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How to Implement Human Resource Information System:

A Group project submitted to American International University-Bangladesh

Prepared and Submitted by:

Group: Monwar Associates

HRIS (Section: A)

Name: ID:
Khan, Md. Saquib 07-07642-1
Khan, Farhana Rahman 06-07290-3
Chowdhury, Mohd. Imran Hossain 07-07729-1
Ahmed Sharmin 06-06902-2
Haq, Faria. Taskin 07-08213-1

A Report Submitted to: Mr. Rana, Dipankar. Mazumder, Faculty and Instructor,
American International University-Bangladesh, in partial fulfillment of the
requirements of HRIS Course.

Spring 2010
Dhaka, Bangladesh
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ACKNOWLEDGEMENT

W e wo u l d li ke to e x p re s s o u r gr a t i t u de to t he o u r c o urs e
i ns t r uc to r R a na D i pa n ka r M a z u m de r , F a c u l ty o f A me r ic a n
I n te r n a t io na l U ni ve rs i t y – B a n gl a de s h f o r his ki n d , c o n ti n uo us
g ui da nc e a n d re le n tl e s s e f f o r ts to ma ke o u r G ro u p P ro j e c t
R e po rt a wo r t h o n e . W e be li e ve t ha t f o r h is e f f o rt a n d g ui d a nc e
we w e re a bl e to pre pa re t h is r e po r t w h ic h i s ba s e d o n ho w to
im p le me n t H R I S s o f t w a re a n d s o me pe r q uis i te be f o re ta lk i n g to
a n I T p e rs o n.
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Table of Contents:

Title: Page
1. HRIS; definition 4

2. Types of HRIS 5

3. Some prerequisites before implementing HRIS 5

4. Barriers to the success of implementing HRIS 6

5. 10 Commandments for developing HRIS 6

6. The business context 7

7. Key Users of the system 9

8. Major Content 10

9. Recruiting Process 10

10. How to use the software? 11

10.1 Performance Appraisal Form 13

10.2 Employee Personal Information Form 15

10.3 Training Information system 15

10.4 Compensation Information system 16

10.5 Employee Attendance Form 16

Security 17

Conclusion 18
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Human Resource Information System (HRIS)

1. HRIS, Definition:

System: A system is defined as interrelated components with a clearly defined boundary working
together to achieve a common set of objectives. A system have 5 components; input, processing,
output, feedback and control.

Information system (IS): An information system depends on the resources of people, hardware,
software, data and network to perform input, processing, output, storage and control activities that
convert data resources into information products.

HRIS: Human resource information systems provide the manager with data to support routine and
repetitive human resource decisions.

The goal of human resource management is the effective and efficient use of human resources of a
company

Thus HRIS is designed to support

1. planning to meet the personnel needs of the business

2. development of employees to their full potential and

3. control of all personnel policies and program

HRIS has 3 fundamental roles:

4. Record keeping

5. Reporting

6. Decision making
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2. Types of HRIS:

Operational HRIS: Operational human resource information systems provide the manager with data to
support routine and repetitive human resource decisions. Several operational-level information systems
collect and report human resource data. These systems include information about the organization’s
positions and employees and about governmental regulations.

Tactical Information System : Tactical information systems provide managers with support for decisions
that emphasize the allocation of resources. Within the human resource management area, these
decisions include recruitment decisions; job analysis and design decisions, training and development
decisions, and employee compensation plan decisions.

Specialized Human Resource Information Systems Software : A great deal of software has been
specifically designed for the human resource function. This software is available for all types and sizes of
computers, including microcomputers. Software specifically designed for the human resource
management function can be divided into two basic categories: comprehensive human resource
information systems software and limited-function packages that support one or a few human resource
activities.

3. Some prerequisites before implementing HRIS

 Business context (What is the organization’s culture, mission, technology, budget and
objectives?)

 Constrains (What are the constrains in developing HRIS?)

 Content (What information do we need to store?)

 Subcategories (Basic information such as employee’s family, name address etc.)

 Identify the key users

 How will HR professionals have access to the systems?

