Ehrm Unit-3
Ehrm Unit-3
2. Core Functions
3. Benefits
4. Types of HRIS
6. Challenges
Implementation Costs: Initial and ongoing costs for software, hardware, and
maintenance.
Scalability: Ensuring the system can grow with the organization and adapt to
changing HR needs.
Evolution of HRM
Focus on Manual Labor: Jobs were mostly physical, and worker relations
were not systematically managed.
2. Early 20th Century: Scientific Management and Industrial Relations
Industrial Relations: During the same period, labor unions started to rise,
and the relationship between employers and employees became more
formalized. Companies established personnel departments to handle wage
setting, employee welfare, and dispute resolution.
Evolution of HRIS
1. Manual Systems (Pre-1960s)
Cloud and Web-Based Solutions: The 2000s saw the rise of cloud-based
HRIS, which allowed organizations to access HR systems via the internet.
This transition made HR systems more scalable, flexible, and cost-effective.
People Analytics and Big Data: HR departments now use people analytics
to assess employee satisfaction, predict turnover, and make data-driven
decisions to improve organizational performance.
Mobile and Global Workforce: With the rise of remote work and global
teams, HRIS systems provide mobile access and support global compliance
with labor laws, payroll, and benefits management across different regions.
The need for a Human Resource Information System (HRIS) arises from the
growing complexity of HR functions and the increasing importance of
efficient and strategic workforce management in organizations. Below are
the key reasons why organizations need an HRIS:
2. Streamlining HR Processes
Legal Compliance: HRIS helps organizations comply with labor laws, tax
regulations, and industry standards by automating compliance reporting,
maintaining accurate records, and tracking regulatory changes.
Audit Trails: HRIS systems keep detailed audit logs of HR activities, making
it easier to track actions and address potential issues related to compliance
or employee disputes.
Adaptability: Modern HRIS systems are flexible and can integrate with other
business systems, such as financial software or customer relationship
management (CRM) platforms, allowing for more seamless business
operations.
Legal Compliance: HRIS helps organizations comply with labor laws, tax
regulations, and industry standards by automatically updating records and
generating compliance reports. It also tracks changes in regulations to
ensure adherence.
5. Cost Savings
Data Encryption and Security Features: HRIS systems offer robust security
measures, such as encryption, role-based access controls, and multi-factor
authentication, to protect sensitive employee information from unauthorized
access.
1. Needs Assessment
User-Friendly Interface: The HRIS should be easy to navigate for all users,
from HR staff to employees. Intuitive design minimizes the need for
extensive training and ensures that users can quickly access the features
they need.
Role-Based Access Control: Ensure that the HRIS has role-based access,
meaning only authorized personnel can access sensitive HR data. Different
users should have varying levels of access based on their roles within the
organization.
Data Encryption: All sensitive employee data (such as payroll and personal
information) should be encrypted both at rest and in transit to prevent
unauthorized access.
Compliance with Data Protection Laws: The HRIS should comply with data
protection regulations, such as GDPR, ensuring that employee data is
handled in a secure and legally compliant manner.
ERP Integration: The HRIS should be able to integrate with other enterprise
systems, such as Enterprise Resource Planning (ERP) systems, accounting
software, and customer relationship management (CRM) platforms, to ensure
seamless data flow across the organization.
8. Workflow Automation
Vendor Support: Ensure that the HRIS vendor provides adequate customer
support, including troubleshooting, software updates, and ongoing
maintenance.
Scalability: Consider the organization's future growth and ensure the HRIS
can scale to accommodate increasing data, employees, and HR functions.
- Mobile Access: Ensure that the HRIS is mobile-friendly so that users can
access it on their smartphones or tablets, especially for organizations with
remote or mobile employees.
- Compliance with Data Protection Laws: The system should comply with
relevant regulations, such as GDPR, ensuring employee data is handled
responsibly and securely.
