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CHAPTER 2

REVIEW OF RELATED LITERATURE

This chapter provides related literature and studies with relevance to the

proposed system for Saulo Surplus Center. This chapter also discusses further the

importance of Human Resource Information System (HRIS) in a company and its

strengths and weaknesses.

Local Literature

Technology has become a large part of every business around today ranging

from ticketing system to online ordering systems; everything around us is more efficient

and time saving with the help of computers. Computerization of tasks makes the

business more productive and less hassle. It also has brought a new way organizing

and storing information in about every aspect of the company.

Computerization is a process of incorporating radically different work patterns

with powerful new software and hardware systems that can route date through the

corporate catacombs with a lightning speed (Hufana, 2004).

Computerization has become an integral part of Human Resource Management.

Indisputably, it has been the greatest contributor to make work easier. It has taken loads

of work and gave time for people to focus more on other aspects. It has brought a new

medium in which everyone can take advantage.

The computer has been a necessity for quite some time now and it will still

continue. Technology never seizes, so does the urge of human being to find more

solutions to make life in the office simpler and more manageable. Managing files will be

easier with a computer than with a manual system.


An HRIS helps the organization achieve their goals, increase the level of

employee performance, save costs through the improved efficiency and productivity of

workers, and the ability to manage change (Decena, 2008).

The government and the private sector saw the need for technology to aid with

their tasks, especially in human resource.

The dramatic changes in the 21st century such as globalization and rapid

changes in the technological world has also seen changes on how human resource are

best managed and organized. Human resource is the most important asset to an

organization’s success.

The human resources approach is developmental. It is concerned with the

growth and development of people toward higher level of competency, creativity, and

fulfilment, because people are the central resource in any organization and any society

(Purisima, 2001)

The need for a computerized HRIS is heavily needed today. Since every

company needs more time producing accurate reports, a computerized HRIS is surely

needed to the time consumed making these reports.

“Human Resource processes depend heavily on spreadsheets and paper

records. Resumes and employee files are maintained in hard copies, and the employee

roster and worker’s compensation information were tracked on spreadsheets.

Employee’s records are frequently lost, and data inaccuracy led to payroll going to the

wrong departments and employees appearing in the wrong cost centers.” (Hufana,

2004)
The Human Resource Information System is an integration of hardware, software

and peopleware. (Purisima, 2001)

The statements above are more likely similar to the case of Saulo Surplus

Center. Manual HRIS systems are time consuming and prone to risks that may cause

inefficiency and delays. The company needs to integrate hardware, software, and the

people involved in the process of Human Resource Management. Incorporating the

right software to the hardware will let the processes be more efficient and time saving.

This will also lower the risk of losing valuable data that is vital for the employees. A

computerized HRIS will be able to access employee files and records faster than

manual HRIS.