 What information they require?

 What information is not needed?

 How the design will help the users to make effective decisions?

 Who operates the database?

 What information will be confidential?

 Up to what level the information needed is to be disseminated?

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4. Barriers to the success of implementing HRIS:

 Lack of management commitment

 Low user satisfaction

 No or poorly done “Needs Assessment”

 Failure to include key users at the design stage

 Corporate politics

 Lack of communication

5. Ten Commandments before developing HRIS:

1) Know the business context

2) Identify key users

3) Identify content and sub-category

4) Define platform of the system

5) Select the IT person

6) Follow up final approval and agreement

7) Keep a user’s manual and technical manual

8) Test run the system with different user level

9) Allocate appropriate budget

10) Articulating implementation and follow up

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6. The Business Context

The human resource management (HRM) functions involve the recruitment, placement, evaluation,
compensation and development of the employees of an organization. The goal of human resource
management is the effective and efficient use of human resources of a company.

Thus HRIS is designed to support (1) planning to meet the personnel needs of the business (2)
development of employees to their full potential and (3) control of all personnel policies and program.

Today many organizations in Bangladesh have gone beyond the traditional personnel management
functions and have developed human resource information systems (HRIS) that also support (1)
recruitment selection and hiring (2) job placements, (3) performance appraisals, (4) employee benefits
analysis, (5) training and development, (6) health, safety and security.

A survey was conducted in 2008 among high performing and low performing firms in U.S.A, to find out
the effectiveness of HR practices. Interestingly all of the high and low performing firms had HR deliveries
(staffing, performance appraisal, training e.t.c) and similar qualified HR managers. The study found out
that HR deliveries alone cant help the organization to succeed, but when the HR practices/deliveries are
aligned with the firms business processes then it adds some value to the organization. Therefore an
understanding the entire business context is the pre-requisite for developing an HRIS diagram. The
business context is the organization’s vision, mission, objectives, strategy, culture and its budget. Here is
a sample organization structure which will provide us a framework for designing an HRIS diagram.

Company Name: XYZ

Type of Business: Large chain of retail shop.
Employees: 120
Generic Strategy:
 Differentiation
 Expansion
Number of Shops: 4
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Organization Chart
Key User of the system
Owner/President

Managing Director

Store Operations Public Relations Chief Financial Chief HR Chief IT Officer

Manager Officer Officer Officer

Promotions Treasurer Assistant HR

Officer

Supervisor Supervisor Supervisor Supervisor

(SHOP A) (SHOP B) (SHOP C) (SHOP D)

Store Senior Admin

Account Security Officer
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7. Key Users of the System:

I. (Level 1) Chief HR Officer (1 Officer)

II. (Level 2) Store HR Officers (4 Officers)
III. (Level-3) Key User= Chief Accounts Officer

i. Chief HR Officer: The Chief HR Officer has to make sure that the entire organizations including
the retail stores have appropriate number of key staffs to keep the business operations running.

 He has direct reporting relationships with each of the retail shops’ HR managers.
 Information accessibility: A direct access to employee information, HR reports and
other information regarding the HR practices (staffing, training, performance appraisals
etc.) of the entire organization.
 Have the authority to review every employee information using SELECT Statement as
well as create new data fields, update employee information and delete existing data by
using statements such as INSERT INTO, UPDATE and DELETE

ii. Store HR officer: The store HR officer has to maintain direct reporting relationship with the store
supervisor and the chief HR officer.
 Information accessibility: A direct access to employee information, HR reports and other
information regarding the HR practices (staffing, training, performance appraisals etc. of
the specific store he/she operates within.)
 Can review and update employee data using SELECT and UPDATE statements. However
they cannot DELETE any information

iii. (Level-3) Key User= Chief Accounts Officer:

 Will receive employees compensation information, as the payroll function is discharged
by the accounts.
 Appointment letter of new comers
 Employees monthly attendance record, for salary calculations
 Other information such as medical bills, etc., is also sent for necessary actions
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8. Major Content:

