BBR 3203: HUMAN RESOURCE INFORMATION SYSTEM NOTES

Introduction

Human resource information system (HRIS) is a computerized system that assists in the
processing of HRM information. It is “a fully integrated, organization wide network of HR
related data, information, services, databases, tools and transactions”. It can also be referred to as
e-HR- Electronic Human Resource. HRIS software provides a centralized repository of
employee master data that the human resource management needs for completing core human
resource processes. HRIS is designed to quickly fulfill the personnel information needs of the
organization with almost no additional expenditure of resources. Its highly technical features
permit an organization to track most information about an employee and about jobs and retrieve
that information when it is needed. HRIS has been useful for storing employment training and
compensation information on each employee.

An HRIS stores, processes and manages employee data, such as names, addresses, national IDs
or Social Security numbers, visa or work permit information, and information about dependents.
It typically also provides HR functions such as recruiting, applicant tracking, time and
attendance management, performance appraisals and benefits administration. It may also
feature employee self-service functions, and perhaps even accounting functions.

In some ways, an HRIS can be considered a smart database of employee information. The
interaction of the data, the processes that can be performed and the reporting capabilities make
the data stored in the system more accessible and usable.

Reasons for adopting HRIS

1. To improve HR services
2. Cost cutting and operational efficiency
3. Desire of HR function to change the nature of its relationship with employees and line
managers.
4. To transform HR into a customer focus and responsive functions
5. To offer services that fit the new world of work and are attractive to current and future staff
6. Increase access to HR data

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7. To streamline and standardize processes
8. To provide more consistent and accurate data
9. Provides a higher profile for HR

Purpose of HRM record and computerized information system

1. To improve quality of information available

2. To reduce administrative burden on the HR department
3. To improve speed on which at which information is available
4. To improve flexibility of information to support business planning
5. To improve services to employees
6. To produce HR metrics
7. To aid human capital reporting
8. To improve productivity
9. To reduce operational costs
10. To manage peoples working time more effectively

Key functional areas

An HRIS provides a comprehensive set of human resource management functionalities to serve

most HR needs. Without this, unsecured or paper-based documents or spreadsheets are required
to store data. Manual data entry can cause errors and manual cross-checking of documents and
spreadsheets can be time-consuming and sometimes confusing, especially with a lack of
standardization in how data is captured and stored.

Even when a specific system is purchased to cover a process, such as benefits administration, it
may mean manually entering employee data changes to keep the system up to date. If multiple
systems are used, data re-entry may be required for each system, or users may need to export
data from one system, change it and then import it into another system. If an organization so
wishes, payroll can be part of HRIS. However, many vendors sell payroll as a separate system
that integrates with their HRIS. The following are key function areas that an HRIS can perform:
1. Absence management
2. Training and development
3. Rewards
4. Managing diversity
5. Recruitment and selection

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6. Payroll administration
7. Appraisal/performance management
8. HR planning
9. Knowledge management
10. Expenses
11. Employee self service

Requirements of a good record system

 Involve end users and other stakeholders in the decision making process
 Make sure you really know what you need now ,and what you are likely to need in the near
future so you can give clear guidelines to the software provider
 Include a member of staff with IT expertise on the decision making team , even if they are
not HR professionals
 Go for something clear and straightforward that adds value. Don‟t go for all the „bells and
whistles‟; they may cost more, take more time to administer and you might end up not using
them.
 Evaluate the range of systems on offer in terms of how they report and how easy and quick it
is to produce the types of report you need on a regular basis. Look at how reports are
presented, can you download them in an excel spreadsheet or into access so you can
manipulate the data yourself? How easy is it to do a mail merge with the information
reported?
 When buying an off-the-shelf system, don‟t customize it unless its critical. Each time the
system is upgraded, it‟s these modifications that may cause you difficulties. If you do have
modifications, budget for these to be managed on an ongoing basis.

