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HRIS

HRIS (human resources information system) is a type of business application that enables companies to store employee information, manage HR functions, and execute critical activities like payroll and benefits administration. Features of HRIS applications include modules for employee self-service, payroll, workforce management, recruitment, benefits administration, and talent management. The study explores applications of HRIS in Indian companies. It assesses differences in perceptions of HRIS applications between manufacturing and service companies, Indian and multinational companies operating in India. Factor analysis of variables related to HRIS applications extracted five factors - performance and reward management, payroll, recruitment and hiring, employee records, and training and development.

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107 views4 pages

HRIS

HRIS (human resources information system) is a type of business application that enables companies to store employee information, manage HR functions, and execute critical activities like payroll and benefits administration. Features of HRIS applications include modules for employee self-service, payroll, workforce management, recruitment, benefits administration, and talent management. The study explores applications of HRIS in Indian companies. It assesses differences in perceptions of HRIS applications between manufacturing and service companies, Indian and multinational companies operating in India. Factor analysis of variables related to HRIS applications extracted five factors - performance and reward management, payroll, recruitment and hiring, employee records, and training and development.

Uploaded by

PingolChoudhury
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Introduction

HRIS (human resources information system) is a type of business application


that enables companies to store employee information, manage common HR
functions, and execute critical HR activities such as processing payroll and
administering benefits.

Features of HRIS applications include an employee self-service portal, payroll,


workforce management, recruitment and hiring, benefits administration, and
talent management. These capabilities are often delivered through individual
modules that form a unified suite of HR tools.

The field of human resource management (HRM) can be characterized as


having encountered frequent and numerous innovations in technology. Some
of the terms include the human resource information system (HRIS), electronic
human resource management (e-HRM) and virtual human resource
management (VHRM).Tannenbaum (1990) defined human resource
information system (HRIS) as “one which is used to acquire, store,
manipulate, analyze, retrieve, and distribute information about an organization’s
human resource”. Later HRIS was also defined as “the composite of
databases, computer applications, and hardware and software necessary to
collect/record, store, manage, deliver, present, and manipulate data for human
resources” (Broderick and Boudreau, 1992). Beginning with 1960s, personnel
management has been an early candidate of HRIS with office automation in
payroll, benefit administration and other transaction processing applications
such as employee record holding (Ball, 2001; Martinsons, 1994). Also,
availability of low cost, generic, flexible, easy to install and easily
customizable window based products helped smaller software houses in writing
affordable, easily customizable, modular HRISs with better sophisticated
reporting capabilities (Ball, 2001). This led individuals and organizations
preferring use of computers and net based technologies in HRIS. In 1990s,
the expectations were how HRIS can contribute in organization’s HR
strategic activities and help in business planning. Managements feel that
computer based HRIS can offer the real solution for retention of critical human
resource and its developmentWith an HRIS, the human resource department can
effortlessly manage employee data, whenever required supplementing it with
computer and web-based technology, allowing them to reallocate their
energies towards more important HR activities like implementing policies to
achieve organization goals.
Martinsons (1994) pointed out that HRIS is normally used for two different
purposes. One for simple automation like payroll and benefits administration,
and keeping the employee records electronically for administrative purpose to
reduce costs and time. The other use of HRIS is for analytical decision making
(Kovach and Cathcart, 1999).

Applications
As mentioned, HRIS applications are valuable for supporting critical HR
operations and initiatives. Let’s look at how you can apply HRIS capabilities in
your business to deliver value and build a strong foundation.

Core HR

Core HR provides software features for overseeing the operations HR


departments traditionally managed. These functions include personnel tracking,
payroll processing and benefits administration.

Owners or managers of small companies often handle HR functions personally.


But as your small business grows, it becomes more likely that other important
responsibilities will suffer as the tasks pile up. There comes a point where you
can only juggle so many hats.

How can you know when it’s time for core HR features? If your business has
become too large to handle the staff’s payroll and oversee the day-to-day
administrative tasks, it’s probably time for an upgrade.

In some cases, businesses don’t have any dedicated system in place. Yes, they
probably have software for running payroll — and possibly a spreadsheet for
tracking employee info — but that may be the extent of their HR software.

