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Executive Summary..4 Introduction...5 Methodology..7 Main content Modules14 Relevance.18 Outcome...20

Org case study..24 Conclusion26 Bibliography............................27

This project, is about new automated work system that uses a web based interface to enable HR officers, their staff, and others to review, approve, and update personnel actions in an organization which is Human Resources Information System (HRIS). In this project I have first explained what HRIS is all about, how it can be implemented in an organization i.e. what are the requirements in order to set up HRIS in a company. Further it also explains in details the various modules in HRIS and how they are beneficial. It also shows how this HRIS affects the company and how it can save employees time and improve their efficiency. It shows the cost to benefits ratio of implementing this in a company and also illustrates a case study of company who has successfully implemented it.

An HRIS, the abbreviation for Human Resources Information System, is a system that lets you keep track of all your employees and information about them. It is usually done in a database or, more often, in a series of interrelated databases Human resource management system Human Resource Management Systems (HRMS, EHRMS), Human Resource Information Systems (HRIS), HR Technology or also called HR modules, shape an intersection in 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 planning and programming of data processing systems evolved into standardised 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. HRIS is an office solution designed to address the computerization needs of companies with regards to human resource data down to payroll computation. It is compatible with Windows. It generates salary reviews; salary and performance history; salary analysis; employment records; benefits administration; attendance tracking; SSS reporting; skills retrieval; educational background and personal information. HRIS provides over 270 standard reports so employee information will be instantly available, both on the screen and in reports, without searching through paper files and manually trying to summarize the information. HRIS is designed for the small to medium size company or divisions of a large company. HRIS crosses all industries and is well accepted in manufacturing, banking, legal, education, medical, R&D, and many other industries.

HR Information Systems (HRIS) have a profound effect on firms that implement them. Most often these firms are replacing several related systems, such as a personnel database, payroll system and benefits system, with one HRIS that does it all. Many people focus on the improved reporting and processing that will be realized from the new system, and those are the reasons most firms choose to implement a new HRIS. But what many people dont focus on is that the new HRIS will most likely affect the company much more deeply it will challenge the operating structure and principles of all the HR-related departments. An integrated HRIS results is a drastically different environment than a cluster of related but separate systems. The core concept of a centralized data store inherent with an HRIS demands integrated work processes for consistently managing that store. The two attributes centralized data storage and integrated work processes will affect the company in ways most managers dont expect.


Evaluating And Preparing For A New HRIS Configuring The HRIS Linking The HRIS With Other Systems Preparing The Organization Supporting The HRIS EVALUATING AND PREPARING FOR A NEW HRIS

Companies go through a process of comparing and evaluating several HRIS packages using a team of analysts or managers from the various departments affected HR, Payroll, Benefits, Employee Relations, Training and so on. As this team prepares its evaluation criteria and reviews HRIS features, much is learned about the goals and values of the various departments. The HR department is looking for improved reporting of employee data, Payroll is concerned with the systems paycheck calculations and regulatory reporting, while Benefits may be looking for a more streamlined enrollment process. As this team drives deeper into the selection criteria, the members learn more about each other and may start to see the emergence of some really messy business processes. It can be a bittersweet process. The hiring process is a good example. As a person is recruited, hired and paid each department may have its own specialized system and process for managing the employee data. As the HRIS evaluation team discovers redundant processing and data storage, its members start to see ways to make the process more efficient by aligning their part of the hiring process with the requirements of the other departments. As the team evaluates an HRIS software package, it begins to get a better grasp on what the entire companys business processes are, and therefore what the company might require in an HRIS. The team will most likely find that none of the packages are an exact fit and that substantial effort is required to modify or integrate the chosen HRIS. Or if not enough due diligence and research have been done, the team may be facing this effort

and not be aware of it. This gap in planning will show itself later in the implementation phase when the project team realizes there are not enough resources time, people and money to implement the HRIS. Perhaps the most critical results of the HRIS evaluation process are that the evaluation team set correct expectations for the project and gain executive management commitment. With correct, or at least realistic expectations and an executive management team that seriously supports the teams efforts, an HRIS implementation project has a much greater chance to succeed. Most often the HRIS evaluation team members spend most of their efforts building selection criteria and choosing an HRIS, instead of setting expectations and building executive support.

Configuring the HRIS There are four primary activities in an HRIS implementation

Configuring the HRIS for the firms business processes and policies, Interfacing data with other systems Converting historical data into the HRIS, Preparing the organization for the HRIS.

