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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) functions.
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., succession planning, 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.

A number of trends seem to have contributed to a growing reliance on computers as

information-processing and decision-aiding tools in HRM. The emergence of the human
resource management field (versus personnel administration) gave the human resource
function greater credibility within the managerial hierarchy, necessitating more sophisticated
use of information, especially as it related to the strategic management function.

Firms have experienced increased competitive pressures that have translated into greater cost
containment demands from upper management, leading to greater automation of the record-
keeping function in the HRM field. The ready availability of microcomputers and relatively user-
friendly software means, that to an increasing extent, human resource managers are no longer
dependent on information system professionals to develop and implement applications (which
might be assigned a lower priority than other management functions). Many HRM departments
in larger organizations have also developed internal information system capabilities, so that
HRIS units have been established.

Another important factor has been the development of numerous HRIS products by external
vendors. There are several full-featured, human resource-dedicated database management
systems available. Many of these utilize client-server architectures, where databases reside on
a central server and are accessed from individual workstations, connected to a network, via
local client applications. There is also a trend toward enterprise-wide applications that integrate
information system applications for various managerial functions (e.g., marketing, finance,

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human resources), which facilitates communication across functional areas, economizes on
information system development at the enterprise level, and allows firms to collate information
from multiple sources to facilitate strategic planning at the business unit and corporate levels.

Specialized software, intended to supplement HRIS, is also widely available. These include
modules to aid in such areas as succession planning, benefits administration, applicant tracking,
job evaluation, employee performance evaluation, grievance handling, and labor relations.
These products, coupled with declining costs and the increasing user-friendliness of computer
applications, have meant that the use of HRIS is increasingly attractive to HR practitioners.

As a result of the rapid change in computer and software technology, HRIS-related products are
constantly upgrading and changing. 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 components by utilizing
firewalls.

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.

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In a time of dynamism and constantly evolving technology, HR managers need to be aware of

the technology that will increase effectiveness of their company. Human resource information
systems (HRIS) was first introduced at General Electric in the 1950s, but since then it has come
a long way. HRIS has gone from a basic process to convert manual information keeping systems
into computerized systems, to the HRIS systems that are used today. Human resource
professionals foresaw the possibility of new applications for the computer. The idea was to
integrate many of the different human resource functions. The result was the third generation

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of the computerized HRIS; a feature-rich, broad-based, self-contained HRIS. The third
generation took systems far beyond being mere data repositories and created tools with which
human resource professionals can do much more.

Many companies have seen a need to transform the way Human Resource operations are
performed in order to keep up with new technology and increasing numbers of employees.

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The efficiency of HRIS is that the systems are able to produce more effective and faster
outcomes than can be done on paper. Some of the many applications of HRIS are: Clerical
applications, applicant search expenditures, risk management, training management, training
experiences, financial planning, turnover analysis, succession planning, flexible-benefits
administration, compliance with government regulations, attendance reporting and analysis,
human resource planning, accident reporting and prevention and strategic planning. With the
many different applications of HRIS, it is difficult to understand how the programs benefit
companies without looking at companies that have already benefited from such programs.

One such company is IBM. IBM has a paperless online enrollment plan for all of its employees.
Not only has the online enrollment saved the company 1.2 million per year on printing and
mailing costs, the employees enjoy working with the online plan. "Since we began offering
online enrollment, we've learned that employees want web access," Donnelly [Senior
Communications Specialist] says, so they can log on at home rather than through the company
intranet. So the company has been working to put in place a web-based enrollment system that
employees and retirees can access from anywhere (Huering, 200D). By utilizing the flexible-
benefits application HRIS has to offer, IBM was able to cut costs and give employees the
freedom to discover their benefits on their own time and pace.



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An effective HRIS provides information on just about anything the company needs to track and
analyze about employees, former employees, and applicants. Your company will need to select
a Human Resources Information System and customize it to meet your needs.

With an appropriate HRIS, Human Resources staff enables employees to do their own benefits
updates and address changes, thus freeing HR staff for more strategic functions. Additionally,
data necessary for employee management, knowledge development, career growth and

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 development, and equal treatment is facilitated. Finally, managers can access the information
they need to legally, ethically, and effectively support the success of their reporting employees.

The Human Resources Information System provides details on administration, payroll,

recruitment, and training. This system is expected to deliver valuable results to your human
resources division and your organization as a whole. It is an essential tool that aids
management in making strategic decisions.

An HRIS can prove to be beneficial in the following ways:

Úc Management of all employee information

Úc Reporting and analysis of employee information
Úc Company-related documents such as employee handbooks, emergency evacuation
procedures, and safety guidelines
Úc Benefits administration including enrollment, status changes, and personal information
updating
Úc Complete integration with payroll and other company financial software and accounting
systems.
Úc Applicant tracking and resume management.

