PHS 3233

Chapter 1

Human Resource Information System (HRIS)

Or
Human Resource Management System (HRMS)

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 The purpose of studying HRIS

• To know the development, evolution and legal

implications of HRIS.
• To understand how HRIS can be used to ease
and support HRM functions.
• How HRIS can provide timely & accurate
employee info, to assist decision makers at
both strategic and operational levels.
• To experience and to have hands-on execution
of IT based HRMS
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 HR work services

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 What is HRMS?

A Human Resources Management System (HRMS)

is a software application that combines many
human resources functions, including employee
database and benefits administration, payroll,
recruiting and training, and performance analysis
and review into one package.

Note: For the purpose of this class, HRMS & HRIS is used
interchangeably.

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 Definition……cont’d
• HRMS (Human Resource Management
System) or HRIS (Human Resource Information
System) is a combination of systems and
processes that connect human resource
management and information technology(IT)
through HR software. HRMS is to handle all HR
activities electronically.

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 HRMS definition…….cont’d
• Human Resources Management Systems
(HRMS) keep track of employee data such as
sick and vacation days accrued and taken,
employee performance and all aspects of
personnel management. A HRMS stores
data that can help you better manage your
people and track performance reviews. When
there are issues with performance, you can
track the initial problem against any
improvement (or declines).
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 HRIS definition......cont’d
• Human Resources Information Systems (HRIS)
keep track of important static information about
employees such as address, IC No., contact
number and withholding information, benefits
status, payroll information and which department
the staff works in. Payroll processing is also a part
of HRIS. At a reporting level, HRIS can crunch
simple metrics and statistics/charts such as
turnover, staff headcounts and other information
useful for planning purposes.

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 HRMS Systems
HRMS Applications:

Performance Mgmt,

HR Core System :

Daily performance

Human Capital
Scheduling tools

Talent Mgmt

On-boarding
Recruiting,

Employee database

Mgmt:
T&D
information
Payroll
Benefits admin
Attendance, time-off, leaves

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 HRIS shifing paradigm

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 The evolution of HRIS
• It was driven by the advancement of
Information Technology (IT).
• Driven by the need for an integrated system
for – organizing, storing, retrieving and
reviewing data.
• HRIS software solution is designed to
automate, facilitate, process and HRM
functions – easier, more accurate and faster
processing.
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 The evolution of HRIS…..cont’d
• Started as early as 1950’s in the USA in a
payroll system(Martinsons, 1997).
• The development of HRIS software was faster
during 1990’s when computers were more
advanced.

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 HRM has evolved…..

• Evolved with the development of IT.

• IT has played an increasing role in the HRM
functions.
• HRIS has big influence on HRM.

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 HRM before……….

• Personnel dept, caretaker, record keeping &

record updating.
• Transactional activities (65%)
• Traditional activities (30%)
• Administrative, productivity, compliance

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 HRM after………
• Human resource management in wider
spectrum – forward looking
• Transformational
• Strategic, planning emphasis
• Integrated, info sharing
• Real time
• Web-based
• participates financial and cost management

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 The “best-fit” HRIS depends on…..

• The size of organization

• Top management support – financial
commitment.
• The availability of resources
• Employees/users competence

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 The effectiveness factors to HRIS
success…
• The alignment of all strategies – firm,
departmental, HR strategies.
• How HR programs/activities tie together with
HRIS.
• Cooperative relationship between HR,
departmental managers, users of IT with
IT/system developers.
• The continuous updates, improvement to
keep up with the needs and demand.
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 Essential features………
• Employee database/profile.
• Salary related details – e.g. relate to time
attendance.
• The option of self-service – ESS, MSS.
• Payroll module
• Ease of accessibility anytime, anywhere, any
gadgets.
• Publishing reports, dashboard
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 Benefits
• HRMS can help you track crucial data such as
performance improvement measures without
shuffling paper.
• Facilitate management of your people by
allowing you to track employee initiatives
without getting bogged down in manual record
keeping.
• Gives you more time to put the human in human
resources and less time behind your computer
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 HRIS benefits
• By using HRIS, you can get your HR staff out of
the business of administrative record-keeping.
• No more HR to be the dusty repository of info
locked in filing cabinets that isn’t translated
into relevant usable data.
• HR can participate more meaningfully in
planning and leadership

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 HRIS modules
Currently human resource management systems encompass:
• Employee database/profile
• Payroll
• Time and attendance
• Performance appraisal
• Benefits administration
• Recruiting
• Learning management systems/e-learning
• Employee self-service
• Management self service
• Scheduling
• Absence management
• Analytics

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 HR Management process
• Primary HRM process is to create information flow that
support the following :
– Repetitive work routines
– Decision needs
• The HRM process supports the work routines of the HR
department and provides information for management
decision by:
– Capturing, recording, and storing data e.g. attendance
– Generating HR form & documents, job application forms
– Preparing management reports, e.g. charts
– Preparing statutory reports, e.g. EPF, SOCSO, LHDN

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 The payroll process
• The payroll process maintains of payroll profile,
entitlements, deductions, statutory
requirements, attendance records, bank account
info.
• Payroll process is automated as computers are
faster at handling repetitive routines.
• HRIS software may include:
– Benefits administration e.g. annual leave
management, recruitment module, training &
development, statutory reporting.

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 The law: Salary must be paid out within 7
days from cut-off date

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 Integrating HRIS with other platform

• HRIS can be integrated with other IT platform

in the organization such as IT in finance and
logistics.
• The integration could share common data :
– Creating a single source of employee info
– Minimizing data redundancy
– Ensuring data integrity, consistency & accuracy
– Facilitating data maintenance

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 Example of HRMS

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 Multi-nationals and group of companies or
branches

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 Assignment of job grades, related to different
levels of compensation

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 Organization chart built in

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 Compensation & different benefits entitlements

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 have info of each name of employee, IC No.,
DOB, gender, address, contact no., salary rate,
EPF No., Bank Acct No……..etc

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 HRMS Opening MENU

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 HRIS

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 No more shuffling of employee files

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 …..HRIS will do

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