INTRODUCTION CONCEPT& DEFINITION OF HRIS

NEED OF HRIS

Purposes of HRIS Components of an HRIS The development (EVOLUTION) of (HRIS) Stages of development of HRIS Nature and benefits of HRIS Uses of HRIS Strategic HR planning and HRIS HRIS Security and Privacy

Relationship of HRIS with overall MIS

Steps in Implementing an HRIS EFFECTIVENESS OF HRIS

SUMMARY

INTRODUCTION
An information system is an inter-related set of procedures and processes to provide information for decisions. Information is data that have been processed so that they are meaningful. It adds to the representation of an idea. It corrects and confirms previous information. An information system especially developed for human resource management is referred to as HRIS a human resource information system. Human Resource InformationSystem is the system to acquire store, manipulate, analyse, interpret & disseminate relevantinformation on Human Resource. HRIS shape integration between human resource management (HRM) and Information Technology. Even though these systems may rely on centralized hardware resources operationally, a small group of IS specialists residing within the personnel department increasingly manage, support, and maintain them. HRIS support planning, administration, decision-making, and control. The system supports applications such as employee selection and placement, payroll, pension and benefits management, intake and training projections, career-pathing, equity monitoring, and productivity evaluation. These information systems increase administrative efficiency and produce reports capable of improving decision-making (Gerardine DeSanctis, 1986).

HRISs are systems used to collect, record, and store, analyze, and retrieve data concerning an
organization's human resources. The collection of information on every aspect of work life starting from salary and payroll, compensation, leave, accidents, superannuating and employee benefits has always been part of the human resource managers function. In the early history of personnel management, administrative aspects, including data collection, took up a great deal of time. Reviews of employee salary and leave entitlements often dominated the activities of earlier personnel officers, reflecting both management priorities and their own clerical backgrounds. Such early information systems were manual, and were mainly used to notify employees of leave entitlements, to ensure accurate salary and wage payments and to process workers' compensation and superannuating claims. The data was seldom used to predict trends, identify problem areas and, or aid in the longer-term staffing process. The Human Resources Information System provides a broad range of functions that enable us to perform standard reporting from all Human Resource areas. In addition, it lets us define our own reports quickly and efficiently.

CONCEPT& DEFINITION OF HRIS

HRIS is a key management tool which collects, maintains, analyses and reports information on people and jobs. It is a system because it integrates all the relevant data, which otherwise might have been lying in a fragmented and scattered way at various points in the larger system. HRIS converts this data into meaningful conclusions or information and makes it accessible to the persons,

who need it for their decisions. This integration of data can be at the macro level at the level of a nation or a geographical regional grouping or at the micro level, that is, at the level of an organisation.

Macro level HRIS is generally focused towards manpower planning and includes statistical
information on population, technology and economy. Such information can be obtained from several sources like publications of the Planning Commission, Ministry of Labour, The National Sample Survey Organisation, The National Labour Institute, The World Economic Forum, International Labour Organisation etc. At the micro level, the information requirements include modules on recruitment, personal data, skills assessment, training and development, performance appraisal, rewards and punishment, grievance handling and so on. This information is used for understanding the patterns of HR policies, actions, and employee behaviours as well as for identifying gaps in the HR system and the effectiveness of the HR system.

Tannenbaum (1990) defines HRIS as a technology-based system used to acquire, store, manipulate, analyze, retrieve, and distribute pertinent information regarding an organizations human resources. Kovach et al., (1999) defined HRIS as a systematic procedure for collecting, storing, maintaining, retrieving, and validating data needed by organization about its human resources, personnel activities, and organization unit characteristics.
Furthermore, HRIS shape an integration between human resource management (HRM) and Information Technology. It merges HRM as a discipline and in particular basic HR activities and processes with the information technology field (Gerardine DeSanctis, 1986). As is the case with any complex organizational information system, an HRIS is not limited to the computer hardware and software applications that comprise the technical part of the system it also includes the people, policies, procedures, and data required to manage the HR function (Hendrickson, 2003). NEED OF HRIS At the macro level, HRIS is critical for effective planning and budgeting of national resources. Based on HRIS the central and the State Governments and other agencies involved in manpower planning and manpower productivity can develop proper strategies in order to make efforts to develop the required skills and competencies among the labour pool to meet the

national/regional requirements by allocating adequate budgets on the basis of their expected optimum use.