The HRIS tracks:

Úc Attendance and PTO use

Úc Pay raises and history
Úc Pay grades and positions held
Úc Performance development plans
Úc Training received
Úc Disciplinary action received
Úc Personal employee information, and occasionally
Úc Management and key employee succession plans
Úc High potential employee identification
Úc Applicant tracking, interviewing, and selection
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The evaluation determines whether or not the system has performed up to its expectations and
if it is being used to its full advantage. One of the most significant challenges faced by personnel

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executives today is measuring the performance of their human resources information system in
order to justify the value-added contribution of the HRIS to accomplishing the organization's
mission. Implementing an HRIS program may seem a necessary stem for a company, but unless
it will be an effective tool for HR operations, it will not help increase efficiency and may hinder
it instead.

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The privacy of employee information has become a major issue in recent years. Globally
identity theft has become a common problem; therefore employees are becoming more
sensitive about who sees their personal information, and the security it is kept in.

By making sure employee information that is kept in the HRIS is relevant to the company and
making sure there is limited access (password protection) to such information, companies can
make its employees more secure with the safety of their information. Whether electronic or
paper, employee files deserve to be treated with great care.

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HRIS is usually fused with information technology to focus on human resource management.
The system consolidates computerized employee data into one data bank. It also updates prior
and future decisions according to the company's human resource management plan. HRIS also
makes it possible for online users to view an employee's history with the company, personal
profile and benefits.

Before implementing it, you should first Identify all the tasks and resources needed for
completion. Use a time line and your plan for weekly project monitoring.

It is step-wise process that includes the project plan, system installation, overview training,
system customization and work-flow improvement followed by data conversion, data entry and
audit, report development, system administration, and communication to the organization.

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Who Will Perform HRIS Implementation is as Important as the Software You Select. Human
Resource (HR) managers and staff go through a great amount of effort to find and select the
Human Resources Information Systems (
) that will best meet their needs. The problem is
that they rarely apply enough effort into choosing who will implement the software. In any

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profession there are those with experience and those without, and there are those who are
good at their jobs and those who are not. Unless you ask the right questions and demand
information up front, you have no idea if the person installing your HR product has ever done
so before or is qualified to handle your organization͛s unique HR Information Systems
requirements. It is extremely important that you put the same effort into picking who will
handle the implementation that you applied to selecting your HRIS application.

Choose professionals that have dealt with implementation a number of times because until
they have performed a large number of installs they may not be able to handle all the pitfalls
and issues that inevitably arise. It is also a good idea to ask for references about the individual
who will be working on your HRIS implementation, just as you would ask for references about
an HRIS software product before purchasing it.

 


Now that you have verified that the HRIS implementation consultant or staff are qualified to
handle the job, you need to make sure that both sides are in full agreement as to what is
included in the scope of the project. Avoidable misunderstandings regarding expectations
create cost overruns and can lead to poor implementations. Make sure everything is in writing,
you should be provided with a detailed list of project requirements and an estimated time of
completion for each.

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HRIS Implementation projects are typically quoted either daily or by the project. Project costing
done in the form of budgeting, has some advantages; because you know you most likely will not
go over the quoted amount unless needs arise that are outside of the project͛s original scope.
The disadvantage of project costing is that companies are going to charge you a higher rate
since they have to quote the project on the high side. Daily or hourly quotes for consulting are
fine, but make sure to get a detailed plan on the consulting time.

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Before you begin the implementation, make sure all information and data the consulting staff
will need is ready to go. There is nothing worse than a consultant (that you are paying on hourly
basis) is doing nothing while waiting for data on benefits plans.

This can become such a problem that the entire project can go off-schedule since there can be
no implementation until all needed data and information for the implementation is received.
Also make sure that anyone the consultant or implementation team will work with is available


during the process (IT staff especially - make sure they know when their services will be
needed). If you have to close the department or limit the hours for accessing HR, do so.

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As an HRIS system implementation is taking place the customers are learning more and more
about the capabilities of their new  
. Make sure you do not get off track with work
that is outside the scope of the project. The most important thing is that you have the base
system setup and your staff trained on the HR product; push off anything extra or ͞nice haves͟
until the basics are completed.

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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 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.

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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.

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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 the human resource department very
easy and simple as everything is available on a 2åx basis, and all the information is just a click
away.

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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.


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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.

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A human resources information system (HRIS) reduces paperwork allowing business processes
to function productively and cost efficiently in a web-based environment. The system also
allows an agency real-time capability to enter, update, maintain and secure employee data
while adhering to policies and regulations

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Human resources specialists are responsible for providing management with consultation in
areas such as employee turnover, disciplinary action and performance issues. Real-time access
to employee information including demographics, compensation, performance reviews and
leave balances is vital to providing the best service possible. HR also holds responsibility for the
accurate and timely entry of a variety of personnel actions ranging from new hires and
promotions to resignations and retirements. An automated method allows these actions to
proceed as expeditiously as possible from the initial request to the transmission to payroll.
Since there are approval requirements at various levels, an automated process facilitates
electronic signatures. An HRIS also assists an agency in creating and maintaining employee
position and compensation records to build historical data and move towards a paperless
environment.