An HRIS comes with built-in processes for most HR activities, but firms will need to customize the system to process according to their specific needs. For example, every HRIS supports the process of benefits open enrollment, but the system does not come delivered with a firms specific benefit providers and eligibility rules. Customizing the HRIS for this typically does not involve programming; the common activity is to enter specific data into control tables that then direct how the HRIS operates. The customizing or configuration tasks then become a process of understanding the firms business processes well enough to encode that logic into the HRIS. This mapping of business processes and policies into system control tables requires people who understand both the business process and the HRIS typically the existing IT support and HR business analysts. Due to the large amount of work, the HRIS project team usually needs these analysts fully dedicated to the project, requiring the home departments to fill the gaps in their absence. Having partially dedicated team members may cause tension since the team members have to maintain responsibilities at the home department while also fulfilling responsibilities on the project team. Either way, back-filling resources becomes a big issue if not planned for during the evaluation stage. Firms may find that the internal resource people assigned to the project do not have the skills or capabilities needed for the job. Sometimes training can resolve this, but other times the people lack basic analytical skills required for the implementation. One of the key requirements for a person to be successful on an HRIS implementation project is that he/she has excellent analysis skills. The most analytical people in HR and IT should be assigned to the project, or else the company should rely on external resources (i.e.

contractors or consultants). The project can get done this way but the more an implementation team relies on external resources the more difficult it will be for the company to become self-sufficient in ongoing HRIS support, maintenance, and operations. Many HRIS implementations include, to one degree or another, business process reengineering. As a firm documents, investigates, and discovers its true business processes, its natural that the firm also takes time to improve them, or at least integrate the processes across departments. The integrated nature of most HRIS packages drives this activity. When a process is reengineered or integrated, once-independent departments become much more dependent on each other. That dependency can increase tensions on the project team as representatives from those departments learn to trust others to do their part of the process. Or, once the project team members become comfortable with the processes they have designed, they may have a hard time selling those changes back to their departments. Most HRIS packages dont handle exception processing very well. As business processes are designed, the project team customizes the HRIS around those processes. Users will most likely find that exception cases require significant manual thought or labor to process since the exception does not fit into the business process as implemented in the HRIS. HRIS project team analysts will walk a fine line between generalization of the process to fit exceptions vs. a more narrowed implementation of the process to enforce data integrity and accurate application of HR policy. This is a great time to enforce some standards and clean-up special deals but HR managers and policymakers must be willing to support these efforts, and to help implement them. Finally, as the project team analysts dig into the current business processes, they may find that the HR users, and sometimes managers, dont really understand or know the processes well. Users may know what is done, but not why it is done. Knowing the why part is critical to getting the most out of your HRIS implementation. In most every HRIS there are two or three technical methods of implementing any given requirement knowing why something is done in a business process helps ensure the project team analysts select the best method of implementing it in the HRIS.

Linking the HRIS with Other Systems

Most HRIS project teams have a number of people assigned to converting historical data from the existing HR databases into the HRIS, as well as for interfacing the HRIS with other systems that rely on HR data. As this group starts mapping historical data to the system for conversion, most often group members will find (particularly when combining data from several existing systems to go into one HRIS) that the existing HR data contains a significant amount of invalid, incomplete, or contradictory data. As the HRIS was configured for, reengineered or streamlined business processes the existing employee data may not fit well into the system. The HRIS will demand more complete and accurate employee data. Making sense of these data conversion problems is a skill that falls to HR analysts, not the programmers writing data-conversion routines. Conversion and interfacing are not solely technical activities user consultation and input are required. Many HRIS project teams discover these requirements too late, thus increasing the demand for time from HR analysts on the project team time that the analysts most likely do not have. If the firm has a data warehouse, the HRIS data will need to be mapped to it. If the data model in the warehouse is based on the legacy HR database, the two data models may not be compatible. A lot of effort can be spent mapping the HRIS to an existing data warehouse. Or if the HRIS vendor has its own data warehouse application, the project team might be tempted to use it, but theyll still have to contend with converting existing historical HR data into the warehouse. Either way, HRIS project teams spend more effort than planned on this issue the details can get very tedious and time consuming. Replacing HR systems involves any area of the company that reads or relies on employee data. System implementation may highlight employee data privacy issues, or increase the scope of interfacing once the project team realizes just how many systems read employee data from the current HRrelated databases.