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Steps required in introducing an HRIS

Identify areas to be
covered by the system

Assess benefits and

costs and make
business case
Consult users and Prepare specification Identify potential
line managers software suppliers

Select supplier Discuss need and scope

for customization

Set up project

Design and test system

Implement system

Ongoing review and

modification

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Types of HRIS
HRIS can be classified into four major types based on the functions they perform, the different
challenges they help to tackle and the different requirements in the HR and employee
management space.

Operational HRIS
HRIS functions that help stakeholders perform certain operations are commonly referred to as
Operational HRIS. For example, the employee information stored on all employees helps the
manager and the organization to fetch them for performing certain functions like placing the
employees in the right place within the organizational structure. Knowing the information on
their performances to manage it and review it are also part of the Operational HRIS.

Tactical HRIS
Tactical HRIS takes care of the processes that help in decision-making for the managers with
respect to the usage of the resources. This includes actions like Recruiting, Job and Design
Analysis, Employee Training and Compensation/Benefits in the organization. All these actions
require information on the employees, vacancies in the organization, etc., which is done using
Tactical HRIS.

Strategic HRIS
Strategic HRIS comes of use when a company is looking to expand or grow, strategically.
Strategic HRIS helps in the proper planning of the workforce and stay aware about the labor
resources available. As a part of this, Strategic HRIS holds information that supports workforce
planning and a specialized HRIS system on the whole with certain HR functions to help manage
and understand labor resources.

Comprehensive HRIS
Comprehensive HRIS is more of everything involved in HR actions, including the above three
types. It acts as a combined platform with all HR files, employee information, open positions,
hiring and job details, job analysis and design files, guidelines files on employee safety, etc., It
acts as a place with all information that can be produced at any time to perform any action.

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Standard information centralization and decentralization of records

Having a centralized repository for employee data removes the need to store paper files, which
can be easily damaged, as well as the need to search through large paper-based employee files to
find information. Depending on the type of HRIS software, it may generate various reports,
provide ad hoc reporting capabilities and offer HR analytics on important metrics such as
headcount and turnover. Modern HRIS software also offers visualization capabilities for
employee data, such as automatically rendered organizational charts or nine-box grids.

When an HRIS has employee or manager self-service, the process for making employee master
data or organizational changes becomes more efficient and uses less time than with paper-based
requests. Approval workflows enable changes to be approved or rejected, with the necessary
individuals automatically notified. An HRIS might also offer mobile capabilities that extend self-
service and provide additional flexibility for remote workers.

To assist in the HR inventory, organizations have implemented HRIS referred also as HRMS. It
is designed to quickly fulfill HRM information needs of the organization. HRIS is a database that
keeps important information about employees in central and accessible location-even
information on the global workforce. When such information is required the data can be
retrieved and used to facilitate employment planning decisions. Its technical potential permits the
organization to track most information about employees and jobs and to retrieve that information
when needed. This information can help an organization gain competitive advantage. An HRIS
may also be used to help track EEO data. As shown in the listings below.

In the past two decades HRIS has grown in popularity. This is due to the recognition that
management needs timely information on its people. Moreover, new technological breakthroughs
have significantly cut costs of these systems. Additionally, HRIS is now more user-friendly and
provide quick and responsive reports-especially when linked to the organizations MIS. Systems
today can streamline certain HRM processes, such as having employees select their employee
benefits online during a period called open enrollment.

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At a time when quick analysis of organizations human resources is critical, the HRIS is filling a
void in HRP process. With information readily available organizations can easily achieved goals.
HRIS is also important in providing data support for compensation and benefits programs, as
well as providing a necessary link to corporate payroll.

Information categories of human resource management systems

1. Basic non confidential information
Employee name
Organization name
Work location
Work phone number
2. General non confidential information
Information in the previous category plus
Social security number
Other organization information (code, effective date)
Position related information (code, title, effective date)
3. General information with salary
Information in the previous category plus
Current salary, effective date, amount of last change, type of last change, reason for last
change
4. Confidential information with salary
Information in the previous category plus
Other position information
(EEO code, position ranking, and FLSA)

5. Extended confidential information with salary

Information in the previous category plus
Bonus information
Projected salary increase information
Performance evaluation information

