How Hris Can Better Facilitate Hr Operation In Corporate Sector

The Impact of HRIS on HR Functions and Organizational Efficiency in the Corporate Sector

by Pradeep*,

- Published in International Journal of Information Technology and Management, E-ISSN: 2249-4510

Volume 6, Issue No. 2, May 2014, Pages 0 - 0 (0)

Published by: Ignited Minds Journals


ABSTRACT

This paper evaluates the impact of the HRIS system on HR functions,time management, cost management, managerial satisfaction and organizationalefficiency. We also discussed the relationship between Human ResourceInformation System (HRIS) functions and Human Resource Management (HRM)functionalities. The contributing role of HRIS is measured by the complianceand application level of HRIS functions to HR functionalities. Managers have a fairly positive view of the impact of the HRIS onorganizational effectiveness with the greatest degree of confidence beingplaced on the impact of HRIS on time management and on HR functions. Theresults confirm that a well implemented and managed HRIS enables readilyavailable information to be translated into more information sharing, greaterknowledge transfer and management.

KEYWORD

HRIS, HR operation, corporate sector, impact, HR functions, time management, cost management, managerial satisfaction, organizational efficiency, relationship, Human Resource Information System, Human Resource Management, compliance, application level, managers, organizational effectiveness, information sharing, knowledge transfer, management

INTRODUCTION

In today’s knowledge-economy, organizational success depends tremendously on the performance of human resource management (HRM) (Lippert and Swiercz, 2005; Troshani et al., 2011). Furthermore, Human Resource Management (HRM) has recently turned its concentration on knowledge sharing and strategic workforce analysis and has been increasingly evolving into a significant contributor on the organizational strategic management (Rodriguez and Ventura, 2003; Troshani et al., 2011). An organization’s human resources are its greatest asset and the effective management of its human capital is a fundament source of competitive advantage. Organizations worldwide have begun to realize the importance of personnel in driving the strategic focus and realizing the goals of the business and have concurrently invested in technology and, in particular, Human Resource Information Systems (HRIS) to recruit support and manage its HR. Hence, over the past decade, the use of HRIS in the private as well as the public sector has increased. A United States of America survey illustrated that 70% of large firms use HRIS, 80% conduct online recruiting, 67% post job openings online, and 40% use web-based portals as a means of communicating company policies (Grobler, Warnich, Carrell, Elbert & Hatflied, 2006). Whilst HRIS is successfully utilised in China, Wei and Feng (2013) believe that there are many problems being experienced in the application of HRIS in Chinese SMEs including information content, information management and system evaluation. In their survey on UK companies, Kinnie and Arthurs (1996) found that the most frequent uses of HRIS were in operational areas of employee records (72%) followed by payroll (66%) and pensions (57%). Likewise, Teo, Soon and Fedric (2001) found that HRIS was predominantly used for employee record keeping (96.8%) and payroll (90.5%). In Hong Kong companies, HRIS was used the most for providing general information (86.4%) and payroll services (84.7%). In India, service organizations apply HRIS in performance and reward management more than manufacturing companies (Kundu & Kadian, 2012). Evidently, information technology is having a drastic impact globally on the function of human resource management. However, an increase in the use of HRIS does not imply successful implementation of the HRIS in contributing to the strategic direction of the organization and the effective realization of corporate goals.

AN HRIS IN DECISION SITUATIONS

If you read the above memos again, you will recognize that each one has a request for HRM information that will be used in a decision situation. The information requested in Memo 1 will help the legal department determine the company’s potential liability in a workplace gender discrimination situation. This information may help to determine whether the company should decide to rectify the situation in information required in Memo 2 may help the HR department decide to change its payroll procedures as well as its distribution of benefits information to remote company locations. The information needed to respond to Memo 3 will impact decisions by the HR department to change recruitment and selection programs. Obviously, the response to Memo 4 would greatly support the need for the acquisition of an HRIS. The information required to answer Memo 5 may help in decisions regarding the revision of recruiting and training procedures, especially for new engineers. The information that would be provided in response to Memo 6 will help decide the future of the HR department. As you go through this book, look at information on the capabilities of various human resource information systems, trying to find an HRIS that would allow you (as the HR director) to respond to each of the six memos in one day.

DEVELOPMENT OF HRM AND HRIS

One can analyze the historical trends of the HR function from different viewpoints: the evolution of HRM (human resources management) as a professional and scientific discipline, as an aid to management, as a political and economic conflict between management and employees, and as a growing movement of employee involvement influenced by developments in industrial, organizational, and social psychology. The historical analysis that follows will demonstrate the growing importance of employees from being just one of the replaceable parts in organizations in the 20th-century industrial economy to being a key source of sustainable competitive advantage in the 21st-century knowledge economy. The role of HRM in the firm has changed over time from primarily being concerned with routine transac-tional and traditional HR activities to dealing with complex transformational ones. Transactional activities are the routine bookkeeping tasks—for example, changing an employee’s home address or health care provider. Traditional HR activities are focused on HR programs like selection, compensation, and perfor-mance appraisal. However, transformational HR activities are those actions of an organization that “add value” to the consumption of the firm’s product or ser-vice. An example of a transformational HR activity would be a training program for retail clerks to improve customer service behavior, which has been identified as a strategic goal for the organization. Thus, transformational activities increase the strategic importance and visibility of the HR function in the firm.

MANAGERIAL SATISFACTION:

In the Municipality concerned, as issues were discovered pertaining to the old HRIS, managerial satisfaction with the system declined and hence, a However, if not properly implemented or effectively utilized, the HRIS can fail to bring about managerial satisfaction. Fundamental to a successful implementation of a HRIS is support from executive management and formalized cross-functional support teams (Insight Consulting Partners, 2012). Managerial satisfaction with the HRIS is enhanced when the system’s advantages for management are realized, namely, the increase of overall decision-making efficiency, cost reduction and improved control of budget, business transparency, a clear business vision and a clear insight into the process of recruitment, selection and termination of employees at the aggregate level (Dorel & Bradic-Martinovic, 2011). Johnson and Gueutal (2012) caution that although HR staff and line employees will have access to volumes of data to support decision-making, the latter does not improve measurably though time-to-decision is reduced. Satisfaction with the HRIS is also influenced by system quality; information quality and perceived ease of use (Bal, Bozkurt & Ertemsir, 2012).

INSINUATIONS, BOUNDARIES, AND PROPOSAL

This paper shows the importance of human resource information systems functions in human resources management functionalities. Organizations nowadays operate in an environment that is characterized by being dynamic and of having a hyper competition. In order to face such a tough competition, organizations should invest in their human resources. The different organization their human resources information systems and should benefit more from using it. Organizations should make sure that dimensions such as strategic integration, forecasting and planning, human resources analysis, and communication and integration do play a significant role within HR departments. Such factors improve the effectiveness of human resource departments which at the end would have a positive reflection on the organization as a whole

CONCLUSION

In this paper we have analyzed that the implementation of the HRIS like the first appearance of any new system in an organization is accompanied by positive and negative perceptions. It is, therefore, recommended that an internal audit should always be conducted after the introduction of a new system to determine how best the system can be modified to deliver the original system as promised to meet employees’ expectations.

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Pradeep

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