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GROUP: HARSIMRAN JASS ROSHNI PATEL VINAYAK KHARE NITIKA KATARIA VARUN SEONIE RAGHAV SARDANA SHAILENDRA KANDHARI D 56 D 15 D 48 D 13 D 32 D 28 D 58
AN INTRODUCTION TO HRIS
Human Resource Information System (HRIS) is a systematic way of storing data and information for each individual employee to aid planning, decision making, and submitting of returns and reports to the external agencies. It is an online solution for the data entry and tracking of a company's human resources department information, payroll, management, and accounting.
A human resource information system (HRIS) is defined as a computer based application for assembling and processing data related to the human resource management (HRM) function. As in other types of information systems, an HRIS consists of a database, which contains one or more files in which the data relevant to the system are maintained, and a database management system, which provides the means by which users of the system access and utilize these data. The HRIS thus contains tools that allow users to input new data and edit existing data; in addition, such programs provide users with the opportunity to select from an array of predefined reports that may either be printed or displayed on a monitor. Reports may address any of a number of different HRM issues (e.g. compensation planning, equal employment opportunity monitoring). HRISs also generally include tools by which users or system administrators may generate ad hoc reports and select specific cases or subsets of cases for display. It merges HRM as a discipline and in particular its basic HR activities and processes with the information technology field. It can be used to maintain details such as employee profiles, absence reports, salary administration and various kinds of reports. An effective HRIS provides information on just about anything the company needs to track and analyze about employees, former employees, and applicants. Thus, in a nutshell, an HRIS system serves the following functions: Storing information and data for each individual employee. Providing a basis for planning, decision making, controlling and other human resource functions. Meeting daily transactional requirement such as marking absent and present and granting leave. Supplying data and submitting returns to government and other statutory agencies.
followed by human resource management systems. which generally involve the automation of relatively routine tasks (e.. calculating pay and printing checks). Thus. Firms have experienced increased competitive pressures that have translated into greater cost containment demands from upper management.LITERATURE REVIEW Human Resource Information Systems (HRIS) have become one of the most important tools for many businesses. Many firms do not realize how much time and money they are wasting on manual human resource management (HRM) tasks until they sit down and inventory their time. employee information access. Computer applications used in the field were generally limited to basic record keeping and payroll management systems. and employer regulatory compliance. A number of trends seem to have contributed to a growing reliance on computers as information-processing and decision-aiding tools in HRM. The following text begins with a discussion of human resource planning. Especially in difficult economic times. it is critical for companies to become more efficient in every sector of their business. human resource managers are no longer dependent on information system professionals to develop and implement applications (which might be assigned a lower priority than other management functions). manual record systems often dominated in personnel or human resource departments. Virtually all such systems were based on mainframe computers and required extensive support from information systems professionals. that to an increasing extent. human resource managers had little opportunity to design sophisticated reports and computer-based analytical tools to aid in managerial decision making. The ready availability of microcomputers and relatively userfriendly software means. HRIS refers to software packages that address HR needs with respect to planning. Many HRM 3 . The HRM field lagged behind a number of other functional areas of management in the utilization of computer applications. leading to greater automation of the recordkeeping function in the HRM field. Prior to that time. especially as it related to the strategic management function. but beginning in the late 1980s extensive use of sophisticated applications began to appear.g. HRIS is advancing to become its own information technology (IT) field. necessitating more sophisticated use of information. In general. It allows companies to cut costs and offer more information to employees in a faster and more efficient way. uses of computers in HRM fell into the category of electronic data processing applications. Even a small office needs to realize the benefits of using HRIS to be more efficient. The emergence of the human resource management field (versus personnel administration) gave the human resource function greater credibility within the managerial hierarchy.