On the flip side, you might have an HRIS that you’ve outgrown. It was great
when there were only 20 employees to manage, but now that you’ve reached 70,
the software doesn’t have nearly enough functionality.

Workforce Management

Workforce management (WFM) adds another layer to core capabilities. It


revolves around supporting the daily aspects of managing your employees.

It also bridges the gap between core HR and strategic HR. The former focuses
more on processes, while the latter focuses more on people. WFM blends both.

For instance, WFM enables your business to schedule and track employee work
hours. At the same time, it delves into strategy by letting managers examine
various what-if scenarios to optimize the workforce.
Strategic HR

HR is both operational and strategic. It requires day-to-day activities that help


keep your company running smoothly. But it also provides the ability to
develop and execute key strategies that promote the long-term welfare of your
business.

The strategic side of HR software centers on your people and enables your
company to promote growth. It does this by attracting and developing top
talent for your business.

Review of Literature

Studies show that HRIS applications in human resource (HR) help in achieving
primarily three objectives (Broderick and Boudreau, 1992). HRIS was
categorized in three objectives i.e. cost reduction/efficiency gains, client
service improvement/facilitating management and employees and improving
the strategic orientation of HRM/innovation integration of HR functions.
These could be set as HRIS goals and taken as the basic reasons for adoption of
HRIS in any organization. Over the past two decades, there have been a
number of studies on HRIS. These studies have
focused on the type of applications that predominate in HRIS (Broderick and
Boudreau, 1992; DeSanctis, 1986; Martinsons, 1994), the contexts necessary
for the successful implementation of HRIS (Yeh, 1997) as well as the
conditions that support successful HRIS (Haines and Petit, 1997). Martinsons
(1994) clarified the usage of HRIS as per the sophistication. He described the
use of HRIS for administrative purpose i.e. in employee record-keeping,
payroll, payroll benefits etc. in HR as “unsophisticated” (Martinsons, 1994).
Studies have concluded that HRIS has mostly used for these HR activities
(Altarawneh and Al-Shqairat, 2010; Ball, 2001; Hussain et al., 2007; Ngai and
Wat, 2006.Automation, streamlining administrative tasks, deletion of repetitive
activities and the subsequent effects of these applications help HRIS to
achieve basic purpose of cost and time reduction, process automation and
efficiency gains. The use of HRIS in training and development, recruitment and
selection, HR planning and performance appraisal .

Objectives of the Study

The opening up of the market in India and technology revolution has made
applications of HRIS in India a reality.
The main objective of the study is “to explore the applications of HRIS in
companies operating in India”. To fulfill
the main objective, study attempts to seek the answers to the following
questions:
• To study the applications of HRIS in India.
• To assess the difference of perceptions of HRIS applications between
manufacturing and service
companies in India.
• To assess the difference of perceptions of HRIS applications between
Indian and multinational
companies in India.
• To assess the difference of perceptions of HRIS applications across type
(Indian and multinational) and
nature (manufacturing and service) of organizations operating in India.
Research Methodology

The study is based on primary data. For data collection, a structured


questionnaire was developed by including the variables used in various studies
(Altarawneh and Al-Shqairat, 2010; Ball, 2001; Kinnie and Arthurs, 1996; Ngai
and Wat.Different variables included were like: HR
planning, job analysis and design, training and development, disciplining
procedure, performance appraisal and
review, employment reward, compensation management, pay roll, current
employees’ information, and employment leave (as in Altarawneh and Al-
Shqairat, 2010); recruitment, pay roll benefit, self-service web portal
and internal and external communication (as in Ngai et al., 2008); corporate
communication (Ngai and Wat, 2006);
historical record of employees (Ball, 2001) and strategic management

Results and Discussion

Variables regarding various applications of HRIS in HRM, considered for the


study, were subjected to principal
component factor analysis with varimax rotation. Factor analysis extracted
five factors, loading for all variables,
eigen values and percent of variance explained of each factor. Compensation
management variable was significantly
loaded on two factors i.e. “performance and reward management” and “pay
roll”.

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