At the micro or enterprise level, HRIS has become critical for decision-making and policy formulation as well as for ensuring fairness and equity in HR policies and practices. There is an increasing realization that for organisational survival and growth in a competitive environment, human resource is the most critical resource. This coupled with the increase in the cost of hiring, retaining, developing and motivating people to perform at their best has propelled the organisations to base their HR decisions on sound logic and thereby, on proper information. HRIS becomes a major asset from this point of view. The growing need for transparency among the employees and the society is another factor that is compelling organisations towards proper management of information in all areas, including HR. As the economies are becoming more knowledge driven and thereby, moving towards more qualified and educated workforce, it is being increasingly realized that better-information makes employees more involved, connected, and productive. A major source of connect between the employees and their companies is through the information that they receive and the feedback that they provide. Information management, in general and HRIS in particular, thus, has become a critical factor in managing employee performance. Companies are increasingly realizing the advantage of having systems that capture, analyze, and report on the host of human resource aspects that are critical to running a business and share it with the employees so that they self-regulate their contribution. HRIS is a tool to achieve this objective. Finally, in human management, perceptions of equity and justice are extremely important for managerial credibility and employee satisfaction. Consequently, HRIS, which helps in identifying policy effects as well as the pattern of policy implementation at various locations, by different people at different points of time, helps in detecting infringements of equity.

Components of an HRIS Kovach et al., (1999) presented the three major functional components in any HRIS by giving the model below: Input Data Maintenance Output

The Input function enters personnel information into the HRIS. Data entry in the past had been one way, but today, scanning technology permits scanning and storage of actual image off an original document, including signatures and handwritten notes. The maintenance function updates and adds new data to the database after data have been entered into the information system. Moreover, the most visible function of an HRIS is the output generated. According to Kovach et al (1999), to

generate valuable output for computer users, the HRIS have to process that output, make the necessary calculations, and then format the presentation in a way that could be understood. However, the note of caution is that, while it is easy to think of HR information systems in terms of the hardware and software packages used to implement them and to measure them by the number of workstations, applications or users who log onto the system, the most important elements of HRIS are not the computers, rather, the information. The bottom line of any comprehensive HRIS have to be the information validity, reliability and utility first and the automation of the process second.

The development of human resource information systems (HRIS) 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 1970s and 1980s, several factors radically changed attitudes towards human resource information systems. The increasing complexity of payroll systems in this period demanded more flexibility in, and access to information system. These needs coincided with the development of increasingly sophisticated computer hardware and software systems. In large organizations, centralized payroll processing sections began to be separated from other human resource functions. Some organizations contracted their payroll responsibilities to external payroll bureaus with greater technological expertise, and for reduced costs. Purposes of HRIS All organizations and their HR mangers need to consider whether their HRIS will be primarily used for collecting, analyzing, interpreting or reporting employee information. The nature of the system chosen should reflect this primary purpose, based upon a realistic analysis of needs prior to its introduction. Organizations with stable workforces and secure markets do not require complicated data analysis, but can benefit from comprehensive and accurate databases for reporting purposes. On the other hand, large organizations in competitive and dynamic industries demand strategic HRIS. Every organization needs to assess its particular needs and identify the most appropriate information system for its chosen purposes. HRIS- STAGES OF DEVELOPMENT

Nature and types of HRIS depend on the level and ease of use Primary Level-The organization is interested inautomating processing of routine information. Its focus is ondata storage, processing and information flows at operationallevel of organization. In HRIS it is called Electronic DataProcessing (EDP) which facilitates data and files storage. Second Level-The focus is shifted from EDPlevel to management information systems (MIS)level with more inquiry and report generationflexibility.This is intended for middle levelmanagers to control operation, matching budgetor projection. Forexample Overshooting of expenseson overtime, its extent and magnitude. Third Level-The enterprise wide decisionsupport systems (DSS) is one such HRIS type thatfacilitates decisions at higher level in theorganization. At this stage HRIS is moreinteractive and capable of developing decisionmodels on many strategic issues.