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Components of HRIS and application
 Database
 Time and labor management
 Payroll function benefits and employee interface
 HR planning and administration
 Creating jobs and vacancies
 Recruitment process
 Tracking job applicants
 Managing recruitment process
 Employees scheduling
 Skills inventories and audits
 Leave application
 Setting up various types of leave
 Employee leave application and manager leave approval
 Performance management process

DATA AND INFORMATION

There is a distinction between data and information. Data are facts and figures in the form of
historical records that are not used in making decisions. Information on the other hand consists of
data which are retrieved and processed and used for making decisions, forecasting and argument.
Processed data is information.
The computer application in human resource management is the managerial applications of
computer use which is usually known as management information system. In case of Human
Resource Management, it is known as Human Resource Information System (HRIS). Computer
converts the data into meaningful information needed by the manager to make decisions,
planning and control.

Today HRIS is computer based information system. Manager as a decision maker is a processor
of information. He must possess the ability to obtain the information, store the information,
process and retrieve the information and use it for the right decision.

Today knowledge is increasing with the tremendous speed. There is an explosion of knowledge.
Current information is very essential for right decision.

Speed and accuracy is the special feature of computer. The machine does not get bored or
fatigued. It can handle any quantity of data. The speed and accuracy of computer has led to

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speedy transactions and other business operations. The information is made available to
management more quickly Computer provides large and sophisticated database to the manager
that can be used at appropriate time for making decisions.

Today‟s computer languages are user friendly that allow manager to learn enough skills in a
short time ranging from a day or two to have an access to the most of their demand for
immediate and ad hoc information provided data are properly collected, organized and stored in
a computer. Management must insist on economic quality the quality which is cost effective. It
should establish quality standards that reflect needs of the organisation. It can be easily done
through “Quality Circles‟. They should focus their attention on programming techniques,
documentations, new technology use etc. Computer is a time saver device.

Data and Information:

There is a distinction between data and information. Data are facts and figures in the form of
historical records that are not used in making decisions. Information on the other hand consists of
data which are retrieved and processed and used for making decisions, forecasting and argument.
Processed data is information.

Decisions Support System:

Decision support system aids the manager in decision making. According to R. H. Sprague and
E. D. Karlson, decision support system is, “an interactive computer based system that helps
decision makers utilizes data and models to solve unstructured problems.”

A decision support system can be created in which senior and experienced manager‟s procedures
and methods of decision making can be replicated. It will help the managers immensely to arrive
quickly at a decision on any problem related to human resources of the organisation.

DSS facilitates the present executive to have experts‟ advice at his finger tips. The system is user
friendly. It provides a readymade advice to the executive. DSS for several human resources
problems can be developed and kept ready. DSS helps an executive to plan for future.

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Data base Management System

It is a collection of software for processing interrelated data. In large organisations there is an

expansion in succession at the bottom structure. They face with a problem of integrating the
organisations human resources information.

Their activities should be integrated. The information about their activities should be integrated.
There are several software packages that are developed to integrate the data contained in a data
base. Such software packages are known as database management systems.

The data base management systems are special computer programmes enabling user to create,
manipulate, retrieve and maintain file data. The database management system facilitates creation,
addition, deletion and modification and sorting of records.

It also helps in preparing printed reports as per required specifications. It helps in arranging the
data in desired sequence. It acts as an interface between applications programme and the office
files.

The figure given below is an illustration:

Data base management system provides access to file inquiries and information, other details
regarding employees, updates records, creates reports etc. It makes efficient use of computerized
storage space.

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Management Information System:

Management information system or MIS is the old concept. The computerized MIS is new.
Executives used MIS for planning and control. Computerized MIS added new dimensions by
way of increased speed and accuracy. The use of computer has made the management
information system feasible. It is not necessary that management information system should be
computerized. There are host of tasks that are performed perfectly by employees and executives
but there are certain tasks that can be speedily and accurately performed by this electronic
machine” computer.

According to Gordon B. Davis and Margrethe H. Olson management information system is, “an
integrated, user machine system for providing information to support operations, management
and decision making functions in an organisation. The system utilizes computer hardware and
software; manual procedures; models for analysis, planning, control and decision making; and a
data base.”

