Department of project management

Postgraduate program
Report on human resource information
system ,Management decision support system and
Transaction processing system

Name
1.Abdu Melka
2.Jibril Mohammed
3.Dawit Oljira
4.Dawit Fetene
5.Bontu Tilahun

What is an HRIS?
HRIS stands for Human Resources Information System. The HRIS is a system that is used to
collect and store data on an organization’s employees.
In most cases, an HRIS encompasses the basic functionalities needed for end-to-end Human
Resources Management (HRM). It is a system for recruitment, performance management,
learning & development, and more.
An HRIS is also known as HRIS software. This is a bit confusing as it implies that different
systems can have different software running on them. However, this is not the case. The HRIS is,
in essence, an HR software package.
The HRIS can either run on the company’s own technical infrastructure, or, more common
nowadays, be cloud-based. This means that the HR software is running outside of the company’s
premises, making it much easier to update.
Other commonly used names are HRIS system and HRMS, or Human Resources Management
system. These are all different words for the same thing. Collectively, these systems are also
called Human Capital Management systems, or HCM. In this article, we will use the terms HRIS
and HRIS systems interchangeably
Benefits of an HRIS
As we discuss in our Digital HR Certificate Program, using an HRIS has a number of clear
benefits. That’s why companies of all sizes implement this tool to support their people
operations. Centrally, the HRIS holds employee information. A wide range of employee data is
then easily accessible, in one system.
Record-keeping. An HRIS is a record-keeping system that keeps track of changes to
anything related to employees. The HRIS can be seen as the single source of truth when it
comes to personnel data.
Compliance. Some data is collected and stored for compliance reasons. This includes
material for the identification of employees in case of theft, fraud, or other misbehaviors,
first contact information in case of accidents, citizens identification information for the
tax office, and expiration dates for mandatory certification. All this information can be
stored in the HRIS. It is essential that data is stored safely and securely, in line with
GDPR regulations.
Efficiency. Having all this information stored in one place not only benefits accuracy but
also saves time. Some companies still keep a lot of data about employees as physical
paperwork. Finding the right folder, and locating the right sheet, can take up a lot of staff
time.
HR strategy. The HRIS permits the tracking of data required to advance the HR and
business strategy. Depending on the priorities of the organization, different data will be
essential to track. This is where the HRIS shines.
Self-Service HR. A final benefit is the ability to offer self-service HR to employees and
managers. This enables employees to manage their own affairs. When done right, the
HRIS can offer a good employee experience. Keep in mind that not all HRIS systems
offer this in a user-friendly manner!
HRIS functions
There are different kinds of HRIS systems and software. Because an HRIS encompasses all the
functionalities for HR, all separate functionalities are part of the system. These functionalities
include:
1.Applicant Tracking System (ATS). This software handles all the company’s recruiting needs. It
tracks candidate information and resumes, enables recruiters to match job openings to suitable
candidates from the company’s application pool, and helps in guiding the hiring process.
2.Payroll. Payroll automates the pay process of employees. Contractual data and information on
new hires is often entered into this system – sometimes combined with time & attendance data –
and at the end of the month, payments orders are created.
3.Benefits administration. Another functionality of the HRIS is benefits management. Employee
benefits are an important aspect of compensation and are also managed in this system. More
advanced systems offer an employee self-service model for employee benefits. In this case,
employees can select the benefits they are looking for themselves. One may want more paternity
leave, the other one a more expensive company car. This self-service approach to benefits is also
called a cafeteria model.
4.Time & Attendance. This module gathers time and attendance data from employees. These are
especially relevant for shift workers where employees clock in and out. Back in the day,
employees often wrote down their working hours on a piece of paper. Then, the manager would
manually enter the data into a time tracking system. Based on this data, payment orders were
generated and paid to all employees. Nowadays, workers often check into work by fingerprint or
a card that is synced with an HRIS. This gives an exact time for arrival and departure. Any issues
with lateness are easily detected.
5.Training. Learning and development is a key element when it comes to employee management.
