health, safety and security, while others integrate an outsourced applicant tracking
system that encompasses a subset of the above.
The Analytics module enables organizations to extend the value of an HRMS
implementation by extracting HR related data for use with other business
intelligence platforms. For example, organizations combine HR metrics with other
business data to identify trends and anomalies in headcount in order to better
predict the impact of employee turnover on future output.

BENEFITS OF HRMIS
The human resources department within an organization is highly critical to the
organization as a whole. Its many functions serve as a supportive background for
the company by providing everything from skilled and talented labor to
management training services, employee enrichment opportunities and more. The
fact is that this department is so critical and performs so many important functions
for the organization that human resources professionals need access to the right
tools and resources in order to perform their tasks more efficiently and effectively.
A human resources information system, or HRMIS, is a type of software program
that can be utilized within the department to help human resources employees and
managers improve their productivity and the results of their efforts. Upon a closer
look at the benefits of HRIS, you may determine that this is a type of software
program that you want to implement in your organization.

Improving Productivity
One of the most important of all HRIS benefits relates to the ability of the software
program to improve productivity of human resources employees. These systems are
highly detailed, and they are designed to enhance and speed up the efforts of HR
employees in a number of ways. For example, they can assist with the recruitment

process by simplifying the efforts associated with collecting resumes, reviewing

candidate information and more. HRIS systems can also be used to improve
productivity related to financial management through payroll processing tasks
and benefits administration. These and other related tasks may require numerous
hours of manpower each week, but the time and effort required to complete them
can be drastically reduced when some of the tasks are automated through an HRIS
system. Tasks that may have required the support of numerous employees and that
may have required many hours of labor may become tasks that can be completed
quickly and easily with the software program.

Reducing Errors
Many HR tasks are highly regulated, and because of this, even a minor error on the
part of a human resources employee could result in considerable legal issues and
even financial loss for the company. For example, when resumes are not reviewed in
a fair and just manner during the hiring process, a lawsuit may ensue. Another
example involves a seemingly small accounting error with payroll processingbut a
small payroll error could yield considerable financial expense for the company.
When considering HRIS benefits for your organization, the ability to reduce these
and other related errors associated with human oversight or other factors can be
considerable. Furthermore, additional HRIS benefits relate to compliance issues.
Some software programs are designed to review compliance with specific rules and
regulationsthis makes it easier to ensure that your company is in compliance with
these laws and regulations.
Performing Analyses
Additional HRMIS benefits relate to performing analyses and reviewing metrics
associated with various aspects of the organization. For example, the human
resources department is responsible for analyzing hiring costs and for calculating
the turnover rate in different departments. This information can be difficult to
properly and accurately determine, but the accuracy of these calculations is
imperative. The results of these calculations may be used to make important
business decisions and to develop strategies to move the organization forward
along a successful path. HRIS benefits associated with analytical tools give HR
employees the ability to perform these calculations with speed by collecting the
data needed within a short period of time and by analyzing all of the data in a
concise and effective manner. Some software programs are designed to create
professional reports on metrics and analysis as an additional benefit to the human
resources professionals.
Cost reduction

Advent of HRMIS has lowered the operational cost of the organization tremendously.
Tasks are performed much less cheaply than once they were. Although the
preliminary cost is little bit high, the comparative benefits warrant the initial cost.

DISADVANTAGES OF USING HRMIS

As more human resources departments employ electronic management systems,
the potential for pitfalls increases. There are advantages to streamlining HR tasks
through the use of information and management systems. However, there are also
some disadvantages that need to be considered then any such system is installed:
Privacy
One of the chief disadvantages of HR management systems is the increased
capacity for breaches in the privacy of your employees, management and business
officials. In spite of federal and state laws providing legal protection for privacy in
the workplace, if your HR management system is accessed by unauthorized
individuals, your teams personal information may be up for grabs. Although your
system may be safeguarded by password protection, this barrier is often no match
for technically savvy people from inside and outside your companys walls.
Fortifying your system internally and externally augments the safety of your data.
Security
On par with ruptures in privacy protection are fissures in the security system
protecting your HR management software. Technical wizards abound who possess
the talent and skills required to enter your management system and mine it for all
the information your company holds dear, such as your business's HR strategy for
future company growth. Additionally, electronic media is vulnerable to attack by
viruses from anywhere on the Internet. Contracting a virus can disable your HR
management system severely enough to render it unusable for an indeterminate
time. Supplementary to purchasing a solid back-up application, a simultaneous
decision should be made to invest in a virtually attack-proof program that protects
your HR management data from encroachment.
User Error
Inherent in the use of HR management systems is the means for inaccuracy.
Because computers and their associated programs are only as effective as their
human users, data entry errors can and do occur. In HR management systems, such
errors can have grave consequences. At best, minimal errors, such as a few

misspelled employees names, may occur. At worst, errors in data entry could
disrupt the workflow of your business. If, for example, your HR management system
displays a number of incorrect dates designating when to carry out significant
employee performance reviews with ensuing promotions, the adverse results may
include a contagious drop in employee morale, which could affect levels of
productivity.
Employee Assessment
HR management systems can be effective in selecting employees for certain
positions or for advancement, based on performance scores and other information.
However, the human factor is removed from these types of tasks by the system. For
example, when analyzing employee talent, your system may reveal high scores in
sales, new accounts or marketing efforts, but may not be capable of uncovering an
employees habit of treating customers in disparaging ways. To realize the total
evaluation of a staff member, an HR management system should have some way to
prompt human input.
Down Time
Integrated with all computers and software are the inevitable issues that cause
technical difficulties. HR management systems are equally susceptible to down
time, with possibly dire consequences. These can include bringing a critical business
activity to a halt if employee data is not accessible. For example, if your HR
professionals have scheduled a day devoted to open enrollment for a new employee
health plan, the inability to access your HR management systems data could not
only delay enrollment in the health program but could feasibly push open
enrollment out for weeks or months, leaving eligible staff members without
coverage. Concerns such as this can be minimized by policies calling for ongoing
focused technical system maintenance.