MIS helps in integrating organisational information. In respect of human resources management

it helps in having the integrated information in respect of human resources of the organisation.
The information can be utilized by anyone needing it for which the knowledge of computer is not
essential. Simply knowledge of using it will do. MIS is a support system for various functions of
management.

Organisation is a techno-economic and social system. MIS draws upon the organisation,
organisation theory and management. If helps in understanding organisational structure and
design, organisational change processes, motivation, decision making, organisational behaviour
pattern etc.

Organisation is a system consisting several subsystems based on functional activities such as

Production, Marketing, Personnel, Finance, Sales, Accounting, and Materials etc. MIS tries to
bring about their integration for smooth working. Human resources are used in each system
manning respective positions.

MIS helps in providing integrated information in respect of all human resources of the
organisation. The information system should match managerial needs of the organisation.

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Computer Applications in Human Resource Management programme and the office files. The
figure given below is an illustration.

Management’s Needs and Information Systems:

The information systems come to the rescue of employees and executives while performing their
jobs at their workplace. The system helps them to improve their performance leading to complete
job satisfaction. The information needed by the executives differ in quantity and quality
according to their position and level in the organisational hierarchy.

Traditionally the management of organisation has a pyramidal shape, i.e. narrower at the top
having flattened base. This organisational pyramid can be divided into three levels; top, middle
and lower. Top management consists of top level managers such as managing directors, chief
executive officer etc., the middle level management consists of middle level management i.e., the
departmental heads and lower level of management consists of the front line supervisors,
superintendents and other operational staff. For performing the works they require different types
of information. The information for performance can also be divided, according to these levels
because the decisions to be made differ according to the managerial hierarchy.

It is shown in the diagram given below:

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The top level management requires Decision Support System or DSS to frame organisational
strategy in respect of various aspects of organisation. They may frame the strategy in respect of
human resources of the organisation. They have to take strategic decisions requiring an
interactive computer based system which is known as decision support system.

The middle level management has to make tactical decisions for which they need the data base
system known as management information system or MIS. Lower level management has to make
operational decisions for actual work performance, the system they require for the purpose is
known as the electronic data processing system or EDP system.

The information needed by the executive depends on the technical background, decision making
ability and managerial leadership style adopted nature of the corporate body structure of
organisation and executive‟s perception of requirements of information.

Human Resource System:

Human resource is actually a subsystem of a system, the organisation. Human resource system
includes acquisition of human resources, their training and development, compensation, other
benefits, health and safety, job analysis, job description, job specification, performance
evaluation, job evaluation, other information relating to human resources such as skill,
competence, experience, their yearly increments, bonus, cost of acquiring human resources, cost
of training, composing skill inventory, strategy in respect of acquisition, retention of human
resources etc.

The complete information in all these respects is to be kept ready at hand. Computers aid in
keeping all these information and make it available at the fingertips of human resource manager.
Human resources are the part of the whole system. They are working in all functional areas of
the organisation manufacturing, marketing, sales, finance, logistics, research and development,
advertising, etc.

Complete information is to be stored, compiled, processed, retrieved along with the external
agencies like government, dealers, wholesalers, financers, suppliers etc. A system oriented
human resource function integrates and interrelates with other functions of the organisation. The

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computerized human resource system is known as human resource information system or HRIS.
It is dealt with in the chapter Human Resource Planning earlier.

HRIS maintains the up to date information relating to all aspects of human resources of the
organisation and works as decision support system. Its input is raw data and output is
information. It is a system that acquires, manipulates, analyses, stores, retrieves and makes
available the instant information in respect of human resources of the organisation. The
information is finished and structured one. Some personnel‟s are required to work with the
system. They include Systems Manager who is responsible for planning, monitoring and
controlling the activities relating to computerization.

System Analyst is another personnel required in the system to study and analyze the problems
and prepare solutions and programme specifications. The third personnel in the system and in the
hierarchy are the Programmer. More programmers are required to prepare computer programmes
based on specifications prepared by system analyst. The fourth personnel in the system who
works at the lowest level in the hierarchy is the Data Entry Operator.