This module allows HR to track qualification, certification, and skills of the employees, as well
as an outline of available courses for company employees. This module is often referred to as an
LMS, or Learning Management System, when it’s a stand-alone. An LMS usually includes
available e-learning and other courses to be followed by employees.
6.Performance management. Performance management is a key part of managing people.
Performance ratings are generated once or multiple times a year by the direct manager or peers
of the employee.
7.Succession planning. Creating a talent pipeline and having replacements available for key roles
in the organization is another key component of an HRIS.
8.Employee self-service. Employee self-service has already been mentioned. Organizations are
focusing increasingly on having employees and their direct supervisors manage their own data.
Requests like holidays can be asked for by the employee him/herself. After approval, these are
then immediately saved into the system (and registered to track for payroll and benefits
purposes).
9.Reporting & Analytics. A much rarer module in HRIS systems is reporting and analytics.
Modern systems enable the creation of automated HR reports on various topics like employee
turnover, absence, performance, and more. Analytics involves the analysis of these insights for
better-informed decision making. We’ll explain more about this in the section below.
HRIS implementation in 6 steps
We could write multiple articles when it comes to HRIS implementation. For this article, we will
provide a high-level overview. Software implementation can be divided into multiple stages.
1.Search. Start your implementation by finding out what your different stakeholders need from
an HRIS. Based on these requirements, you can create a list of potential providers. You can then
invite these providers to make proposals. Ideally, at the end of this phase, you’ve chosen a
suitable HRIS provider.
2.Plan and align. In this phase, you choose an implementation partner, create a steering
committee and an implementation team. The steering committee usually consists of senior
delegates from your chosen HRIS provider, the HR director from your organization, the internal
project manager, and preferably a senior user from your business (optional). The implementation
team’s main responsibility is working on the day-to-day tasks that come out of the
implementation.
3.Define and design. At this point, you need to specify your user groups and map out your
processes and workflows. Define the functional and technical requirements for your HRIS
infrastructure, system, and security. Also, note that you might need to build integration between
your HRIS with other existing systems during this phase.
4.Configure and test. In this phase, you need to create a core test team to test your new HRIS and
provide feedback for potential improvements. After this, you should also create a user
acceptance test, where you can bring in a number of users to provide final feedback.
5.Train and communicate. Before the Go-live moment, you will need to prepare a training
program for your technical staff, a communication plan, a Frequently Asked Questions page, as
well as other support documents.
6.Deploy and sustain. Once all your support processes are in place, you can officially launch
your HRIS. Remember to constantly collect feedback and to update your training material in line
with the evolving systems. Constant, accurate communication is key here.

2.What is a decision support system (DSS)?

A decision support system (DSS) is a computer program application used to improve a
company's decision-making capabilities. It analyzes large amounts of data and presents an
organization with the best possible options available.
Decision support systems bring together data and knowledge from different areas and sources to
provide users with information beyond the usual reports and summaries. This is intended to help
people make informed decisions.
A decision support system is an informational application as opposed to an operational
application. Informational applications provide users with relevant information based on a
variety of data sources to support better-informed decision-making. Operational applications, by
contrast, record the details of business transactions, including the data required for the decision-
support needs of a business.
Decision support system components
A typical DSS consists of three different parts: knowledge database, software and user interface.
1.Knowledge base. A knowledge base is an integral part of a decision support system database,
containing information from both internal and external sources. It is a library of information
related to particular subjects and is the part of a DSS that stores information used by the system's
reasoning engine to determine a course of action.
Learn about knowledge base uses in customer service and call centers.
2.Software system. The software system is composed of model management systems. A model
is a simulation of a real-world system with the goal of understanding how the system works and
how it can be improved. Organizations use models to predict how outcomes will change with
different adjustments to the system.

For example, models can be helpful for understanding systems that are too complicated, too
expensive or too dangerous to fully explore in real life. That's the idea behind computer
simulations used for scientific research, engineering tests, weather forecasting and many other
applications.
