Académique Documents
Professionnel Documents
Culture Documents
Information Systems
(MIS)-increasing
efficiency of HR
function
Example- IT service sector
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o Introduction
Corporate operations and decision-making are widely based on information that has
been provided or generated by individual and specific IT systems. Such systems are
used to collect, harvest, organize, and generate an output that would back up fast and
sound business decision. Firms adopt new management techniques and systems with the
purpose of enhancing the decision-making processes, improve results and minimize
output costs. Consequently, this is a way to enhance company operation effectiveness.
Various management techniques and management accounting practices improve
financial performance.
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.
Management Information Systems (MIS) is a system consisting of people, machines,
procedures, data bases and data models, as its components. The system gathers data
from Internal and External sources of an organization; processes it and supplies
Management Information to assist managers in the process in decision making. Thus it
is safe to conclude that an information system is "a system consisting of the network of
all communication channels used within an organization".
An information system comprises of all the components that collect, manipulate, and
disseminate data or information. It usually includes hardware, software, people,
communications systems such as telephone lines, and the data itself. The activities
involved include inputting data, processing of data into information, storage of
data and information, and the production of outputs such as management reports. In
this project, we design a format where MIS implementation improves corporate
performance in IT sector.
o Concept of MIS
Management information systems are formal systems for presenting management with
timely and suitable information necessary for decision making. The system gives
information on the past, present and project future and on related developments inside and
outside the organization. It may be described as an integrated and organized system for
collecting relevant data, transforming it into correct information and providing the same
to the concerned executives. The main purpose of MIS is to “provide the right
information to the right people at the right time”. The ideas of management information
systems were formed to counteract such inefficient development and productive use of
the computer. MIS concepts are crucial to efficient computer use in business.
Management information system is a part of the formal information network in an
organization. Management information systems take care of planning and controlling.
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. Right information at right time in
right format will decide the managements’ Human resource decisions
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o Benefits of MIS
Investing in information systems can pay off for a company in many ways.
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Executive Support System: An ESS is a special kind of DSS. It is specially tailored for
the use of chief executives of an organization to support his decision-making. Thus
ESS is a comprehensive information system that includes various types of decision
support systems, but it is more specific and person oriented.
Office Automation System: Office automation refers to the application of computer
and communication technology to office functions. Office automation systems are meant
to improve the productivity of managers at various levels of management by providing
secretarial assistance and better communication facilities.
o IT Sector:
India's IT Services industry was born in Mumbai in 1967 with the establishment of the
Tata Group in partnership with Burroughs. The Information Technology & Information
Technology Enabled Services (IT-ITeS) sector is a field which is undergoing rapid
evolution and is changing the shape of Indian business standards. This sector includes
software development, consultancies, software management, online services and business
process outsourcing (BPO).
India's IT industry is expected to grow at a rate of 12 - 14% during 2019- 2020 as per a
report by India's software industry body National Association of Software and Services
Companies (NASSCOM.)
The IT industry is heavily influenced by factors like the global market and sustenance of
its rate of growth. One of the biggest benefits that the computer and IT industry provides
in India is the employment it can generate.
The top IT companies in India that offer job opportunities in this field are Tata
Consultancy Services (TCS), Wipro Technologies, Cognizant, Yahoo!, Google, Tech
Mahindra, Infosys Technologies, HP ,Capgemini, iGATE Patni, Accenture, L&T, EY,
Convergys, Mphasis, Genpact, HCL Technologies and Godrej Infotech. Cities like
Bengaluru, Delhi, Noida, Gurgaon, Hyderabad, Chennai, Bombay and Cochin are some
of the places which have developed into potential IT hubs of the country.
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The impact of MIS on the functions is in its management. With a good support, the
management of marketing, finance, production and personnel become more efficient. A
well designed system with a focus on the manager makes an impact on the managerial
efficiency. The impact is on the managerial ability to perform. It improves the decision
making ability considerably.
The benefits associated with an integrated MIS are :
1. Better processing of the large volume of data in an organization.
2. Reducing the Redundancy of Data that occurs
3. Availability of all the required information about any department through a
common system.
