A

CONTEMPARY ISSUES IN MANAGEMENT

ON
HUMAN RESOURCE INFORMATION SYSTEM

Prepare By
DABHI HARDIK

M.B.A SEM -2
Roll No.20
SEAT NO:002022

Guided By
Dr. HITESH SHUKLA

Submitted To

Saurashtra University
Rajkot
Department Of Business Management

Academic Year
2018-2019

INDEX

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NO PARTICULAR PAGE NO

1 INTRODUCTION 3

2 COMPONENTS 4

3 OBJECTIVES OF HRIS 5

4 FUNCTIONS OF HRIS 6

5 TYPES OF HUMAN RESOURCE INFORMATION 7

SYSTEM
6 ADVANTAGES OF HRIS 11

7 DISADVANTAGES OF HRIS 12

8 CHALLENGES OF HUMAN RESOURCE 14

INFORMATION SYSTEM

9 CHALLENGES FOR IMPLIMENTATION HRIS 17

10 BIBLOGRAPHY 19

Introduction

In the contemporary scenario of modernization and globalization, organizations heavily rely

upon technological advancement and innovation in the field of Information Technology.

Advancements in the field of IT has opened up newer avenues for the organizations and provided
a competitive advantage by using innovative and customized solutions. It has become an integral
part of the organizational functioning and all the departments depend on integrated systems for
organizing, storing, retrieving and reviewing data. Today Internet and automation has facilitated
accessibility, reliability and accuracy of information; improved organizational effectiveness and
provided a leadership edge by applying technology in various operations.

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Human Resource Management function is fast evolving and the application of Information
Technology has revolutionized the way in which organizations operate.

The field of Human Resource Management has been continuously evolving and the HR in
today’s scenario is playing a strategic role than merely a support system. Human Resource
function primarily deals with the employees, employers and all the people who are related with
the organization. It is designed to improve employee productivity, performance and align the
workforce with the business.

The HRM functions in an organization deals with people related issues like Recruitment &
Selection, Compensation, General Administration, Employee Welfare and Involvement,
Communication, Organizational Development, Performance Management, Employee
Motivation, Rewards & Recognitions and Training & Development.

HRIS or Human Resource Information System, is a customized software solution designed for
helping the organizations to automate and manage their HR, payroll, management and
accounting activities. HRIS affects the performance of the people, processes and key
organizational strategies by automating key HR processes like recruitment, training, manpower
planning, performance appraisal and job analysis & design.

What is human resource information system?

HR software mechanizes the day to day general and administrative functions performed by the
HR department, enhances overall employee productivity and performance. HRM applications
can be used for updating and recording employee information; its usage can make the
recruitment process more robust and effective.

HRMS facilitates applicant tracking, interviewing and confirmation process. Apart from this, the
workforce administration strategies can be streamlined and it can generate various cost
advantages to the organizations by streamlining various functional operations.

Human resource management system or HR Package (HR solutions) can be used in training
processes, tracking employee performance and participation (performance management system),
payroll management system and accounting, benefits and leaves.

According to Parry (2010), HRIS can serve as a vital strategic tool as it shares crucial data with
the management related with recruitment and retention strategies which can be aligned with the
overall corporate strategy for realizing the organizational objectives of growth. Additionally, by
using HR applications, a company can calculate the overall costs incurred per employee and it’s
effects on the business as a whole (DeSanctis, 1986).
COMPONENTS

1) Database
HRIS core offers database to store employee information. HR professionals can input all
personal data into the system, which can be reached anywhere, anytime. Types of information
that HR professionals can collect in the database include compensation history, emergency

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contact information, and performance review. The core database can also be viewed online as a
backup of paper files.

2) Time and Labor management

Labor and time management could be time consuming and hectic. HRIS package offers
employees to input their own hours worked and allows HR professionals to immediately verify
vacation requests, and the data is directly fed to the payroll. Time and labor management
improves the HR department's efficiency, punctuality and attendance.

