A Project On HUMAN RESOURCE INFORMATION SYSTEM

Submitted In Partial Fulfillment of the Requirement For The award Of the Degree Of MASTER OF BUSINESS ADMINISTRATION Prepared BY:

ANKITA AGRAWAL
(G-AO67)

SALVI GUPTA
(G-G034)

PINKY VISHNANI
(G-VOO2) Submitted to RAJULA MAAM METAS OF SEVENTHDAY ADVENTIST COLLEGE ATHWALINES, SURAT
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HUMAN RESOURCE INFORMATION SYSTEM

A Human Resource Management System (HRMS) or Human Resource Information System (HRIS), 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 on 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 proprietary developed predecessors, which makes this software application both rigid and flexible. 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, 2

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 best employees, 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. While the database provides quick access and track for the entire work history, every employee can be able to view only their personal information over systematic human resource information system. HRIS can handle management of benefits for both HR personnel and company employees. HR directors can import payroll and benefits data into HRIS from in-house and outside sources. This allows them to manage all facets of HR from a single location. It also provides employees with self-service access to their accounts. With a secure system that requires a log in ID and password for each user, employees can check vacation balances, review benefits data, and update personal information without having to first contact HR staff.

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 employees 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. Most HRIS applications have a comprehensive tracking system. HRIS tracking capabilities can maintain grievances filed by or against the employee stemming from discipline, disputes, and complaints. Quick reference guides can be available relating to all areas of the Human Resources Information System, including staff benefits, benefit contribution rates, calendars, personnel change reason codes, and the payroll process flowchart. Detailed instructions regarding establishing and changing employee benefit and deduction information, including retirement, pension, health care, flexible spending accounts and employee selected deductions. Documentation on the human resource accounting structure can be possible; including staff benefit calculations and charges, review and correction of human resource accounts. Documentation is helpful for payroll issues, including time reporting requirements, check and auto deposit distribution, taxable benefits, terminations, review and correction of employee pay and leave, and tax forms. Instructions and forms for employees to establish or change their employee information related to the Human Resources system, including name, address, retirement, pension, and health care.

PURPOSE

The function of Human Resources departments is generally administrative and common to all organizations. Organizations may have formalized selection, evaluation, and payroll processes. Efficient and effective management of "Human Capital" progressed to an increasingly 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 HRMS. Before the clientserver architecture 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 HRMS 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 Systems enabled increasingly higher administrative control of such systems. Currently Human Resource Management Systems encompass: 1. Payroll 2. Work Time 3. Appraisal perfomance 4. Benefits Administration 5. HR management Information system 6. Recruiting 7. Training/Learning Management System 8. Performance Record 9. Employee Self-Service

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. 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. 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 6

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.

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:

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. 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 7

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.

OBJECTIVES OF HRMIS
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ADVANTAGES OF HRIS
In today's corporate world human resources has come to play a very critical role in a business. Whether it concerns the hiring and firing of employees or whether it concerns 9

employee motivation, the Human Resources department of any organization now enjoys a very central role in not only formulating company policies, but also in streamlining the business process. To make a human resource department more effective and efficient new technologies are now being introduced on a regular basis so make things much simpler and more modernized. One of the latest human resource technologies is the introduction of a Human Resources Information System (HRIS); this integrated system is designed to help provide information used in HR decision making such as administration, payroll, recruiting, training, and performance analysis. Human Resource Information System (HRIS) merges human resource management with information technology to not only simplify the decision making process, but also aid in complex negotiations that fall under the human resource umbrella. The basic advantage of a Human Resource Information System (HRIS) is to not only computerize employee records and databases but to maintain an up to date account of the decisions that have been made or that need to be made as part of a human resource management plan. The four principal areas of HR that are affected by the Human Resource Information System (HRIS) include; payroll, time and labor management, employee benefits and HR management. These four basic HR functionalities are not only made less problematic, but they are ensured a smooth running, without any hitch. A Human Resources Information System (HRIS) thus permits a user to see online a chronological history of an employee from his /her position data, to personal details, payroll records, and benefits information. The advantage of a Human Resource Information System (HRIS) in payroll is that it automates the entire payroll process by gathering and updating employee payroll data on a regular basis. It also gathers information such as employee attendance, calculating various deductions and taxes on salaries, generating automatic periodic paychecks and handling employee tax reports. With updated information this system makes the job of

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the human resource department very easy and simple as everything is available on a 24x7 basis, and all the information is just a click away. In time and labor management a Human Resource Information System (HRIS) is advantageous because it lets human resource personnel apply new technologies to effectively gather and appraise employee time and work information. It lets an employee's information be easily tracked so that it can be assessed on a more scientific level whether an employee is performing to their full potential or not, and if there are any improvements that can be made to make an employee feel more secure. Employee benefits are very crucial because they help to motivate an employee to work harder. By using a Human Resource Information System (HRIS) in employee benefits, the human resource department is able to keep better track of which benefits are being availed by which employee and how each employee is profiting from the benefits provided. A Human Resource Information System (HRIS) also has advantages in HR management because it curtails time and cost consuming activities leading to a more efficient HR department. This system reduces the long HR paper trail that is often found in most HR divisions of companies and leads to more productive and conducive department on the whole.