4. Making the system capable of supporting the managers in making decisions.
5. Facilitate the communication between the various regional offices of the company
and the corporate office
6. Use of online data to speed up the information flow of the organization
and facilitate decision-making
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management and increasing size of the organizations, maintenance of employee related
data and generating appropriate reports are the crucial aspects of any organization.
Staffing:
1. Performance appraisal
2. Succession planning
Compensation:
1. Salary forecasting
2. Incentive planning
Government reporting
While the HRIS features benefit the organization in many ways, 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 recruitment by simplifying the process of 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. However, the time and effort required to complete them can be
drastically reduced when some of the tasks are automated through a HRIS system.
Tasks that may have required many hours of labour may possibly reach completion very
quickly and easily – or sometimes even done automatically – with the software
program.
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. A HRIS can provide
guidance to avoid these types of issues before they escalate. When considering HRIS
benefits for your organization, the ability to reduce issues and other related errors
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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 regulations—this makes it easier
to ensure that your company is in compliance with these laws and regulations.
Ultimately, this can improve company reputation and help to avoid penalties.
Performing Analyses
Performing analyses and reviewing metrics related with various aspects of the
organization can assist with better decision making and also help with spotting patterns.
For example, the human resources department is responsible for analysing hiring costs
and calculating the turnover rate in different departments. The results of these
calculations may be used to make important business decisions and to develop strategies
for moving the organization along a successful path. HRIS analytical tools give HR
employees the ability to perform many pertinent calculations with speed. Employees
can collect the data needed within a short period of time and then analyse all of the data
in a concise and effective manner. Some software programs are designed to create
professional reports on metrics and analysis that can help HR professionals to spot
issues at a glance. Companies can immediately enjoy many HRIS benefits once the
human resources information system has been implemented. There are several different
types of HRIS systems available for purchase, and each may offer different features and
functions. Companies should carefully review the different systems, vendors, and
features available in order to find the right program for their needs and budget.
o HR ACCOUNTING/COMPONENTS OF HR IN MIS
1. Database
Activities like time and labour management can highly time consuming. HRIS package
allows employees to input their own hours worked and allows managers to immediately
verify vacation requests, and the data is directly fed to the payroll. Time and labour
management also improves the HR department’s ability to track punctuality and
attendance.
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3. Payroll Function
Payroll function is yet another major component of a HRIS model. HR can easily
download or unload employee hours, and issue cheques or payroll deposits to
employees. Salaried employees can also be paid with substantially reduced risk of
errors. The HRIS payroll software usually improve tax compliance for locations with
multiple tax levels.
4. Benefits
Some HRIS employers allow employers to establish and maintain medical benefits and
retirement investments through their software. Such applications allow employers to
have one-stop shopping experience for all their human resources data management
needs. Other HRIS packages facilitate medical benefits and retirement investment
deductions for payroll but not the establishment of those benefits.
5. Employee Interface
Most HRIS packages allow for an employee to have limited user access. Employee
users access a part of the database where they can update their personal information,
review pay scales, change retirement benefit programs, update direct deposit
information or download benefit election documents.
Finally, it can be said that recruitment and retention are the most important components
of HRIS. It goes without saying that it is the anchor of all HR policies and systems.
Finding new talent, acquiring them, keeping them engaged and finally being able to
retain them are the major task of a HR person. HRs also have to ensure that employees
are not only able to do their work, but they are also provided with the required training;
receives proper compensation and benefits from the organization.
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o Limitations
The most commonly identified causes of problems in MIS include:
In order to prevent the above problems, a properly structured MIS planning exercise is
essential.
o What is HRIS?
A HRIS, which is also known as a human resource information system or human
resource management system (HRMS), is basically an intersection of human
resources and information technology through HR software. This allows HR activities
and processes to occur electronically.
To put it another way, a HRIS may be viewed as a way, through software, for
businesses big and small to take care of a number of activities, including those related
to human resources, accounting, management, and payroll. A HRIS allows a company
to plan its HR costs more effectively, as well as to manage them and control them
without needing to allocate too many resources toward them.