More such operators are required who are responsible for entering the data into computer system.
This man machine interface is known as human ware or livewire. These people prepare several
software‟s and databases and pass on the information on line by making these systems
accessible. In this way eliminating waste and achieve significant improvements in data quality,
thus helping the line managers to solve their human resource problems.

The computerized systems have added value to the human resource development and
management giving an opportunity to emerge as power base in the organisation. Now the
electronic mail, computer to computer links and videoconferencing have brought about
transformation of human resource function. It has also brought down the overhead costs
incurred.

The human resource management system consists of several inputs and outputs and other
activities and processes working through information media. The system possesses a
computerized data base management system, programme for cross checks for accuracy, modules
for performing specific functions and a facility for special information to be provided on query.

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Computer use in HRM

The modern technology has brought in sea changes and transformed the organisational structure,
working and culture. Computers and computer programmes have flooded into the organisations
of all kinds and types giving no chance to escape from their influence. They are widely used in
human resource management.

Human Resource Planning

The vast data is required for human resource planning. Top management wants to prepare a long-
term strategic planning for human resources. Human resource information system provides
necessary information required for making essential projections regarding human resources
requirements. The information can also be utilized for acquiring human resources, their
promotion, transfer and career planning. Job analysis information helps in human resource
planning.

Acquisition of Human Resources

Acquisition of human resources is done through recruitment and selection. Human resource
information system is a tool that provides a lot of help in internal posting of jobs which is done
through recruitment. It is an internal source of recruitment. The complete information regarding
skill, competence, knowledge, experience, training, educational qualification, age, sex etc.
available to the human resource executive through HRIS enabling him to fill up the vacant
position by way of promotion or transfer.

External recruitment also made easy with the help of computerized information‟s maintained by
the organisations by way of keeping a track record of unsolicited applicants and at times taking
the help from private employment agencies who maintain databases regarding various types of
human resources available in different organisations and or other persons in search of jobs.

The acquisitions of human resources by way of selection are quite lengthy and complicated
procedure is adopted. All these complications are made easy by way of using computerized
information. Test and scanning of applications are accurately performed through computers
hence saving a lot of time and cost.

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Training and Development

In the area of training and development the computer has been used to a greater extent. There are
computer assisted instructions that are widely used training techniques. Computer assisted
instructions (C.A.I.) are the programmed learning methods.

Earliest in 1924 the use of rudimentary teaching machines were made but with the advent and
availability of computers the programmed training is in vogue now. The computerized training
system is utilized for hosts of job holders that include mechanics, clerks, pilots etc. Computer
simulation of real job situation is of particular importance. It is on the job training method. It
helps trainee to gain practical experience.

Under computer managed instructions the trainees‟ competence is assessed by the computer
before start of the training. The assessment continues till the end of the training. The assessment
makes the trainer to modify training contents to suit the trainee‟s needs.

Under computer based training, the facilities of computer aided instructions and computer
managed instructions are combined together. Being comprehensive it provides many advantages
to the trainee through effective learning. Computer -based training (CBT) provides immediate
feedback. A commoner gets more knowledge through CBT than in classroom training. The
training through CBT can be provided at the place of working or where the trainees assemble. It
is cost effective.

No costs are incurred on trainer as it is the programmed-based training. There is an improvement

in CBT with the addition of video which is high tech training technique and is known as
interactive video training. CD-ROM is also used for executive development. It is up to the
organisation to make a choice of appropriate computerized training technique depending upon
the availability of funds and the type of employees and executives undergoing training.

The high tech training methods have high initial investment but once purchased it is very cost
effective. The evaluation of trainees and training programme can be immediately available which
is not possible under other traditional training techniques.

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Computer can store the information relating to trainees, their performance and their needs for
further training. Up to date information in this respect can be made available as and when
required by the human resource manager or any executive for that matter.

HRIS modules can be used to record the training received and cost of training can be monitored.
There is a constant need to update the skills and knowledge of the employees and executives to
meet the growing needs of the organisation. The computerised training programmes fulfill these
needs of the organisation.