This transformation means that both organizational productivity gains and competitive advantage depend on high quality worker competence. relying on World Wide Web technology. In other words. file claims. In addition. but are usually secured in a variety of ways so that only authorized users can access the information on the internal components. increasing productivity through people is now paramount.departments in larger organizations have also developed internal information system capabilities. While it is quite easy to generate static extracts of HRIS data tables. essential human resource functions have recently become even more critical to general organizational well-being. so that HRIS units have been established. The issues seem to have been addressed. One summons organizational change that may be perceived as a threat to the status quo. such systems allow organizations to interact with clients in a secure environment that mimics the Internet.) to gather and disseminate information within the firm. and facilitate filing of various claims. Another variant is the extranet. obtain coverage information. The user may check on the current status of his or her fringe benefits. Employees in client organizations can then connect to the insurance vendor's extranet from within the employer's intranet environment in order to check on the status of their policies. forms. intranet displays can be tailored to the needs of specific users. Intranets may be linked to the external Internet. queries. This paradox stems from the requirement for U. 4 SIGNIFICANT ACHIEVEMENTS . and HRIS products are increasingly emphasizing their functionality in intranet environments. 1998). allow them to bid on job openings. Again. however. servers. let them submit suggestions. vacation time. etc. and reports for posting on an intranet. training program enrollment.S. or pension fund. businesses to improve productivity from their skilled workers in order to satisfy the demand shift from manufacturing to technological and intellectual innovations (Cascio. 1998. Consequently. An intranet is an internal network that makes use of World Wide Web technology (browsers. This allows real-time collection and display of information. Intranets obviously require extensive security measures to prevent inappropriate changing or accessing of data. Robbins. while the other set of outcomes gives highly valuable potential benefits for organizational performance. Human resources operations challenge organizations with a dualistic yet interdependent set of outcomes. Perhaps the most significant development in the HRIS area currently is the growing use of organizational intranets as a means of managing many aspects of a firm's HRIS. Thus a health insurance company might establish an extranet that links to the intranets of its major clients. Thus employees can complete forms online that enroll them in benefits programs. it is also quite feasible to establish live links between an intranet and a firm's HRIS. and follow-up on outstanding claims.
All indications are that HRISs will continue to play an increasingly important role in the HRM field. many organizations have turned to information systems technology (Haines. 1996). Richards-Carpenter. i. & Petit. 1997. An important driving factor is that HRISs facilitate process reengineering in the HRM area. technology selection. & Simon. Finally. 1999. & Petit. 1997. 1996. 1996. 1986. & Petit. 1996).To achieve these complex objectives. Richards-Carpenter. 5 . Richards-Carpenter. Haines. RichardsCarpenter. 1997. Functions that. & Newstrom. these applications vary widely from organization to organization. computer based information technology serves as a tremendous tool for operationalizing HRIS applications. & Kathcart. past studies have shown that over 90 percent of organizations have a formalized and separate HRIS department or an equivalent function (Cholak. & Benson. 2001. the linking of HRISs to organizational intranets is apt to gain in popularity as a relatively inexpensive and appealing means of gathering and distributing human resource information. The reliance on technology has deceptively been prompting the false assumption that HRIS is synonymous with computerized human resource information systems. Pierce. 1991. Nevertheless. Indeed. 1991. Haines. Furthermore. 1997). & Petit. Kuhn. 1997. computer technology is not required for a successful HRIS function.e. 1997). Simon. thus promoting greater efficiency. 2002). 1979). However. Nearly all organizations have actually implemented some form of HRIS Anonymous. & Magnus. 1996). Simon. and organizational reporting structures (DeSanctis. Weick. 1997). And the business firm's continuing demand for information to facilitate planning and strategy formulation will necessitate further reliance on HRISs. once. Many related tasks such as rapid information dissemination and feedback would be impractical or impossible without computerized support (Benjamin. 1986. and many HRIS activities still defy computer automation (Grossman. and there is equal diversity in the resultant benefits (Cholak. 1997). information systems technology has introduced wide spread implementation of human resource information systems that more fully allow organizational members to participate in information sharing and decision-making. successful HRIS functions support such key processes as executive decision-making. 1997. With this major charge. & Werner. & Simon. Haines. Preliminary research shows that successful HRIS operations are identified by such outcomes as organizational competence. their generalizability is limited due to the absence of a comprehensive foundation in which to contextually base these findings (Kovach. meeting strategic goals (Thomas. In reality. DeSanctis. 1986. 1988. interdepartmental integration. & Werner. & Petit. were carried out manually and in many steps can often be largely automated. employee training. Haines. While such studies provide valuable insights into HRIS implementation. Richard-Carpenter.