3) Payroll Function
Payroll function is another important component of a HRIS. HR professionals can easily
download or unload employee hour, issue cheques or payroll deposits to employees. It reduces
risks of errors itself when it comes to paying the salary to the employees. The HRIS payroll
software assists usually to improve tax compliance for locations with multiple tax levels.

4) Benefits
HRIS also offers employer to establish and maintain health benefits, retirement investments
through the available softwares. Such software allows employers to have one-stop shopping
experience to fulfill all their human resource management needs.

5) Employee interface
Many HRIS packages offer an employee to have limited user access. It allows employees to
change and update their personal information, review pay scale, change retirement benefit
programs, update deposit information directly and more.

6) Recruitment and retention

Recruitment and retention are considered to be most important components of HRIS. It helps in
finding new talent, acquiring them and keeping them engaged, and retain them are major tasks of
a HR professional. They also ensure that the employees are not only able to work, but also,
provided with the required training, proper compensation and benefits from the company.

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OBJECTIVES OF HRIS
The basic objective of HRIS is to help and support the human resource management
department to function as an efficient and responsible area for managing the human resource of
the organization providing perfect, timely, accurate and dependable information for decision
making, policy framing and analysis. The other secondary, though principal objectives of HRIS
can be summarized as under.

• Identification of HR information need for every functional area of the organization.

• Creation of a comprehensive data base to fulfill these needs.

• To make the desired information available in the right form to the right person and at
the right time.

• To develop complete functional specification for the HRIS.

• Designing necessary transaction processing and updated information.

• To use the most efficient method of processing data.

• To identify retrieved and reporting needs of information.

• Developing pertinent supporting documentation.

• To provide necessary security and secrecy for important and confidential information.

• To keep the information up-to-date.

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FUNCTIONS OF HRIS

Human resource information system is expected to perform following functions.

 Data collection functions

 Data management functions

 Data collection functions

Who should collect what data and in what form and how often? The nature and the form
of data will vary from organization to organization depending upon its attitude and
objectives. The manner of data collection will depend upon the purpose for which data is
required. After collection of data, irrelevant data should be filtered and appropriate and
useful data should be properly classified and tabulated so that it can be used easily when
needed.

 Data management functions

A good data management system involves following sub functions.

• Processing operations, viz., classifying, analysing, summarising and editing the data.
• Storage of data, viz., indexing, coding and filing of information. • Retrieval ofdata
whenever required.
• Evaluation of data, i.e. judging the usefulness of information in terms ofits relevance
and accuracy.
• Dissemination of data, i.e., providing the required data in the right form at the right
time.

The data management system should be capable of giving efficient service in terms of day-to-day
processing of information. At the same time, the system design should not be rigid. With the
changes in conditions, demand of the information system may change. The same information
may be needed in different format or different levels of aggregation. An efficient system should
be able to quickly respond to these types of demands from different sources.

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Types of Human Resource Information System

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.

1. Employee Information Systems

The human resource department must maintain information on each of the organization’s
employees for a variety of decision and reporting purposes. One part of this employee
information system is a set of human resource profile records. An employee profile usually
contains personal and organization-related information, such as name, address, sex, minority
status, marital status, citizenship, years of service or seniority data, education and training,
previous experience, employment history within the organization, salary rate, salary or wage
grade, and retirement and health plan choices. The employee inventory may also contain data
about employee preferences for geographical locations and work shifts. Another part of an
employee information system is an employee skills inventory. The skills inventory contains
information about every employee, such as work experience, work preferences, test scores,
interests, and special skills or proficiencies.

2. Position Control Systems

A job is usually defined as a group of identical positions. A position, on the other hand, consists
of tasks performed by one worker. The purpose of a position control system is to identify each
position in the organization, the job title within which the position is classified, and the employee
currently assigned to the position. Reference to the position control system allows a human
resource manager to identify the details about unfilled positions.

3. Applicant Selection and Placement Information Systems

After jobs and the employee requirements for those jobs have been identified and after a suitable
pool of job candidates has been recruited, the candidates must be screened, evaluated, selected,
and placed in the positions that are open. The primary purpose of the applicant selection and
placement information system is to assist human resource staff in these tasks.