Training &
Development

Performance
Data Bank
Appraisal

Personal
Info.
Employee
Compensation
Attendance

Health &
Safety

9. Recruiting Process:

Medical
C.V Screening Interview
Exam
Job Offer

Data Personal
Information
Bank

In this organization people drop their CV’s for various posts e.g. HR Officer, Marketing Officer. Now
choosing the potential candidate out of a lot has to be done by the qualifications, experiences, skills,
trainings and language proficiency manifested in the CV’s and accordingly screen the right person to be
put in the right position and at the right time. The software will benefit the recruiting process through
automation of its processes. Here the diagram shows that when a candidate is screened out from the
recruiting process, his information is recorded into the Data Bank for the future. However, those
candidates who has passed the process, and accepted the job offer, their CVs will be transferred from
the Data Bank to the Personal Information system.
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10. How to use the Software :

The system will provide access to the assigned key users and provide those information which the user
is authorized to see. The fig 1 shows an initial entrance template which appears after the user clicks the
intranet browser.

Employee
ID:

Password:

Login Cancel

Figure: 1

After the user enters his ID and the correct password and the system has identified the user,
the following page will appear. (Here we assume that the user is the Level 1 user, who has
complete access to the system.)

Logout
Alerts

HR Report

HR Data Entry

Employee Personal
Information
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If the User clicks Alerts, the following will appear:

Alerts Home Logout

o No retirement
o 10 children are over aged
o No joining alert
o Assessment alert
o Contact expiration alert
o Movement alert
Save Cance

*The HR Report options provides published reports which are sent by the line managers. If the
Level-1 User wants to view or manipulate the data (Insert, update or delete), the HR data entry
option only created for this purpose.

Home Logout
HR Data Entry

Performance
Appraisal Report

Training Information

Compensation

Employee
Attendance
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If the user clicks Performance Appraisal Report, the following will appear:

Performance Appraisal Home Logout

Report

Description Performance Appraisal Report

Conducted By:  Manager X View
 Manager Y View
 Manager Z View

Description Performance Appraisal Report

Time Period November 2009 – February 2010
Conducted By:  Manager X
Appraise: o M.L Khabir View Report
o Md. Shobon View Report
o Md. Ratan View Report

Comment
Option o Check if no change will be allowed
o Check if manager can request
change
 Check if manager and employee
request change
Custom Message

10.1 Performance Appraisal Form:

Employee Appraisal enables the HR Manager to continuously track the status of the appraisal process
and use analytics to manage employee increments, bonus, promotions and training. In this system each
manager will be able to update their subordinates appraisal form which can be later reviewed by the HR
manager.
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*Note: When the user wants to see the appraisal of M.l Khabir, he will click View Report and the
report of the respective employee will appear.
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10.2 Personal Information System:

Name ID Job Salary Employee Records of Date Date Age Address

Classification Status Transfer or of of
promotions joining Birth

Education Status Marital Status Others

10.3 Training Information System:

Regular Training Sessions are being held for the employees of xyz Ltd. Therefore in order to update the
knowledge and skills of employees, need-based training programs are organized for employees at each
level. Since the training needs of employees are highlighted in the performance appraisal form, we will
design a system where training information form will be related to the performance appraisal form. This
will help managers to identify the training needs of various employees and take necessary actions. After
clicking the Training Button, the following will appear:

Employee Request For Request Request By Time Period Allocation Activity

Name Type Status
Tom Hewitt Business Course Manager 1/5/2010- Not Allowed View Modify
Seminars 31/5/2011
Homer Drive for Competency Manager 2/5/2010- Not Allowed View Modify
Simsons results 2/6/2010

Description N/A
Time Line 2010- preferably in the month of Sep/Oct
Training Program Code TRN-003
Comment
Option o Check if no change will be allowed
o Check if manager can request
change
 Check if manager and employee
request change
Custom Message

Note: If the user wants to change something, for instance to change the allocation period or creating a
new employee training request, than the manager will have to click modify. However if he wants to view
more detail information about the training content he just have to click “View” button. After clicking the
View button, the following page will appear.
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10.4 Compensation Information System:

The organization will maintain records of employee's monthly salary and increments in the computer. In
this organization only the Chief HR manager can allocate bonus and increments for managers and
employer after the final approval from the board. The HRIS will help the HR managers to record
compensation information and sent those electronically to Chief accounts officer for further actions.