Models can also be used to represent and explore systems that don't yet exist, like a proposed
new technology, a planned factory or a business's supply chain. Businesses also use models to
predict the outcomes of different changes to a system -- such as policies, risks and regulations --
to help make business decisions.
3.User interface. The user interface enables easy system navigation. The primary goal of the
decision support system's user interface is to make it easy for the user to manipulate the data that
is stored on it. Businesses can use the interface to evaluate the effectiveness of DSS transactions
for the end users. DSS interfaces include simple windows, complex menu-driven interfaces and
command-line interfaces.
Intelligent decision support system (IDSS)
Users can also bake artificial intelligence (AI) into decision support systems. Called intelligent
decision support systems (IDSS), the AI mines and processes large amounts of data to get
insights and make recommendations for better decision-making. It does this by analyzing
multiple sources of data and identifying patterns, trends and associations to emulate human
decision-making capabilities.
Designed to act similar to a human consultant, an IDSS gathers and analyzes data to support
decision-makers by identifying and troubleshooting issues, and providing and evaluating
possible solutions. The AI component of the DSS emulates human capabilities as closely as
possible, while more efficiently processing and analyzing information as a computer system.
The IDSS may include advanced capabilities such as a knowledge base, machine learning, data
mining and a user interface. Examples of IDSS implementations include flexible or smart
manufacturing systems, intelligent marketing decision support systems and medical diagnostic
systems.
Types of decision support systems
Decision support systems can be broken down into categories, each based on their primary
sources of information.
1.Data-driven DSS
A data-driven DSS is a computer program that makes decisions based on data from internal
databases or external databases. Typically, a data-driven DSS uses data mining techniques to
discern trends and patterns, enabling it to predict future events. Businesses often use data-driven
DSSes to help make decisions about inventory, sales and other business processes. Some are
used to help make decisions in the public sector, such as predicting the likelihood of future
criminal behavior.
2.Model-driven DSS
Built on an underlying decision model, model-driven decision support systems are customized
according to a predefined set of user requirements to help analyze different scenarios that meet
these requirements. For example, a model-driven DSS may assist with scheduling or developing
financial statements.
3.Communication-driven and group DSS
A communication-driven and group decision support system uses a variety of communication
tools -- such as email, instant messaging or voice chat -- to allow more than one person to work
on the same task. The goal behind this type of DSS is to increase collaboration between the users
and the system and to improve the overall efficiency and effectiveness of the system.
4.Knowledge-driven DSS
In this type of decision support system, the data that drives the system resides in a knowledge
base that is continuously updated and maintained by a knowledge management system. A
knowledge-driven DSS provides information to users that is consistent with a company's
business processes and knowledge.
5.Document-driven DSS
A document-driven DSS is a type of information management system that uses documents to
retrieve data. Document-driven DSSes enable users to search webpages or databases, or find
specific search terms. Examples of documents accessed by a document-driven DSS include
policies and procedures, meeting minutes and corporate records.
 Decision support system examples
Organizations use decision support systems in several different contexts, including the following:
GPS routing. GPS route planning is an example of a typical DSS. It compares different routes,
taking into account factors such as distance, driving time and cost. The GPS navigating system
also enables users to choose alternative routes, displaying them on a map and providing step-by-
step instructions.
ERP dashboards. ERP (enterprise resource planning) dashboards can use a decision support
system to visualize changes in production and business processes, monitor current business
performance against set goals and identify areas for improvement. ERP dashboards let business
owners see a snapshot of their company's most important numbers and metrics.
Clinical decision support system. A clinical decision support system (CDSS) is a software
program that uses advanced decision-making algorithms to help physicians make the best
medical decisions. Healthcare professionals often use these to interpret patient records and test
results, and to calculate the best treatment plan. CDSS in healthcare can help providers identify
abnormalities during specific tests, as well as monitor patients after certain procedures to
determine if they are having any adverse reactions.
3.What Is Transaction Processing System?
