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INFORMATION SYSTEM
(HRIS)
GROUP:
HARSIMRAN JASS D 56
ROSHNI PATEL D 15
VINAYAK KHARE D 48
NITIKA KATARIA D 13
VARUN SEONIE D 32
RAGHAV SARDANA D 28
SHAILENDRA KANDHARI D 58
AN INTRODUCTION TO HRIS
Human Resource Information System (HRIS) is a systematic way of storing data and information
for each individual employee to aid planning, decision making, and submitting of returns and
reports to the external agencies. It is an online solution for the data entry and tracking of a
company's human resources department information, payroll, management, and accounting.
A human resource information system (HRIS) is defined as a computer based application for
assembling and processing data related to the human resource management (HRM) function.
As in other types of information systems, an HRIS consists of a database, which contains one or
more files in which the data relevant to the system are maintained, and a database
management system, which provides the means by which users of the system access and utilize
these data. The HRIS thus contains tools that allow users to input new data and edit existing
data; in addition, such programs provide users with the opportunity to select from an array of
predefined reports that may either be printed or displayed on a monitor. Reports may address
any of a number of different HRM issues (e.g. compensation planning, equal employment
opportunity monitoring). HRISs also generally include tools by which users or system
administrators may generate ad hoc reports and select specific cases or subsets of cases for
display.
It merges HRM as a discipline and in particular its basic HR activities and processes with the
information technology field.
It can be used to maintain details such as employee profiles, absence reports, salary
administration and various kinds of reports.
An effective HRIS provides information on just about anything the company needs to track and
analyze about employees, former employees, and applicants.
resource functions.
Meeting daily transactional requirement such as marking absent and present and
granting leave.
Supplying data and submitting returns to government and other statutory agencies.
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LITERATURE REVIEW
Human Resource Information Systems (HRIS) have become one of the most important tools for
many businesses. Even a small office needs to realize the benefits of using HRIS to be more
efficient. Many firms do not realize how much time and money they are wasting on manual
human resource management (HRM) tasks until they sit down and inventory their time. HRIS is
advancing to become its own information technology (IT) field. It allows companies to cut costs
and offer more information to employees in a faster and more efficient way.
Especially in difficult economic times, it is critical for companies to become more efficient in
every sector of their business.
HRIS refers to software packages that address HR needs with respect to planning, employee
information access, and employer regulatory compliance. The following text begins with a
discussion of human resource planning, followed by human resource management systems.
The HRM field lagged behind a number of other functional areas of management in the
utilization of computer applications, but beginning in the late 1980s extensive use of
sophisticated applications began to appear. Prior to that time, manual record systems often
dominated in personnel or human resource departments. Computer applications used in the
field were generally limited to basic record keeping and payroll management systems. Virtually
all such systems were based on mainframe computers and required extensive support from
information systems professionals. Thus, human resource managers had little opportunity to
design sophisticated reports and computer-based analytical tools to aid in managerial decision
making. In general, uses of computers in HRM fell into the category of electronic data
processing applications, which generally involve the automation of relatively routine tasks (e.g.,
calculating pay and printing checks).
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departments in larger organizations have also developed internal information system
capabilities, so that HRIS units have been established.
Perhaps the most significant development in the HRIS area currently is the growing use
of organizational intranets as a means of managing many aspects of a firm's HRIS. An
intranet is an internal network that makes use of World Wide Web technology
(browsers, servers, etc.) to gather and disseminate information within the firm.
Intranets may be linked to the external Internet, but are usually secured in a variety of
ways so that only authorized users can access the information on the internal
SIGNIFICANT ACHIEVEMENTS
components. While it is quite easy to generate static extracts of HRIS data tables,
queries, forms, and reports for posting on an intranet, it is also quite feasible to
establish live links between an intranet and a firm's HRIS. This allows real-time collection
and display of information. Thus employees can complete forms online that enroll them
in benefits programs, allow them to bid on job openings, let them submit suggestions,
and facilitate filing of various claims. In addition, intranet displays can be tailored to the
needs of specific users. The user may check on the current status of his or her fringe
benefits, vacation time, training program enrollment, or pension fund. Intranets
obviously require extensive security measures to prevent inappropriate changing or
accessing of data. The issues seem to have been addressed, however, and HRIS products
are increasingly emphasizing their functionality in intranet environments.