 
 

Reports are often requested from management as well as external customers like state and/or
federal government. Report inquiries include those regarding hiring practices (EEO and Vets-
100), staffing allocations, pay levels and retirement eligibility dates. The ability to create and
distribute ad hoc reports as needed is vital to an agency's strategic planning process and
government compliance. Time and attendance reports are also available to assist management
with leave administration. In some instances, the ability to generate reports is delegated
directly to management. Those reports can be in a predefined or customizable format.



  

A human resources information system is regulated to engage in compliance and oversight
activities to protect critical information and control access to data at all levels. The system also
incorporates system edits to reduce the risk of inaccurate input and eliminate duplication. A
centrally-managed HRIS allows an agency to define rules to ensure the quality of data entered
into the system.

 
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Perhaps the biggest benefit that the use of an HRIS system adds to a business is its ability to
create reports and presentations. An HRIS system typically holds all information surrounding
the firm's human resources initiatives, including details regarding the group's hiring practices,
such as a comprehensive listing of all job applicants, an up-to-date index of job openings and
electronic copies of each employee's onboarding paperwork, such as I-9 and W2 forms. It also
holds data regarding the salary and incentive compensation of each staff member. Results of
annual performance appraisals and any disciplinary actions that have been taken toward
members of the team are included, as well. Because these figures are held in one database, a

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business owner possesses the capability of running a variety of detailed reports that encompass
some or all of this information. For example, when looking to hire additional staff, he can run a
report of past candidates who possess a specific skill set. Alternatively, he can run a
compensation report to obtain needed information when preparing the annual budget.

 
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In support of a firm's staffing efforts, many HRIS systems provide a sophisticated interface
allowing its use by both internal employees, as well as external job applicants. An HRIS system
allows candidates for open positions to submit their resumes and contact information to a
potential employer from a remote computer. The system then collects the information and
archives it so it is easily accessible by the hiring manager. When seeking candidates, the
manager is able to perform detailed searches of collected resumes, using a variety of queries,
including location, level of education, years of professional experience and technical skill set. In
addition, the software also allows current employees to electronically apply for new positions.

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An HRIS system allows a business to streamline the administration of employee benefits. In
many cases, employees and new hires may electronically enroll in benefit plans. They may also
have the capability of logging onto the system to monitor and update their current coverage
throughout the year, changing status, dependent information and contact data as required. A
self-service system allows for benefits to be efficiently administered with as little manpower as
possible, saving an organizations time and money.


  
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When an organization collects personal data about its employees in an HRIS, certain security
risks may arise. An organization spends funds to keep employee private information secure
against internal and external threats. One disadvantage of an electronic HRMS is that an
organization must collect information about who accesses employee private information. This
data requires follow up with an audit process, which could result in disciplining or prosecuting
an employee who accesses employee data without authorization or without an official purpose.

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The need for data control is another potential disadvantage of an HRIS. This data control
extends beyond unauthorized access of employee private information. An organization using an
HRIS must employ its own set of technical staff to program, troubleshoot, update and support
the system. While an HRIS may help an organization reduce the cost of HR personnel, it could
increase the requirements for technical staff with knowledge specific to the HRMS solution.

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An HRIS is also only as good as its human programmers and end users. People with high-level
access, such as people who update an HR master file, may enter the wrong information
deliberately or in error. If data is improperly updated, changed or lost, an organization can face
government fines and other costs associated with damage to the HR master file. Pick a system
with lots of internal controls so that one employee cannot make changes to your company's
master file.

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Performance appraisal systems began as simple methods of income justification. That is,
appraisal was used to decide whether or not the salary or wage of an individual employee was
justified. The process was firmly linked to material outcomes. If an employee's performance
was found to be less than ideal, a cut in pay would follow. On the other hand, if their
performance was better than the supervisor expected, a pay rise was in order.




The employees͛ performance judgment process gets smoother and efficient by using HRIS
which solely helps in the integration of all the functions regarding the companies procedures
and policies inclined with employees performance and response towards those set rules and
standards.

HRIS has a strong impact on business strategy and also directs the manager towards
achievement of the goals effectively. It does not only enhance employee productivity but also
analyzes the degree of job satisfaction from employees. It increases knowledge of the
managers about the ongoing performance, behaviors, perception of the employees for a
specific task. Outcome of workshops, absenteeism, turnover etc., are one of the many other
factors which can be identified and known through integration of HRIS.

 

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The adoption of an HRIS may yield enumerable advantages, it can be a source of great
assistance that leads to efficiency, but it should also be kept in mind that measures should be
taken to keep a check and balance. One should not assume that if there is automation there is
no need for monitoring. Rather there is a need to monitor and evaluate evermore, also periodic
changes should also be brought to the system in order to adapt to the companies
requirements.

Lastly, means to ensure complete security of employee data should be taken at every step.
Employees should also be trained every step of the way, in order to keep up with the
transforming organization.

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