4. Performance Management Information Systems

Performance Management Information Systems include performance appraisal data and

productivity information data. Performance management information systems data is frequently
used as evidence in employee grievance matters. Careful documentation of employee

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performance and of how the performance was measured and reported is critical to acceptance of
appraisal information in grievance hearings.

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TACTICAL HRIS
Tactical human resource 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.

1. Job Analysis and Design Information Systems

The information inputs to the job analysis and design information system include data from
interviews with supervisors and workers and affirmative action guidelines. Inputs also include
information from sources external to the firm, such as labor unions, competitors, and government
from sources external to the firm, such as labor unions, competitors, and government agencies.
The outputs of the job analysis information system are job descriptions and job specifications.
These outputs provide managers with the basis for many tactical human resource decisions.

2. Recruiting Information Systems

To direct the recruiting function, the organization needs to develop a recruiting plan. The plan
specifies the positions to be filled and the skills required of the employees for these positions. To
develop the plan and to monitor its success, a recruiting information system is necessary to
collect and process the many different types of information needed to construct the plan,
including a list of unfilled positions; the duties and requirements of these positions; lists of
planned employee retirements, transfers, or terminations; information about the skills and
preferences of current employees; and summaries of employee appraisals. Other inputs to the
recruiting plan include data about turnover rates and about the success of past placements.

3. Compensation and Benefits Information Systems

The Compensation and Benefits Information Systems may support a variety of tactical human
resource decisions, especially when compensation and benefits information is related to
information from internal and external sources. Compensation and benefit plans can play an
important part in improving an organization’s productivity. Tying employee productivity to pay
or encouraging increased productivity with incentive pay plans can often improve an
organization’s productivity substantially.

4. Employee Training and Development Systems

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The training offered by the employee training and development systems must meet the needs of
jobs available in the organization as identified through the position control system and the job
analysis and design system. The training should also be directed at those persons interested and
capable of benefiting from it, as identified by the skills inventory and human resource files.

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STRATEGIC HRIS

1. Information Systems Supporting Workforce Planning

Organization involved in long-term strategic planning, such as those planning to expand into new
market areas, construct factories or offices in new locations, or add new products, will need
information about the quantity and quality of the available workforce to achieve their goals.
Information systems that support workforce planning serve this purpose.

2. Information Systems Supporting Labor Negotiations

Negotiating with craft, maintenance, office, and factory unions requires information gathered
from many of the human resource information systems. The human resource team completing
the negotiating needs to be able to obtain numerous ad hoc reports that analyze the
organization’s and union’s positions within the framework of both the industry and the current
economic situation. It is also important that the negotiating team be able to receive ad hoc reports
on a very timely basis because additional questions and tactics will occur to the team while they
are conducting labor negotiations.

Comprehensive HRIS
In the last few years, the software industry has produced several products that organize the
various human resource information systems into integrated software referred to as human
resource information systems or HRIS software.

In general, the computerization of HRIS has resulted in an integrated database of human resource
files. Position files, employee files, skills inventory files, job analysis and design files,
affirmative action files, occupational health and safety files, and many other human resource
files are constructed in a coordinated manner using database management systems software so
that application programs can produce reports from any or all of the files. Thus, the human
resource management director can produce reports listing likely internal candidates for open
positions by running an application program that queries position files, job requirements files,
and skills inventory files.

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 Limited-Function HRIS
Numerous commercial software packages are sold for use on mainframes, minicomputers, and
microcomputers that are designed to handle one or a small number of human resource functions.
Microcomputer versions of these single-function software packages are relatively inexpensive
and easy to operate and allow the human resource manager to automate a function quickly and
easily.

1. Training Software
Many training software packages are available for all types and sizes of computers to provide on-
line training for employees. They include

 Management training software

 Sales training software
 Microcomputer training software
 Word processing training software

These software packages can be used in computer-based training programs designed by human
resource department for training specific employees in-group and independent study programs.
Computer-based training aids often simplify the trainer’s job and allow the trainer to
individualize instruction more easily than in traditional, group-based training classes.