Nature and benefits of HRIS Modern human resource information systems are comprehensive, accurate and accessible systems for recording employee and work data relevant to HRM, HR and organizational planning. An HRIS is: The system used to acquire, store, manipulate, analyze, retrieve and distribute pertinent information regarding an organizations human resources. Its purpose is to facilitate, or support, straight, tactical and operational decision making to avoid litigation, to evaluate programs, policies, or practice and daily operations. Specific benefits of such systems include: 1. Improved planning and program development using decision support software. Faster information processing and improved response times 2. Decreased administrative and HR costs

3. Accuracy of information 4. Enhanced Communication at all levels. Not all systems fulfil all these requirements, nor is such a complete system suitable for all organizations. Essentially however all HRIS contain information on: Employees Jobs and work conditions Positions HR events (e.g. recruitment, training and development, performance appraisals, and terminations). Uses of HRIS Comprehensive and integrated information systems can be used widely -in administrative, operational and strategic fields by HR and other managers. On the operational level HRIS data can be used to identify potential internal applicants for job vacancies, saving external recruitment costs and assuring employees of career opportunities. Strategically, such information may be used to gauge the effectiveness of current recruitment or promotional systems, their costs and/ or benefits, and enable subsequent changes of direction in line with proposed organizational strategies. Strategic HR planning and HRIS Proactive HR managers ensure that their HRIS contributes to organizational performance. A recent development in the uses of HRIS in many organisations has been the linking of 'benchmarking' practices to the design, choice and implementation of such systems as a directly strategic initiative. Integration with organizational strategic objectives is achieved by the subsequent establishment of performance targets and quantitative measures. As a strategic 'tool', HRIS can be used to contribute to the development and modification of HR plans, on both quantitative and qualitative bases, and to feed into specific HRM functions. HR data, if collected effectively and contained within computerized, accessible

systems, can both compare organizational HR 'bottom line' outcomes by HRM function, between functions and with national or international performance benchmark. HRIS Security and Privacy The HR department must develop policies and guidelines to protect the integrity and security of the HRIS, so that private employee information does not fall into the wrong hands. To maintain the security and privacy of HRIS records, companies should control access, develop policies and guidelines that govern the utilization of information, and allow employees to check their records.

Relationship of HRIS with MIS

Information is the backbone of healthy and efficient business management. An information system allows the collection and processing of data to produce useful information for designated users at each level of management. Information management must conform to well-defined principles, run on appropriate software, and be completely adapted to your organization within an integrated system usually known as Management Information System (MIS). Management Information System is the entire set of systems and activities required to manage, process, and use information as a resource in the organization. Stated slightly differently, MIS is the management and use of computer-based systems, computerresident data, and telecommunications for the support of business decision processes. HRIS is the part of MIS that provides the information regarding workforce in the organization and facilitates the decision makers in decision making process in this regard. Steps in Implementing an HRIS The HRIS is usually a part of the organisations larger management information system (MIS).The HRIS need not be complex or even computerized. But computerization has its own advantage of providing more accurate and timely data for decision making. As with any major change, proper planning is an absolute necessity for successful implementation of a HRIS. The steps outlined below describe the specific procedures involved in successfully developing and implementing an HRIS.

Step1: Inception of idea: The idea having an HRIS must originate somewhere the originator of the
idea should prepare a preliminary report showing the need for an HRIS and what it can do for the organization.