Career and Succession Planning

Career planning requires thorough check up of one‟s own preferences, abilities, skills,
competence, knowledge and expertise and values and their matching with the job requirements at
the higher level available in the organisation or in other organisation. This is easily and
accurately done by the computer for the individual employee and executive and organisation.

The organisation can keep track of such ambitious employees and executives. Such personnel‟s
are very conscious of their career and career path. They do not hesitate in leaving the
organisation if an opportunity in their career path is denied to them.

One can say that career planning and computer applications are made for each other. The
detailed inventory in respect of human resources of the organisation and the job details can be
stored in a computer. Succession system is another area where computer play an important role
in suggesting a suitable person to succeed a retired one at a position. This can be easily
maintained for employees and executives both.

Compensation

Compensation is yet another area where computer applications can be made. The compensation
includes salary, wages and other benefits. The information required in this system is payroll and
financial records. Human resource information system aids in wage and salary administration.

Several software packages are available in this respect to maintain and monitor the compensation
administration. The employee gets the information relating to the salary drawn by him and
compulsory deductions from the salary along with his leave records till date every month.

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It saves manual labour of maintaining the large and heavy ledgers. The details regarding
employees‟ contribution to provided fund, the interest thereon is also maintained and at regular
interval the employees are handed over the details.

Performance Appraisal

If merit or performance is rated by an individual may be superior in rank and hierarchy, there is a
scope for biased attitude. Computer can provide unbiased solution to the problem. Modules are
available to help in evaluating performance. There are several software‟s available in evaluating
the performance of the employees and executives having several rating scales in critical areas of
performance. The organisation can make use of the relevant scales of evaluating the performance
of its employees of various grades and ranks by varying the rating scale provided by the
software.

Safety and Health

Safety and health at workplace is very essential. Healthy employees free from any disease having
all the parts of body intact and safe are the assets of the organisation. The organization having
such human resources should boast upon itself. It deserves credit for excellent provisions in
respect of safety and health of its employees.

It is a dream away from facts. But organisation can take utmost care of its employees keeping the
records of occupational diseases, injuries and make the employees aware of them from time to
time and also draw attention of the employees towards hazardous chemicals and other such
materials and their use.

Human resource information system can develop a software and maintain the records of various
categories of occupational diseases, their dangers, how people suffer from them, medical
treatment available, methods of prevention, safety measures at the workplace, the cares to be
taken etc.

The employees can be, through computer network at regular intervals or daily, made aware of all
these and warn of the hazardous after effects. Computer in this respect can provide a healthiest
system for safety and health of the human resources of the organisation. The computers aid in

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respect of maintaining health, cope up with stress, change in lifestyle and adopting the one that
suits to his or her health, dieting etc.

Human Relations:

Maintaining better human relations is a problem faced by many organisations. Every

organisation expects better human relations and smooth functioning. The relations between union
and management should be smooth and of cooperation. The computers can help in keeping the
records of negotiations between unions and management, the agreements reached between the
two.

Computer network helps in reminding the executives of the agreements and agreed terms
between the management and unions. Executive‟s personal computer can be connected to an on
line information search and retrieval system human relations information network. Employees
can also have the access to the system knowing fully well what their leaders agree or disagree to.
This promotes complete transparency in human relations or industrial relations in the
organization.

In modern times giant corporate bodies are coming up with global network employing lacs of
employees and other officials across the world. They have different points of views and demand.
To maintain them efficiently and satisfy their needs, it is therefore necessary for the organisation
to develop an expert system that enable to have opinion survey of the employees, their
perception, and advice. Computers help in streamlining the process.

Through this network executives have at hand information and close contacts with the
employees. Any problem crops up at any plant anywhere can be immediately attended and
nipped it in the bud. Expert system can be developed to keep qualitative information along with
quantitative one. In this way computers play a vital role in human resource management.
Computers aid in facilitating smooth working and worry free environment at the plants, offices
and at homes. They aid in restoring industrial peace and harmony.

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