CHAPTER 1 Human Resource Information System

1.1 Introduction to Human Resource Information Systems (HRIS) Human Resource Information System (HRIS) is an effort towards speedy, effective and professionally handling of information on resources for efficient management of Human Resource function. HRIS is a computerized system used to acquire, store, analyze and distribute information regarding an organization's human services and to provide services in the form of information to the clients or users of the system. It merges HRM as a discipline and in particular its basic HR activities and processes with the information technology field, Maintenance and updating of manual records system is a labourintensive job and transfer of data from one record to another increases the chance of error which effects the accuracy and reliability of data held. The manual records cannot provide all data of an employ at a time, different information being stored in different files. It becomes difficult to provide a single comprehensive picture of an employee on one record. Here HRIS plays a competitive and comprehensive role to facilitate the user with the required information at their fingertips. Thus HRIS is a system that enables storing of information of Human Resource in every aspect such as Personal, Academic, Qualification, Family, Medical, Career and Performance Evaluation, Training & Development & Wage and Salary of individuals. 1.2 DEFINATION OF HUMAN RESOURCE INFORMATION SYSTEM Human Resource Information System refers to the system of collecting, recording, classifying, presenting, processing, storing and disseminating various information, required for efficient and effective management of human resources in an organization. In order to manage diverse, expensive, and human resource information in complex environment, human resource department of various organizations have increasingly used computer based human resource information system. Human Resource Information System (HRIS) supports strategic and operational use of the human resource. HRIS is required for the following purposes. (1) Planning human resource requirements of organization (2) Employee training & development to increase efficiency

(3)Formulation of policies and programmes relating to human resource The Human Resource Information System (HRIS) is a software package that provides a complete management system for human resource activities in small-to-medium-sized businesses. They help streamline administrative procedures, manage employee benefits, reduce the need for paperwork and manual records, and keep track of all personal and job-related employee data. The Human Resources Information System is helpful for different organizations to set measurable benchmarks to acquire, train and retain the bestemployees, co-ordinate employee job descriptions with areas of responsibility, schedule training for recertification, safety, and revised work procedures, provide incentives to motivate and improve employee performance, track accident statistics and implement corporate strategies to improve overall health and safety. 1.3 Basic Features of HRIS In lieu of standardized paperwork, HRIS allows employees to fill out forms online, make changes based on life events, and get information on their benefits at any time. Rather than "pulling an employee's file," HR personnel can refer any information about an employee through the system, including personal information, benefits, number of dependents, emergency contacts, and job history. HRIS includes both standardized and customized reports. Standard reports feature templates for various administrative purposes including employee reviews, record keeping, workers' compensation, employment history, and absence tracking. Customized reports are created that incorporate categories and information unique to business. The computerized human resource information system needs following important information for efficient management of the employees working in different organizations.

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Recruitment information Personnel information Manpower planning information Training information Health information 3

y y y

Appraisal information Payroll information Placement information

1.4 Decisions on HRIS The following operative functions are entrusted to the Human Resource Department to perform various works efficiently by taking proper decisions on the basis of Human Resource Information System. y y y y y y y y y y y Staffing & Employment Training & Development Wage & Salary Administration Work Culture & Environment Security & Welfare Activities Employer & Employee Relation Records & Statistics Promotion & Transfer Integration & Separation Retirement & Retrenchment Legal Compliance & Government Reporting

1.5 APPLICATIONS 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

1.6 MODEL OF HUMAN RESOURCE INFORMATION SYSTEMS A human resource information system is an organised method of providing information about human resources, their functioning, and external factors relevant to managing human resources. The basic objective of HRIS is to provide accurate, relevant and timely information about human resources, their functioning and relevant environment. Like other information systems, HRIS has input subsystems, output subsystems and database as shown in fig. Input subsystems of a HRIS consist of HR research subsystem and HR intelligence subsystem. HR research subsystem gathers data about various aspects of human resource management, such as job analysis, job evaluation, employee morale, employee absenteeism, employee turnover, etc. HR intelligence subsystem gathers human resource information from external environment, both formally and informally. Output subsystems of a HRIS consist of five subsystems. HR acquisition subsystem involves HR planning, recruitment, selection and placement. HR development subsystem consists of operative training, management development and organization development. Appraisal and compensation subsystem includes performance appraisal, base financial compensation, incentives, and benefits. Maintenance subsystem involves HR mobility, safety and health and stress management. Industrial relations subsystem involves discipline management, grievance handling and management of industrial disputes. HRIS database stores data