complete forms. training and documentation. Training: Training beings as soon as possible after the contract has been signed. additional clerical people from the HR department will be needed to be added. It evaluates the costs and benefits of an HRIS. The result of this analysis will determine whether to purchase with whom at what price level? inception of idea feasibility study selecting project team defining requirements vendor analysis package contract negotiations training tailoring the system collecting data testing the system starting-up running in parallel maintenance evaluation Step 6. Inception of idea: The idea for having an HRIS must originate somewhere. Step 5. and perform other non-technical tasks associated with HRIS use. Feasibility study: Feasibility study evaluates the present system and details the benefits of an HRIS. the members of the project team are trained to use the HRIS. This includes the written descriptions of how users collect and prepare data. service. A large part of the statement of requirements specifies in details of the reports that will be produced. The originator of the idea should prepare a preliminary report showing the need for an HRIS and what it can do for the organizations. Step 4. The project team should consist of HR representatives who are knowledgeable about the organization’s HR functions and activities and about the organization itself and representatives from both management information systems and payroll. the contract has been negotiated. The contract stipulates the vendors’ responsibilities with regard to software . Step 3. As the project progress. Step 2. installation.PROCESS OF HRIS Step 1. retrieve data. maintenance. Step 7. Package contract negotiation: After a vendor has been selected. Selecting a project Team: Once the feasibility study has been accepted and the resources allocated. obtain approvals. a project team should be selected. Vendor analysis: This step determines what hardware and software are available that will better meet the organization’s needs for the lowest price. Defining the requirements: A statement of requirements specifies in details exactly what the HRIS will do. Towards the end of the 6 . First.
7 . All the reports should be critically analyzed for accuracy. By this time errors are adjusted and handled. It is wise to attempt start-up. the HR representatives will train managers from other departments in how to submit information to the HRIS and how to request information from it. some additional errors often start-up. data must be collected and entered into the system. Maintenance: It normally takes several weeks or even month for the HR people to feel comfortable with the new system. Starting up: Start. Collecting data: Prior to start-up of the system. Evaluation: After the HRIS has been placed for a reasonable length of time. because modifications frequently cause problems. Step 12. Testing the system: Once the system can been tailored to the organization’s needs and the data is entered. Running in Parallel: Even after the new HRIS has been tested. Step 9. An alternative approach is to develop programs that augment the vendor’s program rather than altering it. it is desirable to run the new system in parallel with the old system for a period of time to examine its accuracy. Step 8. Step 10. the system should be evaluated for the successful survey in the organizations. Step 11.up begins when all the current actions are put into the system and reports are produced. a period of testing follows. Though the system has been tested. A general rule of thumb is not to modify the vendor’s package. Step 14.implementation. Tailoring the system: This step involves making changes to the system to best fit the needs of the organization. Step 13. The purpose of the testing phase is to verify the output of the HRIS and to make sure it is doing what it is supposed to do.
employee morale. employee absenteeism and employee turnover. 8 .MODEL OF HRIS INPUT SUBSYSTEM HR research subsystem: It gathers data about various aspects of human resources management such as job analysis. job evaluation.
HR intelligence subsystem: It gathers human resources information from external environment both formally and informally. promotion. insurance scheme and other payment. Appraisal system: Appraisal involves evaluating an employee’s quality and performance for devising suitable compensation package training. OUTPUT SUBSYSTEM HR acquisition system: The functions involved in this system are human resource planning. selection and placement. Compensation is referred to as money and other benefits received by an employee for providing services to his employer like provident fund. transfer and separation. caring for employees safely and health and managing stress that employees may experience at the workplace. HR development system: HRD system requires information about the competencies that are to be developed among employees. compensation involves determining the incentives. demotion etc. gratuity. Compensation management: It is concerned with designing and implementing total compensation package. 9 . HR maintenance system: HRM system deals with maintaining employees in the organization. It involves human resource mobility in the form of promotion. benefits etc. recruitment. demotion.