Step2: Feasibility study: Feasibility study evaluates the present system and details the benefits of an HRIS. It evaluates the cost and benefits of an HRIS. Step.3: Selecting a project team: Once the feasibility study has been accepted and the resources allocated project team should be selected. The project team should consist of HR representatives from both management information systems and payroll. Step4: Defining the requirements: A statement of requirements specifies in detail exactly what the HRIS will do. A large part of the statement of requirements normally deals with the details of the reports that will be produced. Naturally, the statement also describes other specific requirements. This typically includes written descriptions of how users collect and prepare data, obtain approvals, complete forms, retrieve data, and perform other nontechnical tasks associated with HRIS use. The key here is to make sure that the mission of the HRIS truly matches managements needs for an HRIS. Step5: Vendor analysis: This step determines what hardware and software are available that will best meet the organisations needs for the lowest price. This is a difficult task. The best approach is usually not to ask vendors if a particular package can meet the organizations requirements but how it will meet the organisations requirements. Step6: Package contract negotiation: After a vendor has been selected, the contract must be negotiated. The contract stipulates the vendors responsibilities with regards to software, installation, service, maintenance, training, and documentation. Step7: Training: Training usually begins as soon as possible after the contract has been signed. First the HR members of the project team are trained to use the HRIS. Towards the end of the implementation, the HR representative will train managers from other departments in how to submit information to the HRIS and how to request information from it. Step8: Tailoring the system. This step involves making changes to the system to best fit the needs of the organization. A general rule of thumb is not to modify the vendors package,

because modifications frequently cause problems. An alternative approach is to develop programs that augment the vendors program rather altering it. Step9: Collecting the data: Prior to start-up of the system, data must be collected and entered into the system. Step10: Testing the system: Once the system has been tailored to the organizations needs and the data entered, a period of testing follows. The purpose of the testing phase is to verify the output of the HRIS and to make sure it is doing what it is supposed to do. Step11: Starting up: Start-up begins when all the current actions are put into the system and reports are produced. It is wise to attempt start-up during a lull period so that maximum possible time can be devoted to HRIS. Even though the system has been tested, some additional errors often surface during start-up. Step12: Running in parallel: Even after the new HRIS has been tested, it is desirable to run the new system in parallel with the old system for a period of time. This allows for the comparison of outputs of both the system and examination of any inaccuracies. Step13: Maintenance: It normally takes several weeks or even months for the HR people to feel comfortable with the new system. During this stabilization period, any remaining errors and adjustments should be handled. Step14: Evaluation: After the HRIS has been in place for a reasonable length of time, the system should be evaluated. Is the HRIS right for the organsiation and is it being properly used? Following the above steps when implementing an HRIS will not guarantee success, but it will increase the probability of success. HRIS is not just useful in human resources planning. Its uses extend to the whole gamut of HRM. The areas of application of HRIS are many. It may be training management, risk management and legal requirements, attendance reporting and analysis, HRP, accident reporting and prevention, strategy planning, financial planning and other related areas too. EFFECTIVENESS OF HRIS FOR HRP

According to Tang et al. (1987) the key to the effective planning of manpower and improvement of people productivity is an effective HRIS. However, in order to be effective an information system must take into account the following: Adequacy of information: Too much or too little information, both lead to defective decision-making. Therefore, there must be some understanding regarding what information and in how much detail and covering what periods should be maintained. Specificity: Even where it is not possible to quantify the information, the information should be made as specific as possible. Relevance: Information is to be managed in the light of the requirements of the decision makers. Therefore, HRIS should focus on the needs of the decision-makers and stakeholders rather than on what is interesting or easily available or palatable to the people. The system, therefore, must also have the built in capability for deletion and updating of data. Comprehensiveness: The information should be complete from the point of view of the decision-maker giving details of who, what, how, when, where and why. Reliability: Since the information is going to be the basis of critical decisions, it must satisfy the requirements of validity and reliability. Moreover, to ensure effectiveness, not only should the information provided be relevant and reliable but the delivery system should also be the most satisfying. Cost effective. A wealth of information but not accessible when needed or available at an inhibiting personal cost in terms of energy and time, is of hardly any use. SUMMARYIntoday'scorporateworldhumanresourceshascometoplayaverycriticalroleinabusiness.Whetheri tconcernsthehiringandfiringofemployeesorwhetheritconcernsemployeemotivation,theHuman Resourcesdepartmentofanyorganizationnowenjoysaverycentralroleinnotonlyformulatingcomp anypolicies,butalsoinstreamliningthe business process. Human Resource

InformationSystem(HRIS) refers to the systems and processes atthe intersection between human resourcemanagement (HRM) and informationtechnology.
The

information contained in

the HRIS serves as a guide to recruiters, trainers, career planners and other human resource specialists. It applies to information needs at macro level as well as to the micro level too.