Another variant is the extranet. Again, relying on World Wide Web technology, such
systems allow organizations to interact with clients in a secure environment that mimics
the Internet. Thus a health insurance company might establish an extranet that links to
the intranets of its major clients. Employees in client organizations can then connect to
the insurance vendor's extranet from within the employer's intranet environment in
order to check on the status of their policies, obtain coverage information, file claims,
and follow-up on outstanding claims.
Human resources operations challenge organizations with a dualistic yet interdependent set of
outcomes. One summons organizational change that may be perceived as a threat to the status
quo, while the other set of outcomes gives highly valuable potential benefits for organizational
performance. This paradox stems from the requirement for U.S. businesses to improve
productivity from their skilled workers in order to satisfy the demand shift from manufacturing
to technological and intellectual innovations (Cascio, 1998; Robbins, 1998). This transformation
means that both organizational productivity gains and competitive advantage depend on high
quality worker competence. In other words, increasing productivity through people is now
paramount. Consequently, essential human resource functions have recently become even
more critical to general organizational well-being.
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To achieve these complex objectives, many organizations have turned to information systems
technology (Haines, & Petit, 1997; Richards-Carpenter, 1997; Simon, & Werner, 1996). The
reliance on technology has deceptively been prompting the false assumption that HRIS is
synonymous with computerized human resource information systems. In reality, computer
technology is not required for a successful HRIS function, and many HRIS activities still defy
computer automation (Grossman, & Magnus, 1988; Haines, & Petit, 1997; Simon, & Werner,
1996). Nevertheless, computer based information technology serves as a tremendous tool for
operationalizing HRIS applications. Many related tasks such as rapid information dissemination
and feedback would be impractical or impossible without computerized support (Benjamin, &
Benson, 1986; DeSanctis, 1986; Haines, & Petit, 1997).
With this major charge, information systems technology has introduced wide spread
implementation of human resource information systems that more fully allow organizational
members to participate in information sharing and decision-making. Indeed, past studies have
shown that over 90 percent of organizations have a formalized and separate HRIS department
or an equivalent function (Cholak, & Simon, 1991; Richards-Carpenter, 1997). Nearly all
organizations have actually implemented some form of HRIS Anonymous, 1996; Richards-
Carpenter, 1997). However, these applications vary widely from organization to organization,
and there is equal diversity in the resultant benefits (Cholak, & Simon, 1991; Haines, & Petit,
1997; Richard-Carpenter, 1997).
Preliminary research shows that successful HRIS operations are identified by such outcomes as
organizational competence; i.e, meeting strategic goals (Thomas, 2001; Pierce, & Newstrom,
2002). Furthermore, successful HRIS functions support such key processes as executive
decision-making, employee training, technology selection, interdepartmental integration, and
organizational reporting structures (DeSanctis, 1986; Haines, & Petit, 1997; Richards-Carpenter,
1996). While such studies provide valuable insights into HRIS implementation, their
generalizability is limited due to the absence of a comprehensive foundation in which to
contextually base these findings (Kovach, & Kathcart, 1999; Kuhn, 1996; Weick, 1979).
All indications are that HRISs will continue to play an increasingly important role in the HRM
field. An important driving factor is that HRISs facilitate process reengineering in the HRM area,
thus promoting greater efficiency. Functions that, once, were carried out manually and in many
steps can often be largely automated. And the business firm's continuing demand for
information to facilitate planning and strategy formulation will necessitate further reliance on
HRISs. Finally, the linking of HRISs to organizational intranets is apt to gain in popularity as a
relatively inexpensive and appealing means of gathering and distributing human resource
information.
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PROCESS OF HRIS
Step 1. Inception of idea: The idea for having an HRIS must
originate somewhere. The originator of the idea should inception of idea
prepare a preliminary report showing the need for an HRIS
and what it can do for the organizations. feasibility study
Step 2. Feasibility study: Feasibility study evaluates the
selecting project team
present system and details the benefits of an HRIS. It
evaluates the costs and benefits of an HRIS.
defining requirements
Step 3. Selecting a project Team: Once the feasibility study
has been accepted and the resources allocated, a project vendor analysis
team should be selected. The project team should consist
of HR representatives who are knowledgeable about the package contract negotiations
organization’s HR functions and activities and about the
organization itself and representatives from both training
management information systems and payroll. As the
project progress, additional clerical people from the HR tailoring the system
department will be needed to be added.
Step 6. Package contract negotiation: After a vendor has been selected, the contract has been
negotiated. The contract stipulates the vendors’ responsibilities with regard to software ,
installation, service, maintenance, training and documentation.