Industrial relation system: IRS is concerned with managing good relations between management and operatives. This involves designing of industrial relations mechanism. redressing employee grievances and managing industrial disputes. managing employee discipline. THREE LEVELS OF HRIS DATA APPLICATIONS Training Projects STRATEGIC • Economic trends • Industry forecasts • Manpower demand forecasts Manpower planning Pension fund investments FUNCTIONAL Employee background and experiences Performance evaluation and rewards Skills inventory Recruiting Employee selection Employee placement Employee promotion Assignments matching OPERATIONS Benefits programs Compensation programs Insurance programs Employee demographics Position description Internal Reporting Absentee rates Human resources accounting Productivity assessments External Reporting Equity monitoring Vacancy reporting Health & safety reporting 10 .
USAGE AND BENFITS OF HRIS NEED: Costly exercise:Personal records. It was difficult to make entries. when kept manually. When the organization grows in size the manual system fail to offer reliable. do not offer up-to-date information at short notice. Fragmentation:Information is not available at a central. APPLICATION & UTILITIES: Personnel administration Salary administration Leave & absence recording Skill inventory HR planning USES Performance appraisal Recruitment Collective bargaining Career planning Medical history 11 . NEED OF AN HRIS Inaccurate:The manual transfer of data from one record to another may increase the chances of errors. Difficult to analyze:The manual analyzes of data is time consuming and quite often not readily available for decision making purposes. The clerical involved is quite labor-intensive and costly. easily accessible place since records are kept at different locations. accurate data at short notice.
a good HRIS system must be able to perform what if analysis and present the reports of changes.A computer terminal can be positioned in the conference room linked to database.Record details of recruitment activities such as cost and method of recruitment and time to fill the position etc. Human resource planning . APPLICATION & UTILITIES BENEFITS: Higher Speed of retrieval and processing of data Reduction in duplication of efforts leading to reduced cost BENEFITS Ease in classifying and reclassifying data Better analysis leading to more effective decision making Higher accuracy of information/report generated Fast response to answer queries 12 . personal details etc. Salary administration .It is also used to store record of acquired skills and monitor the skill database both employee and organizational level.It will encompass information about each employee.Personnel administration . such as due date of appraisal.Salary review procedure are important function of HRM. Leave and absence recording . Skill inventory .HRIS should record details of the organizational requirements in terms of positions Recruitment . This will expedite negotiations by readily providing up to date data based on facts and figures and not feelings and fictions. such as name address.Essentially be able to provide comprehensive method of controlling leave/absences.The system should record individual employee performance. Performance appraisal .System must be able to provide with succession plans reports to identify which employee have been earmarked for which position. appraisal data. Career planning . scores etc. Collective bargaining .
without any hitch. payroll records. the human resource department is able to keep better track of which benefits are being availed by which employee and how each employee is profiting from the benefits provided. to personal details. With updated information this system makes the job of the human resource department very easy and simple as everything is available on a 24x7 basis. calculating various deductions and taxes on salaries. and benefits information. employee benefits and HR management. EMPLOYEE BENEFITS PAYROLL Employee benefits are very crucial because they help to motivate an employee to work harder. 13 . A Human Resources Information System (HRIS) thus permits a user to see online a chronological history of an employee from his /her position data. and all the information is just a click away. payroll. TIME & LABOR In time and labor management a Human Resource Information System (HRIS) is advantageous because it lets human resource personnel apply new technologies to effectively gather and appraise employee time and work information. These four basic HR functionalities are not only made less problematic. By using a Human Resource Information System (HRIS) in employee benefits. time and labor management.Improved quality of reports Better work culture Establishing of streamlined and systematic procedure More transparency in the system Employee – Self Management ADVANTAGES The four principal areas of HR that are affected by the Human Resource Information System (HRIS) include. and if there are any improvements that can be made to make an employee feel more secure. generating automatic periodic paychecks and handling employee tax reports. It also gathers information such as employee attendance. The advantage of a Human Resource Information System (HRIS) in payroll is that it automates the entire payroll process by gathering and updating employee payroll data on a regular basis. but they are ensured a smooth running. It lets an employee's information be easily tracked so that it can be assessed on a more scientific level whether an employee is performing to their full potential or not.
