Effect Of Human Resource Information System (HRIS) In an Organization

Mandeep Rangsha Contact Number:9864880318 email id : mandeep.rangsha@gmail.com

Adelbert Majaw Contact Number:8575763885 email id : Adelbertmaj@gmail.com
Sonyson Engleng Contact Number:8787888819 email id : Sonysonengleng 1 @gmail.com

DEPARTMENT OF MANAGEMENT,
NORTH E ASTERN HILL UNIVERSITY, TURA CAMPUS, MEGHALAYA, INDIA`

Abstract: An HRIS, which is also known as a human resource information system or human
resource management system (HRMS), is basically an intersection of human resource and
information technology through a HR software solution. This facilitates HR activities and
processes to occur electronically. 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. The goal of HRIS
is to merge the different parts of human resource including payroll, labor productivity, and
benefit management into a less capital intensive system than the mainframes used to manage
activities in the past also called Human Resource Management systems (HRMS). A HRIS
generally enables to effectively plan, control and manage HR related activities with improved
efficiency and quality in HR decision making and enhance employee and managerial
productivity and effectiveness. This research paper helps to know about the effect of HRIS in an
organization to enhance the efficiency of work.
Keywords- HRIS, HRM, HRMS and Human Resource.
I. Introduction
In the fast changing world in which we reside, new technology is continually being developed.
This change requires organizational leaders to be familiar with the different types of technology
which would enhance the organizational effectiveness.
Human Resource Information Systems (HRIS) have drastically evolved since they were first
introduced more than 50 years ago and they have progressed far beyond their original purposes
of converting paper records into computerized databases. In modern times, HR/payroll systems
are able to handle several of HR’s numerous functional activities. HR Software is now full of
advanced features and not just the data storage systems we once knew them as. The developed
HRIS will help the organization to effectively store employee records more securely and
accurately. Modern HRIS systems are now tools that HR Professionals can use on a daily-basis
for multiple purposes. In the past, companies were used to tracking data on paper and
spreadsheets. However, with technological advancements many companies have realized the
need to implement more sophisticated computerized systems, like Human Resource Information
Systems. By upgrading to HRIS, at present companies are able to keep more accurate and up-to-
date records, allowing them to better prepare for future growth in their companies. In most
situations, an HRIS will also lead to increases in efficiency when it comes to making decisions in
HR. The decisions made should also increase in quality—and as a result, the productivity of both
employees and managers should increase and become more effective in the current digital age.

II. Definition
A human resource information system (HRIS) is software containing a database that allows the
entering, storage and manipulation of data regarding employees of a company. It allows for
global visualization and access of important employee information.[1]
A system which seeks to merge the activities associated with human resource management
(HRM) and information technology (IT) into one common database through the use of enterprise
resource planning (ERP) software. The goal of HRIS is to merge the different parts of human
resources, including payroll, labor productivity, and benefit management into a less capital-
intensive system than the mainframes used to manage activities in the past. Also called Human
Resource Management Systems (HRMS) [2]

III. Objectives Of The Study

1.To know about human resource information system and its role in an organization.
2.To know about how computerized HRIS is more effective than manual system.
3.To know how to enhance the ability of the human resource management to leverage and absorb
new and emerging opportunities and challenges in the business horizons.
4.To know about prospects and limitations about HRIS.

IV. Literature Review

IV.1 HR INFORMATION SYSTEM-
HR Information System is an information system, which is basically used to track data relating to
HR. It is one of the Management Information Systems. There has been a lot of change as to how
employee data were stored before compared to present systems used in organization. It combines
information like employee details, pay roll, benefits, performance tracking and appraisal etc.
Technological advancement has led to a lot of changes in HR Management. The storage of data
is now shifted from manual systems to computer hard drives and magnetic tapes. Storage of data
became easier and a lot of manual work was removed. HR Management was later seen as a
major building platform which dealt with the most important resource of any organization.
Hence it came to be known as Strategic HR Management (SHRM). The HR Management had
total transformation when HR Information System was brought into implementation.