In most situations, a 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.
There are a number of solutions offered to a company that adopts a HRIS. Some of
these include solutions in training, payroll, HR, compliance, and recruiting. The
majority of quality HRIS systems include flexible designs that feature databases that
are integrated with a wide range of features available. Ideally, they will also include
the ability to create reports and analyse information quickly and accurately, in order to
make the workforce easier to manage.
Similarly, a HRIS allows employees to exchange information with greater ease and
without the need for paper through the provision of a single location for
announcements, external web links, and company policies. This location is designed
to be centralized and accessed easily from anywhere within the company, which also
serves to reduce redundancy within the organization.
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it is important to choose the right HRIS. A company that takes the time to invest in a
HRIS that fits their goals, objectives, mission, and values, is a company that is
investing in its future and in its success. It will be necessary to customize any HRIS to
the unique needs of a company so the system will remain flexible and relevant
throughout the life of the company
o Application of HRIS
HRIS can be applied in the following areas of HRM:
1. HR planning 10. Compensation and benefits
2. Succession planning 11. Pay roll
3. Work force planning 12. Job evaluation
4. Work force dynamics analysis 13. Salary survey
5. Staffing 14. Salary planning
6. Applicant recruitment and tracking 15. International compensation
7. Employee data base development 16. Benefits management
8. Performance management 17. Develop innovative Org. Structure
9. Learning and development 18. Develop IT
In order to function optimally, however, human resources departments must have the
right tools and resources in place. A human resources information system, or HRIS, 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.
There are many benefits that can be enjoyed after implementing a HRIS into an organization,
such as:
1. Expedition of recurring tasks through automation
2. Improved ability to reach large candidate pools regarding new position openings
3. Ability to quickly apply higher selection standards to a number of applications
4. Speedy onboarding made possible by mobile accessibility
5. Reduction of paper and related materials and storage – often yields cost savings
6. Ease in distributing up-to-date materials concerning company policies and procedures
7. Potential for greater employee engagement through self-service options
8. Streamlining of open enrolment for benefits
9. Empowerment of employees to change benefits information directly as changes occur
10. Improved collaboration throughout organization, even when there are multiple
company locations
11. Improvements in training capabilities through integration with LMS and development
tracking features
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12. Scheduling optimization with emphasis on compliance and immediate distribution to
employees
13. Reduction of errors in payroll and employee information database
14. Improved time and attendance tracking abilities and accuracy
15. Decrease in compliance woes aided by alerts and automatic reporting options
16. Ability to make more informed decisions in real time by using analytics and
integration of organizational data
HRIS analytical tools give HR employees the ability to perform many pertinent calculations
with speed. Employees can collect the data needed within a short period of time and then
analyse all of the data in a concise and effective manner. Some software programs are
designed to create professional reports on metrics and analysis that can help HR professionals
to spot issues at a glance.
1. Employee data
2. Leave record
3. Payroll and deductions
4. Taxes
5. Performance data
6. Bonuses and appraisals
7. Skills
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for a particular project. The job related activities expected of a worker and how
well those activities were executed.
6. Bonuses and appraisals: Appraisal is a systematic, general and periodic process
that assesses an individual employee's job performance and productivity in relation
to certain pre-established criteria and organizational objectives. A bonus is any
financial compensation, reward, or return over and above the normal expectations
of the recipient. A bonus can be given to a company's employees and executives,
prospective employees, or shareholders.
7. Skills: Skills are a set of knowledge and abilities an employee has. This record of
an employee has to be maintained to know the further need of training that has to
be given to an employee.
Employee data
Leave record
HR Accounting
Payroll and
deductions
Tax calculation
Performance data
Bonuses and
Appraisals
Skills
Reports:
1. Attendance report
2. Overtime report
3. Performance report
4. Project report
5. Training report
6. Skills report
7. Leave report
8. Accident report
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1. Attendance report: The report that is generated after analysing the attendance is
called an attendance report. The attendance report help the managers and top level
managers to analyse the attendance and leave record of the employee and hence
helps them to take actions against them.