Preparing the Organization Many times it is easier for project teams to focus on technical aspects of the implementation, which is ineffective. For example, configuring the HRIS to correctly assign resident tax codes based on the employees address is easier than getting HR, benefits, payroll, and recruiting to buy into and implement a reengineered hiring process. The HRIS project team must track progress not only on the technical aspects of implementing the HRIS, but also on the softer side of managing the organization as a whole to accept the business processes that come with the HRIS. Companies typically underestimate this change-management effort. From the very beginning there must be a focus on preparing the organization and the employees for the HRIS. A HRIS, with more integrated work processes, tends to pull related departments together. Some firms recognize this as they go through the implementation process, and also implement a organizational structure with the HRIS roll-out. For example, HR and Payroll may have reported to separate areas of the company, and parts of HR business processes were scattered throughout various departments. But as a HRIS is implemented, the previous organizations are transformed to report to a single authority, and a shared-services group is established to perform the integrated work processes that were once scattered. During the implementation phase, firms should also be determining what their support model will look like what kind of organization will be required to support this HRIS? Those who study this task in detail will realize they need cross-functional support teams containing programmers (ABAP), configuration experts, and business analysts to successfully support the HRIS. But this integrated support team does not fit well into the vertical departments in most companies today. Finding a way to implement this cross-functional team is a critical success factor for the HRIS ongoing operation. All of the items mentioned so far force HR managers to become involved in what is usually perceived as an IT project. They may be accustomed to pushing responsibility for such projects onto IT managers, but implementing an integrated HRIS requires HR manager participation and active involvement in scoping, implementation, cutover, resourcing and management.

Supporting the HRIS IT support analysts may be accustomed to, and only skilled for, flat-file processing techniques. Most HRIS packages rely on relational data models, higher-level programming languages, and interactive data management presenting technical requirements for which some IT analysts may not be ready. The new HRIS may have proprietary languages or facilities, requiring new IT skills. Often these skills will be in high demand, driving a premium rate of pay. Internal resources may opt to leave the company for the higher pay, or they may demand higher pay at the company. The higher pay might be outside the HR guidelines for fair salary. The resulting dilemma can create retention problems. HR users the analysts in HR, payroll and benefits must take a more active role in ongoing support and system changes. Since business rules are often coded into the HRIS instead of resting in manual processes, the business analysts are necessarily drawn into this activity. Some firms may push this business rule knowledge to their IT support analysts, or rely on consultants who help with the implementation. Although either of those scenarios can work, HR business analysts and managers have the most to lose if the HRIS does not process transactions correctly. Placing HR analysts in system support and change roles will help ensure that the HRIS processes transactions correctly. Some companies depend too much on consulting firms or contractors to perform an implementation. Many times this happens because the firm can pay a consultant to do precisely what the firm wants to do, which is often easier than getting internal resources to do the same thing. It takes some of the pain out of change management. This can lead to a continued dependence on external resources and might be acceptable for firms that have historically relied on external resources. For others it may generate substantial internal conflict in the way of higher IT budgets or continued presence of non-employees in the HRIS support organization.


The HRIS system is composed of the Administration System and five modules namely, 201, Benefits, Assets, DTR and Payroll. Administration System is a module used to manage common data found in the other 4 modules The 201 module handles the functionalities for employee's employment data, disciplinary actions, performance appraisal transaction. It is through this module where basic inputs on employees data such as hiring, termination, promotion, change of name/civil status, change of address, among others are carried out. All in all, the HR function is still to a large degree administrative and common to all organizations. To varying degrees, most organisations have formalised 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, organisations 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). Before the "client-server" architecture evolved in the late 1980s, every single HR automation process came largely in form of mainframe computers that could handle large amounts of data transactions. In consequence of the high capital investment necessary to purchase or program proprietary software, these internally developed HRMS were limited to medium to large organisations being able to afford internal IT capabilities. The advent of client-server HRMS authorised HR executives for the first time to take responsibility and ownership of their systems.