IV.2 TRADITIONAL VIEW OF HRIS-

HRIS is designed to provide information necessary for effective management of the organization
i.e. for decision making in terms of human resource management. Human resource departments
hold the record of the employees of the organization including personal history, skills and salary
etc. The basic level of HRIS is used to help to manage employment relationships within the
organization and employees. Previously Companies were used to tracking data on paper and
spreadsheets which proved to be inefficient difficult and time consuming task. Typical HRIS
Recorded employee details, salary details, performance evaluation dates, benefits, education and
training, attendance etc.

IV.3 MORDEN VIEWS HRIS-

Leading management thinkers suggests that, “it is not technology, but the art of human and
human- management.” That is the challenging task for executives in the 21st century. Similarly ,
Smith and kelly1997 believe that” future economic and strategic advantages will rest with the
organization that can most effectively attract , develop and retain a diverse group of the best and
the brightest human talent in the Market place. The effective management of the human resource
in the firm to gain a competitive advantage in the market place requires timely and accurate
information on current employees and potential employees in the labor market. With the
evaluation of computer technology, meeting this information requirement has been greatly
enhanced through the creation of HRIS. With technological advancements many companies have
realized the need to implement more sophisticated computerized systems, like Human Resource
Information Systems. By moving to HRIS, companies are able to keep more accurate and up-to-
date records, allowing them to better prepare for future growth in their companies. A
computerized HRIS is designed to monitor, control and influence the movement of people from
the time they join the organization till the time they leave it. Human resource information
systems are built to reduce the manual work of HR expertise. HRIS helps to abandon paper
forms or reports because all information is available through the system. [3]

V. Evaluation And Development Of HRIS

1. The emergence of Human Resources Management Software [4]
In the early development of human resource management, information systems although often
accurate and comprehensive were mainly used for administrative and operational purposes.
Forms were used to collect leave requests, workers compensation and accident data, and salary
variation and superannuation entitlements. During the 1945 and 1960 only manual work was
done for managing all HR activities in organization, they had human capital issues, employees
morale and formal selection and development method in earlier organization was not so much
focused on HR related activities. Then during early 1960 to 1970s few innovated HR activities
was incorporated into human resource organizations in the digitized manner. The trend of
automating payroll and workforce management processes began during the 1970s when due to
limited technology and Mainframe computers, companies were still relying on manual entry to
conduct employee evaluation and to digitize reporting. The first ERP system which integrated
HR functions was SAP R/2 (later to be replaced by R/3 and R/4), introduced in 1979. This
system gave users the possibility to combine corporate data in real time, and regulate processes
from a single mainframe environment. Many of today’s popular HR systems still offer
considerable ERP and payroll functionality.
The first completely HR-centered system was PeopleSoft, released by Oracle in 1987 (In the UK
'Compel' was released by CIPHR in 1983 as a dedicated HR Management System). Hosted and
updated by clients, PeopleSoft replaced the mainframe environment concept, and gained huge
popularity that preserved it on the scene for many years to come. The system is still active today,
while Oracle has also developed multiple similar BPM systems to automate essential corporate
operations.

2.Web-Based Human Resources Management Software

Beginning with the late 1990s, HR vendors started offering cloud-hosted HR solutions to make
this technology more accessible to small and remote teams. Instead of a client-server, companies
began using online accounts on web-based portals to access their employees’ performance, and
track accomplishments regardless of their location. The beginning of 2000 marked a new and
advantageous concept in HR development. More and more systems were tackling specific tasks
such as recruitment or benefit administration, including best of breed systems that replaced the
one-size-fits-all ERP + HR formula.

3.Mobile Human Resources Management Software:

In 2014, companies used the benefits from the cloud hosting milestone to transfer HR
functionality on mobile devices. Ever since, popular vendors have been releasing special
Android and iPad / iPhone applications to meet the needs of all teams and businesses.
4. Recent developments of Human Resources Management Software
In 2015, HR software users got acquainted with gamification technology namely systems that
attach an entertaining dimension to traditional HR operations, and motivate employees to
perform better by awarding them with badges and bonuses. Another popular innovation related
to specialized HR systems is video hiring, as most providers embed web conferencing widgets in
their products, allowing managers to locate and attract talents without geographical limitations.
In future, Human Resources Management software is expected to reinvent its capacity, boost
efficiency with more personalized and candidate-centric recruiting, streamlined interfaces, and
automation of more HR-related processes that are currently performed manually.