2. Overtime report: The overtime report helps the HR to calculate extra pay for OT
and analyse which employee is taking initiatives to complete work on time. This
report helps while giving bonuses.
3. Performance report: The performance report is generated by how many targets and
goals an employee is able to cover and it helps in evaluation of non-performing
employees to give further training and development.
4. Project report: In an IT sector generally different employees work on different
projects. Hence it is necessary to note which employee is working on which
projects. Project report of employees gives a complete detail while evaluation of
performance and appraisals related to it.
5. Training report: Every employee in an organization is given training when he joins
an organization. The report is generated to look how much of training an employee
is provided and how many more sessions are to be scheduled to improve employees
performance. This generally helps while job rotation and enlargement where these
records are analysed before changing the designation.
6. Skills report: Every employee before joining the organisation has various skills and
certifications. The record of these skills are maintained like in an IT sector one has
to have knowledge of computing languages like JAVA C++ HTML SQL and good
typing skill. This skill report helps in deciding the job of any employee in the
organization.
7. Leave report: Leave record is a record where all the reason of absenteeism and
employee attendance is evaluated and noted to for further evaluation of employee
satisfaction and retention.
8. Accident report: Accident reports help to understand the mistakes and errors done
by the employees in IT sector in a particular project. It also has an exception report
created with regards to all the operations of every department.
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Information update: It comprises of data that has to be filled in the MIS which will get
related and then analysed according to the decision that has to be taken in the firm. In an IT
sector there are various factors that are to updated in MIS:
1. Employee ID
2. Department
3. Skills and certifications
4. Designation
5. Personal record
6. Overtime record
7. Performance record
8. Remark
Employee identity:
After joining of an employee they are provided with the ID for the reference of an
organisation. MIS helps in collecting the data of an employee with the help of documents
given. It contains name, date of birth, occupation, stream, blood group of an employee.
Skills:
MIS also helps in updating the skills of every employee, this software makes an daily
updating process of the employee. Mis is also helpful in recording their skills like
communication, selling, typing, management and leadership skills. And quality.
Attendance and leave:
MIS is useful in recording the data of the absenteeism of every employee. How many days
the employee was on leave or did he take a half day is analysed be this system. Mis also
records the number of leaves taken in a year.
Designation:
Mis is useful in for recording the designation an employee is working on. What is the
designation, how many employees are working under him, target given. MIS also take down
whether he is making fruitful use of his designation or not.
Personal record:
MIS record all the data of the hired employee including numbers of family members,
working members in the family, past data, certificates etc. mis helps in maintaining the data
in a proper format and uses less paper work.
Overtime and performance record:
Overtime and performance record is maintained in this system which makes it easy to analyse
the performance appraisal and incentives of an employee as this is majorly done through
MIS.
Remarks:
Remarks given to the employees are all recorded through MIS which will affect the
performance and the payroll of the employee and could help in generation knowledge of the
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working habits of every employee in detail. All this detailed information updates is only
maintained with the hep of MIS.
Example:
Employee Personal Department Designation Skills Attendance OT Performance Remarks
Id Record and leave record rating
Conclusion:
In conclusion, it is important to choose the right HRIS. A company that takes the time to
invest in a HRIS that fits their goals, objectives, mission, and values, is a company that is
investing in its future and in its success. It will be necessary to customize any HRIS to the
unique needs of a company so the system will remain flexible and relevant throughout the life
of the company or enterprise. There are many types of human resources information systems
and these systems have contribute success to many organizations in the world. Information
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systems can help the organization to save time, cost, and energy in their operations and
managements. These systems have provided a large database inventory for the organizations
to store and maintain all the information.
However, not every organization turns out to be successful after implementing the
information systems in their operations; it is all depend on how well the organization can
utilize it. Therefore, in order to fully utilize these systems, it is important that the
management of the organizations to deeply understand how the systems work and how the
systems match with the organizations’ objectives.
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