Step 7. Training: Training beings as soon as possible after the contract has been signed. First,
the members of the project team are trained to use the HRIS. Towards the end of the
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implementation, the HR representatives will train managers from other departments in how to
submit information to the HRIS and how to request information from it.
Step 8. 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 vendor’s package,
because modifications frequently cause problems. An alternative approach is to develop
programs that augment the vendor’s program rather than altering it.
Step 9. Collecting data: Prior to start-up of the system, data must be collected and entered
into the system.
Step 10. Testing the system: Once the system can been tailored to the organization’s needs
and the data is 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. All the
reports should be critically analyzed for accuracy.
Step 11. 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. Though the system has been tested, some
additional errors often start-up.
Step 12. 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 to examine its accuracy.
Step 13. Maintenance: It normally takes several weeks or even month for the HR people to feel
comfortable with the new system. By this time errors are adjusted and handled.
Step 14. Evaluation: After the HRIS has been placed for a reasonable length of time, the system
should be evaluated for the successful survey in the organizations.
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MODEL OF HRIS
INPUT SUBSYSTEM
HR research subsystem:
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HR intelligence subsystem:
OUTPUT SUBSYSTEM
HR acquisition system:
The functions involved in this system are human resource planning, recruitment,
selection and placement.
HR development system:
Appraisal system:
Appraisal involves evaluating an employee’s quality and performance for
devising suitable compensation package training, promotion, demotion etc.
compensation involves determining the incentives, benefits etc.
Compensation management:
It is concerned with designing and implementing total compensation
package. Compensation is referred to as money and other benefits received
by an employee for providing services to his employer like provident fund,
gratuity, insurance scheme and other payment.
HR maintenance system:
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Industrial relation system:
Training Projects
• Economic trends
Manpower planning
• Industry forecasts
• Manpower demand forecasts Pension fund investments
STRATEGIC
Internal Reporting
Benefits programs Absentee rates
Compensation programs Human resources accounting
Insurance programs Productivity assessments
Employee demographics External Reporting
OPERATIONS
Position description Equity monitoring
Vacancy reporting
Health & safety reporting
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USAGE AND BENFITS OF HRIS
NEED:
Costly exercise:-
Personal records, when kept manually, do not offer up-to-date information at short
notice. It was difficult to make entries. The clerical involved is quite labor-intensive and
costly.
Inaccurate:-
NEED OF AN HRIS
The manual transfer of data from one record to another may increase the chances of
errors.
Fragmentation:-
Information is not available at a central, easily accessible place since records are kept at
different locations.
Difficult to analyze:-
The manual analyzes of data is time consuming and quite often not readily available for
decision making purposes.
When the organization grows in size the manual system fail to offer reliable, accurate
data at short notice.
HR Performance
planning USES appraisal
Career planning - System must be able to provide with succession plans reports to
identify which employee have been earmarked for which position.
BENEFITS:
Higher Speed of retrieval and processing of data
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Improved quality of reports
ADVANTAGES
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.
various deductions and taxes on salaries, generating automatic periodic paychecks and
handling employee tax reports. With updated information this system makes the job of
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.
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.
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HR MANAGEMENT
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.
HRIS TRACK
EXAMPLES
WITHOUT HRIS:
PERFORMANCE EVALUATION
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• Re-write results to the computer or file them
WITH HRIS:
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WITHOUT HRIS:
WITH HRIS:
Define company
specific leave admin
processes
Online leave
application form
Online leave
approval/Rejection
History info captured
Leave balance reports
generated by the
system
Saves strategic
resources
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COMPANY ILLUSTRATIONS
SHAW’S SUPERMARKET
The Situation:
Shaw’s Supermarkets is the second largest supermarket chain in New England. With a
workforce of 30,000 located at 180 stores throughout six states, Shaw's HR staff is responsible
for managing employees' personal data. Their employee mix includes approximately 70 percent
part-time employees, consisting of students, senior citizens, second-job part-timers, and career
part-timers. One third of the workforce is made up of union associates, and Shaw's staff
oversees the company's involvement with three unions and six separate contracts (Koven,
2002). In order to help manage the workforce, the HR staff became interested in centralizing its
HR operations.