V.1 DEVELOPING AN HRIS: SYSTEM DEVELOPMENT LIFE CYCLE (SDLC) [5]

VI. Role Of HRIS In Companies In Current Scenario [6]

HRIS help a firm maximize the use of human resource and maintain competitiveness in its
market. In most large organizations, human resource information systems (HRISs) provide the
technology backbone supporting the complete body of human resource (HR) functions. In this
role HRISs play a critical part in the operation of each component of HR. Additionally, by
integrating across business processes HRISs provide organizations with control, forecasting, and
planning tools that supersede simple computerization of HR functions. For these reasons,
effective use of HRISs in organizations contributes to overall organizational effectiveness.
Human Resource Information System is a set of people, forms, procedures and data utilized to
store, analyze, distribute and use information of human resources. The organization can use
HRIS for human resource planning. New recruitments can be posted via HRIS as well as
applications can be scanned and stored. HRIS also stores information about the employees’
participated trainings and learning sessions. Performance appraisal, compensation, benefits,
competences and development plans are easily maintained in HRIS. Employees can search for a
new career within the organization and be aware of the future trainings. HRIS allows managers
to follow employee’s job performance and planned versus used hours for a certain assignment.
Typical HR program involves things such as record keeping, recruiting, selection, training,
employees retention and compensation.
All this program involves multiple activities and these HR activities can be classified into three
broad categories : transactional, traditional and transformational transactional activities involve
day to day transactions that have to deal mostly with record keeping- for example entering
payroll information, employees status changes, and the administration of employee benefits.
Traditional activities involve HR program such as planning, recruiting, selection, training,
compensation and performance management. These activities can have strategic value for the
organization if their results and outcomes are consistent with the strategic goals of the
organization. Transformational activities that add value to the organization- for example cultural
or organizational change, structural realignment, strategic redirection and increasing innovation.

VII. Benefits Of HRIS In Companies [7]

While a human resource information system is an excellent way to manage and archive all the
HR documents in a modern organization, it can be so much more than a glorified filing cabinet.
Here are five areas where an HRIS can have a distinctly positive effect on the processes and
procedures of an organization.

1. Eases the Tedium of Paperwork

Indisputably, an HRIS makes the process of providing forms to employees, ensuring their
completion and organizing their storage far easier and efficient than any physical file system. It
is the leverage of this simple ability that allows a company to truly benefit from an HRIS. With
the proper paperwork and gatekeeping features, an HRIS can improve governmental compliance,
ensure better oversight by management, provide superior customer service and, ultimately,
improve the bottom line.

2. Ensures Greater Compliance

Paperwork must not just be completed, it must be completed on time, documented as such and be
readily available for government auditors or other legal matters. An HRIS is an ideal tool for
accomplishing this goal as it has no other agenda beyond the actual completion of the paperwork.
At the beginning of an employee’s tenure with the company, certain forms must be filled out to
comply with company and legal requirements. An HRIS is the ideal tool for tracking this
requirement and for ensuring its completion.

3. Allows Better Oversight

For executives and business owners, it is a much simple matter to access an HRIS and check for
compliance by their managers than to do it by hand. The system can even be designed to stall the
hiring, training or termination process if the paperwork is not properly completed and submitted.
Alerts can be automatically sent to the HR administrator if certain conditions are not met. A well
designed HRIS can act as a proactive monitor of compliance with routine company “paperwork”
policy while requiring upper management to only deal with the more extreme cases. In addition,
regular reports can be produced showing overall compliance and listing any irregularities and
allowing upper management to deal with them in an efficient and effective manner.

4. Provides Superior Customer Service:

An HRIS can be used to ensure that new hires are given every benefit of the onboarding and
training process. By ensuring the proper on-boarding of new employees, an HRIS helps deliver
competent employees who can offer the best service to your customers. Similarly, when a new
policy or a new piece of equipment is introduced, an HRIS can monitor the training process for
all employees and help ensure that all are knowledgeable about the latest company information.