HR MANAGEMENT A Human Resource Information System (HRIS) also has advantages in HR management because it curtails time and cost consuming activities leading to a more efficient HR department. HRIS TRACK EXAMPLES PERFORMANCE EVALUATION WITHOUT HRIS: • • • • • Prepare evaluation forms Print and copy them Distribute forms to employees Employees fill in evaluation Evaluation forms personally submitted to HR Manager 14 . This system reduces the long HR paper trail that is often found in most HR divisions of companies and leads to more productive and conducive department on the whole.
copy and distribute them to employees File all the forms for future use WITH HRIS: Define evaluation forms Online evaluation Entry One-click access to results History info captured Evaluation reports Strategic Decision making process can take place 15 .• • • • • Re-write results to the computer or file them Manual processing of data gathered Prepare result sheets Print.
WITHOUT HRIS: LEAVE APPLICATION ADMINISTRATION Prepare leave application forms Print and copy them Manually maintain employee attendance information daily Maintain company calendar Employee applying for leave fills in an application form Application form personally submitted to Supervisor Manual check for employee’s leave status history Supervisor’s approval or rejection Application form personally submitted to HR manager Manual update of employee’s personal leave information file WITH HRIS: Define company specific leave admin processes Online leave application form Online leave approval/Rejection History info captured Leave balance reports generated by the system Saves strategic resources 16 .
not during work hours. I received several e-mails from employees saying this was a great change and how easy ESS was. consisting of students. The Response: In order to centralize HR operations Shaw’s decided to implement an ESS (employee selfservice) solution.000 located at 180 stores throughout six states." Penney. In order to help manage the workforce. second-job part-timers. and compensation management. employees have online access to forms. 17 . which helps reduce the paperwork of the past. With a workforce of 30. The use of self-service applications creates a positive situation for HR. training material. and career part-timers. succession planning. ESS gives HR more time to focus on strategic issues. Shaw’s has also seen improvement in productivity because employees are updating information at home. the employee cost. An employee self-service application makes it very easy for them to understand their contributions and coverage options. "The reaction from our employees has been extremely positive. such as workforce management.COMPANY ILLUSTRATIONS SHAW’S SUPERMARKET The Situation: Shaw’s Supermarkets is the second largest supermarket chain in New England. The Outcome: Shaw’s has had positive feedback since implementing the ESS solution. By giving the employees more access to their information they are able to see the benefit choices available to them. senior citizens. With this solution. "We even had a significant increase in our medical coverage costs. the HR staff became interested in centralizing its HR operations. VP of Compensation and Benefits. One third of the workforce is made up of union associates. 2002). Shaw's HR staff is responsible for managing employees' personal data. says. and it was almost a non-issue because the online enrollment featured the plan choices. Their employee mix includes approximately 70 percent part-time employees. and ensuring that their data is accurate." (Koven. which the case is not often when employees are selecting their benefit options. benefits information and other payroll related information. 2002). and the company subsidy. Employees are also able to update their information online. and Shaw's staff oversees the company's involvement with three unions and six separate contracts (Koven. while at the same time improving service to employees and managers.