10.5 Employee Attendance Template:

The company has a punch card system for employees which is electronically connected with the HRIS
software. Whenever an employee punches a card the system will automatically process employees ID
and time of entrance to the computer. The employee attendance sheet will be viewed by HR officers
and the account manager. If a user want to view an employees attendance report, he will see this:
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11. Security:

Now all the information that is to be stored systematically in a system has to be protected lest it might
be leaked out and fall into the hands of untitled users. For that we have to ensure security of the
system. We will look in details below why we need security of the system.

11.1 Why Security is necessary?

(a) Information is confidential and information of a particular employee should not be viewed by
anyone other than the employee himself/herself and HR manager, Accounts manager and top
management.
(b) It should be available, kept private and original whenever the authorized users will access it.
(c) Stored in computer so that can be retrieved whenever the authorized users need it.
(d) Prevents destroying of the information.
(e) Prevents data manipulation such as prevents the change and modification of the original
message.

11.2 Security Services:

There are five types of security services. They are as follows:

 Authentication- Confirmation of the origin of the message sent and that of the sender.
 Access Control- The prevention of unauthorized and public access to information.
 Data Confidentiality- The protection of data from unauthorized disclosure.
 Data Entry- Confirmation of the accurate message that has been sent or received i.e. no
changes, insertion, deletion or replay has occurred during the transfer.
 Non-repudiation- Protection against the denial of service in transferring messages.

11.3 Security can be ensured in the following ways:

(a) Password protection: This can be done through encryption. Encryption means to code the
original message so that even if it falls into the hands of unauthorized users the original message cannot
be retrieved. There are many ways a pass word can be encrypted. They are: Through Caesar Cipher
which is replacing the letters of the password with the third letter. E.g. The word Account Number A will
be replaced by its subsequent 3rd letter which is C will be replaced by its subsequent 3rd. letter E and so
on the Caesar cipher will continue. The account number will also be replaced the 3rd. letter e.g. the
account number 2425 5 will replace 2, 7 will replace 4 and so on.

Only authorized users will know how to decode the encryption and retrieve the original message.
Moreover the passwords chosen should be long and complicated on the part of the user usually should
be a combination of letter and numbers so that it cannot be easily retrieved.
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(b) Antivirus software scanning: There should be an excellent anti-virus stand by to always scan to
find out what viruses are there and kill them because viruses eat the entire files and information and
then it cannot be accessed by the users. Regular scanning for viruses should be conducted to secure all
the information and the anti-virus software should be regularly updated because old version software
cannot detect and kill the new emerging infections and viruses. E.g. of excellent quality anti-virus
software is Kaspersky, Norton, Avast and a few others.

(c) Define user level accessibility- No one other than the entitled users should be knowing the
passwords and the decoding of the encrypted codes. All of these people should be made to sign on a
bond which says that in case of password leaking to unauthorized people, authority reserves the right to
punish and terminate the person responsible.

(d) Backup and restore system- This is usually applicable in countries like Bangladesh and Pakistan
where load shedding is a common phenomena. There should be a save button which should be clicked
every two seconds during the process of creating the system so that current information is immediately
saved and UPS back-up systems so that in case of load shedding the UPS supports the PC being shut
down automatically. The PC being shut down automatically can mean the loss of information.

12. Conclusion:

Personal records have always been very important and necessary for good personnel administration. As
business continue to grow and the administration of personal becomes more sophisticated and
professional. The volume of records increases in proportion with the new technologies creating new and
vastly different records. Only sound records management can provide accurate information to
organization with the necessary clerks and balances in paper work and facilitate the retention of
information in an orderly manner. So the main function of HR specialists is to maintain control over
operations and to keep a record of how effectively the human resource have been utilized.