These client-server HRMS are characteristically developed around four principal areas of HR functionalities: 1) Payroll 2) Time and labour management 3) Benefits administration 4) HR management. Payroll Module The payroll model automates the pay process by gathering data on employee time and attendance, calculating various deductions and taxes, and generating periodic paycheques 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. Sophisticated HCM systems can set up accounts payable transactions from employee deduction or produce garnishment cheques. The payroll module sends accounting information to the general ledger for posting subsequent to a pay cycle. Time and labour management The time and labour management module applies new technology and methods (time collection devices) to cost effectively gather and evaluate employee time/work information. The most advanced modules provide broad flexibility in data collection methods, as well as labour distribution capabilities and data analysis features. This module is a key ingredient to establish organisational cost accounting capabilities. Benefits administration The benefit administration model permits HR professionals to easily administer and track employee participation in benefits programs ranging from healthcare provider, insurance policy, and pension plan to profit sharing or stock option plans.


HR Management The HR management module is a component covering all 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. While using the internet or corporate intranet as a communication and workflow vehicle, the HRMS/HCM technology can convert these into webbased HRMS components of the ERP system and permit to reduce transaction costs, leading to greater HR and organisational efficiency. Through employee or manager self-service (ESS or MSS), HR activities shift away from paper based processes to using self-service functionalities that benefit employees, managers and HR professionals alike. Costly and time consuming HR administrative tasks, such as travel reimbursement, personnel data change, benefits enrolment, enrolment in training classes (employee side) and to instruct a personnel action, authorise access to information for employees (manager's side) are being individually handled and permit to reduce HR transaction time, leading to HR and organisational effectiveness. 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.


HRIS as a system provide followings functions through various modules, some of the functions are as follows:
*HR strategic planning system

*human resource planning system *manpower planning system *job profiling system *recruitment &selection system *performance appraisal system *performance management system *people development systems *career planning and development system *succession planning system *job enrichment system *compensation planning and packaging system


HR Information Systems (HRIS) have a profound effect on firms that implement them. Most often these firms are replacing several related systems, such as a personnel database, payroll system and benefits system, with one HRIS that does it all. Many people focus on the improved reporting and processing that will be realized from the system, and those are the reasons most firms choose to implement a HRIS. But what many people dont focus on is that the HRIS will most likely affect the company much more deeply it will challenge the operating structure and principles of all the HR-related departments.
HRIS provides organizational functionality, ease-of-use, flexibility

and unmatched customer service to give you the power to choose how to best manage your HR and Benefits processes. Reduce benefit costs. Improve productivity. Improve service and communications with your employees. Elevate manager effectiveness. Focus on more strategic activities.

Most importantly, HRIS don't stop at the HR department's front door. It provides full connectivity between their payroll, benefits and other providers. Less paperwork, errors or constant follow-up means you can focus more on your core business.


Other benefits

On Demand Flexibility Easy to Implement Rapid ROI Easy to Use Proven Results Easy to Customize The Power to Choose Easy to Audit Rapid Development Easy to Integrate Automatic Upgrades Straightforward Connections Secure Transactions First-class Customer Care

By connecting your employee information with all entities that require this information, you extend the strategic value of human resources beyond the four walls of the HR department. HRIS allows you to focus on people, not paper, helping you improve service to employees and managers and positively impact your organization's bottom line.


HRIS can help you project the potential impact of HR applications and services in your company. This process has helped many companies build the business case for senior management to gain comfort with an eHR investment. Using ROI analysis and benchmarking, one can evaluate their real world results from using the HRIS Network and HRIS outsourcing services. Measuring ROI involves valuing time saved, applying insight from experience and observation, and differentiating between hard (cash) and soft (opportunity) savings at the HR, manager, employee and IT levels. Whether your goal is reducing costs, playing a more strategic role, providing better service to employees or improving productivity, HRIS Best Practices can help you realize returns that meet or exceed those found by other customers areas of ROI impact HRIS customers have experienced:

Human Resources impact Employee impact Manager impact Specific strategic opportunities Explore total cost of ownership

Human Resources Impact


Forrester Research estimates that the average HR department devotes 60% to 80% of its time to the administration involved in benefits, HR and payroll management. HRIS Customers calculate and average 47% reduction in this administration time after using HRIS. Some customers reduce the time HR spends on administration by as much as 65%.

What else do they realize? 47% reduction 56% reduction 52% reduction $2.24 savings 47% reduction in time spent on HR and benefits administration. 56% reduction in time to process new and terminated employees 52% reduction in administrative time spent on open enrollment $2.24 per employee per month savings in printing and distribution costs (forms, policies, procedural manuals, summary plan descriptions, pay checks, etc.)