The Response:
The Outcome:
Shaw’s has had positive feedback since implementing the ESS solution. "The reaction from our
employees has been extremely positive," Penney, VP of Compensation and Benefits, says. "We
even had a significant increase in our medical coverage costs, and it was almost a non-issue
because the online enrollment featured the plan choices, the employee cost, and the company
subsidy. An employee self-service application makes it very easy for them to understand their
contributions and coverage options. I received several e-mails from employees saying this was a
great change and how easy ESS was, which the case is not often when employees are selecting
their benefit options." (Koven, 2002). By giving the employees more access to their information
they are able to see the benefit choices available to them. Employees are also able to update
their information online, which helps reduce the paperwork of the past. Shaw’s has also seen
improvement in productivity because employees are updating information at home, not during
work hours.
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AMERIPRISE FINANCIAL
The Situation:
The Response:
Ameriprise Financial had to fight back and had to implement “layers of protection.” It is
important for employees who their primary business computer, and employees regularly
transport the computer between home, office, and meeting sites. The vulnerability of this
arrangement and the need for a safety software program is much needed.
The Outcome:
Employees who are transporting lab tops should install the Steganos Security Suite on their
computer. This software allows employees to create an encrypted virtual drive on the laptop
that serves as data storage safe. Employees stores all client related data and tax preparation
software database on the encrypted drive, which employees has set up with one gigabyte of
storage space. The best thing is that when an employee turns off the computer the information
is stored “safe”, the software automatically encrypts the virtual drive’s data. The software also
generates encrypted backup files, which employees store on CDs in a fireproof safe. This should
keep the data secure if any employee’s laptop is stolen or if the drive is removed from the
laptop. Other financial advisors are relying on encryption both in and out of the office. Other
programs that are being used to protect client’s information are RAID Level 1 system to store
data on the drives that are encrypted with WinMagic’s SecureDocs software. Encryption
ensures that anyone who steals the computer will be absolutely unable to read the data, even
by connecting it to another computer as a “slave drive. This has given many financial advisors
the greatest peace of mind.
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TERASEN PIPELINES
The Situation:
Terasen Pipelines is a subsidiary of Terasen Inc. located in Vancouver, Canada and is located in
several provinces and U.S. states. In 2001 the company changed its headquarters to Calgary to
be closer to the oil. With the big move, the company went through a growth spurt. With the
company in many different locations and the growing numbers of employees, the HR
department saw a need to find a new system to keep more accurate records.
The Response:
In the past Terasen had kept records on paper and with spreadsheets and with the growth of
the company, this system does not work as well as in the past. In order to compensate for
future growth, Terasen began to look into HRIS companies to help with the HR operations. After
researching different companies, Hewitt’s application service provider model with eCyborg was
found to be the right fit.
The Outcome:
Although there was difficulty adapting to a new way of recordkeeping, Terasen was able to find
a system that will help support the current and future growth of the company. Fortunately,
some of the HR staff had experience working with an HRIS and were able to help their
colleagues imagine new processes, as aided by a system. One theme often voiced throughout
this process was: "You guys don't know how hard we're working when we can make it so much
easier with a system that could do a lot of this for us. You don't always have to run to the
cabinet for the employee file just to get basic information. It can all be at your fingertips." (Vu,
2005). In order to help Terasen ease the HR burden of implementing a new HR system, the
management of Terasen was convinced to look for a vendor to help implement and maintain a
HRIS system. This system has helped Terasen better prepare for current and future growth.
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LIMITATIONS
It can be expensive
Its effective application needs large-scale computer literacy among the employees responsible
for maintaining HRIS.
Computer systems are only as good as the data they have to work with, so if a public agency or
company starts out with bad information, there's not much a new system can do about it.
Small firms are internally incapable of HRIS applications and hence they need the help of
external resources.
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CONCLUSION
HRIS is considered a strategic way to develop a new philosophy towards the way in which
people are managed in an organization. Many decision making strategies are based on HR
analysis, which is used to determine whether current HR capabilities are congruent with the
desired organisational objectives. The development of HRIS applications that cater to the needs
of human resources is very important. From a broader perspective, an HRIS yields a well
managed business with better informed employees. The implementation of HRIS applications
results in two benefits:
By automating Human Resource practices, HRIS saves time and money, effectively
reallocates work processes and thus provides competitive advantage and adds strategic
value to the organization.
HR managers must make use of HRIS to achieve improved performance and removing
routine administration allows them to become professional consultants to the rest of
the organization.
Comprehensive HRIS provides the needed information within the shortest period and at
reduced cost.
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