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 ADVANTAGES OF HRIS
Some of the services that an HRIS platform can provide are:

 Management of all employee information, including payroll reports, Paid Time Off requests and
balances, W2’s, pay statements and much more
 In-depth reporting and analysis of employee information
 Resource library for documents such as employee handbooks, safety guides and ect.
 Benefits administration, including enrollment, status changes and updating personal information

Highlighted below are 6 benefits of an online human resource platform:

1. Access at your Fingertips Anywhere, Anytime

An HRIS platform offers you and your employees the flexibility of accessing information
after business hours, from home or cell phone as long as the computer or device is properly
authorized.

2. All Your Information is in One Central Place

No more digging through files and folders. Your shared information is readily available
for both employers and employees in one location.

3. Reduce Human Error

Unintentional miscalculations and data errors from manual entry can become costly
mistakes. Implementing an HRIS platform will help in preventing tax risks, financial errors,
general compliance issues and other human errors.

4. Advance Data Security

With password protection and advance data securities, all information is traceable and
personal information is kept safe.

5. Communicate More Effectively

An HRIS platform strengthens collaboration and keeps communication open. Your

employees can become more engaged and connected through newsletters and alerts.

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Disadvantages of HRIS

 Privacy Concerns

One of the chief disadvantages of HR management systems is the increased capacity for
breaches in the privacy of your employees, management and business officials. In spite of federal
and state laws providing legal protection for privacy in the workplace, if your HR management
system is accessed by unauthorized individuals, your team’s personal information may be up for
grabs. Although your system may be safeguarded by password protection, this barrier is often no
match for technically savvy people from inside and outside your company’s walls. Fortifying
your system internally and externally augments the safety of your data.
 Security

On par with ruptures in privacy protection are fissures in the security system protecting
your HR management software. Technical wizards abound who possess the talent and skills
required to enter your management system and mine it for all the information your company
holds dear, such as your business's HR strategy for future company growth. Additionally,
electronic media is vulnerable to attack by viruses from anywhere on the Internet. Contracting a
virus can disable your HR management system severely enough to render it unusable for an
indeterminate time. Supplementary to purchasing a solid back-up application, a simultaneous
decision should be made to invest in a virtually attack-proof program that protects your HR
management data from encroachment.
 User Error

Inherent in the use of HR management systems is the means for inaccuracy. Because
computers and their associated programs are only as effective as their human users, data entry
errors can and do occur. In HR management systems, such errors can have grave consequences.
At best, minimal errors, such as a few misspelled employees’ names, may occur. At worst, errors
in data entry could disrupt the workflow of your business. If, for example, your HR management
system displays a number of incorrect dates designating when to carry out significant employee
performance reviews with ensuing promotions, the adverse results may include a contagious
drop in employee morale, which could affect levels of productivity.
 Employee Assessment

HR management systems can be effective in selecting employees for certain positions or for
advancement, based on performance scores and other information. However, the human factor is
removed from these types of tasks by the system. For example, when analyzing employee talent,
your system may reveal high scores in sales, new accounts or marketing efforts, but may not be
capable of uncovering an employee’s habit of treating customers in disparaging ways. To realize

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the total evaluation of a staff member, an HR management system should have some way to
prompt human input.
 Down Time
Integrated with all computers and software are the inevitable issues that cause technical
difficulties. HR management systems are equally susceptible to down time, with possibly dire
consequences. These can include bringing a critical business activity to a halt if employee data is
not accessible. For example, if your HR professionals have scheduled a day devoted to open
enrollment for a new employee health plan, the inability to access your HR management
system’s data could not only delay enrollment in the health program but could feasibly push
open enrollment out for weeks or months, leaving eligible staff members without coverage.
Concerns such as this can be minimized by policies calling for ongoing focused technical system
maintenance.