households were victims of identity theft in 2004. borders: the New York Times reports that stolen financial information is often distributed among participants of online trading boards. and employees regularly transport the computer between home. Employees stores all client related data and tax preparation software database on the encrypted drive. This software allows employees to create an encrypted virtual drive on the laptop that serves as data storage safe. even by connecting it to another computer as a “slave drive. The Outcome: Employees who are transporting lab tops should install the Steganos Security Suite on their computer. a compliance consulting firm in Delray Beach. which employees store on CDs in a fireproof safe.6 million U.S. Rita Dew. and physical safeguards related to client records and information. Other programs that are being used to protect client’s information are RAID Level 1 system to store data on the drives that are encrypted with WinMagic’s SecureDocs software.S. This should keep the data secure if any employee’s laptop is stolen or if the drive is removed from the laptop. an Ameriprise Financial employee’s laptop that contained unencrypted data on approximately 230. says that the Securities and Exchange Commission requires investment advisors to have policies and procedures that address the administrative.AMERIPRISE FINANCIAL The Situation: The Department of Justice survey estimates that 3. 18 . Trafficking in personal date goes beyond U. The best thing is that when an employee turns off the computer the information is stored “safe”. technical. In late December 2205. including Citigroup and Bank of America. The vulnerability of this arrangement and the need for a safety software program is much needed.000 customers and advisors was stolen from a car. and the buyers are frequently located in Russia. Encryption ensures that anyone who steals the computer will be absolutely unable to read the data. Florida. Other financial advisors are relying on encryption both in and out of the office. also acknowledge large-scale customer data losses in 2005. office. which employees has set up with one gigabyte of storage space. and meeting sites. Other financial services firm. One reason clients are concerned about data security is the widespread publicity generated by breaches at financial services firm. The software also generates encrypted backup files.” It is important for employees who their primary business computer. President of NCS. the software automatically encrypts the virtual drive’s data. and the Middle East. Ukraine. This has given many financial advisors the greatest peace of mind. The Response: Ameriprise Financial had to fight back and had to implement “layers of protection.
the management of Terasen was convinced to look for a vendor to help implement and maintain a HRIS system. The Outcome: Although there was difficulty adapting to a new way of recordkeeping. the HR department saw a need to find a new system to keep more accurate records. After researching different companies. Terasen began to look into HRIS companies to help with the HR operations. One theme often voiced throughout this process was: "You guys don't know how hard we're working when we can make it so much easier with a system that could do a lot of this for us. This system has helped Terasen better prepare for current and future growth." (Vu. You don't always have to run to the cabinet for the employee file just to get basic information. 2005).TERASEN PIPELINES The Situation: Terasen Pipelines is a subsidiary of Terasen Inc. Hewitt’s application service provider model with eCyborg was found to be the right fit. Fortunately. 19 . Terasen was able to find a system that will help support the current and future growth of the company. Canada and is located in several provinces and U. In 2001 the company changed its headquarters to Calgary to be closer to the oil. the company went through a growth spurt. this system does not work as well as in the past. states. In order to compensate for future growth. With the company in many different locations and the growing numbers of employees. some of the HR staff had experience working with an HRIS and were able to help their colleagues imagine new processes. In order to help Terasen ease the HR burden of implementing a new HR system. as aided by a system. The Response: In the past Terasen had kept records on paper and with spreadsheets and with the growth of the company.S. With the big move. located in Vancouver. It can all be at your fingertips.
Small firms are internally incapable of HRIS applications and hence they need the help of external resources. Absence of continuous up-dating of HRIS makes the information stale. 20 . Thorough understanding of what constitutes quality information for the user. Computer systems are only as good as the data they have to work with. there's not much a new system can do about it. so if a public agency or company starts out with bad information.LIMITATIONS It can be expensive Its effective application needs large-scale computer literacy among the employees responsible for maintaining HRIS.
this report has revealed the following: By automating Human Resource practices. effectively reallocates work processes and thus provides competitive advantage and adds strategic value to the organization. b) Effectiveness when management can spend more time in decision-making and strategic planning. 21 . The development of HRIS applications that cater to the needs of human resources is very important. which is used to determine whether current HR capabilities are congruent with the desired organisational objectives. From a broader perspective. HRIS saves time and money. The implementation of HRIS applications results in two benefits: a) Efficiency of operations and streamlined HR administration. an HRIS yields a well managed business with better informed employees.CONCLUSION HRIS is considered a strategic way to develop a new philosophy towards the way in which people are managed in an organization. Comprehensive HRIS provides the needed information within the shortest period and at reduced cost. HR managers must make use of HRIS to achieve improved performance and removing routine administration allows them to become professional consultants to the rest of the organization. and less time on information input and day-to-day HR administration. Many decision making strategies are based on HR analysis. In summary.