about the current employees, relevant past Employees, prospective employees and environment relevant to HR management.

INPUT SUBSYSTEMS

OUTPUT SUBSYSTEMS

HR ACQUISITION SUBSYSTEM

HR RESEARCH SUBSYSTEM

HR DEVELOPMENT SUBSYSTEM

APPRAISAL & COMPENSATION SUBSYSTEM

USERS

HR INTELLIGENCE SUBSYSTEM DATABASE MAINTENANCE SUBSYSTEM

INDUSTRIAL RELATIONS SUBSYSTEM

DATA FLOW INFORMATION FLOW

1.7 MODULES OF HRIS PAYROLL MODULE - The 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 employee-related transactions as well as integrate with existing financial management systems. WORK TIME MODULE - The work time 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.

ADMINISTRATION MODULE - 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. HR MANAGEMENT MODULE - 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:

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produce pay checks and payroll reports; maintain personnel records; 7

Online recruiting has become one of the primary methods employed by HR departments to garner potential candidates for available positions within an organization. Talent Management systems typically encompass

y y y

analyzing personnel usage within an organization; identifying potential applicants; recruiting through company-facing listings;

recruiting through online recruiting sites or publications that market to both recruiters and applicants. The significant cost incurred in maintaining an organized recruitment effort, crossposting within and across general or industry-specific job boards and maintaining a competitive exposure of availabilities has given rise to the development of a dedicated Applicant Tracking System, or 'ATS', module.

TRAINING MODULE - 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 if a stand alone 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 allow managers to approve training, budgets and calendars alongside performance management and appraisal metrics.

EMPLOYEE SELF-SERVICE MODULE - 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. Assigning Responsibilities Communication between the Employees. 1.8 BENEFITS AND BARRIERS TO HRIS HRIS BENEFITS  Faster information process,  Greater information accuracy,  Improved planning and program development, and  Create More Useful, Sophisticated Results  Increase Productivity  Enhanced employee communications BARRIERS TO THE SUCCESS OF AN HRIS  Lack of management commitment  No or poorly done needs analysis  Failure to include key people  Failure to keep project team intact  Politics / hidden agendas 9

 Failure to involve / consult significant groups  Lack of communication  Bad timing (time of year and duration  Unclear goals and objectives  System solves the wrong problems  Low level of user involvement 1.9 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.

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1.10 CONCLUSION In all, the HR function is still to a large degree administrative and common to all organizations. To varying degrees, most organizations have formalized selection, evaluation, and payroll processes. Efficient and effective management of the "Human Capital" Pool (HCP) has become an increasingly imperative and complex activity to all HR professionals. The HR function consists of tracking innumerable data points on each employee, from personal histories, data, skills, capabilities, experiences to payroll records. To reduce the manual workload of these administrative activities, organizations began to electronically automate many of these processes by introducing innovative HRMS/HCM technology. Due to complexity in programming, capabilities and limited technical resources, HR executives rely on internal or external IT professionals to develop and maintain their Human Resource Management Systems (HRMS). And the greatest cost savings or cost avoidance that an HRIS can offer are in

streamlining/redesigning payroll, administration, staffing and recruiting processes. Significant benefits can also be gained in adding automated approvals, decentralizing report generation and introducing employee self-service. Consequently, HR professionals can spend fewer resources in managing administrative HR activities and can apply freed time and resources to concentrate on strategic HR issues, which lead to business innovation.

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