- Integration with ERP: Ensure the HRIS can integrate with other business
software systems, such as accounting, payroll, and enterprise resource
planning (ERP) systems.
- Custom Reports: Ensure the HRIS can generate detailed reports for HR
metrics like employee performance, compensation, turnover rates, and
recruitment efficiency.
- Ongoing Support: Ensure that the HRIS provider offers reliable customer
support and updates to address technical issues and provide new features as
the organization grows.
- Testing and Feedback: Before going live, conduct thorough testing of the
system, including all modules and workflows, to ensure functionality and
identify any issues.
- Go Live and Monitor: Once the HRIS is live, monitor its performance
closely and gather feedback from users to make any necessary adjustments.
2. Complexity in Implementation
- Data Breach Risks: HRIS stores sensitive employee data, such as personal
information, payroll details, and performance records. If the system is not
properly secured, it is vulnerable to cyberattacks, data breaches, or
unauthorized access.
4. Resistance to Change
- Complex Data Migration: Migrating existing data from old systems into a
new HRIS can be challenging and prone to errors if not done carefully,
especially when dealing with large volumes of historical data.
7. Over-Reliance on Technology
- Basic Reporting Features: Some HRIS platforms may offer only basic
reporting and analytics features, limiting an organization’s ability to derive
meaningful insights from employee data.
- Compliance Burden: HRIS must comply with multiple labor laws, data
protection regulations, and industry standards. Ensuring compliance in
different countries or jurisdictions can be challenging, especially for
multinational organizations.
1. Structure of HRIS
- Employee Database: This is the core of the HRIS, where all employee-
related information is stored. It includes personal details (name, address,
contact information), employment history, job roles, salary details, training
records, and benefits data.
- Data Input/Entry: Users input data into the system, such as adding new
employees, updating information, or recording leave and attendance.
b. Functional Modules
- Time and Attendance: Tracks employee work hours, leaves, overtime, and
absences.
d. Security Layer
f. Integration Layer
2. Mechanism of HRIS
The mechanism of an HRIS refers to how the system works in terms of data
flow, automation, and process management.
b. Automation of HR Processes
c. Workflow Automation
- Alerts and Notifications: The system can send automated notifications for
important events, such as upcoming performance reviews, compliance
deadlines, or contract renewals.
- Audit Trails: The system keeps a log of all actions taken within the HRIS,
such as data entries, changes, or access to sensitive information. This
ensures accountability and transparency in data management.
- Backup and Disaster Recovery: HRIS systems are equipped with backup
and recovery mechanisms to ensure data is safe and can be restored in case
of a system failure or data breach.
- Data Capture: The HRIS captures data through various input methods like
manual data entry, integrations with other systems, or forms filled out by
employees.
- Data Processing: The system processes the data to generate outputs like
reports, notifications, or updates to employee records.
5. Self-Service Applications
Conclusion
Here is a survey of software packages for HRIS, including ERP software such
as SAP, Oracle Financials, and Ramco. We will focus on data input, output,
and screens to provide an overview of how these systems work for HR
professionals.
Data Input
Data Output
- Reports and Analytics: Performance reports, compensation summaries,
and recruitment metrics are generated. Output can be customized based on
user needs.
Screens
Data Input
Data Output
Screens
Data Input
Data Output
- Payroll Data: Generates pay summaries, tax filings, and other payroll-
related data.
Screens
- Employee Experience Screens: Highly intuitive interface for employees to
access HR services, update profiles, and submit time-off requests.
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Data Input
- Payroll Information: HR can input pay details, bonuses, and deductions for
payroll processing.
Data Output
Screens
- Employee Self-Service Portal: Interface for employees to submit leave
requests, check pay slips, and update personal data.
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Data Input
- Time and Attendance: Employees can input hours worked, overtime, and
leave requests.
Data Output
Screens
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6. Workday HCM
Data Input
- Time and Attendance: Employees input their hours worked and leave
requests.
Data Output
Screens