A transaction processing system or TPS refers to an information processing system used for
business transactions that involve the retrieval, collection, and modification of transaction data. It
offers an execution environment that ensures data availability, security, and integrity. Moreover,
such a system ensures fast response time and accuracy.
Transaction Processing System Explained
Transaction processing system meaning refers to an information processing system that
processes all transactions taking place within the business. Such transactions include
modification, collection, and retrieval of transaction data. A TPS is highly consistent, efficient,
and dependable. It is the same system that online businesses utilize for e-commerce.
A TPS has the following four components. One must understand them to know how the system
works.
Inputs: Inputs are original requests for payments or products outside parties send to an
organization’s TPS. Typically, inputs include bills, coupons, custom orders, and invoices.
Output: Outputs are the documents a TPS generates after it processes all inputs, for example, the
receipts stored by companies in their records. Such documents help validate transactions and
offer crucial reference details for tax and multiple official purposes.
Storage: A TPS’s storage component is where organizations keep their output and input data.
Some businesses store the documents in a database. This component ensures the security,
accessibility, and organization of all documents for late use.
Processing System: The processing system goes through every input and establishes a useful
output, for example, a receipt. It helps outline the input data and defines what the outputs must
be. One must remember that the processing time varies depending on the type of TPS an
organization uses.
Features
The following are some crucial features of a TPS:
Controlled Access: TPSs are powerful business tools. Hence, only authorized employees
can access it. In other words, it allows only certain employees to control and process
transactions.
Connection With The External Environment: TPS establishes a relationship with the
external environment by distributing information to suppliers and customers.
Fast Response: This feature is crucial for a TPS as organizations cannot afford to keep
their customers waiting long before completing a transaction.
Inflexibility: A TPS processes all transactions in the same way, irrespective of the time of
day, user, or customer, to maximize efficiency.
Reliability: A TPS must be reliable as customers do not tolerate errors; it must have
adequate security and safety measures.
Distribution Of Details To Other Systems: A TPS produces and distributes information to
different systems. For instance, sales processing systems provide information to general
ledger systems.
Types
TPSs are of two types. Let us look at them.
#1 – Batch Processing
A TPS interprets batches or sets of data by categorizing items by similarities via batch
processing. This can cause delays as it involves reviewing various data sets simultaneously.
However, the delay is acceptable as the TPS does not interpret the sets regularly.
Businesses may customize the batches according to their requirement. For example, a company
may want to process its workers’ wages once every two weeks.
#2 – Real-Time Processing
This type of TPS processes transactions with immediate effect, thus preventing delays. This is an
ideal technique when businesses deal with singular transactions.
Examples
Let us look at a few transaction processing system examples to understand the concept better.
Example #1
Suppose David purchased a t-shirt from Amacon, an online apparel and clothing retailer. He used
his credit card to pay for the item. The company’s TPS collected the credit card details,
communicated with its bank, and approved the purchase based on David’s account balance.
Example #2
Let us say that John pays for a Chill TV subscription at the beginning of every month to watch
the latest TV shows and movies. Chill TV’s TPS processes all transactions as a set as they occur
simultaneously. Since the system processes a set of transactions once every month, it requires
high computing power. Hence, a delay in processing the transactions is acceptable in this case.
Advantages And Disadvantages
Let us look at the benefits and limitations of a TPS:
Advantages
 A TPS helps organizations save funds by minimizing their need to improve their system
or utilize multiple systems to fulfill demand.
 Companies can use a TPS to process transactions accurately and quickly.
 A TPS automates a significant part of a company’s revenue management and internal
resources. Because of this, employees can review transactions faster. Moreover, this
gives them more time to focus on critical thinking tasks.
 It allows businesses to carry out operations in multiple segments by working remotely.
This enables organizations to explore new markets that are full of opportunities.
Disadvantages
 A TPS does not have a standard format.
 Companies have to incur a high set-up cost initially for TPS.
 Sometimes, hardware and software have compatibility issues.
 A TPS may stop working or slow down due to many transactions.