Human Resource Information System (HRIS)

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Agenda Introducing HR & IS Concept of HRIS Need of HRIS Case Study of Visited Company Utility and Applications Implementation of HRIS Benefits Limitations Conclusion

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HRM – An Introduction Human Resources is an organizational

function that deals with issues such as recruitment and selection, training, appraisal, compensation and performance management of the employee.

Human beings are also considered to be resources because it is the ability of humans that helps to change the gifts of nature into valuable resources. While taking into account human beings as resources, the following things have to be kept in mind:

The size of the population The quality "The people that staff and operate an

organization"; as contrasted with the financial and material resources of an organization. 3

HRM – AST&D View

EmployeeEmployeeassistanceassistance

Compensation/Compensation/BenefitsBenefits

PersonnelPersonnelResearch &Research &

ISIS SelectionSelectionAnd staffingAnd staffing

HRPHRP

Organization/Organization/Job designJob design

ODOD

T & DT & D

EmployeeEmployeeassistanceassistance

HR areas output:Quality of work life

Productivity readinessfor change

HR areas output:Quality of work life

Productivity readinessfor change

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Information System

A system, whether automated or manual, that comprises people, machines, and/or methods organized to collect, process, transmit, and disseminate data that represent user information.

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HRIS - Introduction 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 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 admin. and various kinds of reports. 6

HRIS – Why it is needed? 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.

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HRIS – Why it is needed?

Building organizational capabilities

Job design and organizational structure

Increasing size of workforce Technological advances Computerized information

system Changes in legal environment

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HRIS Track

Personal Records

Recruitment &

Selection

Employment Equity

Salary Administrati

on

Trng. & Dev.

Compensation

Employee Relations

BenefitsHR

Planning

Pension Administratio

n

Medical Records

Health & Safety

Job

People

Positions

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HRIS – Appl. & Utilities Personnel administration - It will encompass

information about each employee, such as name address, personal details etc.

 Salary administration - Salary review procedure are important function of HRM, a good HRIS system must be able to perform what if analysis and present the reports Of changes.

Leave and absence recording — Essentially be able to provide comprehensive method of controlling leave/absences.

Skill inventory - It is also used to store record of acquired skills and monitor the skill database both employee and organisational level.

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HRIS – Appl. & Utilities Performance appraisal — The system should record

individual employee performance, appraisal data, such as due date of appraisal, scores etc.

Human resource planning — HRIS should record details of the organisational requirements in terms of positions

Recruitment — Record details of recruitment activities such as cost and method of recruitment and time to fill the position etc.

Career planning - System must be able to provide with succession plans reports to identify which employee have been earmarked for which position.

Collective bargaining — A computer terminal can be positioned in the conference room linked to database. This will expedite negotiations by readily providing up to date data based on facts and figures and not feelings and fictions.

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HRIS - Development

CONCIEVE & PLAN

ANALYSE

DESIGN

TEST

IMPLIMENT

MAINTAIN

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Planning Steps Develop overall objectives Identify HRIS project Set priorities Analyze resource requirements Set schedule and deadlines Develop the HRIS plan

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Selecting an investigating team

HR personnel Consultants Users Top management

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Data analysis

Document current application flows Document current technical architecture Conduct need analysis / business requirements

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Preliminary design tasks

Finalize functional requirements Which functions will be adopted to new systems Finalize technical requirements Select hardware and systems software Application software evaluation and selection Make Vs Buy

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Specify application requirements Element of the design

Data flow Data storeProcessesProceduresControlsRoles

Implementation

Ongoing maintenance activity is required to keep the information in the database u

p to date

The database is a living breathing thing that requires constant attention -- you can’t just build it and say “that’s it”.

(Curtis)

Maintain the database

HRIS – Example

Oracle/PeopleSoft HRMS (ver. 12) Automates the entire recruit-to-

retire process. A single integrated application

includes the following HR activities: Recruitment Performance management Learning Compensation and benefits Payroll Workforce scheduling Time management and real time analytics.

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Oracle/PeopleSoft HRMS

Example: Payroll System Based on a global HRMS engine

with country-specific localization extensions

Integrated with Human Resources (core), Advanced Benefits, Self-Service HR, Incentive Compensation, and Oracle Financials.

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Oracle Payroll: Scope & Utilities Defines comprehensive eligibility rules that link user-

defined criteria. Defines standard rules for automatically assigning

and changing employee compensation and benefits. Minimizes workforce inquiries by providing near real

time remuneration data and history. Utilizes simple, configurable formulae. Controls each employee’s unique processing rules

and calculations using FastFormula. Uses conditional logic for more complex cases. Streamlines administrative processes. Reduces set-up costs and processing time & errors. Manages global compensation with one application. Organization-wide control of workforce payroll and

compensation data. 21

Oracle Payroll: Scope & Utilities Implements Oracle Payroll's core payroll engine, by

adding local extensions to attain the legislative functionality and country reporting requirements.

Configures and manages personalized compensation policies and programs with one global payroll engine.

Monitors payroll processes end-to-end. Reconciles errors while maintaining current

calculations. Simultaneous processing of multiple groups of

employees. Reduces administrative costs with online paperless

pay-slips. Standard and personalized reports are utilized to view

and analyze your payroll data. Configurable security for unique access. Maintains audit logs of changes. 22

HRIS - Benefits Employee Satisfaction Up to 50% Worker Productivity  40-60% Learning Effectiveness Up to 40% Service Levels  20-30% Employee Turnover  20-70% Time to Ramp New Hires 50%

Sources:  Giga 2003, Cedar 2002 

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HRIS - Benefits Higher Speed of retrieval and processing of data. Reduction in duplication of efforts leading to

reduced cost. 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. Improved quality of reports. Better work culture. Establishing of streamlined and systematic

procedure. More transparency in the system. Employee – Self Management.

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HRIS - Disadvantages It can be expensive in terms of

finance and manpower. It can be threatening and

inconvenient. Thorough understanding of what

constitutes quality information for the user.

Computer cannot substitute human beings.

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