5. Enhances Productivity
New employees are usually hired to fill vacancies left by more experienced staff. When an
employee quits or is fired, the remaining staff is left to fulfill the departing employee’s duties as
well as their own. Often times, morale suffers as there is more work with no more pay. An HRIS
helps ensure that new employees are completely trained and that they can quickly and effectively
fill the old employee’s duties. With better initial and ongoing training, a company will see higher
employee morale, lower turnover and greater efficiency. All of these factors will naturally lead to
enhanced productivity and a better bottom line.
These five benefits stated above justify the consideration of an HRIS by any company, small or
large. It is true that implementation and the full benefits may not be obvious immediately but the
benefits will surely demonstrate themselves over time.

VIII. Security Of HRIS

The privacy of employee information has become a major issue in recent years. With identity
theft becoming a common problem, employees are becoming more sensitive about who sees their
personal information, and the security that is provided to it. By making sure employee
information that is kept in the HRIS is relevant to the company and making sure there is limited
access (password protection) to such information, companies can make its employees more
secure with the safety of their information. Whether electronic or paper, employee files deserve
to be treated with great care. Establishing security and end-user privileges calls for a balance of
incorporating, HR policy, system knowledge and day-to-day operations. [8]

IX. Limitation Of HRIS

An HRIS also can be challenging for small businesses in which some employees must wear
many hats. Some of the disadvantages of an HRIS involve human error during information input
costly technology to update into the system and malfunctions or insufficient applications to
support companies human resources needs. There is a demand for technology specialists with
general information technology knowledge, and finding a qualified specialist with human
resources functional area knowledge can be difficult in many times. With such a demand,
companies cost to hire an HRIS specialist may be far above the average salary for a normal
computer technology specialist. Hence it can be expensive in terms of finance and manpower.[9]
X. Conclusion
Human resources information systems (HRIS) can play an important role in a company’s HR
function in the 21st digital information age. Implementing an effective HRIS is the need of the
hour to deliver more effective and streamlined service in the domain of HR. The main conclusion
of this paper is the realization that the use of computerized HRIS is most effective then manual
because its help to maintain data with more accuracy in less time. And that it also facilitates the
HRIS to improve HRM in terms of administrative purposes and analytical purposes. HRIS work
as a key component of the organization and a good HRIS will provide important information
about human resources needs and capabilities this information will assist the management team
in establishing the organizational mission and setting goals and objectives in motion. HRIS is not
limited to the computer hardware and software applications that comprise the technical part of
the system but it also includes the people, policies, procedures and data required to manage the
HR function.

XI. Recommendation:
Considering the findings, the study recommended that in using human resource information
system, organizations should train the employees regularly as per the organizational
requirements so that the employees uses the HRIS without human error to speed up information
sharing and decision making in the organization using HRIS may also contact educational
institutions like training colleges, polytechnics and universities in order to cope with the
challenges of workforce shortages timely. By doing this, organizations will have information
concerning labour and thereby reduce labour shortage challenges. Further, they should
implement the recommendation from their HRIS concerning successive planning and training of
employees in order to accomplish the desired performance of the organization.

XII.Reference-
[1] [http://pe-de-ef.warmachine.im/Importance-of-HRIS:-A-Critical-Study-on-Service-
Sector/fdp.70_9n3vsbmjg*lps_sbmjg*moc.noitacilbupir.www
[2]http://www.businessdictionary.com/definition/Human-Resource-Information-Systems-
HRIS.html
[3] https://www.slideshare.net/IfrathMarsha/human-resource-information-system-in-current-scenario
[4] https://en.wikipedia.org/wiki/Human_resource_management_system
[5] https://www.comparehris.com/the-first-5-benefits-of-an-hris-solution/
[6]http://www.techrepublic.com/resource-library/whitepapers/human-resource-information-system-
hris-important-element-of-current-scenario/
[7]https://www.comparehris.com/human-resource-information-systems-/
[8] https://www.slideshare.net/rajeevgupta/hris?qid=870efe09-2264-48c6-9e7c-
7003f83588bf&v=&b=&from_search=1
[9]. Shanu, U. (2013) Human Resource Information Systems.
http://www.slideshare.net/ujjmishra1/human-resource-information-system-28839723