Employee Impact


By comparing with previous levels of resource use, HRIS customers have found (average): 57% reduction enrollment issues 8.96 hours saved gain 55% reduction with HR 55% reduction in employee time spent dealing 57% reduction in employee time spent on open

8.96 hours per employee per year in productivity

Manager Impact By comparing with previous levels of resource use, HRIS customers have found (average): 48% reduction- 48% reduction in manager time spent on HR issues 9.14 hours saved- 9.14 hours per manager per month in productivity gain 109.4 hours saved- 109.7 hours per manager per year in productivity savings

Strategic Opportunities


By comparing with previous levels of resource use, HRIS customers have found: Increased shareholder value Improved customer service Extended reporting access to management Reduced reliance on IT resources Financial contributions to budget Increased value of benefits Corporate growth facilitated Overpayments to carriers reduced



Glaxo SmithKline Consumer Healthcare: Revolutionizing the concept of HRIS The company: Glaxo SmithKline Consumer Healthcare manufactures and markets popular consumer healthcare brands like Horlicks, Boost, Viva, Maltova, Eno, Crocin and Iodex. The company has over 3000 employees scattered across 4 factories, various regional offices and branch offices across India The challenge: Lack of automation in HR processes had resulted in bottlenecks within the HR system. With the growth of the employee population and multiple sites across the country communication and interaction with employees had also become an issue. The solution: GSKCH opted for a comprehensive, centralized and integrated HR Information System (HRIS) that covered all planning modules and created automated HR workflow to address the planning and operational needs. The GSKCH team used an IT evaluation matrix and after careful evaluation and sitting through many presentations where the best of the best in the IT industry showcased their skills and capabilities, zeroed down on Wipro for the HRIS implementation. The HRIS covers functions like performance management, training and development, compensation, manpower planning, recruitment etc. The solution also includes an employee Intranet that covers all employees. The HRIS solution is closely integrated with the Intranet as well as the back-end ERP. The Intranet offers various other workflows like leave management, travel management, on-line meeting rooms/guest house bookings and a host of other features. The entire project was completed in 9 months and implemented across 8 GSKCH sites covering 1200 employees and 12 HR processes. Through this HRIS model one HR process interacts with its complementary HR processes within the GSKCH HRIS. This 'talking' of various HR modules allows the free flow of relevant decision making information, takes care of routine follow-up through its in built system of reminders and all workflow of approvals are automated in the system leading to speed and transparency.


The HRIS application at GSKCH has automated all internal HR processes enabling HR personnel to spend maximum time on analysis and decisionmaking and play a more strategic role in the organization. The impact on employees, management and HR personnel has been significant. Reduced paperwork, enhanced productivity, improved planning and decision making are the singular benefits that GSKCH has reaped. It has also helped in information sharing across employees in the GSKCH. The integrated architecture of the solution as provided by Wipro has clearly delivered the benefits of automation - giving employee and HR productivity a tangible boost.

Some other leading Companies who have implemented HRIS.

Cendant Louis Vuitton Motorola Pepsi Americas Southwest Airlines LG Phillips LCD Xerox BMW Coca-Cola Dow Corning Ericsson Hershey Nokia



In this project I have made an attempt to understand and explain the importance and relevance of having HRIS in an organization. HRIS helps in managing processes can provide demonstrable and direct benefits to the corporate bottom line. If you examine all three areas carefully in your organization, you are sure to find leakages, and maybe even some stark areas of exposure. By introducing HRIS is in any organization will solve just one of these problems. A more subtle benefit, however, is the amount of mundane, repetitive work that will be alleviated from the HR department. No doubt, in your HR department you employ a group of skilled, qualified professionals, whose abilities range far beyond the uses to which they are currently being put. By automating all of the little tasks - that quickly add up to overwhelmingly large, but not mentally stretching tasks - youll free up your quality employees to do more complex and needed planning and management tasks that will benefit the long-term growth of the organization. A good HRIS will allow the HR manager to use processes straight out of the box that mirror or improve their current way of working, without requiring months of set-up time and complex customization processes. Hence, having a HRIS in ones organization is like having a nerve system which will be beneficial for its growth and functioning.



Websites. Books

HRIS Development -- by Alfred J. Walker; Hardcover Human Resource Management Systems: A Practical Approach -- by Glenn M. Rampton, et al; Paperback Web-Based Human Resources -- by Alfred J. Walker; Hardcover Human Resources Management Tools: Guidelines for Upgrading Your HRM/HRIS Capabilities- by Edward Blair