LIMITATION OF HRIS:
System itself cannot address and solve issues within an organization.

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Never think by itself on what kinds of data are essential on strategic decision making. Exceed expected costs. System breakdown

TYPES OF HRIS:
Operational HRIS:
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 12

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. 13

Tactical HRIS:
Tactical 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 14

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 15

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. Software specifically designed for the human resource management function can be divided into two basic categories: comprehensive human resource information systems software and limited-function packages that support one or a few human resource activities.

Understand the HRIS Input Requirements

Have a Full Understanding of your HRIS Input Requirements Before You Purchase A new Human Resource Information System (HRIS) can save you tremendous amounts of time and make you and your staff far more effective at your job, but it is important to understand work will be required to maintain the database and maximize results. I would estimate that at least 20% of companies purchasing HR software (including HR Payroll Software, integrated HRIS products, and other Human Resource Management Software) stop using those products within six months because they are unable to keep up with the 16

input required to maintain the data. So it is extremely important before you have your company make an investment into an HR Information Systems that you have a complete understanding of exactly how much input will be required from you and your staff. Follow these steps to minimize the amount of data you have to manually input into your human resources application. HRIS Setup Input Before selecting HRIS systems you need to have a complete understanding of what data will be imported into your system and where is that data coming from. You may have the data in Excel, a payroll system, or another HR product. Regardless how much data you have in another product, there will still be required input. Rarely will you have the capability of importing benefits data or history, so its important to understand that this data will have to be manually input the majority of the time. Any data that you cant import, or that is not available in another system, will have to be manually input as well. I would recommend asking for an exact list of data fields that will be populated from other sources by the implementation team; make sure it is included in the contract and the scope of the engagement. Use Human Resources Software Interfaces Wherever Possible Interfaces allow for data to be transferred from one system to another, but they are not real time and require some type of action to transfer the data. The advantage of an interface is that it can save tremendous amounts of time associated with manual entry. That saved time can mean the difference between a helpful product that your employees use and one that they abandon because its too cumbersome. If you are using one system for HR and a different product for payroll, make sure you have an interface for transferring data included in the scope of the project. Its important to note that while this step will reduce your input requirements and time investment, it wont eliminate them; there are numerous fields in an HR product that your payroll system may not offer, and they will have to be manually updated. Also remember that historical and benefits data are rarely included in Interfaces. 17

Maintaining the Database To receive maximum benefits from your HR Payroll software, HRIS product, or other Human Resources Management System (HRMS) applications you should make sure that the data in that system is up to date and accurate. Interfaces and a good implementation can assist with this, but additional work is always required. For example, all of your code tables for job titles, department titles, and benefits codes will be created at setup, but there will eventually be additions and changes to this information. Whether youre using an interface or an integrated system, input will be required from your end to maintain the database. Make sure you have a plan in place as to when data will be input and who will maintain it.

PROCESS OF HRIS./WORKING OF HRIS

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DATA SECURITY IN HRIS SYSTEMS

HR data are typically confidential and sensitive. Consequently, a key concern with HRIS is the potential for the invasion (and abuse) of employee privacy by both authorized and 19

unauthorized personnel. It is important for ensuring employee and management confidence in a HRIS to thoroughly explore questions about user access, data accuracy, data disclosure, employee rights of inspection and security. Failure to do so may result in ethical, legal and employee relations problems of a magnitude which could destroy the credibility of the system. Establishing security and end user privileges, says OConnell, calls for a balance of incorporating HR policy, system knowledge and day to day operations. The HRIS security checklist is:

Review all PC-based HR applications. Verify that all users are properly trained in the secure use and handling of equipment, data and software. Ensure that all users sign-off (log-off) before they leave the PC unattended, regardless of how long they intend to be away. Caution users not to give or share their password with anyone. Each user should be accountable for everything done with his or her ID and password. Recommend a change of password on a monthly or quarterly basis. Caution users against duplicating not only copyrighted programs purchased from vendors but also programs and data that are proprietary to the company. Copies should be made only to provide necessary backup.

Ensure that all software acquired from sources other than vendors are run through a virus detection program prior to installing on your system. Consider the feasibility of separating the duties of the users (ie. assigning the tasks of inputting data, balancing control totals, etc. to different people) to achieve and maintain confidentiality. Keep in mind, the separation of some duties may cause users to lose the continuity of the entire task. Look at the whole function and how it relates to others in the department before separating duties.

Review who will use the PCs and where their equipment will be located. Ensure that current and backup copies, data files, software, and printouts are properly controlled so that only authorized users can obtain them.

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Conduct reviews, scheduled and unscheduled, to ensure that an effective level of security is being maintained by PC users. Staff members who use PCs in their work must be responsible for ensuring that practices and administrative procedures adhere to security.

EXAMPLE

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