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Challenges of Human Resource Information System
In this technological world, a lot of things are run by the most advanced technology. Therefore,
those managers are using the latest technology to operate the whole system in the company. By
using these latest technology can help the company work more effective and can help keep their
company information more safe and secure. It is same as for the Human Resource Information
System (HRIS). Human Resource Information System (HRIS) could be count as the latest
technology that can help analyze the data necessary for human resource department to do its jobs
properly. So, William (2006) say the Human Resource Information System (HRIS) is usually a
part of the company’s larger Management Information System (MIS) that to help the company to
making recruiting, promoting, payroll, employee selection and placement, intake and training
projections, career-pathing and productivity evaluation. These information systems help the
administrative more effective and produce reports capable of improving decision making. But
there are some challenges to make this useful Human Resource Information System cannot work
well at all and will make Human Resource Information System work fail. The following are the
challenges of Human Resource Information System:

 Training the users to use HRIS.

 Cost to purchase and implementation of HRIS.
 Time to adapt the HRIS.
 Lack functional expertise in designing.
 Improper vendor provide illegal copy of HRIS.

 Training the users to use HRIS

The first challenge of company to implementation the Human Resource Information

System (HRIS) is ensuring that a HRIS for a company involve one key issue that is have the
users that can use this HRIS as well as he/she can said by William (2006). The HRIS could be
count as the latest technology to operate to human resource department, but there is not every
manager and employees know to use this system well and some of them even do not know what
this system is and what this system is for. For this case will make the company face the challenge
to use this HRIS to help their human resource department to do its jobs perfectly. This will also
cause the company cannot work efficiently, quick access to information and the information will
be have risk to stole by other company easily. So, human resource department need to provide
training to employee of a company in certain areas and the human resource department must
make sure that the employees in the company are properly trained to use the HRIS well.
However, teaching the employees how to use system is not the only component needed and it is
also critical to teach the employees know to use the HRIS to locate the answers to solve the
human resource questions. This requires the employees who under this training program need to

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adopt the new mindset of self-service rather than turning the human resources questions to the
answers by using the Human Resource Information System (HRIS) and make employees become
a part of HRIS.

 Cost to purchase and implementation of HRIS

Next, the one of the most significant challenge facing by the company to run the Human
Resource Information System (HRIS) is the cost to purchase and implementation of a Human
Resource Information System (HRIS) said by William (2006). If the company is looking the cost
to justify a HRIS new system or upgrade one, they will much need new HRIS software. But for
the company already have a policy to cost justifying any new technology for their produce and
investment and this cause the company facing the lack capital problem to purchase and
implementation of HRIS. Besides that, HRIS system represents a large investment decision for
company of all sizes to purchase and implementation this HRIS and this will become the
challenge that is the lack capital problem facing by the company. Therefore, some company does
not want to upgrade their HRIS system to a new one, even some of the company still using the
traditional way to operate their human resource department. This situation will lead the company
cannot get the benefits from HRIS that is improved accuracy of information, the provision of
timely and quick access to information and the saving the costs of human resource. So, having an
HRIS system in the company are very important and it can also bring a lot of benefits to the
company and help to reengineer the entire Human Resource (HR) function to work more
effective and help the human resource department can use full of HRIS advantages and the
company can operate properly too.

 Time to adapt the HRIS

Besides that, the challenge facing by the company is the time that employees and
managers need to take to adapt the Human Resource Information System (HRIS) said by K.
Michele (2006). Although for the company have already send the employees and managers who
in certain area of human resource department to training to use the HRIS, but the employees and
the managers need to take times to adapt the new system. Even if the employees and managers
know how to use the system, it will not serve the company if they cannot perceive any benefits
from its use said by K. Michele (2006). Besides that, some employees are not good in using
computer, they will take very long time to adapt this new system even they are trained
employees. Not only that, by using the Human Resource Information System (HRIS) will help to
reengineer the entire Human Resource (HR) function and this also need take time for employees
and managers to adapt this system. Some of their company’s HRIS system are lack flexibility
will cause the employees and managers use more time to adapt the system. Even this HRIS need
some time for employees and managers to adapt for it but HRIS still can bring a lot of
convenient to human resource department and it can help the company can operate properly.

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  Lack of functional expertise in designing

The challenge facing by the company is lack of functional expertise in designing of

Human Resource Information System (HRIS) said by K. Michele (2006). The HRIS could be
count as the latest technology to operate to human resource department to do the job properly,
but there are not yet become a flexibility system for operate the department and company need to
hire the expert in this HRIS system keep maintain the system in perfect condition. The lack of
flexibility of HRIS would have a risk hacking by theft of information, the company’s
information would easily know by other people.

 Improper vendor provide illegal copy of HRIS

The last challenge that face by the company is the improper vendor that provide the
illegal copy of HRIS said by Pamela (2006). It is because the HRIS is the latest technology for
the company to operate the human resource department and implementation HRIS are expensive,
so many of company willing to implementation the illegal copy of HRIS because the improper
vendor cost the company cheaper than others. The illegal copy of HRIS possible have the virus
that always make the system clash down then the company need to ask the improper vendor
repair it and improper vendor can keep charge the company repair fees. Besides that, the illegal
copy of HRIS possible have the spyware that let the improper vendor have the backdoor that
allow the improper vendor can stole the information from the company. So, for every company
need to avoid buy the illegal copy from improper vendor.

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Challenges to HRIS Implementation

Acquiring and implementing a new HRIS software solution can be exciting as companies and
their employees consider all of the ways that the new solution will benefit their daily lives and
save time. However, many companies make the mistake of getting wrapped up in the potential
benefits and failing to properly address the challenges that come with HRIS implementation.
Understanding what some of the top challenges to HRIS implementation are and how to address
them can ensure greater implementation success.

 Employee and Manager Training

The value of training employees and managers to use a new system should not be
underestimated. Even the most intuitive systems can seem imposing when employees and
managers are unfamiliar with the appearance and functions of the system. Employees and
managers should be involved in the implementation and adaptation of the system as much as
possible and a fair amount of time should be set aside for employees and managers to learn to
use the new system.

 Employee Change Management

Managing change is different from training, but can be addressed during HRIS training meetings.
Additional support should also be available after training to help employees adapt to using the
new system on a daily basis. Managers should clearly express how and when employees can
reach out to discuss issues with the new changes, as with emails or specific office hours.

As part of change management, employers should be prepared to discuss:

 Why the change (new system) is needed
 What changes there will actually be
 What effect the change will have on individuals
 What steps must be taken to successfully transition

 Configuring HRIS for Optimal Function

HRIS often have so many possible features available to use that companies become
overwhelmed and stick to the basics. This may be helpful for getting used to the system at first,
but will not help companies to maximize their ROI. After the initial stages of implementation, it
may be helpful to bring in an expert to configure the system to send alerts and automatically
print reports that can help with labor management, compliance, recruitment and staffing, and
productivity.

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  Assessing Quality and Accuracy of Information

Information is only accurate and valuable when the right formulas are used to derive the
information and the right constraints and cross-references are used to analyze the data. For
companies that have never used HRIS, it can be difficult to determine how to assess accuracy
and quality of information. HRIS analysts or vendor representatives may be invaluable for
overcoming this challenge.

 Complying with Legal Requirements

Even small organizations may have dozens of federal, state, and local regulations to
adhere to. Failing to understand the legal requirements for the data, process, and structure can
cause companies to incur penalties and make them susceptible to audits. HRIS vendors may be
able to help companies understand what reports and information will be required to show
compliance with regulations.

 Ensuring Data Security

With SaaS and cloud-based HRIS software becoming ever more common, companies must make
sure that data is secure right from the start. To assess the security of a new system, companies
should ask vendors about the security of data in transit and data at rest and understand what data
security management systems are in place. Just as importantly, companies should take
precautions to ensure password management and to make sure that only parties with clearance
can access certain sensitive information.

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 BIBLOGRAPHY

https://www.hrpayrollsystems.net/challenges-to-hris-implementation/

https://www.researchgate.net/publication/322758492_HRIS_Implementation_in_Organizations_Issues_and_Chall
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https://www.hrpayrollsystems.net/challenges-to-hris-implementation/

https://www.researchgate.net/publication/322758492_HRIS_Implementation_in_Organizations_Issues_and_Chall
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https://yourbusiness.azcentral.com/disadvantages-human-resource-management-system-16368.html

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